Ladbrokes Recieve GBP80m Tax Cut!
22nd April, 2010
Ladbrokes’ shares took a 5.3 jump up to 162.7p yesterday after they announced that they had, "reached a settlement with HM Revenue and Customs" which covers outstanding tax issues for accounting periods up to 2007 resulting in a £80m tax rebate.
Brian Wallace, Ladbrokes’ finance director, denied that there had been any row with the Revenue. "We are a company that is quite alive in its tax planning," he said. "The Revenue and the company got together and found a settlement that works for both of us." The accounting tax rate is projected to remain at 19pc "over the medium term".
Simon French, an analyst at Panmure Gordon, commented: "This announcement will be well received by the market and we increase our price target to 141p but retain our sell recommendation as we continue to believe the turnaround job for incoming chief executive Richard Glynn will take longer to achieve than the market currently believes."
Shareholders will be asked to vote on a new executive incentive scheme. Executives have to invest shares between 50% and 150% of their base salary to participate in the plan, which pays nothing unless the share price reaches at least 200p.
By Faye
