It looks as though the odds are against Richard Glynn, CEO of Ladbrokes after he is currently set to step down from the position next year after four years with the FTSE 250 company.
Earlier this year, Glynn had been given an ultimatum that he would be ousted if he fails to improve Ladbroke‘s digital business and profits, and with the company issuing its fourth profit warning in just over a year, the search for a new Chief Executive has begun.
A statement from Ladbrokes said: “The board will shortly start a process to identify his successor and the search will evaluate both internal and external candidates.”
However the investor‘s of the company decision to look for a new chief executive comes as a surprise as Richard Glynn was initially employed in April 2010, with a sole mission to deliver an organisational and digital transformation.
Ladbroke‘s profits halved in the first six months of 2014 to £27.7m – a result of its investment in digital and gaming – but said in August it was now ready for growth. The company has also been closing down unprofitable betting shops, with a total of 50 to be lost this year.
Over the four years Glynn has failed to create a company that is a strong competitor against its rival William Hill in both mobile and online gambling.
Mr Glynn said: “Everyone at Ladbrokes has worked incredibly hard over the past, nearly five years, to deliver the transformation programme.
We have faced significant operational challenges, as well as economic and regulatory headwinds.
“However I am pleased that the business is fundamentally stronger than it was and now has the operational and digital capabilities to compete effectively.
“We have delivered against all of the recent milestones and increasingly shown real competitive momentum.”
“It has been a privilege to lead Ladbrokes over this crucial phase. I am very proud of the resilience and professionalism the team has shown during this intense period of activity.
“It is the right time for Ladbrokes to identify my successor. I will continue to serve the company to help ensure a smooth succession.
“I look forward to the company, the shareholders, our partners and in particular everyone in the team reaping the benefits, over the next few years, of all that has been sown.”
Richard Glynn has agreed to continue as CEO into 2015 to oversee an orderly succession.
