Silchester takes a bet on William Hill plc

The Daily Mail reports that London hedge fund Silchester International has acquired a 5 percent stake in online and land gambling group William Hill plc, making it the fourth biggest stockholder in the company.

Silchester has a reputation for taking a punt on struggling companies that nevertheless have strong potential, and Will Hill has been through some tough times in recent years since legendary CEO Ralph Topping retired.

Since then his successor, James Henderson has resigned and current CEO Philip Bowcock took the reins after a period of probation.

The share price has almost halved since the heydays of GBP 465 a share several years ago, but Bowcock claims that the company is improving its profitability through a series of strategies, especially in the online division.

After a number of failed merger initiatives with other companies, William Hill appears to have settled on going it alone in an industry increasingly characterised by consolidation, brought on by the growing cost of operating in different regulated jurisdictions and stiff competition.

H1-2017 profits were down 1 percent at GBP 130 million.