William Hill seeks to maintain a capital structure which enables us to continue as a going concern and which supports our business strategy.
The Group finances its operations through a combination of retained profits, long and medium term debt capital market issues, bank borrowings and leases, with the objective of ensuring continuity of funding.
Financial Risk Management
Financial risk management is carried out by a central treasury function, operating in line with policies approved and authorities delegated by the Board of Directors.
Our policy is to smooth the debt maturity profile, to arrange funding ahead of requirements and to maintain sufficient undrawn committed bank facilities so that maturing debt may be refinanced as it falls due. We seek to mitigate our debt financing risk by diversifying our funding sources and maturity dates.
The Group currently has £1,115m of debt facilities available to it, comprising £390m of committed revolving credit facility maturing in 2023, £375m of Guaranteed Notes at 4.25% due 2020, and £350m of Guaranteed Notes at 4.875% due 2023. Facilities will be renewed ahead of time if still required.
The Group’s net debt for covenant purposes* was £272m at 26 June 2018.
|Net debt / EBITDA*||Interest cover|
|Bank facility covenant||< 3.5x||>3.0x|
|Covenant as at 26 June 2018||0.8x||9.8x|
* For the purposes of covenant calculations certain adjustments are made to the reported net debt, EBITDA and net cash interest numbers in accordance with the Group’s bank facility agreements.