Personal finance essay

Ladbrokes plc reported £264.7 million in cash generated through its betting operations. The company paid off £108.2 million as finance costs and income taxes, £54.7 million in interest received and £119.8 million as interest received on capital expenditure, intangible additions as well as acquisitions on continuing operations. Ladbrokes plc registered a cash flow of was £91.4 million. The cash received from the sale of hotels business £3,241.4 million where as £4,208.4 million was paid out in dividends to the shareholders. In the same financial year, the company received proceeds of £70.3 million on the exercise of share options and on share issues. At the close of the financial year, the company had recorded gross borrowings amounting to £986.2 million and cash deposits and short term investments amounting £33.7 million, and £3.6 million worth of derivatives. Consequently, Ladbrokes plc realized a net debt worth £948.9 million. The company realized revenue of £970.0 million from its continuing operations with an increase of £61.5 million accounting for 6.8% increase from the revenue reported in the previous financial year. This impressive growth was realized due to the inclusion of its European subsidiary Jack Brown throughout the year and growth in eGaming and telephone betting revenue. The company’s profits before finance costs, non-trading items and tax grew by 7.7 % from £249.0 million reported in the previous year to £268.1 million in the 2005-2006 financial year. Thus the 7.7 % increase was a reflection of the increase in the company’s profits derived from increased sales for its eGaming and Telephone betting products, and a reduction in the company’s central costs that was offset by a decrease in revenue generated from the European retail division.