Ladbrokes is to kick off the hunt for a new chief executive after announcing that Richard Glynn, who had been under pressure amid tumbling profits, is to step down next year.
The bookmaker, which operates more than 2,200 betting shops across the UK, said Glynn was going as part of an “orderly transition” of leadership, having held the post since April 2010.
He had been asked to lead a five-year recovery programme that included overhauling Ladbrokes’ online and gaming machine operations.
However, pressure intensified in August when the company revealed its pre-tax profits fell by almost 50 per cent to £27.7 million in the first half as it was hit by unfavourable sporting results and a race to roll out new services in time for the World Cup.
Ladbrokes said its operational overhaul was now complete and it would shortly begin interviewing internal and external candidates for the top job, with Glynn expected to stay on until a replacement is found.
Chairman Peter Erskine yesterday admitted the firm’s recovery had taken longer than expected, due to economic and regulatory challenges, but paid tribute to Glynn’s “considerable achievements in delivering a new digital future” for the company, which is now trading in line with expectations.
Glynn added: “Everyone at Ladbrokes has worked incredibly hard over the past, nearly five years, to deliver the transformation programme.
“I am very proud of the resilience and professionalism the team has shown during this intense period of activity. It is the right time for Ladbrokes to identify my successor.”
Shore Capital analyst Greg Johnson, who has a “hold” rating on the company’s shares, said: “Excitement over new management may encourage the market to revisit the recovery angle at Ladbrokes, which could be worth up to 240p per share on our analysis.”
Ladbrokes, the UK’s second-largest bookmaker behind William Hill, last month said retail director Nick Rust would also leave next year to become chief executive of the British Horseracing Authority.
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