Ladbroke’s Irish business lost €14m in 2012

Bookmaker Ladbroke’s Irish business lost €14.3 million in 2012 following a write-down in the value of an investment in a group subsidiary, the latest accounts show.

Figures recently filed with the Companies’ Registration Office show Ladbroke (Ireland) Ltd won €51.6 million from punters who staked a total of €421.9 million in 2012.

Winnings were more than 9 per cent ahead of 2011, when company won €47.2 million, while turnover was down 6 per cent on the previous year’s figure, which was €449.2 million. Gross profit as a percentage of turnover was 12.2 per cent in 2012, meaning that punters lost €1.22 for every €10 that they bet with the company. The margin the previous year was 10.5 per cent.

Its customers bet less with the business however. The average amount staked in its shops was €12.65 in 2012 compared with €17.86 the previous year.

Ladbroke Ireland made a €1.5 million operating profit in 2012 from its betting business, compared with a loss of €2.8 million in 2011. However, a €15.8 million once-off charge left it with a pre-tax loss of €14.3 million. According to the accounts, Ladbroke Ireland bought 95 per cent of Ladbroke Investment LLP, a group subsidiary which made financial investments, in December 2011.

The investment company’s directors decided in September to liquidate the subsidiary and distribute the proceeds to shareholders. As the company realised less than the investment’s book value, it recognised an €18 million loss in its 2012 accounts.

The company reversed a €4.3 million write-down on its 2011 accounts and made a number of other provisions, including €1.1 million for onerous leases and €481,000 for shop closure costs.

Ladbroke Ireland employed 917 people in 2012 and paid them €20 million in wages, social welfare and pension contributions. The accounts say that the company intends to continue to develop its existing Irish activities.