Still no boss at William Hill

The company has been without a permanent leader since James Henderson was removed in July amid stalling online growth.

As the Financial Times has reported, Philip Bowcock, the finance head and the interim chief executive, has become the favourite to take the job. But the board, which was due to discuss the matter this week, has decided to hold off making a final decision.

On Friday, William Hill’s chair Gareth Davis, who has led the succession hunt, said: “at the outset of the CEO process, we made it clear that we would carry out a thorough search and that it could take some time. I am pleased to say that we are now entering the final stages and expect to complete an announcement in a few weeks’ time.”

Several people briefed on the succession discussions said the company’s largest shareholder, the hedge fund Parvus Asset Management, as well as some board members, had expressed doubts about Mr Bowcock’s suitability for the role given his inexperience in the gambling sector. He joined William Hill in November 2015 having been chief financial officer at Cineworld.

Parvus, which has publicly advocated for a sale of the group this year, has declined to comment on the chief executive search.

The company remains under pressure to settle the matter after a “challenging year” of trading. On Friday, reporting results for the year to December 27, the bookmaker said net revenues had increased 1 per cent to £1.6bn, with pre-tax profits up 1 per cent to £225.6m.

Adjusted operating profit, which the company said “gives a clearer picture of underlying performance” was £261.5m, a 10 per cent fall compared to the previous year. In January, the company delivered its second profit warning in 12 months, reporting that 2016 operating profit would be “at the bottom end” of its previous guidance of £260m-£280m.

However, William Hill said it had seen “encouraging signs” in current online trading and it expects its performance to improve in 2017, adding it was aiming to build a “global technology platform” over the next three years and embark on a cost-cutting drive intended to find £40m in savings to fund investments.

William Hill has also failed to make a “transformative” acquisition amid a wave of consolidation in the gambling industry. In October, the company and Canada’s Amaya called off a proposed £4.6bn merger after Parvus came out against the deal. Last August, William Hill dismissed a £3bn takeover approach from a consortium that included Rank Group and 888 Holdings.

Analysts believe further dealmaking in the sector has been halted as companies await the outcome of the government’s upcoming regulatory review of the industry. The UK government is considering curbs on in-store betting machines and a potential ban on gambling groups advertising on daytime television.