A boardroom bust-up. That was the verdict of City analysts after Ladbrokes owner Entain revealed Australian chief executive Gavin Isaacs is leaving a little over five months into the job.
Chairman Stella David has taken over on an interim basis until a permanent replacement is found. There was little in the way of explanation – hence the speculation among investors, analysts and the industry as shares tumbled 11.1 per cent, or 82.2p, to 660p.
‘We’re all trying to find out what’s happened,’ said one gambling executive. ‘It sounds like a clash between Gavin and Stella.’
That chimed with a note from Paul Ruddy at Davy Research, who told clients: ‘There were differences between him and the board which were seemingly unreconcilable.
‘Entain is at a critical point in its turnaround journey, so the timing of this is unfortunate and will likely cause investor concerns.’
It certainly didn’t appear to be anything to do with trading.
Entain confirmed profits for 2024 look to have come in at the top end of its guidance of £1.04billion to £1.09billion. It added that it was ‘comfortable with market expectations’ for 2025.
And until yesterday’s sell-off, shares were up 15 per cent since Isaacs, 60, took the reins on September 2 last year having spent much of his career in the US.
‘Something must have gone seriously wrong for Gavin Isaacs to leave after just 161 days in the job,’ said Russ Mould, investment director at AJ Bell.
‘The business has been trying to find its footing after losing its way and now it’s been knocked off course once again thanks to boardroom issues.
‘Entain really needs to find someone with bold ideas, a keen eye for detail and a grand vision to put the gambling group back on a winning streak.’
Matt Britzman, senior equity analyst at Hargreaves Lansdown, added: ‘While Entain used the moment to reassure investors that it’s on track to meet 2025 profit expectations, sudden leadership shake-ups rarely go down smoothly – questions will be flying.’
A shake-up at Dunelm was rather less dramatic by comparison. Chief executive Nick Wilkinson is retiring after seven years in the job. But unlike the departure of Isaacs with ‘immediate effect’ from Entain, Dunelm said Wilkinson will stay on until a successor is found ‘ensuring a smooth and orderly transition’.
The company also reported a 0.2 per cent rise in first half profits to £123.2million and shares, which have risen 70pc under Wilkinson, gained 0.2 per cent, or 2p, to 973p.
The FTSE 100 hit an intraday high of 8789 before closing up 0.1pc, or 9.59 points, at 8777.39 but the FTSE 250 slipped 0.3 per cent, or 66.56 points, to 20919.72.
Housebuilding stocks were on the slide after Bellway raised concerns about affordability despite a pick up in enquiries among would-be buyers.
Bellway fell 5.2 per cent, or 134p, to 2430p. Persimmon, meanwhile, dropped 1.6 per cent, or 19.5p, to 1241.5p and Barratt Redrow lost 2.2 per cent, or 9.7p, to 437p.
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