Annual Report and Accounts 2004 2
Founded in 1934, William Hill is one of the leading providers
of fixed odds bookmaking services, offering odds and taking
bets on a wide range of sporting and other events, as well as
offering Amusement With Prizes machines and Fixed Odds
Betting Terminals in licensed betting offices and operating
online casino and poker sites, an interactive TV channel and
greyhound stadia. It is a market leader in all major betting
channels in the UK with an established international presence
through its online business.
William Hill PLC Annual Report & Accounts 2004 1
Page
Financial Highlights 2
Chairman’s Statement 3
Chief Executive’s Review 4
Operating and Financial Review 7
Board of Directors 12
Professional Advisers 13
Directors’ Report 14
Directors’ Remuneration Report 16
Statement on Corporate Governance 22
Report of the Audit and Risk Management Committee 26
Report of the Nomination Committee 28
Corporate Responsibility Statement 29
Statement of Directors’ Responsibilities 33
Independent Auditor’s Report 34
Financial Statements 36
Glossary 79
Key Dates 81
Contents
William Hill PLC Annual Report & Accounts 2004 Contents 2
William Hill PLC Annual Report & Accounts 2004 Financial Highlights
Financial Highlights
●
Profit on ordinary activities before finance charges up 16% to £232.0m 
(2003: £200.4m)
●
Basic earnings per share up 22% to 36.2 pence (2003: 29.7 pence)
●
Interim dividend of 5.5 pence per share (paid on 2 December 2004) and proposed final dividend of
11.0 pence per share (payable on 2 June 2005 to shareholders on the register on 6 May 2005)
giving a total dividend up 32% to 16.5 pence per share (2003: 12.5 pence per share)
●
In addition to the final dividend, we propose to return capital of £453m (equating to 115 pence per
share) via a B share scheme with full choice between income and capital elections subject to
shareholder and court approval
●
Total capital returned to shareholders since flotation in June 2002 amounts to £752m (including
dividends, share buy backs and proposed Return of Capital) 
●
Intention to renew mandate for a 10% share buy back
●
New £1.2bn bank facilities with a five year term
●
Major investment programmes in new shop technology on course for completion by the end of 
the current year
●
Satisfactory start to the current trading year with Group gross win in the eight week period ended 
22 February 2005 up 4% against the comparative period despite tough comparators The overall result was in line with our
expectations for the period, despite significant
variability in sporting results throughout 
the year. 
Our Retail business showed continued growth,
largely due to the completion of the roll out of
fixed odds betting terminals (FOBTs), and our
Interactive business continued its strong
underlying growth. In contrast, Telephone
betting ended the year flat against the
comparable period. 
The Group has a significant investment
programme in information systems and
technology planned for 2005. In our Retail
business we have contracted with Alphameric
for the supply of electronic point of sale bet
capture and settlement tills and new text
display systems. These investments will greatly
improve productivity and customer
communications. Both projects are progressing
well and we are confident that the roll out 
will be completed successfully by the end 
of this year.
We also entered into a new contractual
relationship for the supply of FOBTs with
LeisureLink who will become our prime
supplier, providing 80% of the installed base of
close to 5,600 terminals. FOBTs now represent
a significant proportion of shop profitability,
and whilst the Department of Culture Media
and Sport (DCMS) continue to describe them as
being ‘on probation’, we are pleased to note
that the recent research conducted by MORI
and Europe Economics showed no causal link
between FOBTs and problem gambling. In
addition, the Gambling Bill (the ‘Bill’) makes
specific provision for terminals within the
proposed legislative framework. Accordingly,
we believe the potential regulatory risk to this
part of the business has receded.
The Government’s proposals for the
modernisation of regulations governing betting
and gaming are becoming much clearer as the
Bill makes its final passage through both
Houses of Parliament. Increasingly, the
potential threat of increased competition from
US style “super casinos” is waning, but at the
same time, potential synergies between the
casino and betting sectors are decreasing. 
In addition, there remains significant
uncertainty around the future taxation of
betting and gaming.
Given this strategic picture and the prevailing
uncertainties, the Board is not inclined at this
time to commit significant capital to potential
acquisitions outside of its core bookmaking and
gaming businesses. Consequently, it follows
that the Board proposes to return capital to
shareholders whilst still retaining some
financial flexibility to acquire additional 
betting shops. We will, therefore, be seeking
shareholder approval at the forthcoming
Annual General Meeting to return £453m 
to shareholders.
In parallel with the process of regulatory
consultation with DCMS, both directly and
through our trade associations, the Association
of British Bookmakers (ABB) and Association of
Remote Gambling Operators (ARGO), we have
been working to evolve responsible gambling
policies and practices. These are covered in
more depth in the section of the report and
accounts on corporate responsibility. In addition
to the Corporate Social Responsibility Working
Group established in 2004, the Board has
formed a Corporate Responsibility Committee to
oversee the Group’s activities in this area.
The Board is proposing a final dividend of
11 pence per share which combined with the
interim dividend of 5.5 pence per share results
in a total dividend for the year of 16.5 pence
per share, a 32% increase on the total dividend
paid in the comparable period.
In January 2005 we were pleased to welcome
David Edmonds to the Board and I am sure his
experience of regulated industry and business
in general will be invaluable.
I would also like to take this opportunity to
thank all our employees for their hard 
work and contribution to another excellent 
set of results.
The Group has achieved a satisfactory start to
the current trading year with Group gross win
in the eight week period ended 22 February
2005 up 4% against the comparative period
despite tough comparators.
Charles Scott
Chairman
3
Chairman’s Statement
William Hill PLC Annual Report & Accounts 2004 Chairman’s Statement
The Group’s focus on profitable
organic growth has delivered
another excellent set of results
with profit, earnings per share
and dividends all showing strong
double digit rates of increase
over the comparable period. Once again, our ability to increase the Group’s
gross win faster than operating costs has
allowed us to exploit the operating leverage in
our business model and deliver strong growth
in profits and earnings per share. 
The most significant variation in sporting
results occurred in football, where the first half
of the year saw very favourable results for the
bookmaker, particularly in the Euro 2004 series
of matches where a number of favoured teams
fell victim to underdogs, whilst in the second
half we have seen a long run of favourites
winning, both in the domestic leagues and key
European matches.
We have also experienced some fluctuations in
horseracing results, which also saw a lower
level of gross win across the Group in the
second half, but this trend was exacerbated by
lower theoretical margins, which are the direct
result of on course bookmakers hedging into
betting exchanges.
Retail
The Retail division grew gross win by 8% to
£548.1m and profit by 9% to £165.5m.
We largely completed our roll out of fixed odds
betting terminals (FOBTs) by the end of 2004,
finishing the year with 5,573, although we will
continue to optimise numbers, siting and
product. Average net profitability per terminal
reduced during the second half, partly due to
the impact of the voluntary code of conduct, but
mainly due to the dilution effect of adding the
third or fourth terminal into shops and our
winter trading hours. During the year, we
traded an average of 4,442 terminals (2003:
2,454) and achieved a full year average net
profitability per terminal of £370 per week
(2003: £380). We hope to improve profitability
in 2005 through a combination of product
innovation and improved contractual terms
with our suppliers.
The number of Amusement With Prizes
machines (AWPs) in the estate has been
reduced through the year to accommodate
more FOBTs, and the Group finished the year
with 530 AWPs (2003: 2,454).
Over the counter gross win fell in the second
half, partly due to adverse sporting results,
partly due to low theoretical margins and partly
due to substitution into self service machine
betting via FOBTs. For the full year, over the
counter business was flat against last year.
During the year we recognised that we could
improve our manual settlement procedures to
speed up the recycling of winnings.
Consequently, we have accelerated our roll out
of electronic point of sale (EPOS) tills and the
replacement of text systems and fully expect to
have them deployed by the end of 2005. 
During the year we acquired 10 licensed betting
offices, opened 17 licensed betting offices and
closed seven units bringing our total number of
trading shops to 1,606 at the year end. In
addition to the new licence activity, we
extended or resited a further 39 shops and
shopfitted a further 86 shops. Total property
related capital expenditure on the estate for the
year was £13.3m.
Telephone
Telephone gross win grew by 7% to £60.3m,
but profit was flat at £22.1m. The channel
continues to benefit from the increasing
popularity of betting-in-running but was the
worst hit by the profile of results in the second
half being the most vulnerable to higher
staking customers who are less inclined to
recycle winnings. It is also the channel most
vulnerable to the impact of betting exchanges.
The main cost increases that resulted in a lower
conversion of gross win to profit were higher
levy charges due to an increase in gross win on
horseracing, and higher IT recharges reflecting
the development of back office account
management and trading systems.
We ended the year with 184,000 active
telephone customers (2003: 171,000). 
Interactive
Strong underlying growth in poker, the online
casino, and arcade products helped counteract
the impact of adverse sporting results and the
division finished the year with gross win of
£106.1m, up 25%, and profit of £51.7m, up 39%.
2004 also saw the launch of our own TV station
on Sky Channel 425. This was a deliberately
low cost, low risk entry strategy into interactive
digital television. The platform has made an
encouraging start and we will be expanding
our coverage of live sporting events, as well as
introducing coverage of live poker tournaments,
to attract more viewers and use the medium to
promote the brand and other growth areas for
the Group.
Towards the end of the year, we also introduced
a new range of java based casino and slot
products suitable for GPRS and 3G generation
mobiles to complement our already successful
WAP sportsbook and arcade offering.
The launch of these two initiatives in addition
to our already successful internet sites provides
UK domiciled customers with unrivalled 
access to our business and the brand with 
a distribution ubiquity few competitors 
can match.
We ended the year with 292,000 active
Interactive customers (2003: 247 ,000).
Cost of content
In November 2004, the European Court of
Justice (ECJ) delivered its judgement on the
interpretation of the Database Directive, which
had been referred by the Court of Appeal in
relation to the dispute with the British
Horseracing Board on the use of certain racing
data. This judgement supported the Group’s
position, in contrast to the position adopted by
the initial High Court ruling. The ECJ
interpretation will be applied by the Court of
Appeal and the case decided at a hearing
which has been fixed for June 2005. In the
meantime, the Group continues to contribute
10% of gross win on UK horseracing via the
statutory levy.
The betting industry has contractual
arrangements in place with 52 of the country’s
59 racetracks for the supply of horseracing
pictures into licensed betting offices. The
duration of these contracts varies from between
three and five years.
During the year the bookmaking industry
agreed to an increase in the voluntary levy to
support the greyhound industry. This three year
agreement will see a phased increase in
contributions from 0.4% of turnover on
greyhound betting in 2003 to 0.6% of turnover
in 2006. It is the intention of the British
Greyhound Racing Fund that the majority of
the increase will be directed at improved
welfare for greyhounds. The Group paid £2.8m
under the voluntary levy in 2004 (2003: £2.4m).
Despite the increase in greyhound funding, we
believe that the ECJ ruling greatly reduces
pressure for increases in the cost of content
across all sports.
4
Chief Executive’s Review
William Hill PLC Annual Report & Accounts 2004 Chief Executive’s Review
In 2004, despite fluctuating
sporting results, the 
Group continued to perform
strongly whilst investing 
in its capabilities for 
the future. Operating costs
Full year expenses for the Group were
£332.5m, an increase of 6% on the comparable
period. The rate of cost increases slowed
through the course of the year and whilst costs
increased 8% in the first half against the
comparable period, the rate of increase fell 
to 4% in the second half against the
comparable period.
Much of the increase was due to higher staff
costs that were up 10% over the comparable
period reflecting extended opening hours in
our shops, inflation based pay awards and
higher pension costs. Property costs were up
5% over the comparable period reflecting
increases in rent and rates, an increase in
average shop size, and an increase in the size
of the estate. The costs of providing pictures to
our licensed betting offices were up 9% over
the comparable period due to increases in
trading hours, the size of the estate, and
charges. Advertising and sponsorship costs,
including the cost of free bets and casino bonus
cash payments that are expensed in arriving at
gross profit, were up 30% over the comparable
period reflecting incremental spend on the
Euro 2004 football championship and increased
sponsorship and web advertising and
promotions. Other increases relate to network
and communication costs, up 33% over the
comparable period, as we improve links
between administrative centres and licensed
betting offices, partly to support FOBT business,
but also in preparation for EPOS roll out. In
contrast, depreciation, bank charges (including
charge backs) and AWP rentals decreased
compared to the comparative period.
A number of the cost increases are driven by
our ongoing investment in information
technology as we strengthen development and
support capabilities in preparation for the
introduction of EPOS and new back end
systems. All expenditure on information
technology is subject to rigorous cost-benefit
analysis, and tightly managed through
formalised project and programme
management systems.
Going forward we expect underlying costs to be
contained to annual rates of growth of between
4% and 6%, although there will be a short
term increase in one off costs in 2005 resulting
from the introduction of the EPOS system and
costs associated with the capital reorganisation.
Competition issues
The Office of Fair Trading has taken the
administrative decision to discontinue its
investigation into and close its case file on the
formula used to calculate payouts on computer
straight forecasts and tricast bets. Its review of
the rules of racing led to a number of changes
which were reflected in the British Horseracing
Board’s modernisation plans. These are now
subject to further change following the ECJ’s
ruling and subsequent reviews of the future
funding and governance of the sport.
William Hill is a major employer and pays
significant taxes and therefore we believe that
it is in the national interest to address the
unfair advantage enjoyed by layers on betting
exchanges who compete directly with
traditional bookmakers without paying a
comparable level of gross profit tax or
horseracing levy. This inequitable taxation of
layers on betting exchanges enables them to
offer better prices than the traditional
bookmaker . We continue to lobby aggressively
for a ‘level playing field’, and were pleased to
note that, in its recent review of gross profit tax,
the National Audit Office reiterated the need to
assess the potential duty at risk across the
betting industry resulting from the tax
advantages enjoyed by layers on betting
exchanges. This opinion follows the
Chancellor’s statement in 2004 that the taxation
of betting exchanges would be subject to a full
review.
Whilst the Gambling Bill has yet to complete its
passage through both Houses of Parliament, it
is evident that the potential opportunities and
threats for the Group resulting from a rapid
expansion of the gaming sector are receding.
Potential synergies between the betting and
gaming sectors are reduced by the proposed
structure of the legislation. This reduces the
likelihood of any cross sector merger or
significant acquisition activity for the Group at
the current time, and hence our need for
flexibility in the potential use of capital.
Accordingly, we are intending to return 
a significant amount of surplus capital 
to shareholders. 
Regulatory development
The Gambling Bill will be put before the House
of Lords during February and March 2005.
Assuming it passes into law, we are advised
that it is unlikely to be fully implemented until
the Gambling Commission is fully resourced
and operational, which is unlikely to be before
the end of 2006, or early 2007 .
Proposed regulations concerning remote
gaming and the new licensing regime for
betting operators are the principal areas of the
Bill that will impact on William Hill. We have
been lobbying through our trade associations,
the Association of Remote Gambling Operators
(ARGO) and the Association of British
Bookmakers (ABB), to ensure that the new
measures are effective in accomplishing the
Government’s regulatory objectives, without
imposing undue compliance costs.
Capital reorganisation
Background to the proposed Return of Capital
William Hill was listed on the London Stock
Exchange in June 2002 and at that time the
Group put in place a capital structure and
financing arrangements to provide the optimum
capital structure for William Hill as a public
company, consistent with the Board’s strategy.
These financing arrangements were designed
to support a strategy focused on maximising
organic growth opportunities but also provided
the flexibility to pursue selectively value-
5
William Hill PLC Annual Report & Accounts 2004 Chief Executive’s Review
Licensed Betting Offices Telephone Interactive
0 £m
9.2
20.5
35.4
54.9 
90
80
70
60
50
40
30
20
10
37 .1
84.9 
2001 2002 2003 2004
Gross win
Trading profit  
£m
93.2
111.9
416.7 418.9
Gross win
Trading profit  
0
600
500
400
300
200
100
152.4
505.6
2001 2002 2003 2004
£m
15.5
50.9
17 .3
48.0
Gross win
Trading profit  
0
10
20
30
40
50
60
56.5
22.2
2001 2002 2003 2004
548.1
165.5
60.3
22.1
100
51.7 
106.1 
17 .3 6
William Hill PLC Annual Report & Accounts 2004 Chief Executive’s Review
enhancing acquisitions and enabled the Group
to adopt a progressive dividend policy.
Since listing, the Group has pursued a strategy
aimed at delivering sustainable earnings
growth and value for its shareholders. The key
elements of this strategy have been to
continue to enhance traditional earnings and
maximise organic growth opportunities,
profitably exploit new platforms across all
betting channels, and capitalise on
opportunities arising from regulatory, fiscal
and technological change. Although the Group
has reviewed a number of potential investment
and acquisition opportunities, in particular in
the context of potential gambling deregulation
in the UK, the Board has maintained strict
financial discipline and avoided pursuing
opportunities unless they were demonstrably
value enhancing for shareholders. The Group
has made a number of small acquisitions of
licensed betting offices and greyhound 
stadia that have been funded out of operating
cash flow.
In light of William Hill’s strong financial
performance and to help preserve an efficient
capital structure and maximise returns to
shareholders, the Board secured the authority
at its last Annual General Meeting to buy back
10% of the Group’s issued share capital. Since
this time William Hill has bought back
approximately 6.5% of its share capital.
However, the Board has concluded that
William Hill could support a significantly
higher amount of debt and to do so would be
in the interest of shareholders. The Return of
Capital will restore the Group’s financial
coverage ratios to levels broadly consistent
with those established at the time of the
listing. In view of the substantial quantum of
capital which the Board believes should be
returned, the Board has concluded that the
optimal mechanism would be a B share
scheme which offers pro rata participation to
all shareholders with full choice between
income and capital elections. 
In order to facilitate the proposed Return of
Capital, a new holding company will need to
be introduced as part of a scheme of
arrangement and reduction of capital that will
require the approval of shareholders and the
High Court. The objective of these steps is to
create sufficient distributable reserves to
facilitate the Return of Capital and future
dividends and share buy backs.
Funding of return of capital
In order to fund the return of capital and take
advantage of the current favourable conditions
in credit markets, the Group has secured new
bank facilities of £1.2bn with a consortium of
banks. On 2 March 2005, £600m of the new
facilities became available and will be used to
repay the existing bank facilities in March
2005 at which time they will be cancelled.
Subject to the satisfaction of various conditions
precedent, a further £600m of new facilities
will become available once the scheme of
arrangement and reduction of capital has been
approved by shareholders and the High Court.
All the new facilities have been provided on a
committed and underwritten basis and 
have a five year term. 
Pension plan
Subject to the return of capital being approved
by shareholders, the Board has undertaken to
make a special contribution of £40m to the
Group’s defined benefit pension scheme. The
contribution will be spread over a period of
three years and is designed to eliminate the
deficit calculated on a continuing basis by the
actuary as at September 2004. The Board and
pension scheme Trustee have consulted on this
specific proposal and believe it represents an
appropriate course of action that properly
balances the legitimate interests of
shareholders, and members and pensioners.
Future strategy and dividend policy
The Board intends to maintain an efficient and
flexible capital structure after the return of
capital and will use a combination of dividend
payments and share buy backs to achieve this
objective. 
For 2005, the Board expects to maintain
dividend cover on a per share basis broadly in
line with the level in 2004. In addition, the
Board will be seeking authority from
shareholders for a renewal of the on market
share buy back mandate. 
Timetable of events
The Board will be posting a circular to
shareholders in mid April 2005 setting out full
details of its proposal to return capital and the
timetable of events. 
At this early stage, the Board anticipates that
shareholders will be invited to vote on this and
other proposals at the Annual General Meeting
and the Court meeting on 19 May 2005, with
the High Court sanctioning the scheme of
arrangement and reduction of capital in June
2005, and payments being received by
shareholders in early July 2005.
David Harding
Chief Executive 7
The Group delivers its betting and gaming
products to customers through three 
principal channels:
• Retail comprises a nationwide network of
over 1,600 outlets, making William Hill the
second largest operator of LBOs in the UK.
The LBO estate is of high quality reflecting
sustained investment and approximately
45% of the units are located in London and
the South East.  The scale of the network
gives William Hill a significant competitive
advantage in terms of brand recognition and
allows central costs to be spread across a
large estate.
• Telephone betting, in which the directors
believe that William Hill is the market
leader, has the capacity to operate
approximately 600 telephone bet capture
positions at call centres in Leeds and
Sheffield.  As at 28 December 2004, the
business had 184,000 active accounts
(30 December 2003 – 171,000).
• Interactive betting comprises a profitable
and growing online sportsbook including
arcade games (www.williamhill.co.uk), an
online casino (www.williamhillcasino.com)
and an online poker site
(www.williamhillpoker.com).  The Group
accepted its first bet via the Internet in 1998
since when its sportsbook and casino have
experienced significant growth in the UK
and internationally, attracting customers
from over 150 countries.  The offering was
enhanced by the introduction of arcade
games in 2002 and the launch of a dedicated
poker site in January 2003.  In autumn 2003,
the Group took in-house a number of back
office functions previously outsourced to its
existing supplier of casino software
Cryptologic Inc.  It also introduced Boss
Media AB as a second supplier of casino
software, launched a Euro denominated
casino and started to offer an integrated
sportsbook and casino account to customers.
In autumn 2004, the business launched a
television channel (William Hill TV) on
channel 425 on the Sky interactive digital
television platform and further enhanced its
online offering through improvements to the
functionality of the sportsbook and the
launch of Greek and Turkish language
casinos.  As at 28 December 2004, the
business had 292,000 active accounts
(30 December 2003 – 247 ,000).
• The Group also operates two greyhound
stadia situated in the North East.
William Hill continues to pursue a strategy
aimed at delivering sustainable earnings
growth and value for shareholders. The key
elements of the strategy are to:
• Continue to enhance traditional earnings
and maximise organic growth opportunities;
• Profitably exploit new platforms;
• Capitalise on opportunities from regulatory,
fiscal and technological change; and
• Selectively pursue value-enhancing
acquisitions.
The directors believe that the significant growth
in the Group’s profitability and appreciation in
the share price during the year demonstrates
the soundness of this strategy.
Operating environment
Historically, the Group’s business has proven to
be less exposed to the economic cycle than
many other consumer facing industries.
Economic conditions in the UK were generally
favourable throughout 2004 and remain so.
The business is defined and constrained by
legislation and at the present time the
Government is seeking to modernise the law as
it relates to betting and gaming in the UK.  The
Group has lobbied both directly and through its
industry association for reform of the current
law to remove restrictions on licensed betting
office trading hours, ensure proper regulation
and taxation of betting exchanges, and ensure
the inclusion of FOBTs in a future legislative
framework.  The Group expects that the scaling
down of proposals in the Gambling Bill for
reform of the land based casino and bingo
industries will help to preserve the current
competitive landscape to the benefit of the
bookmaking industry.
Each customer must take responsibility for
complying with local laws in respect of betting
and gaming that differ across jurisdictions.  The
Group’s businesses are properly licensed in the
UK to accept sports and other bets and in the
Netherlands Antilles to operate online casino
and poker sites.  The directors periodically
obtain independent legal advice concerning the
state of betting and gaming law in particular
jurisdictions.
The Group closely monitors the development of
tax policy by the Government in relation to
betting and gaming.  It seeks to lobby
Government to ensure a fair and equitable
approach to the taxation of different platforms
and to minimise the likelihood that the regime
for gross profit tax might be changed to the
detriment of the Group.
William Hill PLC Annual Report & Accounts 2004 Operating and Financial Review
Operating and Financial Review
Nature, objectives and 
strategies of the business 8
William Hill PLC Annual Report & Accounts 2004 Operating and Financial Review
The Group in conjunction with other
bookmakers continues to make a variety of
statutory, voluntary and commercial payments
to various sporting bodies.  In addition, the
Group makes commercial payments through
Bookmakers Afternoon Greyhound Services
Limited (BAGS) for the right to screen pictures
from various horse and greyhound racetracks
in licensed betting offices.  As explained in the
Chief Executive’s Review, the Group does not
expect any significant increase in the cost of
such arrangements in the foreseeable future.
Key performance indicators
The directors monitor a number of financial
metrics and key performance indicators 
(KPIs) including:
• Gross win (rather than turnover or gross
win percentage);
• The number of winning favourites and
betting margins (for major sports only);
• Net operating expenses in aggregate and
for major line items;
• Earnings before interest and taxation;
• Interest and tax costs;
• Earnings; 
• Net cashflow from operating activities; and
• Capital expenditure and other investments.
The directors receive monthly information on
these and other metrics and KPIs for the Group
as a whole and where appropriate for each of
its three businesses.
In addition, the directors receive information
on non financial metrics such as the number of
new accounts opened for each of the remote
businesses, the number of slips processed, and
the ratio of slips processed to staff employed in
licensed betting offices.
Current and future development
and performance
The Group’s gross win was £722.1m
representing a 10% increase over the
comparable period.
Growth in gross win reflected a number of
factors including: in licensed betting offices the
expansion of trading hours, development of
the retail estate and roll out of additional
FOBTs; in the telephone channel an increase in
the popularity of betting in running on live
events; and in the interactive business the
development of the arcade, casino and poker
sites combined with strong underlying growth.
Across all three channels, performance in the
first half of 2004 benefited from favourable
results for UK horse racing and football
including the Euro 2004 football
championship.  In contrast, performance in the
second half of 2004 was adversely affected by
less favourable horse racing results and
significantly poorer results in respect of
domestic and international football since the
start of the current season.  This trend, which
is consistent with normal variations in sporting
results, continued to prevail in the closing
weeks of the year.
Margins for horse racing and to a lesser extent
football continued to remain under pressure
due to the adverse impact of betting
exchanges.  As described in the Chief
Executive’s Review, the bookmaking industry 
is lobbying the Government to implement 
an equitable tax treatment for layers on 
the exchanges.
GPT, levies, VAT, royalties and other costs of
sales (excluding pay-outs to customers)
increased 12% to £160.7m and includes gross
profit tax paid to Customs & Excise, levies paid
to the horse and greyhound racing industries,
VAT and licence fees incurred in respect of
AWPs, and various royalty payments to
suppliers of FOBTs and certain services in
respect of the online casino and poker sites.
The total amount of gross profit tax paid has
increased by 12% due to the increase in gross
win from betting activity including that
generated from FOBTs.  Levies have increased
by 2% due to an increase in the voluntary levy
paid to the greyhound industry net of a small
decrease in payments under the statutory
horseracing levy due to unfavourable results
and lower margins due to betting exchanges.
Royalties paid to various suppliers of FOBTs
have increased due to the roll out of additional
terminals although the percentage of gross
win paid as royalty has fallen in the period.
Similarly, royalties paid to Cryptologic Inc. and
Boss Media AB, suppliers of casino and poker
software, have increased in absolute terms due
to the continuing success of these products.
Gross profit, representing gross win less GPT,
levies, VAT, royalties and other costs of sales,
amounted to £561.4m, a 10% increase over
the comparable period.
Net operating expenses increased to £332.5m,
an increase of 6% over the comparable period.
Associate income represents the Group’s 19%
share of profits of its associate company,
Satellite Information Services.
Net interest payable fell to £26.7m, a decrease
of 14% against the comparable period. 9
William Hill PLC Annual Report & Accounts 2004 Operating and Financial Review
Tax on profit on ordinary activities relates
primarily to the current year and as the Group
earns its profits in the UK is calculated at 30%
of taxable profits being the current rate of UK
corporation tax.  The Group’s effective rate of
tax was 27 .8%, as compared to 26.7% in the
comparable period, due to relief for brought
forward tax losses for which deferred tax 
was not previously recognised and prior 
year adjustments. 
Basic earnings per share were 36.2 pence, a
22% increase over the comparable period and
diluted earnings per share were 35.5 pence, a
21% increase over the comparable period.
The Group generated net cash inflow from
operating activities of £247 .3m, an increase of
10% over the comparable period.  Out of this
cash flow the Group paid £23.3m in net debt
service costs, paid £57 .4m in corporation tax,
invested a net £27 .3 m in capital expenditure,
spent a net £3.8m on acquisitions, paid £59.6m
in dividends, spent £145.5m purchasing its 
own shares and repaid loan notes to the 
value of £6.3m. The Group drew down £90.0m
under its loan facilities.  Net indebtedness 
increased to £437 .0m at the period end 
(30 December 2003 – £366.1m).
The Group continues to invest in developing
each of its businesses so as to underpin its
future growth prospects.  It plans to continue to
invest circa £20m per annum in the retail
estate and, in addition, has commenced a major
investment programme to install electronic
point of sale equipment and replacement text
systems in all its LBOs by the end of 2005 at a
cost of £45m.  The Group has also earmarked
£20m for investment between 2005 and 2007
in new and improved technology platforms and
corporate IT systems that will ultimately benefit
all three channels.  The directors also consider
opportunities to acquire additional good quality
licensed betting offices.  All investment and
acquisition proposals are evaluated against
strict criteria that focus on return on capital and
pay back period.   
Resources
The Group seeks to exploit a number of assets
and resources that are not necessarily reflected
in its financial statements including:
• A market leader in all major betting
channels in the UK with an established
international presence;
• A long established and widely recognised
brand, with a strong reputation for quality;
• An extensive and high quality estate of
betting shops which benefit from significant
sustained investment and ongoing
refurbishment and improvement;
• An effective risk management system and
significant bookmaking experience;
• A focus on sustainable and profitable growth
and tight management of costs;
• Strong cash flow generation;
• A track record of innovation and profitably
exploiting regulatory, fiscal and
technological change; and
• A strong management team and workforce
of over 10,000 trained employees.
The directors believe that such resources help
to secure the Group’s position at the forefront of
the betting and gaming industry and ensure it
is well placed to compete and develop its
business in the future.
Risks and uncertainties
The directors are seeking to build an
increasingly profitable business by exploiting
the above mentioned strengths and, at the
same time, carefully managing the risks to the
operation.  Such risks include: the potential
impact of legislative changes in the UK and
overseas on the Group’s scope and conduct of
operations and ability to accept bets; the
potential impact of changes to the UK fiscal
environment; the ability of the Group to
manage its bookmaking risk; the relationship
with key suppliers, most notably the horse and
greyhound industries; the payment of levies
and fees to certain sporting bodies under
various arrangements; the potential threat
represented by competitors based in the UK
and overseas; the risk that key technology or
information systems could fail; the impact of
weather or other factors on the sporting
programme; the loss of key personnel; the risk
of a prolonged economic recession or other
geo-political events that may result in a
reduction of betting activity; the risk that
intermediaries such as banks refuse to 
accept credit and debit card transactions
connected with gambling; and the risk resulting
from any inability of the Group to service its
debt obligations.
The Board routinely monitors all the above
risks and appropriate actions are taken to
mitigate the risks or their potential adverse
consequences.  The Chief Executive’s Review
further expands on certain issues that fall into
the above description of risk factors.  10
William Hill PLC Annual Report & Accounts 2004 Operating and Financial Review
Returns to shareholders
The Company paid an interim dividend of
5.5 pence per share and the directors have
proposed a final dividend of 11.0 pence per
share that would bring the total dividend to
16.5 pence per share, a 32% increase over the
amount paid in respect of the comparable
period.  The proposed level of total dividend
corresponds to a dividend cover ratio of
2.2 times (30 December 2003 – 2.4 times).  The
Company normally aims to pay interim and
final dividends that represent about one third
and two thirds, respectively, of the total
dividend.
The Company obtained authority from
shareholders at the Annual General Meeting
held in May 2004 to buy back up to 10% of the
issued share capital.  The Company had bought
back 6.5% of its share capital by the end of
2004.  Approximately 2.5% of the issued share
capital is retained in treasury shares to meet
future awards under the Group’s various
incentive and share remuneration schemes,
and 4% of the issued share capital has been
cancelled.  The aggregate cost (after expenses
and stamp duty) of the acquired 6.5% of
issued share capital was £145.5m. 
Financial structure and liquidity
At flotation in June 2002, the Company
arranged bank facilities amounting to £660m
comprising a five year amortising term loan of
£210m and a revolving credit facility of £450m
available until 28 May 2007 (the ‘old facilities’).
The bank facilities are denominated in sterling
as the Group’s operations are largely based in
the UK.  As a result of mandatory repayments
in respect of the term loan, the available
facilities had fallen to £620m as at
28 December 2004, and further reduced to
£570m on 31 December 2004 as a result of a
further mandatory repayment.
At flotation, the Board sought to achieve an
efficient capital structure and ensure adequate
headroom within the old facilities to finance
the acquisition of additional licensed betting
offices.  Subsequently, the Group made fewer
acquisitions than anticipated and significantly
increased its profits and cash inflows resulting
in a reduction in the amount of net
indebtedness and the overall efficiency of the
capital structure notwithstanding the ongoing
share buy back programme.  
To improve the efficiency of the capital
structure, the directors intend to seek the
approval of shareholders at the forthcoming
Annual General Meeting to a return of £453m
in capital.  It is proposed the Group will effect
a return of capital to shareholders through:
• The insertion of a new holding company by
way of a scheme of arrangement sanctioned
by the High Court and approved by a
majority in number holding 75% in value of
those present and voting under s425 of the
Companies Act 1985 (the ‘scheme’);
• A reduction in capital confirmed by the High
Court to create distributable reserves in the
new holding company; and
• An issue of B shares carrying the right to a
return of capital via a dividend or
redemption at the election of the individual
shareholder .
Full details of the proposal will be sent to
shareholders in a circular to be posted in mid
April.
In order to fund the above proposals and take
advantage of the current favourable conditions
in credit markets, the Group has secured new
facilities of £1.2bn with a consortium of banks
(the ‘new facilities’).  On 2 March 2005, £600m
of the new facilities became available and will
be used to repay the old facilities in March
2005.  Subject to the satisfaction of various
conditions precedent, a further £600m of new
facilities will become available once the above
mentioned scheme is put in place.  All the
facilities have been provided on a committed
and underwritten basis with the first tranche
structured as a five-year revolving credit
facility and the second tranche as a five-year
term loan.
The directors believe that the new facilities 
will be sufficient to meet the projected needs
of the Group including the funding of the
return of capital, a £40m special contribution
over the next three years to address the
actuarial funding deficit in the defined benefit
pension scheme, the working capital
requirements of the Group, and the funding of
bolt-on acquisitions. 
Going forward, the Board anticipates
maintaining an efficient capital structure
through a combination of dividends and
ongoing share buy backs. 11
William Hill PLC Annual Report & Accounts 2004 Operating and Financial Review
The Company has entered into a series of
amortising interest rate swaps to fix the
interest costs on a substantial proportion of its
floating rate debt.  Prior to the return of capital
exercise described above, the amortising nature
of the swaps resulted in approximately 75% of
forecast interest costs being hedged over the
next 12 months, approximately 60% being
hedged in 2006, and 45% being hedged in
2007 .  In the coming months, the Group will
adjust its interest rate hedging arrangements to
fix or cap its interest costs on a substantial
proportion of the enlarged amount of floating
rate debt resulting from its anticipated
drawings under the new facilities. The Board
will continue to review periodically the
borrowing and hedging arrangements to
ensure that they remain appropriate to the
needs of the Group and take account 
of changes in market conditions and 
business plans.
Adoption of IFRS
The Group is well advanced in its plans to
adopt International Financial Reporting
Standards (IFRS).  
The Group has prepared its financial statements
for the 52 week period ended 28 December
2004 in accordance with UK generally accepted
accounting principles (UK GAAP) although
supplementary information prepared in
accordance with IFRS is shown on pages 69 to
77 .  Similarly, for the year ending 27 December
2005, the Group will report in accordance with
UK GAAP with supplementary information
prepared in accordance with IFRS.  The Group
will adopt IFRS as the primary basis for
reporting for the 52 week period ending 
26 December 2006.
The Group does not expect the adoption of IFRS
to have a material impact on the reported
financial performance as compared to results
prepared in accordance with UK GAAP .
Furthermore, it expects no adverse impact on
its tax affairs or banking arrangements
resulting from the transition to reporting in
accordance with IFRS. 
The above text has been prepared with
reference to the Exposure Draft of the proposed
UK Reporting Standard on the Operating and
Financial Review (OFR) issued by the
Accounting Standards Board in November
2004.  Whilst not mandatory for the accounting
period ended 28 December 2004, the Board has
voluntarily decided to incorporate some of the
required disclosures contained in the new
Exposure Draft as it is considered to be the
most relevant guidance material in this area of
financial reporting.  The Board expects to
modify further the OFR in future periods to
reflect emerging best practice.  12
William Hill PLC Annual Report & Accounts 2004 Board of Directors
Board of Directors
Charles Scott
Non Executive Chairman
David Harding
Chief Executive
Tom Singer
Group Finance Director
Barry Gibson
Senior Independent Non Executive Director
David Allvey
Independent non executive director
David Edmonds
Independent non executive director 13
William Hill PLC Annual Report & Accounts 2004 Board of Directors
Freshfields Bruckhaus
Deringer
(Legal Advisers)
65 Fleet Street
London EC4Y 1HS
Deloitte & Touche LLP 
(Auditors)
Hill House
1 Little New Street
London EC4A 3TR
Brunswick Group Ltd
(Financial Public
Relations)
16 Lincoln’s Inn Fields
London WC2A 3ED
Citigroup
(Financial Advisors and
Corporate Stockbrokers)
Citigroup Centre
33 Canada Square
London E14 5LB
Capita IRG
(Registrar)
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Professional advisers
Charles Scott 
Non Executive Chairman
(appointed 1 January 2004)
Responsibilities: 
Chairman of the Board with responsibility for
best practice corporate governance
Board Committees:
Nomination Committee (Chairman)
Corporate Responsibility Committee
Current directorships:
InTechnology PLC (Non executive director)
Emcore Corporation (Non executive director)
Profile Media Group PLC (Non executive director)
Former roles:
Chairman, Saatchi & Saatchi PLC
Chairman, Cordiant Communications Group PLC
Chairman, Robert Walters PLC
Non executive director, adidas-Salomon AG
Senior Independent Non Executive Director,
TBI PLC 
Qualifications: 
Chartered Accountant
Age: 56
Year of appointment: 2002
David Harding
Chief Executive
Responsibilities: 
Responsibility for the Group’s overall strategic
direction and the day-to-day management and
profitability of the Group’s operations. 
Board committees:
Corporate Responsibility Committee
Former roles: 
Deputy Chief Executive, Scottish Amicable
Managing Director, Prudential Life and Pensions
Managing Director, Charles Schwab Europe
Chief Operating Officer, ShareLink
Operations Director, Mercury Personal
Communications
Senior Consultant, PA Consulting Group
Qualifications: 
MBA Warwick University
Age: 49
Tom Singer
Group Finance Director
Responsibilities: 
Finance, Strategic Planning, Investor Relations,
Security and Internal Audit.
Former roles: 
Finance Director, Moss Bros Group PLC
Management Consultant, McKinsey & Co
Qualifications: 
Chartered Accountant
Age: 41
David Allvey 
Independent non executive
director
Board Committees:
Audit and Risk Management Committee
(Chairman)
Nomination Committee
Remuneration Committee
Current directorships:
Britannic Group PLC (Non executive director)
Costain Group PLC (Non executive director)
Intertek Group PLC (Non executive director)
Mytravel Group PLC (Non executive director)
Former roles: 
Group Finance Director, BAT Industries PLC
Group Operation Officer, Zurich Financial
Services PLC
Group Finance Director, Barclays Bank PLC
Non executive director, McKechnie Group PLC
Member of the UK Accounting Standards Board
Member of International Accounting Standards
Insurance Group
Chairman of the Fiscal Committee of the 100
Group of UK Finance Directors
Qualifications: 
Chartered Accountant
Age: 60
Year of appointment: 2002
David Edmonds, CBE, D.Litt.
Independent non executive director
Board Committees:
Corporate Responsibility Committee (Chairman)
Audit and Risk Management Committee
Remuneration Committee
Current directorships:
Hammerson plc (Non executive director)
Wincanton plc (Non executive director)
Other organisations:
Chairman of NHS Direct Special Health Authority
Legal Services Commissioner
Trustee of SELECT (charity)
Trustee of the Social Market Foundation
Former roles: 
Director General of Telecommunications at Oftel
Board Member, Office of Communications
Managing Director, Group Central Services, at
the National Westminster Group
Chief Executive of the Housing Corporation
Qualifications:  BA (Hons), University of Keele
Age: 60
Year of appointment: 2005
Barry Gibson
Senior Independent Non
Executive Director
Responsibilities: 
Senior Independent Non Executive Director
undertaking duties as identified in the
Combined Code (2003)
Board Committees:
Remuneration Committee (Chairman)
Audit and Risk Management Committee
Nomination Committee
Current directorships: 
National Express Group Plc (Non executive
director)
Homeserve plc (Non executive director)
Somerfield plc (Non executive director)
Industry bodies:
Chairman and Trustee Retail Trust (charity)
Former roles: 
Group Chief Executive, Littlewoods Plc
Group Retail Director, BAA Plc
Non executive director, Limelight Plc 
Age: 53
Year of appointment: 2002 Principal activities
The principal activities of the Group during the
period continue to be the operation of licensed
betting offices and the provision of telephone
and Internet betting and online casino and
poker services. The subsidiary and associated
undertakings principally affecting the profits or
net assets of the Group are listed in note 16 to
the financial statements.
Business review
Full details of the Group’s activities and a report
on its business, strategy and likely future
developments are contained in the Chief
Executive’s Review and Operating and Financial
Review on pages 4 to 11.
Details of significant events since the balance
sheet date are contained in note 33 to the
financial statements.
Results and dividends
The Group’s profit on ordinary activities after
taxation was £148.3m (52 weeks ended
30 December 2003 – £124.3m). The directors
recommend a final dividend of 11 pence per
share to be paid on 2 June 2005 to ordinary
shareholders on the Register of Members on
6 May 2005 which, together with the interim
dividend of 5.5 pence per share paid on
2 December 2004, makes a total of 16.5 pence
per share for the period (52 weeks ended
30 December 2003 – 12.5 pence per share).
Directors
The directors who served throughout the period
and up to 2 March 2005 comprise:
Charles Scott Non Executive Chairman 
David Harding Chief Executive 
Thomas Singer Group Finance Director
David Allvey Independent non 
executive director
Barry Gibson Senior Independent 
Non Executive Director 
In addition, David Edmonds, CBE, was
appointed as a non executive director on 
1 January 2005.
Mr Gibson was appointed Senior Independent
Non Executive Director on 1 January 2004 and
Mr Scott was appointed Non Executive
Chairman on the same date.
Details of committee membership is set out on
page 13.
Details of the directors’ interests are set out in
note 9 to the financial statements.
Directors proposed for 
re-election
Messrs Scott and Singer retire by rotation at the
next Annual General Meeting and offer
themselves for re-election.
Mr Edmonds, who has been appointed by the
Board since the last Annual General Meeting,
retires and offers himself for election.
Please refer to page 13 for directors’
biographies.
Supplier payments policy
The Group’s policy is to settle terms of payment
with suppliers when agreeing the terms of
each transaction, ensure that suppliers are
made aware of the terms of payment and
abide by the terms of payment. Trade creditors
of the Group at 28 December 2004 were
equivalent to 20 days’ purchases (30 December
2003 – 16 days’ purchases), based on the
average daily amount invoiced by suppliers
during the period.
Charitable contributions
During the period the Group made charitable
donations of £211,000 (52 weeks ended
30 December 2003 – £217 ,000) principally to
industry related charities serving the
communities in which the Group operates.
Substantial shareholdings
On 2 March 2005 the Company had been
notified, in accordance with sections 198 to 208
of the Companies Act 1985, of the interests in
the ordinary share capital of the Company set
out in the table on page 15.
Disabled employees
Applications for employment by disabled
persons are always fully considered, bearing in
mind the aptitude of the applicant concerned.
In the event of members of staff becoming
disabled every effort is made to ensure that
their employment within the Group continues
and that appropriate training is arranged. It
continues to be the policy of the Group that the
training, career development and promotion of
disabled persons should as far as is feasible be
identical to that of other employees.
14
Directors’ Report
William Hill PLC Annual Report & Accounts 2004 Directors’ Report
The Directors present their
annual report on the 
activities of the Group, 
together with the financial
statements and auditor’s
report for the 52 weeks 
ended 28 December 2004. Employee consultation
The Group places considerable value on the
involvement of its employees and has
continued to keep them informed on matters
affecting them as employees and on the various
factors affecting the performance of the Group.
This is achieved through formal and informal
meetings, and “INFORM”, the Group magazine.
Employee representatives are consulted
regularly on a wide range of matters affecting
their current and future interests.
The Company operates a SAYE Share Option
Scheme (Scheme) which is open to all eligible
employees based on a three, five or seven year
monthly savings contract. Options under the
Scheme are granted with an exercise price up
to 20% below the prevailing share price. The
maximum permissible monthly savings under
the Scheme is £250.
Authority to purchase 
own shares
At the Annual General Meeting in 2004,
shareholders authorised the Company to make
market purchases of its own shares. During the
year the Company purchased and subsequently
held as treasury shares 10,545,278 ordinary
shares (equivalent to 2.5% of the issued share
capital at the time authority was given). These
treasury shares had a nominal value of £1.1m
and were purchased at a cost of £56.1m at
prices between £4.95 and £5.49. During the
year the Company also purchased and
subsequently cancelled 16,929,722 ordinary
shares (equivalent to 4.0% of the issued share
capital at the time authority was given). These
cancelled shares had a nominal value of £1.7m
and were purchased at a cost of £89.3m at
prices between £4.95 and £5.50. 
At 28 December 2004, the 10,545,278 ordinary
shares held in treasury and the 16,929,722
ordinary shares cancelled represented 2.6%
and 4.2% respectively of the outstanding share
capital at that date.
This authority remains valid until the
forthcoming Annual General Meeting, when it
is intended that a resolution will be put to
shareholders to renew it.
Auditors
A resolution to re-appoint Deloitte & Touche
LLP as the Company’s auditors will be proposed
at the forthcoming Annual General Meeting.
By Order of the Board
Helen Grantham
Company Secretary 
2 March, 2005
Registered Office:
Greenside House, 
50 Station Road, 
Wood Green,
London N22 7TP
15
William Hill PLC Annual Report & Accounts 2004 Directors’ Report
Substantial shareholdings
Percentage
Name of holder Number of shares shareholding
Fidelity 55,391,244 13.87
Barclays 50,735,738 12.87
Legal & General 13,928,542 3.30
Deutsche Bank 12,453,919 3.10
MFS Investment 13,052,430 3.09
Note: the information above is as extracted from relevant notifications under section 198 to
208 of the Companies Act 1985. The percentage shareholding may have been impacted
by the purchase by the Company of its own shares referred to above. Introduction
This report has been prepared in accordance
with the Directors’ Remuneration Report
Regulations (Regulations). The report also
meets the relevant requirements of the Listing
Rules of The Financial Services Authority and
describes how the Board has applied the
Principles of Good Governance relating to
directors’ remuneration. The Committee has
also in preparing this report considered the
guidance issued by the National Association of
Pension Funds and the ABI. As required by the
Regulations, a resolution to approve the report
will be proposed at the forthcoming Annual
General Meeting of the Company.
The Regulations require the auditors to report
to the Company’s shareholders on the
“auditable part” of the Directors’ Remuneration
Report and to state whether in their opinion
that part of the report has been properly
prepared in accordance with the Companies Act
1985 (as amended by the Regulations). The
report has therefore been divided into separate
sections for audited and unaudited information.
Unaudited Information
Remuneration Committee
The Company has established a Remuneration
Committee (Committee), which is constituted in
accordance with the recommendations of the
Combined Code. It determines and agrees with
the Board the Company’s policy and framework
for executive directors and, with effect from 1
January 2005, the Chairman’s remuneration and
determines the specific remuneration packages
for each of the executive directors and other
senior management including basic salary,
other benefits and any compensation payments. 
Details of the membership of the Remuneration
Committee, together with the year in which
membership commenced and details of
changes made to the composition of the
Committee, are set out above. During 2004, the
majority of members of the Committee were
independent non executive directors and with
effect from 1 January 2005 all members of the
Committee are independent non executive
directors. Mr Scott made a significant
contribution to the Committee, however, as
Chairman of the Board, it was felt appropriate
for him to step down as a member of the
Committee on the appointment of Mr Edmonds. 
No director plays a part in any discussion about
his own remuneration.
In determining the directors’ remuneration, the
Committee appointed Towers Perrin to provide
advice on structuring remuneration packages
for the executive directors and senior
management. The Committee also consulted Mr
Harding (Chief Executive) and Mr Russell
(Group Director, Human Resources) about its
proposals relating to individuals other than
themselves. Towers Perrin did not provide any
other services to the Group.
Remuneration policy
The remuneration policy has been designed to
ensure that the Group has the ability to attract
and retain senior managers of a high calibre,
align the interests of the senior management
with that of the shareholders and be compliant
with best practice. The performance
measurement of the key members of senior
management and the determination of their
annual remuneration packages are undertaken
by the Committee. The remuneration of the non
executive directors is determined by the Board
within limits set out in the Articles of
Association.
This report sets out the Company’s policy on
senior management remuneration for 2005
and, so far as practicable, for subsequent years.
This policy will continue unless changed by the
Committee, and any changes in policy for years
after 2005 will be described in future Directors’
Remuneration Reports, which will continue to
be subject to shareholder approval. The
Committee considers that a successful
remuneration policy needs to be sufficiently
flexible to take account of future changes in the
Group’s business environment and in
remuneration practice.
There are four main elements of the
remuneration package for senior management:
• Basic annual salary and benefits;
• Bonus payments;
• Long term incentives; and
• Pension arrangements.
The Group’s policy is to position the basic
salaries of the senior management at the
median of the relevant competitive market, with
a substantial proportion of their remuneration
being performance related. As described below,
senior management may earn annual incentive
payments of up to 75% of their basic salary
together with the benefits of participation in
share option schemes. 
Executive directors are required to obtain the
Board’s prior written consent to accept external
appointments. They currently hold no such
positions.
Basic annual salary and benefits
The salaries of senior management are
reviewed on 1 March each year. Individual pay
levels, within the competitive market, are
determined by reference to performance,
experience and potential. For the basis of
comparison the benchmark used is primarily
the companies within the Towers Perrin top
executive survey, with the relevant data
adjusted by reference to specific competitor
groups and cross-checked against a sample of
companies of comparable size within the FTSE
100 and FTSE 250. The Group believes that this
is the most appropriate comparator group for
these purposes. 
The basic salaries of Messrs. Harding and
Singer were reviewed in March 2004. Mr
Harding’s salary was increased by 3.9% to
£400,000 and Mr Singer had his salary
increased by 5.0% to £236,000. These salaries
remained in effect at the year end. The basic
salaries of other senior management were
reviewed and increased by between 3% and
8% in March 2004. In setting salary levels the
Committee is sensitive to pay and conditions
elsewhere in the Group. The general level of
increase for the vast majority of other
employees was 3%, with a limited number of
employees receiving rises above this level
(where performance merited it) up to a
maximum increase of 8.5%.
With effect from 1 March 2005, the basic
salaries of Messrs. Harding and Singer were
each increased by 10% to £440,000 and
£260,000 respectively.
In addition to basic salary, senior management
receive other competitive benefits, such as a
fully expensed car or car allowance, private
health cover and permanent health insurance.
It is intended to continue to provide these
benefits but retain the flexibility to provide a
16
Directors’ Remuneration Report
William Hill PLC Annual Report & Accounts 2004 Directors’ Remuneration Report
Director Year of appointment Appointment/retirement
Barry Gibson, Chairman 2002
David Allvey 2003
David Edmonds 2005 Appointed 1 January 2005
Charles Scott 2003 Retired on 1 January 2005 cash alternative for any or all of these
according to individual circumstances.
Bonus payments
Executives are eligible to participate in a senior
management bonus scheme that is reviewed by
the Committee on an annual basis to determine
the most appropriate performance measure for
that year. For 2004, this comprised the Group
financial performance as measured by profit on
ordinary activities before finance charges and
taxation and provided for a target payment of
30% of basic salary and a maximum payment
of 75% of salary. Bonus payments for Messrs.
Harding and Singer for the 52 weeks ended 28
December 2004 were 40.5% of basic salaries,
two-thirds of which is payable in cash with the
remaining third paid in shares and held on
behalf of the executive until March 2008, the
third anniversary of the cash bonus payment. 
The same performance measures, levels of
maximum payments and cash/share split will
apply in 2005.
Long-term incentives
Long-term incentives are provided to drive
performance, aid retention and align the
interests of executives with those of
shareholders. The Group has one long-term
incentive scheme currently used to incentivise
management, namely the Long-Term Incentive
Plan (LTIP).
The LTIP is for middle and senior management.
The LTIP is administered by the Committee and
provides for conditional awards of shares to a
value of up to 50% of salary (the basic award)
for middle and senior management and up to a
further 50% (the matching award) for senior
management. The matching award will be on a
ratio of not more than one to one and
accordingly the maximum value of shares that
can be awarded in any financial year is 100%
of salary. Release of the shares will be
dependent upon the Company’s Total
Shareholder Return (TSR) performance over a
three-year period measured against the
performance of companies comprising the
FTSE250 (excluding investment companies)
over the same period and the continued
employment of the individual at the date of
vesting. Shares vest in proportion to the
Company’s TSR performance. No shares vest if
the Company’s performance is below median,
20% of shares vest for median TSR
performance and full vesting requires TSR
performance to be in the top decile compared
to the comparator group. The first award under
the LTIP, structured as a nil-cost option, was
granted in March 2003 in which Messrs.
Harding and Singer did not participate. An
award was made in March 2004, in which
Messrs. Harding and Singer participated and a
further award is planned to be made in 2005.
In the future, awards will be made annually
subject to objective conditions provided this is
justified by corporate and individual
performance. The Committee continues to
believe that a three-year performance period is
appropriate and in line with market practice
and that the level of award is competitive.
There are two other share schemes in
existence:
a) The Executive Director Incentive Plan (EDIP)
was established to reward Messrs. Harding
and Singer in the event of admission of the
Company’s shares to the London Stock
Exchange and will not be repeated. Under
the scheme each is entitled to an award of
shares, structured as a nil cost option, which
will vest in three annual tranches (30%,
30% and 40%), starting from the date of
the first anniversary of admission (20 June
2002), subject to the Company’s TSR
performance against companies in the
FTSE250 (excluding investment companies)
over the period from the date of admission
to the date immediately preceding each
relevant tranche vesting date. If top quartile
TSR performance is achieved, all the shares
in that tranche will vest. If median TSR
performance is achieved, half the shares will
vest, and if performance is between the
median and upper quartiles, between half
and the full amount will vest, on a straight-
line basis. No shares will vest for below
median performance. Two of the three
performance periods have been completed.
The Company’s TSR performance to June
2004 was again in the top decile and, as
with the first tranche, the full 30% of the
shares in the second tranche has vested. 
b) The Company also operates a SAYE Share
Option Scheme for eligible employees under
which options are granted with an exercise
price up to 20% below the prevailing share
price. Senior management are eligible to
participate.
The Committee considers TSR to be the most
appropriate metric for long term incentives as it
rewards management’s performance in both
growing the business as reflected in the share
price and returning value to shareholders via
the payment of dividends.
No significant amendments are proposed to be
made to the terms and conditions of any
entitlement of a director to share options.
Pension arrangements
Market competitive retirement benefits are
provided to act as a retention mechanism and
to recognise long service. Executive directors
are members of the “Retirement Plan” section
of the William Hill Pension Scheme. This
provides defined benefits based on final
pensionable pay and length of service. Benefits
accrue at a rate of 1/30th of pensionable salary,
up to the Earnings Cap, for each year of
pensionable service. Their dependants are
eligible for dependants’ pensions and the
payment of a lump sum, equivalent to four
times salary, in the event of death in service.
Pensionable pay is basic salary less the Lower
Earnings Limit and no other payments are
pensionable.
Where appropriate, member’s benefits are
restricted by the Earnings Cap but the loss of
benefit is compensated for by additional salary
on a discretionary basis. Messrs Harding and
Singer received 10% of salary for this loss of
benefit in the period.
The current final salary scheme is closed to
new entrants and has been replaced by a
money purchase scheme in respect of new
joiners. The normal retirement age is 63 (final
salary) and 65 (money purchase).
Policy regarding minimum shareholding
It is the Board’s policy to require executive
directors and certain members of senior
management to hold a minimum shareholding
in the Company equal to one year’s basic salary.
Whilst not contractually enforceable the
Committee expects to exercise its discretion so
as not to extend participation in various bonus
schemes and LTIPs to individuals who fail to
meet the minimum shareholding requirement.
The Committee has stipulated that Messrs.
Harding and Singer meet this requirement by
the end of 2004, and that other members of
senior management do so by the end of 2007 .
These timeframes were set in the expectation
that all or part of the options and shares
awarded under the EDIP, LTIP and annual
bonus scheme will vest by these dates thereby
providing the executive with shares that can
contribute towards meeting the minimum
shareholding requirement.
Performance graph
As required by the Regulations, the graph on
page 18 shows the Company’s performance,
measured by TSR, compared with that of the
17
William Hill PLC Annual Report & Accounts 2004 Directors’ Remuneration Report performance of the FTSE 250 (excluding
investment companies) Index. The FTSE 250
(excluding investment companies) Index has
been selected for this comparison because it is
the index used by the Company to determine
payments under the EDIP and LTIP .
The graph consists of points representing the
change in the value of a nominal investment of
£100 made on 20 June 2002 in the Company
and the FTSE 250 (excluding investment
companies) Index, respectively. The change in
value of the index holding reflects changes in
the constituent companies over the period. The
closing values at 28 December 2004 represent
the value of each nominal holding at that date
and reflect the change in the share price and
the value of dividend income re-invested over
the period. 
Executive directors’ contracts
It is the Company’s policy that executive
directors should have contracts with an
indefinite term providing for a maximum of one
year’s notice. Consequently no executive has 
a contractual notice period in excess of 
12 months. 
In the event of early termination the policy on
executive directors’ contracts provides for
compensation up to a maximum of 12 months’
basic salary, pension contributions, other
benefits, and pro-rated annual bonus. The
committee will also consider mitigation to
reduce compensation to a departing director
where appropriate to do so.
Mr Harding is employed under a service
contract with the Company dated 28 May 2002
and is entitled under the contract to a basic
annual salary, participation in the Company’s
bonus scheme, a company car (or cash
allowance in lieu), permanent health insurance
and private medical insurance cover. Mr
Harding is also entitled to membership of the
Company’s pension scheme (pensionable salary
limited to the Earnings Cap) and receives an
annual payment of 10% of basic salary to
reflect the restriction imposed by the Earnings
Cap. Mr Harding’s contract is for an indefinite
term ending automatically on his retirement
date (age 63), but may be terminated by 12
months’ notice given by either party. The
Company may at its discretion elect to
terminate the contract by making within ten
days of the termination of employment a
payment in lieu of notice equal to:
• The salary Mr Harding would have received
during the notice period;
• A pro-rated amount in respect of bonus in
respect of the year in which the employment
terminates; and
• The annual cost to the Company of providing
pension and all other benefits to which
Mr Harding is entitled under his contract.
If Mr Harding’s employment is terminated
following a change of control of the Company
and within 12 months of such change of control
Mr Harding is given notice or if Mr Harding
terminates his employment for a good reason
as defined in the service contract, the Company
is obliged to pay within seven days of the
termination of the employment a lump sum
payment calculated in the same way as the
payment in lieu of notice described above.
Mr Singer is employed under a service contract
with the Company dated 28 May 2002. The
terms and conditions of Mr Singer’s service
contract are the same as for Mr Harding.
Non executive directors’ letter of appointment
All non executive directors have specific letters
of engagement and their remuneration is
determined by the Board within the limits set
by the Articles of Association and based on
independent surveys of fees paid to non
executive directors of similar companies.
Remuneration is set taking account of the
commitment and responsibilities of the relevant
role. The non executive directors do not have
service contracts. 
Mr Scott was appointed Non Executive
Chairman on 1 January 2004 under an
appointment letter dated 28 October 2003 and
his initial term of office expires on 31 December
2006. His basic annual fee in 2004 was
£225,000 in respect of all services rendered to
the Company, including chairing the
Nomination Committee. With effect from
1 March 2005, Mr Scott’s fee was increased by
6.7% to £240,000. 
In 2004 the basic annual fee paid to non
executive directors was £35,000 with an
additional £5,000 paid for chairing a Board
committee. With effect from 1 March 2005, the
basic annual non executive fee was increased
to £36,000 and the additional fee for chairing a
Board committee increased to £7 ,500. As all
independent non executive directors now chair
Board committees, they all receive an annual
fee of £43,500. 
Non executive directors are appointed for an
initial term of three years and in normal
circumstances, and subject to satisfactory
performance and re-election at AGMs, they
would be expected to serve for an additional
three-year term. Non executive directors may
be requested to serve for a further three-year
term subject to rigorous review at the relevant
time and agreement with the relevant director.
Messrs. Allvey’s and Gibson’s appointment
letters were dated 17 and 20 May 2002
respectively and their initial terms of office
expire on 17 and 20 May 2005. Mr Edmonds
was appointed as an independent non
executive director in January 2005 and his
appointment letter dated 22 December 2004
provides for his initial term of office to expire
on 1 January 2008. Upon termination or
resignation non executive directors are not
entitled to compensation and no fee is payable
in respect of the unexpired portion of the term
of appointment. Non executive directors cannot
participate in any of the Company’s incentive
schemes and are not eligible to join the Group’s
pension scheme.
18
William Hill PLC Annual Report & Accounts 2004 Directors’ Remuneration Report
Value of hypothetical £100 holding
Historical  TSR performance
Growth in the value of a hypothetical £100 holding since the date of listing in June 2002 versus
FTSE 250 (excluding investment companies) Index. Comparison based on the offer price
and 30 trading day average values
£300
£250
£200
£150
£100
£50
£0
Jun-02
FTSE 250 (excluding investment companies)
William Hill
Dec-04 Dec-02 Dec-03 19
Audited information
Aggregate directors’ remuneration:
2004 2003
total total
££
Emoluments 1,550,333 1,407 ,713
Gains on exercise of share options 7 ,945,724 –
9,496,057 1,407 ,713
Directors’ emoluments:
Fees/ Benefits Annual In lieu of 2004 2003
basic salary)
1
in kind bonuses
2
dividends
3
total total
Name of director ££££££
Executive directors
David Harding 437 ,250 26,646 162,000 199,394 825,290 635,979
Tom Singer 257 ,675 18,605 95,580 49,849 421,709 373,316
Non executive directors
Charles Scott 225,000––– 225,000 35,000
David Allvey 39,167––– 39,167 35,000
Barry Gibson 39,167––– 39,167 35,000
John Brown –––––279,418
Yagnish Chotai (fees payable to Cinven) – – – – – 7 ,000
Donald Mackenzie (fees payable to CVC Capital Partners) – – – – – 7 ,000
Aggregate emoluments 998,259 45,251 257 ,580 249,243 1,550,333 1,407 ,713
1 Included in fees/basic salary for Messrs Harding and Singer was £39,750 and £23,425 respectively paid as compensation for loss of pension benefit
due to the Earnings Cap.
2 One third of the charge included above for annual bonuses is payable in shares held on behalf of the executive until March 2008. 
3 In lieu of dividend payments represent amounts payable under the rules of the EDIP and Float bonus scheme, whereby on exercise of these options,
the holder is entitled to an amount equivalent to the dividends payable on the relevant shares between the date of vesting and the date of exercise.
The executive directors are the highest paid employees within the Group.
There were no payments made by the Company during the financial year for compensation for loss of office or payments in connection with the
termination of qualifying services. The non-cash elements of the executive directors’ remuneration packages consist of the provision of a company car
or car allowance, private health cover, travel card and permanent health insurance. 
William Hill PLC Annual Report & Accounts 2004 Directors’ Remuneration Report 20
William Hill PLC Annual Report & Accounts 2004 Directors’ Remuneration Report
Directors’ share options
Aggregate emoluments disclosed above do not include any amounts for the value of options to acquire ordinary shares in the Company granted to or
held by the directors. 
Details of the options exercised during the period are as follows:
Gains on Gains on
Number of Market exercise exercise 
shares under Exercise value at 2004 2003
Name of director Scheme option price exercise date £ £
David Harding Float bonus 630,288 – £5.55 3,498,098 –
EDIP 366,666 – £5.55 2,034,997 –
Tom Singer Float bonus 315,144 – £4.84 1,525,297 –
EDIP 183,333 – £4.84 887 ,332 –
7 ,945,724 –
Details of options for directors who served during the period are as follows:
Number of Number of
shares at Granted Exercised shares at
31 December during the during the 28 December Exercise Date from which Expiry
Name of director Scheme 2003 period period 2004 price exercisable date
David Harding Float bonus 630,288 – (630,288) – Nil N/A N/A
EDIP 1,222,222 – (366,666) 855,556 Nil * June 2003 (30%) June 2006
** June 2004 (30%) June 2007
June 2005 (40%) June 2008
LTIP 2004 – 81,508 – 81,508 Nil March 2007 March 2014
Tom Singer Float bonus 315,144 – (315,144) – Nil N/A N/A
EDIP 611,111 – (183,333) 427 ,778 Nil * June 2003 (30%) June 2006
** June 2004 (30%) June 2007
June 2005 (40%) June 2008
LTIP 2004 – 48,090 – 48,090 Nil March 2007 March 2014
SAYE 5,277 – – 5,277 180p August 2005 February 2006
Charles Scott N/A – – – – – – –
David Allvey N/A – – – – – – –
Barry Gibson N/A – – – – – – –
* Exercised  ** Fully vested but not exercised
The Company’s ordinary shares were listed and admitted to trading on the London Stock Exchange on 20 June 2002 at a price of £2.25 at which time
Messrs Harding and Singer became eligible to receive the float bonus and benefit under the EDIP arrangement. For the EDIP, the performance criteria
under which options have been granted are detailed on page 17 . Options granted as part of the Float bonus and under the SAYE Share Option Scheme
are not subject to performance criteria. There have been no variations to the terms and conditions or performance criteria for share options during the
financial year.
The market price of the ordinary shares at 28 December 2004 was £5.60 and the range during the period from 31 December 2003 to 28 December 2004
was £4.20 to £5.68.
Float Bonus
On admission of the Company’s shares to the London Stock Exchange, Messrs Harding and Singer were entitled to bonuses of £2,836,000 and
£1,418,150 respectively. The bonus was satisfied by paying up to 50% in cash and granting a right to acquire at nil cost a number of shares calculated
by dividing the remaining part of the bonus by the offer price of the shares on admission. Under the arrangement each elected to have 50% of the
bonus in cash with the remaining 50% being a nil cost option that can be exercised at any time in the five year period following the announcement of
the Group’s results for the 2003 financial year. These options were exercised during the period.  21
Directors’ pension entitlements
Two directors were members of the Group’s defined benefit pension scheme.  In accordance with the Regulations, the following table shows the
members’ contributions, the increase in accrued entitlement during the period and the accrued entitlement at the end of the period:
Accrued pension Real increase in Increase in accrued Accrued pension
31 December 2003 accrued pension Inflation pension in the period 28 December 2004
Name of director £ £ £ £ £
David Harding 11,000 3,392 341 3,733 14,733
Tom Singer 9,625 3,393 299 3,692 13,317
The following table sets out the transfer value of the directors’ accrued benefits under the same scheme calculated in a manner consistent with
‘Retirement Benefit Schemes – Transfer Values (GN 11)’ published by the Institute of Actuaries and the Faculty of Actuaries:
Value of real
increase in Other changes Increase in transfer Contributions Transfer value
Transfer value accrued pension to transfer value in the period made by the 28 December 
31 December 2003 net of contributions value net of contributions director 2004
Name of director £ £ £ £ £ £
David Harding 83,305 26,128 20,962 47 ,090 5,063 135,458
Tom Singer 50,220 16,847 13,856 30,703 5,063 85,986
The transfer values disclosed above do not represent a sum paid or payable to the individual director. Instead they represent a potential liability of the
pension scheme.
Members of the scheme have the option to pay additional voluntary contributions; neither the contributions nor the resulting benefits are included in
the above tables.
Approval
This report was approved by the Board of directors on 2 March 2005 and signed on its behalf by:
Barry Gibson
Chairman of the Remuneration Committee
2 March 2005
William Hill PLC Annual Report & Accounts 2004 Directors’ Remuneration Report The directors are committed to high standards
of corporate governance and this statement sets
out how the Board has applied the principles
set out in the July 2003 Financial Reporting
Council Combined Code on Corporate
Governance (the Code) and identifies, and
provides an explanation for any non-
compliance with the Code’s provisions during
the period.
Compliance with the Code’s
provisions
Throughout the period, the Company has
complied with the provisions of the Code other
than provisions B.2.1 and C.3.1. These
provisions require the Board to establish
remuneration and audit committees comprising
of at least three members all of whom should
be independent. During the period, these
committees comprised of two independent
directors, Messrs Gibson and Allvey, together
with the Chairman, Mr Scott. The Board had
identified the need to recruit an additional
independent non executive director during
2004 and this process concluded with the
appointment of Mr Edmonds to the Board on 1
January 2005. On this date, he also became a
member of the Audit and Risk Management
Committee and the Remuneration Committee
and Mr Scott stepped down as a member of
these committees. The Remuneration
Committee also assumed responsibility for
setting the Chairman’s remuneration with effect
from 1 January 2005. 
The Board
The Chairman, Chief Executive, Senior
Independent Non Executive Director and other
directors, including those considered by the
Board to be independent are listed on page 13.
Details of Board and committee attendance are
set out on page 23. No directors have resigned
during the year. Appropriate insurance cover is
in place in respect of legal action against
directors.
The Board met thirteen times during the year
and operates within a formal schedule of
matters reserved to it. Other powers are
delegated to the various Board Committees and
senior management. Details of the roles and
responsibilities of the Board Committees are set
out on page 24. Papers for board and
committee meetings are circulated in advance
of the relevant meeting and where a director is
unable to attend he continues to be provided
with a full copy of the papers and has the
opportunity to comment on the matters to 
be discussed.
The Board considers that its primary role is to
provide leadership to the Group, to set the
Group’s long-term strategic objectives and to
develop robust corporate governance and risk
management practices. The Schedule of Matters
Reserved to the Board and delegated
authorities are reviewed and approved by the
Board annually. Matters reserved to the Board
include, amongst other matters:
• Setting the overall direction, long-term
objectives and strategy of the Group and
delegating day-to-day management to the
Chief Executive; 
• Reviewing Group performance;
• Reviewing the arrangements in place
relating to regulatory and industry issues; 
• Approving the appointment and removal of
any Board member and the Company
Secretary; 
• Reviewing and approving the terms of
reference of the various Board committees
and receiving reports from committee
chairmen on a regular basis; 
• Approving changes to the Group’s capital
structure; any significant acquisitions and
disposals; capital investment projects and
material contracts;
• Approval of the Group’s annual budget,
Corporate Plan, Annual Report and Accounts
and Interim Statement, and setting the
Group’s dividend policy; 
• Approval of the Group’s charitable donations
and Group-wide corporate social
responsibility policies;
• Undertaking reviews of Board, committee
and individual director performance at least
annually; and
• Succession planning for senior management
and the Board (the latter on the
recommendation of the Nomination
Committee). 
The authority delegated to senior management
provides a practical framework to executive
management, which seeks to achieve the dual
objectives of maintaining effective financial and
operational controls whilst providing sufficient
flexibility to manage the business. Examples of
areas of such delegated authority include the
release of capital expenditure against approved
budgets; treasury activity within approved
limits; payroll processing; property transactions;
LBO development activities; the setting 
of bet acceptance limits and routine 
transaction processing.
The Board comprises individuals with wide
business experience of various sectors of
industry and in the public sector. They have
access to all information relating to the Group,
the advice and services of the Company
Secretary (who is responsible for ensuring that
Board procedures are followed) and, as
required, external advice at the expense of 
the Group.
During the period, the Chairman met with the
non executive directors without the executive
directors being present and as part of the
process to appraise the Chairman’s performance,
the Senior Independent Non Executive Director
met with Mr Allvey, the other independent non
executive director at that time. 
Chairman and Chief Executive 
There is a clear division of responsibilities
between the Chairman and Chief Executive
whereby the Chairman is responsible for the
running of the Board, and the Chief Executive
has executive responsibility for the running of
the business. During 2004, the Nomination
Committee and the Board reviewed and
approved revised role descriptions for these
individuals together with a written role
description for the Senior Independent Non
Executive Director. The Senior Independent Non
Executive Director’s main role is to satisfy the
function outlined in the Code of being available
to shareholders if there are concerns which
normal contact has failed to resolve, to lead the
process for evaluating the Chairman’s
performance and to chair the Nomination
Committee when it is considering succession to
the role of chairman. No one individual has
unfettered powers of decision-making.
Mr Scott satisfied the independence criteria
detailed in provision A.3.1 of the Code on his
appointment as Chairman and details of his
other significant commitments are set out on
page 13. He stepped down as a director of
adidas-Salomon AG during 2004 and as a
director of TBI PLC in early 2005.
Board balance, independence and
appointments
During the year, the Nomination Committee and
the Board reviewed the structure, size and
composition of the Board (together with an
evaluation of the Board’s balance of skills,
knowledge and experience); the membership 
of the various Board committees and the
expected time commitment and policy for
multiple board appointments for executive and
non executive directors.
22
Statement on Corporate Governance
William Hill PLC Annual Report & Accounts 2004 Statement on Corporate Governance The directors’ aim is to ensure that the balance
of the Board reflects the changing needs of the
Group’s business. In 2004, the Board identified
the need for an additional independent non
executive director to strengthen the
independent element on the Board and to add
additional regulatory experience. David
Edmonds was appointed on 1 January 2005
and details of the process used to appoint him
are set out on page 28. The Nomination
Committee and the Board will continue to
monitor the Board balance and skills at 
least annually. 
During the period, the Board comprised two
independent non executive directors out of a
total of five directors, and currently comprises
three independent non executive directors out
of a total of six directors, satisfying the Code
requirements that at least half the Board,
excluding the Chairman, should comprise non
executive directors determined by the Board to
be independent.
Appointments to the Board are the
responsibility of the full Board, on the
recommendation of the Nomination Committee.
On joining the Board, directors receive a formal
appointment letter, which identifies the time
commitment expected of them. A potential
director candidate is required to disclose all
significant outside commitments prior to
appointment and the Board has approved a
policy requiring disclosure and approval by the
Board of all additional appointments for
executive or non executive directors. The terms
and conditions of appointment of non executive
directors are available to shareholders for
inspection at the Group’s registered office
during normal business hours and at the
Annual General Meeting (for 15 minutes prior
to the meeting and during the meeting).
Information and professional
development
The Board receives detailed reports from
executive management on the performance of
the Group at monthly board meetings and other
information as necessary and senior
management regularly make presentations to
the Board on their areas of responsibility.
Regular updates are provided on relevant legal,
corporate governance and financial reporting
developments and directors are encouraged to
attend external seminars on areas of relevance
to their role. In early 2005, the Board approved
an information and professional development
policy for directors.
A formal induction programme has been
developed by the Company Secretary and
approved by the Chairman. This was discussed
with Mr Edmonds following his appointment
and tailored as appropriate. A range of both
general and company–specific information was
provided in hard copy and this was
supplemented by a series of meetings with
senior management and external advisers.
Induction programmes are in place for
appointment to the Board, the Audit and 
Risk Management Committee and the
Remuneration Committee.
All directors have access to the advice and
services of the Company Secretary. The
removal and appointment of the Company
Secretary is a matter reserved for Board
approval and the Board approved the
appointment of the new Company Secretary,
which occurred during 2004. The Board also
obtains advice from professional advisers as
and when required. 
Performance evaluation
A process of performance evaluation of the
Board, its committees and directors has been
undertaken in 2004 involving:
• The three Board committees then in place
conducting a review of their terms of
reference and considering a detailed
questionnaire to assess committee
performance;
• One-to-one meetings between the Chairman
and each director to assess individual
director performance and to allow any other
issues to be raised; and
• The performance evaluation process
concluded with an assessment by the Board
of its own performance, feedback to the
Board from the chairman of each committee
and the Board, and approval of action to
address issues raised. 
The Senior Independent Non Executive Director
led the process for the evaluation of the
Chairman’s performance involving discussions
with each other director, a meeting with the
other non executive director and feedback to
the Chairman. 
Re-election
All directors are subject to election at the first
annual general meeting following their
appointment by the Board. The Company’s
Articles of Association state that each year one
third of directors should retire by rotation but
that if a director has at the start of the Annual
General Meeting been a director for more than
three years since his last re-appointment, he
shall retire. In practice, this means that every
director stands for re-election at least once
every three years.
23
William Hill PLC Annual Report & Accounts 2004 Statement on Corporate Governance
2004 Board and Committee meetings
Audit and Risk
Management Nomination Remuneration
Board Committee Committee Committee
Number of meetings held 13647
Meetings attended
Charles Scott 13647
David Allvey 13647
Barry Gibson 12* 6 4 7
David Harding 13 N/A N/A N/A
Tom Singer 13 N/A N/A N/A
* Mr Gibson was unable to attend one Board meeting due to a conflicting commitment. The Board explains the reasons why it believes
each director should be elected or re-elected in
the Notice of Meeting for the next Annual
General Meeting. As referred to above, those
directors who held office during the period
have been subject to formal performance
evaluation and the Board believes that their
performance continues to be effective and to
demonstrate commitment to their relevant role.
Their re-election is also consistent with the
Board’s evaluation of the size, structure and
composition of the Board.
Remuneration 
The Directors’ Remuneration Report is set out
on pages 16 to 21.
Relations with shareholders
The Board remains committed to maintaining
good relationships with both institutional and
private shareholders. There continues to be a
regular dialogue with institutional
shareholders, although care is exercised to
ensure that any price-sensitive information is
released at the same time to all shareholders,
in accordance with the requirements of the UK
Listing Authority. Slide presentations provided
to institutional shareholders and analysts
following the publication of the Group’s
preliminary and interim results are made
available on the Group’s investor relations
website, www.williamhillplc.co.uk, and a
recording of the results presentations can be
accessed via telephone for a period following
the meeting.
The Chairman is available to discuss strategy
and governance issues with shareholders and
Mr Gibson, as the Senior Independent Non
Executive Director, is available to shareholders
if they have concerns that have not, or cannot,
be addressed through the Chairman, Chief
Executive or Group Finance Director. During
the period, the Group’s ten largest
shareholders were offered meetings with the
Chairman and Senior Independent Non
Executive Director.
The Group obtains feedback from its broker,
Citigroup, on the views of institutional investors
on a non-attributed basis and the Chief
Executive and Group Finance Director
communicate the issues and concerns of major
shareholders to the Board. As a matter of
routine, the Board receives a monthly report
from Citigroup on issues relating to recent
share price performance, trading activity and
institutional investor sentiment. The Board also
receives copies of relevant analysts’ reports on
an ad hoc basis.
The Board regards the Annual General Meeting
as an important opportunity to communicate
directly with all shareholders. Board members,
including the chairmen of the Remuneration,
Nomination and Audit and Risk Management
Committees, attended the 2004 meeting and,
along with the Chairman of the Corporate
Responsibility Committee, intend to attend the
forthcoming meeting and will be available to
answer questions. In order that shareholders
are aware of the other shareholders’ voting
intentions, the details of proxy votes will be
announced at the Annual General Meeting and
will be made available on the Group’s website
following the meeting. The website will also
contain a copy of the Notice of Meeting and
explanatory notes. A separate resolution will be
proposed on each substantially separate issue.
The Notice of the Annual General Meeting is
posted to shareholders with the Annual Report
and Accounts at least twenty working days
prior to the date of the meeting.
Board Committees
The Remuneration Committee, the Nomination
Committee, the Audit and Risk Management
Committee and, since January 2005, the
Corporate Responsibility Committee, are
standing committees of the Board.
The terms of reference of the Committees,
including their objectives and the authority
delegated to them by the Board, are available
upon request or via the Group’s investor
relations website (www.williamhillplc.co.uk)
and are reviewed at least annually by the
relevant committee and the Board. All
committees have access to independent expert
advice. Appointments to Board committees are
for three-year terms extendable by no more
than two additional three-year terms.
Audit and Risk Management Committee
The role and operation of the Audit and Risk
Management Committee is set out in its report
on pages 26 to 27 .
Nomination Committee
The role and operation of the Nomination
Committee is set out in its report on page 28.
Remuneration Committee
The role and operation of the Remuneration
Committee is set out in the Directors’
Remuneration Report on pages 16 to 21.
Corporate Responsibility Committee
In the early part of 2005, the Board established
a Corporate Responsibility Committee. Details
of its membership and areas of key focus are
set out in the Corporate Responsibility
Statement on pages 29 to 32.
Internal control
The Board has overall responsibility for the
Group’s internal control systems and for
monitoring their effectiveness. Executive
directors and senior management are
responsible for the implementation and
maintenance of the internal control systems,
which are subject to periodic review that is
documented. The Internal Audit department
maintains a database recording the system of
internal controls in every division or
department throughout the Group. 
The Board monitors the ongoing process by
which critical risks to the business are
identified, evaluated and managed. This process
is consistent with the Turnbull Guidance on
Internal Control and has been in place for the
period under review and up to the date of
approval of the Annual Report and Accounts. 
Each year the Board assesses the effectiveness
of the Group’s system of internal controls
(including financial, operational and
compliance controls and risk management
systems) on the basis of:
• Established procedures, including those
already described, which are in place to
manage perceived risks;
• Regular reports by management to the Audit
and Risk Management Committee on the
adequacy and  effectiveness of internal
control systems and significant control
issues; 
• The continuous Group-wide process for
formally identifying, evaluating and
managing the significant risks to the
achievement of the Group’s objectives; and
• Presentations to the Audit and Risk
Management Committee on the results of
internal audits and work undertaken by
other departments.
24
William Hill PLC Annual Report & Accounts 2004 Statement on Corporate Governance The Group’s internal control systems are
designed to manage, rather than eliminate, the
risk of failure to achieve the Group’s objectives,
and can only provide reasonable, and not
absolute, assurance against material
misstatement or loss. In assessing what
constitutes reasonable assurance, the Board
considers the materiality of financial and 
non-financial risks and the relationship
between the cost of, and benefit from, internal
control systems.
The Board regularly reviews the actual and
forecast performance of the business compared
with the annual plan, as well as other key
performance indicators.
Lines of responsibility and delegated
authorities are clearly defined. The Group’s
policies and procedures are regularly updated
and distributed throughout the Group. The
Audit and Risk Management Committee
receives reports on a regular basis on
compliance with the Group’s policies and
procedures.
Assessment of risk
A corporate risk matrix has been developed and
is approved annually by the Audit and Risk
Management Committee and the Board. The
matrix records the key risks facing the business,
the assessment of the likelihood of the risks
crystallising and their potential materiality, and
the Group’s response to each risk. The matrix is
reviewed and updated at regular intervals.
Responsibility for management of the risks is
attributed typically to senior management.
The Board uses the control and risk
management processes to identify and manage
any significant risks arising from social,
environmental and ethical issues. Further
details of the Group’s corporate responsibility
practices are described on pages 29 to 32.
Internal Audit
The Internal Audit department reviews the
extent to which systems of internal control are
effective; are adequate to manage the Group’s
significant risks; safeguard the Group’s assets;
and in conjunction with the Company Secretary
and General Counsel, ensure compliance with
legal and regulatory requirements. It provides
independent and objective assurance on risks
and controls to the Board and senior
management.
Internal Audit’s work is focused on areas of
greatest risk to the Group, as determined by a
structured risk assessment process involving
executive directors and senior management.
The output from this process is summarised in
an annual audit plan, which is approved by the
Audit and Risk Management Committee. The
Head of Internal Audit reports regularly to the
Group Finance Director and the Audit and Risk
Management Committee.
The role of the Internal Audit department and
the scope of its work continue to evolve to take
account of changes within the business and
emerging best practice.
Going concern
The directors have prepared the financial
statements on a going concern basis consistent
with their view, formed after making
appropriate enquiries, that the Group is
operationally and financially robust.
25
William Hill PLC Annual Report & Accounts 2004 Statement on Corporate Governance The Company Secretary acts as secretary to the
Committee. Other individuals attend at the
request of the Committee Chairman and during
the period the external auditors, Chief
Executive, Group Finance Director, Head of
Internal Audit and the Group Financial
Controller have usually attended meetings to
report to the Committee and provide
clarification and explanations where
appropriate. The Corporate Finance Manager
and Head of Security have attended meetings
as requested. The Committee also meets with
the external auditors without executive
management present on a regular basis. The
Committee met on six occasions during the
period and details of attendance at committee
meetings is set out on page 23.
Mr Allvey has recent and relevant financial
experience. He is a chartered accountant, a
former Group Finance Director of Barclays PLC
and BAT Industries PLC and a former member
of the UK Accounting Standards Board. Mr
Edmonds and Mr Gibson are both financially
literate and have significant general business
experience of executive roles in both private
and public organisations and details of each
director’s significant current and prior
appointments are set out on page 13.
Role of the Audit and Risk
Management Committee
A full copy of the terms of reference for the
Committee can be obtained via the website
www.williamhillplc.co.uk or by request to the
Company Secretary. The Committee’s principal
responsibilities are to:
• Review and advise the Board on the Group’s
interim and annual financial statements and
its accounting policies and to monitor the
integrity of the financial statements and
announcements relating to financial
performance;
• Review the major risks affecting the Group
and assist the Board with reviewing the
effectiveness of the controls operating over
the Group’s financial and non-financial risks;
• Review the nature and scope of the work to
be performed by the external and internal
auditors, the result of that work and
management’s response, and their
effectiveness;
• Oversee the relationship with the external
auditors including making recommendations
to the Board regarding their appointment 
or removal and developing a policy
regarding the provision of non-audit services
to the Group;
• Meet with the executive directors and
management, as well as privately with both
the external and internal auditors; and
• Report to shareholders annually on its role
and responsibilities.
The Chairman of the Audit and Risk
Management Committee reports to the Board
on the outcome of meetings.
A formalised whistle-blowing policy and
procedure for staff to raise issues regarding
possible improprieties in matters of financial
reporting or other matters has been established
and it is the responsibility of the Committee 
to monitor its effectiveness and any
notifications made.
The Committee has access to the services of the
Internal Audit and Company Secretarial
departments and is authorised to obtain
independent professional advice if it considers
it necessary.
Main activities during 2004
The Committee has discharged its
responsibilities during the period by
performing the following activities.
Financial statements
During the period, the Committee reviewed and
discussed the financial disclosures made in the
preliminary results announcement, Annual
Report and Accounts, Interim Statement and
the other trading statements made by the
Group together with any related management
letters, letters of representation and reports
from the external auditors. Significant financial
reporting issues and judgments were
considered together with any significant
accounting policies and changes proposed to
them. 
Internal control and risk management
The Committee has reviewed the Group’s
internal control and risk management systems
and has received reports from a number of
departments, and, where appropriate,
presentations from senior management, on the
major risks faced by the Group and the
procedures established to identify, assess,
manage, monitor and report on these risks. 
The Committee has reviewed and approved 
the statements on internal controls on 
pages 24 to 25.
External auditors 
The Committee has responsibility for
overseeing the relationship with the external
auditors and approves the external auditors’
engagement letter, audit fee and audit and
client services plan (including the planned
levels of materiality). The external auditors
attend each committee meeting and at least
annually meet with the Committee without
executive management. The Chairman of the
Committee also meets privately with the
auditors. Letters of representation are reviewed
prior to signature by executive management.
During the period, the Committee received
regular reports from the external auditors
including a formal written report dealing with
the audit objectives; the auditors’ qualifications,
expertise and resources; effectiveness of the
audit process; procedures and policies for
maintaining independence; and compliance
with the ethical standards issued by the
Auditing Practices Board. The external auditors’
management letter is reviewed, as is
management’s response to issues raised. The
Committee monitors the ethical guidance
regarding rotation of audit partners and a
26
Report of the Audit and Risk Management Committee
William Hill PLC Annual Report & Accounts 2004 Report of the Audit and Risk Management Committee
Membership and meetings
Set out below is the current membership of the Audit and Risk Management Committee together
with the year in which membership commenced. During the period, the majority of members of the
Committee were independent non executive directors and with effect from 1 January 2005, all
members of the Committee are independent non executive directors. Mr Scott made a significant
contribution to the Committee, however, as Chairman of the Board, it was felt appropriate for him to
step down on the appointment of Mr Edmonds as an additional independent non executive director. 
Director Year of appointment Appointment/retirement
David Allvey, Chairman 2002
David Edmonds 2005 Appointed 1 January 2005
Barry Gibson 2002
Charles Scott 2002 Retired on 1 January 2005 change in audit partner was made during the
period when the audit partner was rotated off
the audit in accordance with the latest
guidance. The new audit partner was appointed
following interviews with the Committee
Chairman and the Group Finance Director and
subsequent approval by the Committee.
During the period, the Committee agreed with
the Board a written policy regarding the
employment by the Group of former employees
of the external auditors and also a revised
policy on non-audit services provided by the
external auditors. The Committee approves any
non-audit work to be undertaken by the
external auditors involving fees in excess of
£25,000. Where no committee meeting is
scheduled within an appropriate time frame,
approval is sought from the Committee
Chairman and subsequently ratified at the next
meeting. All non-audit services provided by the
external auditors are reported to the Committee
at its next scheduled meeting. The external
auditors are excluded from performing any day-
to-day accountancy work for the Group. The
policy also sets out the criteria to be followed
when considering whether external auditors
should be engaged to undertake non-audit
services with the aim of safeguarding the
external auditors’ objectivity and independence.
The Committee is satisfied with the
performance of the external auditors during the
year, and the policies and procedures in place
to maintain their objectivity and independence,
and has recommended that they be
re-appointed at the forthcoming Annual
General Meeting.
Internal Audit 
The Committee approves the annual audit plan
for the Internal Audit department and monitors
progress against the plan during the period.
Audit reports are circulated to the Committee
members after each audit and the Committee
monitors progress against actions identified in
these reports and the external auditors’
management letter.
The Committee has established a number of
procedures to monitor and review the
effectiveness of the Internal Audit department.
The procedures include assessing the Internal
Audit department’s terms of reference and its
performance against those terms and a number
of predetermined criteria, which includes a
review of the department’s compliance with the
Institute of Internal Auditors’ Standards for the
Professional Practice of Internal Auditing. The
Committee also assesses annually the resources
the department has to complete its remit. The
Internal Audit department has unrestricted
access to all Group documentation, premises,
functions and employees as required to enable
it to perform its functions. The appointment and
removal of the Head of Internal Audit is the
responsibility of the Committee. The Head of
Internal Audit has direct access to the Board
and Committee Chairmen and is accountable to
the Committee. The Head of Internal Audit
meets regularly with the Committee Chairman
without executive management.
Other activities
During the period other significant activities
addressed by the Committee were as follows:
• The introduction of International Financial
Reporting Standards;
• Compliance with various corporate
governance issues;
• Review of major projects; and
• A review of its own performance and its
remit resulting in recommendations to the
Board regarding revised terms of reference.
The revisions did not introduce fundamental
changes to the activities of the Committee,
but rather clarified and set out more fully
the existing responsibilities of the
Committee in line with current best practice.
Regular updates are provided to the Committee
on developments in financial reporting and risk
management and related legal and corporate
governance matters.
27
William Hill PLC Annual Report & Accounts 2004 Report of the Audit and Risk Management Committee Membership and meetings
Set out below is the current membership of the
Nomination Committee together with the year
in which membership commenced. No changes
have been made to committee membership
during the period under review. The majority of
members of the committee are independent
non executive directors and the committee is
chaired by the Board Chairman.
Director Year of appointment
Charles Scott, Chairman 2002
David Allvey 2002
Barry Gibson 2002
The Company Secretary, or one of the
committee members, acts as secretary to the
Committee. 
The Committee meets as necessary but at least
twice a year usually before or after regular
meetings of the Board and met formally on four
occasions during 2004.
Role of the Nomination
Committee
A full copy of the terms of reference for the
Committee can be obtained via the website
www.williamhillplc.co.uk or by request to the
Company Secretary and its principal function is
to carry out a formal selection process for
executive and non executive directors and
subsequently to propose to the Board any new
appointments. 
The Nomination Committee oversees
succession planning for directors. The Board, on
recommendation from the Chief Executive,
reviews contingency and succession planning
arrangements for senior management below
Board level.
The Chairman of the Nomination Committee
reports to the Board on the outcome of
meetings.
Main activities during 2004
During the period, the Committee made
recommendations to the Board regarding its
size, structure and composition and led the
process for the recruitment of an additional
independent non executive director. A formal
recruitment process was undertaken involving
the production of a detailed role description
and use of external search consultants.
Mr Edmonds met with the Nomination
Committee members, and then the other
members of the Board, prior to the Committee
recommending his appointment. Mr Edmonds
received a formal letter of appointment from
the Company, which set out clearly what was
expected in terms of time commitment, the
requirement to disclose future commitments 
in accordance with the Board’s policy and 
the need to provide an explanation to 
the Chairman, on request, in the event 
of resignation. 
The Committee also made recommendations
during the period to the Board regarding the
time commitment required of non executive
directors, a policy on multiple board
appointments for executive and non executive
directors and role descriptions for the
Chairman, Chief Executive and Senior
Independent Non Executive Director. 
The Committee undertook a review of its own
performance during the period, which led to
revised terms of reference being adopted by the
Board in 2004. The revisions made largely
clarified and set out more fully the existing
responsibilities of the Committee in line with
current best practice.
28
Report of the Nomination Committee
William Hill PLC Annual Report & Accounts 2004 Report of the Nomination Committee Introduction
William Hill recognises that the Group has a
responsibility to the wider community, as well
as to its shareholders and employees, and
believes it makes good business sense to
implement policies and procedures that take
due regard of stakeholders’ legitimate
expectations. The Board is committed to
improving continuously its practices in the area
of corporate responsibility. The range of issues
embraced by the term corporate responsibility
(CR) is extremely wide, however, the areas of
major focus for the Group relate to those
matters which are considered to be material
and these are referred to below.
Risk management
The Board uses the risk management processes
referred to on pages 24 and 25 to identify and
manage risks arising from social responsibility
matters. The most significant CR issues for the
Group are considered to be as follows:
• Compliance with relevant laws, regulations
and codes of conduct relating to responsible
gambling; underage gambling and
protecting the vulnerable; prevention of
crime and disorder; and product integrity
issues;
• The ongoing training, development and
motivation of employees to retain the widest
possible range of talented staff;
• Provision of a safe and healthy workplace in
accordance with relevant legislation;
• Providing appropriate levels of customer
service; and
• Protecting customer privacy and the proper
handling and use of data within the Group
in accordance with relevant legislation.
Leadership and management framework
Mr Harding, the Group’s Chief Executive, is the
director with responsibility for overseeing
William Hill’s activities in this area and regular
reporting is provided to the Board, or one of its
committees, on the Group’s activities in the CR
area. In the summer of 2004, the Group
established a Corporate Social Responsibility
Working Group which met on two occasions
during the second half of the year and once in
the first quarter of 2005. It comprises the Chief
Executive and Company Secretary together
with functional heads for the corporate strategy
and development, human resources, property,
security and customer service departments.
During 2004, this group considered the key
areas of focus for the various stakeholder
groups (the Government, customers, employees,
suppliers, investors and the wider community);
the Group’s existing policies and procedures in
these key areas; and the action currently being
undertaken by the Group. The meetings also
identified potential future action and after each
meeting a detailed action plan was circulated
including responsibilities and timescale for
achievement. Early in 2005, the Board
appointed a Corporate Responsibility
Committee, comprising of Messrs Edmonds
(Chairman), Harding and Scott. This Committee
will deal with a range of corporate
responsibility issues, including in relation to
responsible and underage gambling,
employment policies and community matters.
Communication and activities
The Group identified a need to increase
communication, both internally and externally,
on the Group’s activities in the area of corporate
responsibility. This report increases the level of
disclosure made in previous years and it is
planned to make additional information
available on the Group’s website. In the 12
months prior to this report, the Board has
formally adopted either new or revised policies
in the areas of customer relations, responsible
gambling, privacy, health and safety, smoking
and environment. Copies of these policies are
being made available at
www.williamhillplc.co.uk. The Group also
adopted a Code of Business Conduct which
covers the basic principles the Board expects 
to be complied with across the Group in a
variety of areas, including bribery, corruption
and fraud.
Government
Gambling Bill
The Government’s key area of focus during
2004 has related to the Group’s core gambling
business and the Gambling Bill issued towards
the end of the year states the licensing
objectives as:
• The prevention of crime and disorder; 
• Conducting gambling in a fair and open way;
and 
• Protecting the vulnerable.
Codes of conduct
The Group supports these principles and works
with relevant trade associations to adopt
appropriate codes of practice and to exchange
best practice in this area. During 2003, the
Association of British Bookmakers (ABB)
introduced a social responsibility and good
practice code for LBOs and a code of practice
governing the supply and use of fixed-odds
betting terminals in LBOs. ARGO, the
Association of Remote Gambling Operators,
was established in 2004 and it introduced a
social responsibility code in that year. The
social responsibility codes deal with issues
relating to responsible and underage gambling
and cover such areas as advertising and
promotion, staff training, customer
communication and support for social impact
initiatives. As can be seen from the information
referred to below, the Group has an 
ongoing programme to review its activities 
in these areas.
Crime and disorder
The Group’s current operations are licensed
under relevant legislation and the Group is
committed to gambling being conducted in a
way that is crime free and appropriately
regulated. The Group has appointed a
compliance officer, the Group’s Head of Security,
who is responsible for ensuring that the Group
complies with relevant legislation in the area of
money laundering and proceeds of crime, and
that appropriate training is provided to
employees. The ABB, of which the Group is a
member, has a memorandum of understanding
in place with the Jockey Club relating to the
sharing of information when either criminal
offences or the integrity of racing is suspected.
A similar document is in place with the Football
Association. The ABB also has arrangements
agreed with greyhound racing, snooker, cricket
and rugby league and its practice is to inform
the relevant governing body of the sport
whenever matters concerning integrity arise.
The Group co-operates with the ABB on
integrity issues. The Security Department
maintains close relationships with relevant law
enforcement agencies and the provision of
information is strictly controlled by the Head of
Security to ensure compliance with the Data
Protection Act.
The Group’s Security Department undertakes
risk assessments of those LBOs considered to
be potentially vulnerable to robberies and
appropriate crime prevention measures are
introduced to meet the perceived risk. During
2004 a close liaison has been established and
maintained with a number of local authority
environmental health departments and crime
prevention offices. 
29
Corporate Responsibility Statement
William Hill PLC Annual Report & Accounts 2004 Corporate Responsibility Statement Information relating to conducting gambling in
a fair and open way and protecting the
vulnerable is set out below.
Customers and communities
Customer service
William Hill is committed to high standards of
customer service and to conducting its
gambling operations in a fair and open way.
William Hill’s customers are key to the Group’s
ongoing success. Dedicated customer service
departments are in place for each of the Group’s
main operations handling enquiries on a large
range of issues. Service complaints are given
serious consideration and consistent procedures
are in place across the Group and are
monitored. Comprehensive betting rules, which
detail the terms and conditions under which all
transactions placed with William Hill are
accepted, are available to customers. The Group
endeavours to resolve all betting disputes in a
fair, consistent and equitable manner, however,
if these are unable to be resolved to the
customer’s satisfaction they are entitled to refer
the matter to the Independent Betting
Arbitration Service (IBAS). William Hill has
agreed to abide by any ruling they make. 
Product integrity
William Hill has a number of products where
the outcome of an event is determined by a
random number generator (RNG). RNGs are
either administered by external third parties or,
where this is not the case, the Group is
introducing a procedure to test the randomness
of its own RNGs and a reputable third party
will provide regular assurance of the accuracy,
fairness and integrity of its gaming systems. 
Privacy
The Group has systems in place to protect the
privacy of information provided by customers.
William Hill complies with the Data Protection
Act 1998 and the Data Protection Principles set
out in that Act in the collection and processing
of personal information. Periodic audits are
undertaken with relevant heads of department
to review practices in this area.
Responsible and underage gambling
William Hill encourages a socially responsible
attitude within the betting and gaming industry
and within its own organisation and is
committed to the Government’s stated objective
of protecting children and the vulnerable from
being harmed or exploited by gambling. The
Group is actively involved through relevant
trade associations in developing industry-wide
codes in the area of social responsibility and is
committed to listening to the views of relevant
stakeholder groups. The Group has an ongoing
dialogue with GamCare, a charity involved in
providing information, advice and practical help
regarding the impact of gambling, and is also a
major contributor to the Responsibility in
Gambling Trust. The Group is committed to
implementing appropriate procedures within
the organisation to deal with both responsible
and underage gambling. The Group has
introduced self-exclusion procedures for
customers, made additional information
available in LBOs and online and undertaken
training programmes for staff. GamCare have
assessed the understanding of responsible and
underage gambling issues within the Group’s
LBOs. This involved visits to 39 LBOs in 4
regions during December 2004. The Group
passed the audit and feedback was provided
from GamCare following the completion of the
process. GamCare have also provided assistance
by reviewing the Group’s internal training
materials for both the retail and remote
businesses. A best practice age verification
process for use with online and telephone
customers is also being introduced and will be
operational in April. A dialogue is ongoing with
banks via relevant trade associations to
establish if they can provide additional
verification in this area. William Hill will
continue to monitor best practice as it develops
and to review its policies and procedures on a
regular basis. 
Access to services
Customers with disabilities have a right of
access to the Group’s services. Accessibility
issues are taken into account in accordance
with appropriate codes of practice when
opening and refitting the Group’s LBOs and a
combination of ramps, stair lifts, disabled toilets
and induction loops for the hard of hearing are
fitted where appropriate. 
Employees
William Hill’s ongoing success is dependent on
its employees and it is committed to high
standards of employment practice. The Group
rewards individuals fairly and is committed to
providing equality of opportunity, training and
development and a safe workplace. 
Policies
A comprehensive set of human resources
policies are in place including policies covering
health and safety (including specific policies on
stress management and smoking), equal
opportunities and harassment, flexible working,
training and development, the acceptance of
gifts and hospitality and whistle blowing. 
These are communicated to employees as
appropriate. In the early part of 2005 the Group
has also approved a Code of Business Conduct
which will be communicated to employees 
as appropriate.
William Hill is committed to undertaking its
operations in a way which respects individual’s
human rights and treats individuals with
dignity and respect.
Health and safety
A copy of the Group’s health and safety policy is
being made available at
www.williamhillplc.co.uk. A Health and Safety
Committee meets regularly to review
compliance with applicable health and safety
legislation and regulation, to keep up to date
with best practice and to review and maintain
compliance with health and safety procedures.
The Committee is comprised of senior
managers from the Group’s human resources,
security, property and company secretarial
departments, together with representatives of
operational management. An external health
and safety consultant advises the Committee.
Staff are provided with information and
training on health and safety issues as part of
their induction and on an ongoing basis. Risk
assessments are undertaken and the Group
monitors the application and understanding of
the safety instructions through a system of
safety audits, Health & Safety Co-ordinators
and the Health and Safety Committee. The
Group’s practices in the areas of lone working
have recently been reviewed and are being
updated. In the past year, the health and safety
section from the Group’s LBO Procedures
Manual has also been comprehensively
reviewed and updated to reflect the impact on
working practices of the introduction of
electronic point of sale in William Hill’s retail
estate. 
Equal opportunities
The Group is committed to equal opportunities
in the workplace in terms of selection,
promotion, training and development. Relevant
policies are communicated to Group employees
and there are clear lines of responsibility
regarding monitoring their effectiveness,
implementation and communication to staff. 
Training and development
William Hill is committed to investing in the
training and development of all its employees.
The Group provides initial induction training at
the commencement of employment supported,
if necessary, by specific skills training relevant
30
William Hill PLC Annual Report & Accounts 2004 Corporate Responsibility Statement to their job. Further training and development
is provided to individuals throughout their
career to enable employees to maintain and
improve standards of performance, deal
effectively with any changes to the work
environment and to develop their abilities and
realise their full potential. Selection for further
training and development is based on
individual needs, ability and the needs of the
business. Training is provided either internally
or externally as appropriate and the Group has
a dedicated team of employees providing
training and development within the Group and
facilitating training by District Training
Co-ordinators. In addition to the usual induction
process, an example of training provided during
the year includes social responsibility and
responsible gambling. For the LBO estate, this
involved briefings to the Group’s area and
district managers, production of a training pack
for cascading to all LBO employees, production
of a reference guide for use in LBOs on a day-
to-day basis and confirmation by all staff that
training had been provided and understood.
GamCare reviewed and commented on the
training documentation, prior to
implementation.
The Group also has in place a Management
Development Policy focussed on identifying
those individuals within the organisation that
demonstrate both the ability to operate at a
more senior level and the personal drive and
enthusiasm to develop themselves. Specific
programmes are in place covering development
for supervisory/junior management, middle
management, senior management and senior
executives. 
Communication
The Group places considerable value on the
involvement of its employees and is committed
to providing effective communication on
matters which may affect them and more
generally regarding the development and
performance of the Group. This is achieved
through formal and informal meetings and the
Group produces a magazine, Inform, on a
quarterly basis, which is circulated to all
employees. Employee representatives are
consulted regularly on a wide range of matters
affecting their current and future interests and
are encouraged to raise any issues or concerns.
The Group has established staff councils for
retail staff in each of the Group’s geographic
regions, which are chaired by the relevant
Regional Director, together with councils for the
Group’s major administrative centres. Each
council meets four times a year, with the aim of
providing an additional channel of consultation
between directors, management and staff and
to make the fullest use of employees’
experience and ideas. Representatives from the
retail staff councils attend the National Staff
Conference held at least three times a year and
each conference is chaired jointly by the Retail
Operations Director and the Group Director,
Human Resources.
During 2004, William Hill embarked on a
group-wide communication programme
regarding the introduction of electronic point of
sale within its LBO estate. This programme is
being continued into 2005 and to date has
involved a survey of all LBO staff, circulation of
briefing videos to all Group employees, regular
briefing meetings for line management,
cascade briefings to all staff with feedback
forms provided, one-to-one consultation with
staff affected by the introduction and off-site
EPOS events for middle and senior
management. The Regional and National Staff
Councils were also consulted and feedback
encouraged from, and provided by, employees
throughout the communication process.
Supporting sports-related and
other bodies
William Hill is committed to being a
responsible corporate citizen and recognises its
wider social responsibility by seeking to
support the communities in which the Group
operates through charitable donations and
other relevant payments.
Levies
The Group supports horse and greyhound
racing via the statutory levy and voluntary
donation to the British Greyhound Racing Fund
(BGRF). The sums payable for 2004 were
£25.3m and £2.8m respectively. These funds
are used by the respective bodies for a 
wide variety of purposes including animal
welfare issues.
Charitable donations
The Group’s charitable donations are mainly
focussed on organisations involved in areas of
greatest relevance to the William Hill business
and in the early part of 2005 the Board adopted
a charitable donations policy stating that the
major focus of the Group’s efforts would be in
supporting bodies involved in:
• Promoting a responsible approach to
gambling; undertaking research into
problem gambling; and providing
information, advice and help to those who
are at risk or are experiencing difficulties
with their gambling;
• Greyhound and racehorse welfare;
• Support to disadvantaged individuals in
horse and greyhound racing.
The Group is also committed to providing
support, wherever possible, to its employees
through their own fundraising efforts. In the
past this has been dealt with on a relatively
ad-hoc basis, however, for 2005 the Group has
allocated a proportion of the Group’s charitable
donations budget to match funds (up to a
specified limit) raised by employees on local
charitable projects. Employees are also able to
contribute to charities in a tax efficient manner
through the Give As You Earn Scheme. On
occasion, the Group also supports organisations
with whom we do business in their fundraising
efforts and in these cases donations may 
not fall within the donations policy referred 
to above.
In early 2005, the Group reacted to the
unprecedented events in south-east Asia by
collecting donations in its LBOs for the Tsunami
appeal. £112,594 was raised from customers
and the Group donated a further £100,000.
During 2004, the Group made charitable
donations of £211,000 the largest proportion of
which (£200,000) was paid to the
Responsibility in Gambling Trust. The Group is
establishing a Charitable Donations Committee
which will review requests for charitable
donations against the Board’s agreed policy.
Environment
It is recognised that all business activities have
a direct and indirect impact on the environment
and William Hill strives to act in an
environmentally responsible manner.
Policy
As a retail and service organisation, the Group’s
main impact on the environment is through the
buildings William Hill operates and the
resources used by staff in their day-to-day
work. The Group’s environmental practices
reflect William Hill’s business operations, and
its main risks and interactions with the
environment, and are largely focussed on:
• Compliance with environmental laws and
regulations;
• Minimising waste by the promotion of
recycling practices and re-use of materials as
opposed to disposal, where this is
practicable;
• Efficient use of energy and water and
investigating ways of reducing consumption
31
William Hill PLC Annual Report & Accounts 2004 Corporate Responsibility Statement in this area; and
• Raising awareness of environmental issues
within the Group.
Action to date
The Group’s Property Department takes primary
responsibility for identifying issues and
opportunities within the Group’s LBO estate
and the following action has been taken:
• Air-conditioning and fascia lighting are
controlled by time clocks to ensure efficient
use of energy;
• A new fascia style is being rolled out which
will reduce electricity consumption; 
• An evaluation has been undertaken of more
energy efficient (inverter) air conditioning
units and these are being installed on new
projects and when replacements are
required; 
• Water management systems for toilet
facilities are being rolled out to reduce water
consumption and the majority of the LBO
estate is fitted with water meters; and
• Electrostatic air cleaners have been installed
in all of the Group’s LBOs.
The Property Department is also assessing the
potential costs and benefits of introducing high-
frequency light fittings.
Facilities for recycling paper and toner
cartridges are in place at the Group’s head
office and regional office buildings. The Group
has investigated recycling of materials from the
William Hill LBOs and will continue to monitor
opportunities in this area.
Future action
The Board is committed to taking steps to
improve continuously its practices in the CR
area and to embedding CR issues into its
corporate governance and operating
framework. In 2005 it is planned to progress
with the initiatives that are already ongoing,
including compliance with the various industry
codes of conduct in the area of social
responsibility and keeping up to date with best
practice in the area of responsible gambling.
The Group also plans to review the key
performance indicators which are collected
across the Group and the systems in place for
reviewing this information. The aim would be
to set meaningful targets and over time to
make additional information available to
stakeholders via the Group’s website and in
future annual reports. The Group welcomes
feedback on its activities.
32
William Hill PLC Annual Report & Accounts 2004 Corporate Responsibility Statement 33
United Kingdom company law requires the directors to prepare financial statements for each financial period, which give a true and fair view of the
state of affairs of the Company and the Group as at the end of the financial period and of the profit or loss of the Group for that period.
In preparing those financial statements, the directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent; and
• state whether applicable accounting standards have been followed.
The directors are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of 
the Company and the Group and enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible
for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and 
other irregularities.
Statement of Directors’ Responsibilities
William Hill PLC Annual Report & Accounts 2004 Statement of Directors’ Responsibilities 34
To the members of William Hill PLC
We have audited the financial statements of William Hill PLC for the 52 weeks ended 28 December 2004 which comprise the consolidated profit and
loss account, the consolidated statement of total recognised gains and losses, the consolidated balance sheet, the Company balance sheet, the
consolidated cash flow statement, the statement of accounting policies and the related notes numbered 1 to 34. These financial statements have been
prepared under the accounting policies set out therein. We have also audited the information in the part of the Directors’ Remuneration Report that is
described as having been audited.
This report is made solely to the Company’s members, as a body, in accordance with section 235 of the Companies Act 1985. Our audit work has been
undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s
members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As described in the Statement of Directors’ Responsibilities, the Company’s directors are responsible for the preparation of the financial statements in
accordance with applicable United Kingdom law and accounting standards. They are also responsible for the preparation of the other information
contained in the annual report including the Directors’ Remuneration Report. Our responsibility is to audit the financial statements and the part of the
Directors’ Remuneration Report described as having been audited in accordance with relevant United Kingdom legal and regulatory requirements and
auditing standards.
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial statements and the part of the
Directors’ Remuneration Report described as having been audited have been properly prepared in accordance with the Companies Act 1985. We also
report to you if, in our opinion, the Directors’ Report is not consistent with the financial statements, if the Company has not kept proper accounting
records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding directors’
remuneration and transactions with the Company and other members of the Group is not disclosed.
We review whether the Statement on Corporate Governance reflects the Company’s compliance with the nine provisions of the July 2003 Financial
Reporting Council Combined Code specified for our review by the Listing Rules of the Financial Services Authority, and we report if it does not. We are
not required to consider whether the Board’s statements on internal control cover all risks and controls, or form an opinion on the effectiveness of the
Group’s corporate governance procedures or its risk and control procedures.
We read the Directors’ Report and the other information contained in the annual report for the above period as described in the contents section
including the unaudited part of the Directors’ Remuneration Report and consider the implications for our report if we become aware of any apparent
misstatements or material inconsistencies with the financial statements.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom auditing standards issued by the Auditing Practices Board. An audit includes examination,
on a test basis, of evidence relevant to the amounts and disclosures in the financial statements and the part of the Directors’ Remuneration Report
described as having been audited. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation
of the financial statements and of whether the accounting policies are appropriate to the circumstances of the Company and the Group, consistently
applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the financial statements and the part of the Directors’ Remuneration Report described as having
been audited are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion, we also evaluated the
overall adequacy of the presentation of information in the financial statements and the part of the Directors’ Remuneration Report described as having
been audited.
Independent Auditor’s Report
William Hill PLC Annual Report & Accounts 2004 Independent Auditor’s Report 35
Opinion
In our opinion:
• the financial statements give a true and fair view of the state of affairs of the Company and the Group as at 28 December 2004 and of the profit of
the Group for the 52 weeks then ended; and
• the financial statements and part of the Directors’ Remuneration Report described as having been audited have been properly prepared in
accordance with the Companies Act 1985.
Deloitte & Touche LLP
Chartered Accountants and Registered Auditors
London
2 March 2005
William Hill PLC Annual Report & Accounts 2004 Independent Auditor’s Report William Hill PLC Annual Report & Accounts 2004 Consolidated Profit and Loss Account
36
Consolidated Profit and Loss Account
36
52 weeks 52 weeks 
ended ended
28 December 30 December
2004 2003
(restated)
Notes £m £m
Turnover 2 8,287 .7 5,945.8
Cost of sales (7 ,726.3) (5,434.7)
Gross profit 2 561.4 511.1
Net operating expenses 3 (332.5) (313.6)
Operating profit 2 228.9 197 .5
Share of associate’s operating profit 4 3.1 2.9
Profit on ordinary activities before finance charges 232.0 200.4
Net interest payable 5 (25.2) (29.2)
Other finance charges 6 (1.5) (1.7)
Profit on ordinary activities before tax 7 205.3 169.5
Tax on profit on ordinary activities 10 (57 .0) (45.2)
Profit on ordinary activities after tax for the financial period 148.3 124.3
Dividends proposed and paid 12 (65.1) (52.2)
Retained profit for the financial period 26 83.2 72.1
Earnings per share (pence)
Basic 13 36.2 29.7
Diluted 13 35.5 29.3
All amounts relate to continuing operations for the current and preceding financial periods.
Consolidated Statement of Total Recognised
Gains and Losses
52 weeks 52 weeks 
ended ended
28 December 30 December
2004 2003
(restated)
Notes £m £m
Profit for the financial period 148.3 124.3
Actuarial loss recognised in the pension scheme 24 (10.7) (3.7)
Deferred tax attributable to actuarial loss 3.2 1.1
Currency translation differences on foreign currency net investments – 0.1
Total recognised gains and losses relating to the period 140.8 121.8
Prior period adjustment 1 (1.9)
Total recognised gains and losses since last annual report 138.9 William Hill PLC Annual Report & Accounts 2004 Consolidated Balance Sheet
Consolidated Balance Sheet
37
28 December 30 December
2004 2003
(restated)
Notes £m £m
Fixed assets
Intangible assets – goodwill 14 736.2 732.3
Tangible assets 15 119.0 101.0
Investments 16 2.9 0.8
858.1 834.1
Current assets
Stocks 18 0.3 0.4
Debtors: amounts recoverable within one year 19 15.4 15.7
Debtors: amounts recoverable after one year 19 6.5 6.2
Cash at bank and in hand 60.5 46.4
82.7 68.7
Creditors: amounts falling due within one year 20 (203.6) (187 .1)
Net current liabilities (120.9) (118.4)
Total assets less current liabilities 737 .2 715.7
Creditors: amounts falling due after more than one year 21 (447 .7) (366.6)
Net assets excluding pension liability 289.5 349.1
Pension liability 24 (38.5) (31.7)
Net assets including pension liability 251.0 317 .4
Capital and reserves
Called-up share capital 25,26 40.5 42.2
Share premium account 26 311.3 311.3
Capital redemption reserve 26 1.7 –
Merger reserve 26 (26.1) (26.1)
Other reserves 26 – 2.1
Own shares held 26 (59.3) (5.0)
Profit and loss account 26 (17 .1) (7 .1)
Equity shareholders’ funds 27 251.0 317 .4
The financial statements were approved by the board of directors on 2 March 2005 and are signed on its behalf by:
D C I Harding T D Singer
Director Director 28 December 30 December
2004 2003
Notes £m £m
Fixed assets
Investments 16 38.2 38.2
38.2 38.2
Current assets
Debtors: amounts recoverable within one year 19 1,531.5 1,207 .8
Cash at bank and in hand – –
1,531.5 1,207 .8
Creditors: amounts falling due within one year 20 (516.3) (261.6)
Net current assets 1,015.2 946.2
Total assets less current liabilities 1,053.4 984.4
Creditors: amounts falling due after more than one year 21 (447 .7) (366.6)
Net assets 605.7 617 .8
Capital and reserves
Called-up share capital 25, 26 40.5 42.2
Share premium account 26 311.3 311.3
Capital redemption reserve 26 1.7 –
Other reserves 26 – 2.1
Own shares held 26 (56.1) –
Profit and loss account 26 308.3 262.2
Equity shareholders’ funds 26 605.7 617 .8
The financial statements were approved by the board of directors on 2 March 2005 and are signed on its behalf by:
D C I Harding T D Singer
Director Director
William Hill PLC Annual Report & Accounts 2004 Company Balance Sheet
38
Company Balance Sheet 52 weeks 52 weeks
ended ended
28 December 30 December
2004 2003
Notes £m £m
Net cash inflow from operating activities 28 247 .3 224.5
Returns on investments and servicing of finance 29 (23.3) (22.4)
Taxation (57 .4) (21.7)
Capital expenditure and financial investment 29 (27 .3) (18.5)
Acquisitions 29 (3.8) (4.9)
Equity dividends paid (59.6) (38.8)
Net cash inflow before financing 75.9 118.2
Financing 29 (61.8) (116.4)
Increase in cash in the period 30 14.1 1.8
William Hill PLC Annual Report & Accounts 2004 Consolidated Cash Flow Statement
Consolidated Cash Flow Statement
39 William Hill PLC Annual Report & Accounts 2004 Statement of Accounting Policies
40
Statement of Accounting Policies
A summary of the Group’s principal accounting policies, which have been applied consistently throughout the period and the preceding period
(except as explained in note 1) is set out below.
Basis of accounting
The financial statements have been prepared under the historical cost convention and in accordance with applicable United Kingdom accounting
standards and company law except as set out below in respect of intangible fixed assets.
Basis of consolidation
The consolidated financial statements include the accounts of the Company and all of its subsidiary undertakings drawn up to the same period
end as the Group.
The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed.
Acquisitions
On the acquisition of subsidiary undertakings and businesses, the excess of the fair value of purchase consideration over the fair value of
tangible fixed assets, other assets and liabilities acquired, represents goodwill, which is accounted for in accordance with the policy set out
under intangible fixed assets. 
Intangible fixed assets
The Group’s intangible assets represent licence value, goodwill and brand value. Intangible assets such as licences and brands that are
purchased as part of a business cannot be measured reliably and are therefore subsumed within purchased goodwill in accordance with
paragraph 13 of FRS10 ‘Goodwill and Intangible Assets’. 
The Companies Act 1985 requires goodwill and intangible assets to be amortised over a finite period. The directors consider that the Group’s
intangible assets have an indefinite life due to: the fact that the Group is a significant operator in a well established market; the proven and
sustained demand for bookmaking services and greyhound racing; the operation of current law that acts as a barrier to entry for new entrants;
and the Group’s track record of successfully renewing its betting permits and licences.
Consequently, the directors consider that to amortise these assets would not provide a true and fair view and so the financial statements depart
from this specific requirement of the Companies Act 1985. If this departure from the Companies Act 1985 had not been made, the profit for the
financial period would have been reduced by amortisation. The amount of this amortisation cannot be quantified because of the indefinite life of
these assets.
The non-amortisation of the intangible assets means that they are subject to annual impairment testing in accordance with FRS10 and FRS11
‘Impairment of Fixed Assets and Goodwill’. 
Tangible fixed assets
Tangible fixed assets are stated in the consolidated balance sheet at cost, less provision, if any, for impairment together with additions at cost,
less cumulative depreciation.
Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost or valuation, less estimated
residual value, of each asset on a straight-line basis over its expected useful life, as follows:
Freehold buildings – 50 years
Long leasehold properties – 50 years
Short leasehold properties – over the unexpired period of the lease
Fixtures, fittings and equipment and motor vehicles – at variable rates between 3 and 10 years
Web site development costs
Design and content development costs are capitalised only to the extent that they lead to the creation of an enduring asset delivering benefits at
least as great as the amount capitalised. If there is insufficient evidence on which to base reasonable estimates of the economic benefits that
will be generated in the period until the design and content are next updated, the costs of developing the design and content are charged to the
profit and loss account as incurred.
Investments
Fixed asset investments are shown at cost less provision, if any, for impairment.
In the Company balance sheet, cost is measured by reference to the nominal value only of the shares issued for investments in subsidiaries
acquired for consideration that includes the issue of shares qualifying for merger relief. Any premium is ignored. William Hill PLC Annual Report & Accounts 2004 Statement of Accounting Policies
41
Associates
Shares in associated undertakings are accounted for using the equity method. The consolidated profit and loss account includes the Group’s
share of profit on ordinary activities before finance charges, attributable finance charges and attributable taxation of associated undertakings. In
the consolidated balance sheet, the investment in associated undertakings is shown as the Group’s share of net assets or liabilities of associated
undertakings and the unamortised element of goodwill relating to the acquisition of associated undertakings. Goodwill arising on the
acquisition of associates is accounted for in accordance with the policy set out under intangible fixed assets.
Stocks
Stocks represent stocks of consumables in stores and goods for resale within the greyhound stadia. They are stated at the lower of cost and net
realisable value.
Tax
Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws
that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions
or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date.
Timing differences are differences between the Group’s taxable profits and its results as stated in the financial statements that arise from the
inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.
A net deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis of all available evidence, it can be regarded
as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be
deducted.
Deferred tax is not recognised when fixed assets are sold and it is more likely than not that the taxable gain will be rolled over, being charged to
tax only if and when the replacement assets are sold.
Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differences are expected to
reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on a
non-discounted basis.
Revenue recognition and turnover
In accordance with Application Note G to Financial Reporting Standard 5 ‘Reporting the substance of transactions’, revenue is recognised under
an exchange transaction with a customer, when, and to the extent that, the Group obtains the right to consideration in exchange for its
performance.
Turnover is the revenue resulting from exchange transactions under which the Group supplies to customers the services that it is in business to
provide as set out below.
In the case of the LBO, telephone and interactive sportsbook businesses (including FOBTs, games on the online arcade and other numbers bets),
turnover represents the gross takings receivable from customers in respect of individual bets placed, on events that have occurred by the period
end.
In the case of AWPs and the online casino operation, turnover represents the net winnings (excluding VAT) from customers on gaming activity
completed by the period end.
Turnover from the online poker business reflects the net income (‘rake’) earned from poker games completed by the period end.
In the case of the greyhound stadia, turnover represents income arising from the operation of the greyhound stadia in the period, including
sales of refreshments and tote income.
Leases
Rental costs under operating leases are charged to the profit and loss account in equal amounts over the periods of the leases. Benefits received
and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term, except where the
period to the review date on which the rent is first expected to be adjusted to the prevailing market rate is shorter than the full lease term, in
which case the shorter period is used. William Hill PLC Annual Report & Accounts 2004 Statement of Accounting Policies
42
Statement of Accounting Policies
Pensions
The Group operates a defined contribution scheme and a defined benefit scheme open to eligible employees in the Group. The assets of the
schemes are held and managed separately from those of the Group.
For the defined contribution scheme the amount charged to the profit and loss account in respect of pension costs and other post-retirement
benefits represents the contributions payable in the period. Differences between contributions payable in the period and contributions actually
paid are shown as either accruals or prepayments in the balance sheet.
For the defined benefit scheme the Group has adopted the provisions of FRS 17 ‘Retirement Benefits’ in that the amounts charged to operating
profit are the current service costs and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service
costs are recognised immediately in the profit and loss account if the benefits have vested. If the benefits have not vested immediately, the costs
are recognised over the period until vesting occurs. The interest cost and the expected return on assets are shown as a net amount of other
finance costs or income. Actuarial gains and losses are recognised immediately in the statement of total recognised gains and losses.
Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and
discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the scheme
liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The resulting defined benefit
asset or liability, net of the related deferred tax, is presented separately after other net assets on the face of the balance sheet.
Foreign exchange
Transactions denominated in foreign currencies are translated into sterling at the rate ruling at the date of the transaction or at an average rate.
Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates ruling at that date.
Translation differences arising are dealt with in the profit and loss account.
The results of foreign subsidiaries are translated into sterling at the average rates of exchange and the assets and liabilities at closing rates of
exchange. Differences arising from the retranslation of opening net assets and from translating results at average rates and assets and liabilities
at closing rates are reported in the statement of total recognised gains and losses.
Finance costs
Finance costs of debt are recognised in the profit and loss account over the term of that debt at a constant rate on the carrying amount.
Debt
Debt is initially stated at the amount of the net proceeds after deduction of issue costs. The carrying amount is reduced by payments made in the
period. Accrued finance costs are included within accruals and deferred income.
Derivative financial instruments
Derivative instruments utilised by the Group are interest rate swaps. The Group does not enter into speculative derivative contracts. All such
instruments are used for hedging purposes to alter the risk profile of an existing underlying exposure of the Group in line with the Group’s risk
management policies. Amounts payable or receivable in respect of interest rate swaps are recognised as adjustments to interest expense over
the period of the contracts.
Termination payments made or received are spread over the life of the underlying exposure in cases where the underlying exposure continues
to exist. In other cases termination payments are taken to the profit and loss account.
Own shares held
Own shares held in treasury and held in employment benefit trusts are included within reserves. 
Share based payments
The minimum expense recognised in respect of discretionary share awards and options is the difference between the fair value of the shares at
the date of award and the amount that an employee may be required to pay for the shares. No expense is recognised in respect of the Group’s
Save As You Earn schemes. 1. Changes in accounting policies and restatement of comparatives
The Group has adopted Abstract 38 ‘Accounting for ESOP trusts’ and the related amendments to Abstract 17 ‘Employee share schemes’ issued by
the Urgent Issues Task Force in December 2003.
The provisions of Abstract 38 change the presentation of an entity’s own shares held in trust from requiring them to be recognised as assets
(within investments), to requiring them to be deducted in arriving at shareholders’ funds. As a result of the change in accounting policy in
respect of Abstract 38, the comparatives have been restated as follows:
30 December 2003
£m
Investments
As previously reported 3.6
Reclassification of own shares held (2.8)
As restated 0.8
Shareholders funds
As previously reported 320.2
Reclassification of own shares held (2.8)
As restated 317 .4
The amount representing own shares held was £4.4m at 31 December 2002. 
Amended Abstract 17 requires that the minimum expense recognised in respect of share awards and options should be the difference between
the fair value of the shares at the date of award and the amount that an employee may be required to pay for the shares (‘the intrinsic value’).
The expense was previously determined either as the intrinsic value or, where purchases of shares had been made by a trust at fair value, by
reference to the cost of shares that were available for the award. 
The impact of adopting the amended Abstract 17 amounted to an additional charge of £1.0m against profit before tax in the 52 weeks ended 28
December 2004 (52 weeks ended 30 December 2003 – £1.3m). In addition to the £1.3m charged in 2003, £0.6m was charged in periods prior to
this, giving a total prior period adjustment of £1.9m reported in the Statement of Total Recognised Gains and Losses. 
43
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements
Notes to the Financial Statements 2. Segmental information
The Group’s turnover, profits and operating net assets primarily arise from customers in the United Kingdom and therefore segmental
information by geographical location is not presented. 
Segmental information by distribution channel is shown below:
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
(restated)
£m £m
Turnover
– Retail 7 ,020.7 4,751.8
– Telephone 540.8 570.5
– Interactive 696.3 592.6
– Other activities 29.9 30.9
8,287 .7 5,945.8
Gross win
– Retail 548.1 505.6
– Telephone 60.3 56.5
– Interactive 106.1 84.9
– Other activities 7.6 7.3
722.1 654.3
Operating profit
– Retail 165.5 152.4
– Telephone 22.1 22.2
– Interactive 51.7 37 .1
– Other activities (0.3) 0.9
– Central costs (10.1) (15.1)
228.9 197 .5
Net assets/(liabilities)
– Retail 73.4 59.5
– Telephone 0.7 (0.5)
– Interactive 2.7 1.4
– Other activities 7.1 6.9
– Corporate 167 .1 250.1
251.0 317 .4
The retail distribution channel comprises all activity undertaken in LBOs including AWPs and FOBTs. Other activities include on–course betting
and greyhound stadia operations.
The directors believe that gross win and operating profit are more important performance metrics than turnover.
Net assets/(liabilities) have been allocated by segment where assets and liabilities can be identified with a particular channel. Corporate net
assets include goodwill, corporation and deferred tax, borrowings net of cash balances, pension liability and dividends payable as well as any
assets and liabilities that cannot be allocated to a particular channel other than on a relatively arbitrary basis.
Turnover of £3.3m and a small operating loss of £0.1m has been consolidated into these results in respect of the acquisitions made by the Group
as detailed in note 17 .
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements
44
Notes to the Financial Statements 2. Segmental information (continued)
The segmental analysis of gross win set out above is shown before deducting GPT, duty, levies, VAT and other cost of sales to arrive at gross
profit. A reconciliation from gross win to gross profit as presented in the profit and loss account is set out below:
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
£m £m
Gross win 722.1 654.3
GPT, duty, levies, VAT and other cost of sales (160.7) (143.2)
Gross profit 561.4 511.1
3. Net operating expenses
52 weeks ended 52 weeks ended
28 December  2004 30 December 2003
(restated)
£m £m
Administrative expenses 336.8 317 .5
Other operating income (4.3) (3.9)
332.5 313.6
4. Share of associate’s operating profit
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
£m £m
Share of operating profit in associated undertaking 3.1 2.9
The above represents the Group’s share of the operating profit of Satellite Information Services (Holdings) Limited (note 16). 
5. Net interest payable and similar charges
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
£m £m
Interest receivable:
Interest receivable 1.9 1.6
Interest payable and similar charges:
Interest on bank loans and overdrafts (25.6) (28.7)
Interest on guaranteed unsecured loan notes 2005 (0.2) (0.3)
Interest on high yield bonds – (0.3)
Share of associate’s net interest payable – (0.1)
Amortisation of finance costs (1.3) (1.4)
Net interest payable (25.2) (29.2)
45
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements 6. Other finance charges
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
£m £m
Expected return on pension scheme assets 7.1 5.4
Interest on pension scheme liabilities (8.6) (7 .1)
(1.5) (1.7)
7 . Profit on ordinary activities before tax
Profit on ordinary activities before tax is stated after charging/(crediting):
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
£m £m
Depreciation – owned assets 16.2 18.4
Hire of equipment 0.6 0.6
Operating lease charges:
– land and buildings 29.2 27 .8
– other (including AWPs and FOBTs) 8.0 9.0
Profit on sale of fixed assets (0.6) –
The following fees were payable to Deloitte & Touche LLP:
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
£m £m
Audit services – statutory audit 0.3 0.3
Fees for other services:
Further assurance services 0.1 0.1
Tax services
– compliance services 0.1 0.1
– advisory services 0.1 0.3
0.3 0.5
‘Further assurance services’ in the table above includes fees paid in respect of auditing industry levy calculations and amounts paid in respect of
the audit of financial statements prepared in accordance with International Financial Reporting Standards. 
The audit fees payable to Deloitte & Touche LLP are reviewed by the Audit Committee to ensure such fees are competitive. The Committee sets
the policy for awarding non–audit work to the auditors and reviews the nature and extent of such work and related fees in order to ensure that
independence is maintained. The fees disclosed above consolidate all payments made to Deloitte & Touche LLP by the Company and its
subsidiaries.
The Group audit fee includes £10,000 (52 weeks ended 30 December 2003 – £10,000) in respect of the Company’s audit.
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements
46
Notes to the Financial Statements 8. Staff costs
The average monthly number of persons employed, including directors, during the period was 11,217 (52 weeks ended 30 December 2003 –
10,726) all of whom are engaged in the administration and provision of betting and gaming services. Their aggregate remuneration comprised:
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
£m £m
Wages and salaries 158.6 139.5
Social security costs 14.4 12.9
Other pension costs (note 24) 18.9 11.2
191.9 163.6
Included in other pension costs is £10.7m (52 weeks ended 30 December 2003 – £3.7m) relating to actuarial losses, which have been charged to
the statement of total recognised gains and losses. 
The Group operates a number of Inland Revenue approved employee share option schemes (SAYE schemes) and has taken advantage of the
exemption given in UITF Abstract 17 ‘Employee share schemes’ from recognising a charge in the profit and loss account for the discount on these
options.
9. Directors’ remuneration and interests
Directors’ remuneration
Details of directors’ remuneration for the period are provided in the audited part of the Directors’ Remuneration Report on pages 16 to 21.
Directors’ interests
The directors who held office at 28 December 2004 had the following interests, including family interests (all of which were beneficial) in the
ordinary shares of William Hill PLC:
28 December 2004 30 December 2003
Number Number
Chairman:
Charles Scott 85,817 85,817
Executive directors:
David Harding 50,000 –
Tom Singer 26,009 7 ,532
Non–executive directors:
David Allvey 13,333 13,333
Barry Gibson 15,556 15,556
No changes took place in the interests of directors between 28 December 2004 and 2 March 2005.
No director had any interest in shares in any other Group company.
Directors’ share options
Details of directors’ share options are provided in the Directors’ Remuneration Report on page 20.
47
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements 10. Tax on profit on ordinary activities
The tax charge comprises:
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
£m £m
UK corporation tax at 30% 57 .4 50.3
UK corporation tax – prior periods (1.7) (0.8)
Consortium relief receivable – prior periods – (1.1)
Overseas tax 0.3 (0.2)
Share of associated undertaking tax charge 1.0 0.8
Total current tax charge 57 .0 49.0
Deferred tax – origination and reversal of timing differences – (3.8)
Total tax on profit on ordinary activities 57 .0 45.2
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
% %
Effective tax rate 27 .8 26.7
The effective tax rate is lower than the statutory tax rate of 30% mainly due to relief for brought forward losses for which deferred tax was not
previously recognised and prior year adjustments.
The differences between the total current tax shown above and the amount calculated by applying the standard rate of UK corporation tax to the
profit before tax is as follows:
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
(restated)
£m £m
Profit on ordinary activities before taxation 205.3 169.5
Tax on Group profit on ordinary activities at standard UK corporation
tax rate of 30% (52 weeks ended 30 December 2003 – 30%) 61.6 50.9
Accelerated capital allowances (2.2) (0.2)
Adjustment in respect of prior periods (1.7) (2.3)
Other short term timing differences 1.3 0.5
Permanent differences 0.5 1.1
Held over gains crystallising 0.5 0.7
Utilisation of tax losses (3.0) (1.7)
Total current tax charge 57 .0 49.0
The Group earns its profits primarily in the UK, therefore the tax rate used for tax on profit on ordinary activities is the standard rate for UK
corporation tax, currently 30%.
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements
48
Notes to the Financial Statements 10. Tax on profit on ordinary activities (continued)
The elements of deferred tax (assets)/liabilities shown on the balance sheet are as follows:
28 December 2004 30 December 2003
£m £m
Accelerated capital allowances 1.2 (1.0)
Held over gains 0.1 0.6
Other short term timing differences (1.3) –
Tax losses to be recovered (6.5) (5.8)
Deferred tax asset shown in debtors (note 19) (6.5) (6.2)
Deferred tax on pension liability (note 24) (16.5) (13.6)
(23.0) (19.8)
Movement in the period:
Asset at beginning of period (19.8) (14.9)
Amount credited to profit and loss account – (3.8)
Amount credited to statement of total recognised gains and losses (3.2) (1.1)
Asset at end of period (23.0) (19.8)
The current rate of corporation tax of 30% has been used to calculate the amount of deferred tax. Provision has been made for all deferred tax
assets and liabilities in respect of accelerated capital allowances, held over capital gains, short term timing differences and tax losses arising
from transactions recognised in the financial statements of the current and previous periods. 
The Group had the following unprovided deferred tax liabilities/(assets):
28 December 2004 30 December 2003
£m £m
Rollover gains 3.2 2.5
Capital losses (1.7) –
Tax losses (10.1) (13.4)
(8.6) (10.9)
No provision has been made for the deferred tax liability of £3.2m (30 December 2003 – £2.5m) in respect of capital gains rolled over into
non–depreciating assets as it is the intention to retain these assets for the foreseeable future. Tax on these rolled over gains would only become
payable if the assets were sold without further rollover relief.
Deferred tax assets of £11.8m (30 December 2003 – £13.4m) in respect of carried forward tax losses have not been recognised, as it is not
expected that suitable taxable profits will arise in the foreseeable future to utilise these losses.
The Company has no provided or unprovided deferred tax assets or liabilities.
11. Profit attributable to William Hill PLC
The profit after tax for the period, dealt with in the financial statements of the parent company William Hill PLC, was £198.4m (52 weeks ended
30 December 2003 – £308.1m). As permitted by Section 230 of the Companies Act 1985, no separate profit and loss account is presented in
respect of the parent company.
49
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements 12. Dividends proposed and paid
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
£m £m
Equity shares:
– interim dividend paid 22.0 14.6
– final dividend proposed/paid 43.1 37 .6
65.1 52.2
Dividend per ordinary share (pence) 16.5 12.5
The interim dividend of 5.5p (52 weeks ended 30 December 2003 – 3.5p) was paid on 2 December 2004. The proposed final dividend of 11.0p (52
weeks ended 30 December 2003 – 9.0p) will be paid on 2 June 2005 to all shareholders on the register on 6 May 2005.
Under an agreement signed in November 2002, The William Hill Holdings 2001 Employee Benefit Trust agreed to waive all dividends. As at 28
December 2004, the trust held 2.8m ordinary shares. In addition, the Company has not provided for dividends on the 10.5m shares held in
Treasury. The Company estimates that 391.6m shares will qualify for the final dividend.
13. Earnings per share
The basic, adjusted and diluted earnings per share are calculated based on the following data:
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
(restated)
£m £m
Profit after tax for the financial period 148.3 124.3
Number (m) Number (m)
Basic weighted average number of shares 410.1 418.7
Dilutive potential ordinary shares:
Employee share awards and options 7.4 5.3
Dilutive weighted average number of shares 417 .5 424.0
The basic weighted average number of shares excludes shares held by The William Hill Holdings 2001 Employee Benefit Trust and those shares
held in treasury as such shares do not qualify for dividends. The effect of this is to reduce the average number of shares in the 52 weeks ended
28 December 2004 by 8.7m (52 weeks ended 30 December 2003 – 4.4m).
14. Intangible assets – goodwill
Group £m
Cost and net book value:
At 31 December 2003 732.3
Additions via acquisitions (note 17) 3.9
At 28 December 2004 736.2
The Group’s intangible assets represent licence value, goodwill and brand value. Intangible assets such as licences and brands that are
purchased as part of a business cannot be measured reliably and are therefore subsumed within purchased goodwill in accordance with
paragraph 13 of FRS10 ‘Goodwill and Intangible Assets’. 
The Company does not own any intangible fixed assets.
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements
50
Notes to the Financial Statements 15. Tangible assets
Group Fixtures,
Land and fittings and Motor
buildings equipment vehicles Total
£m £m £m £m 
Cost:
At 31 December 2003 125.3 85.4 4.3 215.0
Additions 16.3 17 .3 0.8 34.4
Acquisition of subsidiary undertaking 0.1 – – 0.1
Disposals (2.6) (6.0) (0.9) (9.5)
At 28 December 2004 139.1 96.7 4.2 240.0
Accumulated depreciation:
At 31 December 2003 44.4 67 .1 2.5 114.0
Charge for the period 10.3 5.1 0.8 16.2
Disposals (2.4) (6.0) (0.8) (9.2)
At 28 December 2004 52.3 66.2 2.5 121.0
Net book value:
At 28 December 2004 86.8 30.5 1.7 119.0
At 30 December 2003 80.9 18.3 1.8 101.0
The net book value of land and buildings comprises:
28 December 2004 30 December 2003
£m £m
Freehold 32.6 32.5
Long leasehold 5.0 5.1
Short leasehold 49.2 43.3
86.8 80.9
Out of the total net book value of land and buildings, £2.2m (30 December 2003 – £2.3m) relates to administration buildings and the remainder
represents licensed betting offices. The gross value of assets on which depreciation is not provided amounts to £1.1m representing freehold land
(30 December 2003 – £1.1m).
The Company does not own any tangible fixed assets.
51
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements 16. Investments
Group Company
28 December 30 December 28 December 30 December
2004 2003 2004 2003
(restated)
£m £m £m £m
Subsidiary undertakings (a) – – 38.2 38.2
Associated undertaking (b) 2.9 0.8 – –
2.9 0.8 38.2 38.2
(a) Subsidiary undertakings
Company £m 
Cost and net book value:
At 31 December 2003 and 28 December 2004 38.2
It is the opinion of the directors that the total value of the Company’s investment in its subsidiaries is not less than the amounts at which they
are stated in the balance sheet. The principal subsidiaries of the Company, their country of incorporation, ownership of their share capital and
the nature of their trade are listed below:
Proportion of all 
classes of issued 
Country of share capital owned 
Directly owned: incorporation by the Company Nature of trade
William Hill Holdings Limited Great Britain 100% Holding company
Held through intermediate companies:
William Hill Investments Limited Great Britain 100% Holding company
Will Hill Limited Great Britain 100% Holding company
Windsors (Sporting Investments) Limited Great Britain 100% Holding company
Camec Limited Great Britain 100% Betting services
William Hill Organization Limited Great Britain 100% Betting services 
William Hill (Course) Limited Great Britain 100% Betting services
William Hill Credit Limited Great Britain 100% Betting services
William Hill (North Eastern) Limited Great Britain 100% Betting services
William Hill (North Western) Limited Great Britain 100% Betting services
William Hill (Southern) Limited Great Britain 100% Betting services
William Hill (Football) Limited Great Britain 100% Betting services
William Hill (Strathclyde) Limited Great Britain 100% Betting services
William Hill (Caledonian) Limited Great Britain 100% Betting services
William Hill (Grampian) Limited Great Britain 100% Betting services
William Hill (London) Limited Great Britain 100% Betting services
William Hill (Midlands) Limited Great Britain 100% Betting services
William Hill (Scotland) Limited Great Britain 100% Betting services
William Hill (Western) Limited Great Britain 100% Betting services
William Hill (Essex) Limited Great Britain 100% Betting services
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements
52
Notes to the Financial Statements 16. Investments (continued)
Proportion of all 
classes of issued 
Country of share capital owned 
Held through intermediate companies: incorporation by the Company Nature of trade
Camec (Provincial) Limited Great Britain 100% Betting services
Camec (Scotland) Limited Great Britain 100% Betting services
Camec (Southern) Limited Great Britain 100% Betting services
Laystall Limited Great Britain 100% Betting services
Brooke Bookmakers Limited Great Britain 100% Betting services
James Lane Group Limited Great Britain 100% Betting services
Arena Racing Limited Great Britain 100% Betting services
Transdawn Limited Great Britain 100% Betting services
The Regal Sunderland Stadium Limited Great Britain 100% Greyhound stadium
operation
Team Greyhounds (Brough Park) Limited Great Britain 100% Greyhound stadium
operation
William Hill Casino NV Netherland Antilles 100% On–line casino
William Hill Online NV Netherland Antilles 100% On–line casino
The proportion of voting rights held is the same as the proportion of shares held.
A full list of the Company’s subsidiaries will be appended to the Company’s Annual Return.
(b) Associated undertaking
Group Provision for
impairment Share of net
Goodwill of goodwill assets Total
£m £m £m £m
At 31 December 2003 24.0 (24.0) 0.8 0.8
Share of profit before taxation – – 3.1 3.1
Share of taxation – – (1.0) (1.0)
At 28 December 2004 24.0 (24.0) 2.9 2.9
At 28 December 2004 William Hill Organization Limited, a principal subsidiary of the Company, held an investment of 19% of the ordinary share
capital of Satellite Information Services (Holdings) Limited (SIS), a company incorporated in Great Britain. The investment has been accounted
for as an associated undertaking using the net equity method and the change in the Group’s share of its net assets is shown above.
The SIS group of companies provides real time pre–event information and results, as well as live coverage of horse racing, greyhound racing and
certain numbers draws, via satellite. The statutory financial statements of SIS are prepared to the year ending 31 March. The consolidated figures
above are based on management accounts for the calendar year 2004.
A provision was made in 1999 against goodwill relating to the acquisition of shares in SIS to recognise impairment in the carrying value.
William Hill Organization Limited holds directly or indirectly 33% of the entire share capital of Lucky Choice Limited and of 49’s Limited. These
companies were formed for the purpose of promoting and publicising certain numbers betting formats. In the opinion of the directors, the
results of these companies are not material to the results of the Group. Consequently, the investments have been stated at cost and have not
been accounted for under the net equity method, which would normally be appropriate for an associated undertaking.
53
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements 17 . Acquisition of investments
Arena Racing Limited
On 9 September 2004, the Group acquired all of the issued share capital of Arena Racing Limited (‘Arena’) for total cash consideration of £2.6m
including costs of £0.1m. The capitalised goodwill on this transaction was £2.5m. This goodwill is subject to an annual impairment review in
accordance with FRS 10 and FRS 11.
Arena recorded a loss after taxation of £0.1m in the 29 week period ended 28 December 2004 (year ended 31 May 2004 – £nil), half of which
arose in the period from 31 May 2004 to 9 September 2004. The summarised profit and loss account for the period from 31 May 2004 to 9
September 2004, shown on the basis of the accounting policies of Arena prior to the acquisition, is as follows:
£m 
Turnover 1.6
Loss on ordinary activities before tax –
Tax on loss on ordinary activities –
Loss on ordinary activities after tax –
There were no other recognised gains or losses in the period.
Transdawn Limited
On 17 December 2004, the Group acquired all of the issued share capital of Transdawn Limited (‘Transdawn’) for total cash consideration of
£0.7m including costs of less than £0.1m. The capitalised goodwill on this transaction was £0.7m. This goodwill is subject to an annual
impairment review in accordance with FRS 10 and FRS 11.
Transdawn recorded a loss after taxation of less than £0.1m in the 46 week period ended 28 December 2004 (year ended 31 January 2004 –
£nil), nearly all of which arose in the period from 31 January 2004 to 16 December 2004. The summarised profit and loss account for the period
from 31 January 2004 to 16 December 2004, shown on the basis of the accounting policies of Transdawn prior to the acquisition, is as follows:
£m 
Turnover 2.6
Loss on ordinary activities before tax –
Tax on loss on ordinary activities –
Loss on ordinary activities after tax –
There were no other recognised gains or losses in the period.
Other acquisitions
The Group also purchased another shop during the period for a total consideration of £0.6m, principally representing goodwill and the value of
the relevant licence. The other net assets acquired with this shop were negligible.
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements
54
Notes to the Financial Statements 17 . Acquisition of investments (continued)
The following table sets out the book values of the identifiable assets and liabilities acquired during the period and their fair value to the Group:
Book values
Fair value Fair value 
Arena Transdawn Total adjustments to Group
£m £m £m £m £m 
Fixed assets
Intangible – goodwill – 0.1 0.1 3.8 3.9
Tangible 0.1 – 0.1 – 0.1
Current assets
Debtors and prepayments – 0.1 0.1 – 0.1
Cash 0.1 – 0.1 – 0.1
Total assets 0.2 0.2 0.4 3.8 4.2
Creditors
Creditors and accruals (0.1) (0.2) (0.3) – (0.3)
Total liabilities (0.1) (0.2) (0.3) – (0.3)
Net assets 0.1 – 0.1 3.8 3.9
Satisfied by:
Cash consideration 3.9
The £3.8m fair value adjustment to intangible assets represents licence value and goodwill of £2.5m in respect of the acquisition of Arena,
£0.7m in respect of Transdawn and £0.6m relating to the other shop purchased during the period. 
No reorganisation costs have been incurred in respect of any of these acquisitions.
Net cash outflows in respect of the acquisition comprised:
£m 
Cash consideration 3.9
Cash at bank and in hand acquired (0.1)
3.8
18. Stocks
28 December 2004 30 December 2003
£m £m
Raw materials, consumables and bar stocks 0.3 0.4
The Company does not hold any stocks.
55
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements 19. Debtors
Group Company
28 December 30 December 28 December 30 December
2004 2003 2004 2003
£m £m £m £m
Trade debtors 1.9 2.7 – –
Amounts owed by Group undertakings – – 1,531.5 1,207 .8
Deferred taxation (note 10) 6.5 6.2 – –
Other debtors 1.1 3.5 – –
Prepayments 12.4 9.5 – –
21.9 21.9 1,531.5 1,207 .8
Amounts falling due after more than one year included above are:
Group Company
28 December 30 December 28 December 30 December
2004 2003 2004 2003
£m £m £m £m
Deferred taxation (note 10) 6.5 6.2 – –
20. Creditors: amounts falling due within one year
Group Company
28 December 30 December 28 December 30 December
2004 2003 2004 2003
Note £m £m £m £m
Bank loans 22(a) 49.8 39.6 49.8 39.6
Guaranteed unsecured loan notes 2005 22(b) – 6.3 – –
Trade creditors 23.7 18.2 – –
Amounts owed to Group undertakings – – 416.2 177 .4
Corporation tax 33.8 35.2 – –
Other taxation including social security 13.1 12.9 0.8 1.3
Other creditors 3.0 3.2 – –
Accruals and deferred income 37 .1 34.1 6.4 5.7
Proposed dividend 43.1 37 .6 43.1 37 .6
203.6 187 .1 516.3 261.6
Included in trade creditors is an amount of £13.1m (30 December 2003 – £8.6m) in respect of amounts due to clients, representing deposits
received and customer winnings. This is offset by an equivalent amount of client funds held, which are included in cash at bank and in hand.
21. Creditors: amounts falling due after one year
Group Company
28 December 30 December 28 December 30 December
2004 2003 2004 2003
Note £m £m £m £m
Bank loans 22(a) 447 .7 366.6 447 .7 366.6
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements
56
Notes to the Financial Statements 22. Borrowings
(a) Bank loans
28 December 2004 30 December 2003
£m £m
Less than one year 50.0 40.0
One to two years 60.0 50.0
Two to five years 390.0 320.0
500.0 410.0
Less: expenses relating to loan (2.5) (3.8)
497 .5 406.2
Less: included in creditors: amounts falling due in less than one year (note 20) (49.8) (39.6)
447 .7 366.6
At 28 December 2004, the Group had a total bank facility of £620.0m available to it, split into two tranches:
– Tranche A comprising a term loan of £170.0m of which £50.0m was repaid on 31 December 2004, £60.0m is repayable on 31 December
2005 and £60.0m is repayable on 31 December 2006;
– Tranche B comprising a revolving facility of £450.0m available until 28 May 2007 .
Mandatory repayments are required to be made under the terms of the loan documentation, including, but not limited to, the net proceeds of
certain asset sales. The maturity profile above is analysed on the basis of calendar years from the balance sheet date. 
The bank facilities bear interest at a variable margin of between 0.7% and 1.45% above LIBOR, dependent on certain financial ratios. The
applicable margin at 28 December 2004 was 0.7%. 
The Group had the following interest rate hedging arrangements at 28 December 2004 under which the LIBOR element of the interest payable is
swapped for fixed rate payments:
– Two interest rate swaps, each for a notional principal of £12.5m and expiring on 23 June 2006. The average fixed rate to be paid under
these swaps is 5.11725%;
– Four amortising interest rate swaps, each for a notional principal of £68.8m at 28 December 2004 reducing to £26.3m by 30 September
2006 and expiring on 31 December 2006. The average fixed rate to be paid under these swaps is 5.35%;
– One interest rate swap, entered into during the period but not taking effect until 31 December 2004, for an initial notional principal of
£85.0m increasing to £120.0m by 30 September 2006 and expiring on 31 December 2007 . The average fixed rate to be paid under this
swap is 4.925%.
A commitment fee of half the applicable margin is payable on the undrawn element of the revolving facility. The revolving facility drawn down at
28 December 2004 was £330.0m (30 December 2003 – £200.0m).
The total facility is secured by guarantees given by the Company and certain of its subsidiaries.
(b) Guaranteed unsecured loan notes 2005
28 December 2004 30 December 2003
£m £m
Less than one year – 6.3
As part of the acquisition of The Regal Sunderland Stadium Limited in September 2002, guaranteed unsecured loan notes 2005 (2005 Notes) of
£8.4m were issued by the Group to the vendors. Holders of the 2005 Notes redeemed all of the outstanding notes at par during the period.
Interest payable relating to the 2005 Notes was paid quarterly and was set at 0.5% above base lending rate.
(c) Overdraft facility
At 28 December 2004, the Group had an overdraft facility with National Westminster Bank plc of £5.0m (30 December 2003 – £5.0m). The
balance of this facility at 28 December 2004 was £nil (30 December 2003 – £nil).
57
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements 23. Derivatives and other financial instruments
The Operating and Financial Review provides an explanation of the role that financial instruments have had during the period in creating or
changing the risks that the Group faces in its activities. The explanation summarises the objectives and policies for holding or issuing financial
instruments and similar contracts, and the strategies for achieving those objectives that have been followed during the period.
The numerical disclosures in this note deal with financial assets and financial liabilities as defined in FRS 13 ‘Derivatives and other financial
instruments: disclosures’. For this purpose, certain financial assets such as investments in subsidiary and associated companies are excluded
from the scope of these disclosures. As permitted by FRS 13, short–term debtors and creditors have also been excluded from the disclosures,
other than the currency disclosures. Borrowings are included gross of the related expenses.
(a) Interest rate risk – financial assets
Financial assets comprise cash at bank and in hand. Interest on floating rate financial assets is based on the overnight deposit rate available in
the money markets.
Financial assets at 28 December 2004: 
Non-
Floating interest
rate bearing
financial financial
Total assets assets
£m £m £m
Currency:
Sterling 55.3 40.0 15.3
Other currencies 5.2 2.0 3.2
60.5 42.0 18.5
Financial assets at 30 December 2003: 
Non-
Floating interest
rate bearing
financial financial
Total assets assets
£m £m £m
Currency:
Sterling 42.2 28.8 13.4
Other currencies 4.2 2.0 2.2
46.4 30.8 15.6
(b) Interest rate risk – financial liabilities
Financial liabilities at 28 December 2004 (after taking into account interest rate swaps): 
Fixed rate financial
liabilities
Weighted
Floating Weighted average
rate Fixed rate average period for
financial financial interest which rate
Total liabilities liabilities rate is fixed
£m £m £m % Years
Currency:
Sterling 500.0 115.0 385.0 6.0 2
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements
58
Notes to the Financial Statements 23. Derivatives and other financial instruments (continued)
Financial liabilities at 30 December 2003 (after taking into account interest rate swaps): 
Fixed rate financial
liabilities
Weighted
Floating Weighted average
rate Fixed rate average period for
financial financial interest which rate
Total liabilities liabilities rate is fixed
£m £m £m % Years
Currency:
Sterling 416.3 91.3 325.0 6.1 3
Further details of interest rates on long term borrowings and interest rate swaps are given in note 22. Three month LIBOR is the benchmark rate
for determining interest payments on the floating rate financial liabilities.
(c) Currency exposures
The main functional currency of the Group is sterling. A number of transactions are conducted in other currencies which give rise to monetary
assets and liabilities denominated in other currencies. None of these currency amounts is considered material enough to disclose separately.
Net foreign currency monetary assets at 28 December 2004:
Other
Sterling currencies Total
£m £m £m
Currency:
Sterling –––
Other currencies – – –
–––
Net foreign currency monetary assets at 30 December 2003: 
Other
Sterling currencies Total
£m £m £m
Currency:
Sterling – 1.5 1.5
Other currencies – – –
– 1.5 1.5
(d) Liquidity
The maturity profile of the Group’s financial liabilities at 28 December 2004 was as follows:
Guaranteed
unsecured
Bank loan notes
Total loans 2005
£m £m £m
Amounts falling due in:
One year or less, or on demand 50.0 50.0 –
More than one year but not more than two years 60.0 60.0 –
More than two year but not more than five years 390.0 390.0 –
500.0 500.0 –
59
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements 23. Derivatives and other financial instruments (continued)
The maturity profile of the Group’s financial liabilities at 30 December 2003 was as follows:
Guaranteed
unsecured
Bank loan notes
Total loans 2005
£m £m £m
Amounts falling due in:
One year or less, or on demand 46.3 40.0 6.3
More than one year but not more than two years 50.0 50.0 –
More than two year but not more than five years 320.0 320.0 –
416.3 410.0 6.3
The Group had the following undrawn committed borrowing facilities: 
28 December 2004 30 December 2003
£m £m
Expiry date:
One year or less, or on demand – –
More than one year but not more than two years – –
More than two years but not more than five years 120.0 250.0
120.0 250.0
(e) Fair value of financial assets and liabilities as at 28 December 2004 and 30 December 2003:
28 December 2004 30 December 2003
Book value Fair value Book value Fair value
£m £m £m £m
Primary financial instruments held or issued to finance the Group’s operations:
Cash 60.5 60.5 46.4 46.4
Current portion of long term borrowings (50.0) (50.0) (46.3) (46.3)
Long term borrowings (450.0) (450.0) (370.0) (370.0)
Derivative financial instruments held to manage the interest rate profile:
Interest rate swaps – (2.5) – (4.8)
Derivative pricing models have been used to calculate the fair values of interest rate swaps. 
There is no significant difference between book and fair value of the Group’s bank facilities and other borrowings.
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements
60
Notes to the Financial Statements 23. Derivatives and other financial instruments (continued)
(f) Hedging
As explained in the Operating and Financial Review, the Group’s policy is to substantially hedge its interest rate exposure using interest rate
swaps.
Gains and losses on instruments used for hedging are not recognised until the expense being hedged is itself recognised. Total net
unrecognised gains and losses on instruments used for hedging and the movements therein are as follows:
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
£m £m
Unrecognised gains and losses on hedges at beginning of period (4.8) (10.0)
Gains and losses arising in previous periods that were recognised
in the period 2.6 5.6
Gains and losses arising before beginning of period that were not
recognised in the period (2.2) (4.4)
Gains and losses arising in the period that were not recognised
in the period (0.3) (0.4)
Unrecognised gains and losses on hedges at the end of period (2.5) (4.8)
Gains and losses expected to be recognised in the next financial period 0.3 (3.5)
Gains and losses expected to be recognised after the next financial period (2.8) (1.3)
24. Pensions
The Group operates a number of defined contribution and defined benefit pension schemes in the United Kingdom. The respective costs of these
schemes are as follows:
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
£m £m
Defined contribution scheme (charged to operating profit) 0.6 0.6
Defined benefit scheme (charged to operating profit) 6.1 5.2
Defined benefit scheme (charged to other finance charges) 1.5 1.7
Defined benefit scheme (charged to statement of total recognised
gains and losses) 10.7 3.7
18.9 11.2
At 28 December 2004, company contributions of £nil (30 December 2003 – £nil) remained outstanding in respect of the defined contribution
scheme.
61
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements 24. Pensions (continued)
Defined benefit scheme
A full actuarial valuation was carried out at 31 October 2004 and updated to 28 December 2004 by a qualified independent actuary. The major
assumptions used by the actuary were:
28 December 30 December 31 December
2004 2003 2002
Rate of increase of salaries 3.75% 3.75% 3.25%
Rate of increase of pensions in payment 2.75% 2.75% 2.25%
Discount rate 5.25% 5.50% 5.50%
Inflation assumption 2.75% 2.75% 2.25%
The assets in the scheme and their expected rate of return were as follows:
28 December 2004 30 December 2003 31 December 2002
Expected Expected Expected
return Value return Value return Value
%£m %£m % £m
Equities 6.50 114.3 6.10 102.4 5.85 85.1
Corporate bonds 5.25 9.0 5.50 4.5 5.50 2.6
Gilts and cash 4.50 8.2 4.50 5.9 4.30 3.7
Total market value of assets 131.5 112.8 91.4
Present value of scheme liabilities (186.5) (158.1) (131.3)
Deficit in scheme (55.0) (45.3) (39.9)
Related deferred tax asset (note 10) 16.5 13.6 11.9
Net pension liability (38.5) (31.7) (28.0)
The contribution rate for 2004 was 17% of pensionable earnings. This rate is subject to regular review. For 2005 the intention is to increase the
contribution rate to 19% of pensionable earnings to meet the cost of pension provision. In addition the Group made an additional contribution
of £3.5m to the scheme in February 2004 to help to reduce the deficit. 
The scheme is closed to new members and has been replaced by a defined contribution scheme, which is open to eligible joiners.
Analysis of the amount charged to operating profit:
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
£m £m
Current service cost 5.7 4.9
Past service cost 0.4 0.3
Total operating charge 6.1 5.2
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements
62
Notes to the Financial Statements 24. Pensions (continued)
Analysis of the amount charged to other finance charges:
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
£m £m
Expected return on pension scheme assets (7 .1) (5.4)
Interest on pension scheme liabilities 8.6 7.1
Net return 1.5 1.7
Analysis of the amount recognised in statement of total recognised (gains) and losses (STRGL):
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
£m £m
Actual return less expected return on pension scheme assets (4.3) (13.1)
Experience gains and losses arising on the scheme liabilities (2.6) 2.1
Changes in assumptions underlying the present value of the scheme 17 .6 14.7
10.7 3.7
Movement in deficit during the period:
28 December 2004 30 December 2003
£m £m
Deficit in scheme at beginning of period (45.3) (39.9)
Movement in period:
Current service cost (5.7) (4.9)
Contributions 8.6 5.2
Past service costs (0.4) (0.3)
Other finance charges (1.5) (1.7)
Actuarial losses (10.7) (3.7)
Deficit in scheme at end of period (55.0) (45.3)
History of experience gains and losses:
52 weeks 52 weeks 52 weeks 53 weeks 52 weeks
ended ended ended ended ended
28 December 30 December 31 December 1 January 26 December
2004 2003 2002 2002 2000
Difference between the expected and actual return on scheme assets:
Amount (£m) 4.3 13.1 (35.0) (23.5) (17 .8)
% of scheme assets 3% 12% (38%) (20%) (14%)
Experience gains and losses on scheme liabilities:
Amount (£m) 2.6 (2.1) (1.4) 3.3 6.7
% of the present value of the scheme liabilities 1% (1%) (1%) 3% 7%
Total amount recognised in STRGL:
Amount (£m) (10.7) (3.7) (36.6) (28.8) (10.9)
% of the present value of the scheme liabilities (6%) (2%) (28%) (24%) (11%)
63
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements 25. Called up share capital
28 December 2004 30 December 2003
Number of Number of 
shares £m shares £m
Authorised – ordinary shares of 10p each
At 28 December 2004 and 30 December 2003 800,000,000 80.0 800,000,000 80.0
Called–up, allotted and fully paid – ordinary shares of 10p each:
At start of period 421,811,111 42.2 421,811,111 42.2
Shares cancelled (16,929,722) (1.7) ––
At end of period 404,881,389 40.5 421,811,111 42.2
The shares were cancelled during the period as part of the Company’s share buy back programme.
Share options
Options have been granted to subscribe for ordinary shares of the Company under share option and award schemes as shown below:
Number of
shares under
option Price  per share Exercise period
Executive Directors’ Incentive Plan 1,283,333 – Between 2003 and 2008
Long Term Incentive Plan (2003) 1,421,237 – Between 2006 and 2013
Long Term Incentive Plan (2004) 866,291 – Between 2007 and 2014
SAYE 2002 4,597 ,260 £1.80 Between 2005 and 2010
SAYE 2003 1,105,718 £1.76 Between 2006 and 2011
SAYE 2004 722,563 £3.93 Between 2007 and 2012
26. Capital and reserves
Group:
Share Capital Own Profit
Share premium redemption Merger Other shares and loss
capital account reserve reserve reserves held account Total
£m £m £m £m £m £m £m £m
At 31 December 2003 (as previously
reported) 42.2 311.3 – (26.1) 2.1 – (9.3) 320.2
Prior period adjustment (note 1) ––––– (5.0) 2.2 (2.8)
As restated 42.2 311.3 – (26.1) 2.1 (5.0) (7 .1) 317 .4
Retained profit for the financial
period –––––– 83.2 83.2
Actuarial loss recognised in the
pension scheme –––––– (10.7) (10.7)
Deferred tax arising thereon –––––– 3.2 3.2
Shares repurchased and cancelled (1.7) – 1.7––– (89.3) (89.3)
Treasury shares purchased ––––– (56.1) – (56.1)
Expense recognised in respect of
share remuneration –––––– 3.3 3.3
Movements on reserves due to
transfer of own shares to recipients–––– (2.1) 1.8 0.3 –
At 28 December 2004 40.5 311.3 1.7 (26.1) – (59.3) (17 .1) 251.0
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements
64
Notes to the Financial Statements 26. Capital and reserves (continued)
Own shares held at 28 December 2004 amounting to £59.3m comprise 10.5m shares (nominal value – £1.1m) held in treasury purchased for
£56.1m and 2.8m (nominal value – £0.3m) shares held in The William Hill Holdings 2001 Employee Benefit Trust purchased for £3.2m. The
shares held in treasury were purchased at a weighted average price of £5.32. At 28 December 2004 the total market value of own shares held
was £74.5m.
Company:
Share Capital Own Profit
Share premium redemption Other shares and loss
capital account reserve reserves held account Total
£m £m £m £m £m £m £m
At 31 December 2003 42.2 311.3 – 2.1 – 262.2 617 .8
Retained profit for the financial period ––––– 133.3 133.3
Shares repurchased and cancelled (1.7) – 1.7 – – (89.3) (89.3)
Treasury shares purchased –––– (56.1) – (56.1)
Movements on reserves – – – (2.1) – 2.1 –
At 28 December 2004 40.5 311.3 1.7 – (56.1) 308.3 605.7
Profit and loss reserve:
28 December 2004 30 December 2003
(restated)
£m £m
Profit and loss account excluding pension liability 21.4 24.6
Pension liability (38.5) (31.7)
Profit and loss account including pension liability (17 .1) (7 .1)
27 . Reconciliation of movements in equity shareholders’ funds
28 December 2004 30 December 2003
(restated)
£m £m
Profit for the financial period 148.3 124.3
Other recognised gains and losses relating to the period (net) (7 .5) (2.5)
140.8 121.8
Dividends (65.1) (52.2)
Own shares purchased during period (145.4) –
Expense recognised in respect of share remuneration 3.3 2.9
Net (reduction)/addition to equity shareholders’ funds (66.4) 72.5
Opening equity shareholders’ funds (as previously reported) 31 7 .4 249.3
Prior period adjustment – reclassification of opening balance of own
shares held (note 1) – (4.4)
As restated 31 7 .4 244.9
Closing equity shareholders’ funds 251.0 317 .4
65
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements 28. Reconciliation of operating profit to net cash inflow from operating activities
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
(restated)
£m £m
Operating profit 228.9 197 .5
Depreciation 16.2 18.4
Profit on sale of fixed assets (0.6) –
Amortisation of EDIP and LTIP 3.3 2.9
Decrease/(increase) in debtors 0.5 (1.5)
Increase in creditors 1.6 7.2
Defined benefit pension cost less cash contributions (2.6) –
Net cash inflow from operating activities 247 .3 224.5
None of the acquisitions detailed in note 17 generated significant cash flows during the period of their ownership by the Group.
29. Analysis of cash flows
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
£m £m
Returns on investments and servicing of finance:
Interest received 1.9 1.6
Interest paid (25.2) (24.0)
Net cash outflow (23.3) (22.4)
Capital expenditure and financial investment:
Purchase of fixed assets (28.2) (18.8)
Sale of tangible fixed assets 0.9 0.3
Net cash outflow (27 .3) (18.5)
Acquisitions:
Purchase of subsidiary undertaking (3.9) (5.7)
Net cash acquired with subsidiary undertaking 0.1 0.8
Net cash outflow (3.8) (4.9)
Financing:
Purchase of own shares (145.5) –
Repayment of Guaranteed unsecured loan notes 2005 (6.3) –
Loan facilities drawn down/(repaid) 90.0 (116.4)
Net cash outflow (61.8) (116.4)
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements
66
Notes to the Financial Statements 30. Analysis and reconciliation of net debt
Other
31 December non-cash 28 December
2003 Cash flow items 2004
£m £m £m £m
Analysis of net debt
Cash at bank and in hand 46.4 14.1 – 60.5
Debts due within one year (45.9) (3.8) (0.1) (49.8)
Debts due after more than one year (366.6) (79.9) (1.2) (447 .7)
Total (366.1) (69.6) (1.3) (437 .0)
Other non-cash items of £1.3m comprise amortised debt issue costs. 
52 weeks ended 52 weeks ended
28 December 2004 30 December 2003
£m £m
Increase in cash in the period 14.1 1.8
Cash (inflow)/outflow from (increase)/decrease in net debt (83.7) 116.4
Change in net debt resulting from cash flows (69.6) 118.2
Loans acquired – (1.6)
Debt issue costs written off and amortised (1.3) (1.3)
(70.9) 115.3
Opening net debt (366.1) (481.4)
Closing net debt (437 .0) (366.1)
31. Financial commitments
The Group had capital commitments as follows:
28 December 30 December
2004 2003
£m £m
Contracted but not provided for 28.7 7.8
The high level of financial commitments at 28 December 2004, reflected various contracts signed to install electronic point of sale equipment
and replacement text systems in all of the Group’s LBOs.
The Company had no capital commitments at 28 December 2004 (30 December 2003 – £nil).
The Group has annual commitments under non-cancellable operating leases, which fall due as follows:
28 December 2004 30 December 2003
Land and Land and
buildings Other buildings Other
£m £m £m £m
Payments due within one year for leases which expire:
Within one year 2.6 0.1 2.8 3.7
Between two and five years 6.7 1.0 5.5 4.5
After five years 19.9 – 18.9 –
Total 29.2 1.1 27 .2 8.2
The Company had no commitments under non-cancellable operating leases at 28 December 2004 (30 December 2003 – £nil).
67
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements 32. Contingent liabilities
At 28 December 2004 the Group has given a guarantee to third parties in respect of the rental of office premises on behalf of Satellite
Information Services Limited, a subsidiary of SIS. The guarantees are given by Camec Limited (a principal subsidiary of the Group) but it has an
indemnity from other parties for each of those parties’ proportion of the liability. The guarantees are to the value of:
28 December 30 December
2004 2003
£m £m
Guarantees 0.2 0.4
33. Post balance sheet event
As further explained in the Operating and Financial Review, the Group intends to make a significant return in capital in 2005. In order to fund
this return, the Group has secured new loan facilities of £1.2bn with a consortium of banks (the ‘new facilities’). Subject to the satisfaction of
various conditions precedent, the new facilities became available from 2 March 2005 on a committed and underwritten basis and are structured
as a £600m five year term loan and a £600m five year revolving credit facility. 
34. Related party transactions
The Company is taking advantage of the exemption granted by paragraph 3(c) of FRS 8 ‘Related Party Disclosures’ not to disclose transactions
with companies within the Group, which are related parties.
During the period the Group made purchases of £18.6m (52 weeks ended 30 December 2003 – £16.7m) from Satellite Information Services
Limited, a subsidiary of the Group’s associated undertaking, SIS. At 28 December 2004 the amount payable to Satellite Information Services
Limited by the Group was £nil (30 December 2003 – £nil). The Group also surrendered tax losses during the period for £nil (52 weeks ended 28
December 2004 – £1.1m) via consortium relief to its associated undertaking. The amount owed to the Group in respect of these losses at 28
December 2004 was £nil (30 December 2003 – £nil).
William Hill PLC Annual Report & Accounts 2004 Notes to the Financial Statements
68
Notes to the Financial Statements 52 weeks ended
28 December 2004
£m
Revenue 8,287 .7
Cost of sales (7 ,726.3)
Gross profit 561.4
Other operating income 4.3
Other operating expenses (334.8)
Share of results of associate 2.1
Operating profit 233.0
Investment income 1.9
Finance costs (28.6)
Profit before tax 206.3
Tax (57 .4)
Profit for the period 148.9
Earnings per share (pence)
Basic 36.3
Diluted 35.7
All amounts relate to continuing operations for the current financial period.
Pro-forma Consolidated Statement of
Recognised Income and Expense
(prepared in accordance with IFRS)
52 weeks ended
28 December 2004
£m
Loss on cash flow hedges (0.3)
Actuarial loss on defined benefit pension scheme (10.7)
Tax on items taken directly to equity 2.6
Net income recognised directly in equity (8.4)
Transferred to income statement on cash flow hedges 2.6
Profit for the period 148.9
Total recognised income and expense for the period 143.1
69
William Hill PLC Annual Report & Accounts 2004 Pro-forma Consolidated Income Statement (prepared in accordance with IFRS)
Pro-forma Consolidated Income Statement
(prepared in accordance with IFRS) 28 December 2004 30 December 2003
£m £m
Non-current assets
Goodwill 733.3 732.3
Other intangible assets 18.7 2.8
Property, plant and equipment 104.2 98.2
Interest in associate 2.9 0.8
Deferred tax assets 24.6 21.9
883.7 856.0
Current assets
Inventories 0.3 0.4
Trade and other receivables 15.4 15.7
Cash and cash equivalents 60.5 46.4
76.2 62.5
Total assets 959.9 918.5
Current liabilities
Trade and other payables (67 .8) (61.8)
Tax liabilities (46.9) (48.1)
Bank overdraft and loans (49.8) (45.9)
(164.5) (155.8)
Non current liabilities
Bank loans due after more than one year (447 .7) (366.6)
Retirement benefit obligations (55.3) (45.6)
Deferred tax liabilities (3.8) (1.3)
(506.8) (413.5)
Total liabilities (671.3) (569.3)
Net assets 288.6 349.2
Equity
Called-up share capital 40.5 42.2
Share premium account 311.3 311.3
Capital redemption reserve 1.7 –
Merger reserve (26.1) (26.1)
Own shares held (59.3) (5.0)
Hedging and other reserves (1.7) (1.3)
Retained earnings 22.2 28.1
Total equity 288.6 349.2
William Hill PLC Annual Report & Accounts 2004 Pro-forma Consolidated Balance Sheet (prepared in accordance with IFRS)
70
Pro-forma Consolidated Balance Sheet
(prepared in accordance with IFRS) 52 weeks ended
28 December 2004
Notes £m
Net cash from operating activities 4 164.7
Investing activities
Interest received 1.9
Proceeds on disposal of property, plant and equipment 0.9
Purchases of property, plant and equipment (18.5)
Purchases of betting licences (0.6)
Expenditure on computer software (9.7)
Acquisition of subsidiary (3.2)
Net cash used in investing activities (29.2)
Financing activities
Purchase of own shares (145.5)
Dividends paid (59.6)
Repayments of borrowings (6.3)
New bank loans raised 90.0
Net cash used in financing activities (121.4)
Net increase in cash and cash equivalents in the period 14.1
Cash and cash equivalents at start of period 46.4
Cash and cash equivalents at end of period 60.5
71
William Hill PLC Annual Report & Accounts 2004 Pro-forma Consolidated Cash Flow Statement (prepared in accordance with IFRS)
Pro-forma Consolidated Cash Flow Statement
(prepared in accordance with IFRS) 1. Pro forma financial information for the 52 weeks ended 28 December 2004
The Group is preparing for the adoption of International Financial Reporting Standards as its primary accounting basis for the period ending 26
December 2006. The Group’s date of adoption and transition will therefore be the 29 December 2004 as comparative information will be
prepared for the accounting period beginning on this date.
The pro forma financial information for the 52 weeks ended 28 December 2004 has been prepared for illustrative purposes only. It has been
prepared on the basis that the IFRS transition date is 30 December 2003. The actual transition date will be 29 December 2004. 
The proforma financial information has been extracted from the audited IFRS financial statements. These extracts do not contain sufficient
information to allow a full understanding of the results and state of affairs of the Group in accordance with IFRS. The full IFRS financial
statements are published on William Hill PLC’s corporate information web site www.williamhillplc.co.uk.
2. Basis of accounting
The financial information presented in this document has been prepared on the basis of International Financial Reporting Standards (IFRS),
including International Accounting Standards (IAS) and interpretations issued by the International Accounting Standards Board (IASB) and its
committees, and as interpreted by any regulatory bodies applicable to the Group. These are subject to ongoing amendment by the IASB and
subsequent endorsement by the European Commission and are therefore subject to possible change. As a result, information contained within
the pro-forma IFRS financial statements will require updating for any subsequent amendment to IFRS required for first time adoption or those
new standards that the Group may elect to adopt early.
In preparing this financial information, the Group has assumed that the European Commission will endorse the amendment to IAS 19 ‘Employee
Benefits – Actuarial Gains and Losses, Group Plans and Disclosures’.
On 19 November 2004, the European Commission endorsed an amended version of IAS 39 ‘Financial Instruments: Recognition and
Measurement’ rather than the full version as previously published by the IASB. In accordance with guidance issued by the UK Accounting
Standards Board, the full version of IAS 39, as issued by the IASB, has been adopted in the preparation of this financial information.
First-time adoption of International Financial Reporting Standards
The financial statements have been prepared in accordance with IFRS for the first time. The disclosures required by IFRS 1 ‘First-time Adoption
of International Financial Reporting Standards’ concerning the transition from UK GAAP to IFRS are given in note 5.
IFRS 1 sets out the procedures that the Group must follow when it adopts IFRS for the first time as the basis for preparing its consolidated
financial statements. Under IFRS 1 the Group will be required to establish its IFRS accounting policies as at 26 December 2006 and, in general,
apply these retrospectively to determine the IFRS opening balance sheet at its date of transition, 29 December 2004. 
IFRS 1 provides a number of optional exceptions to this general principle. The most significant of these are set out below, together with a
description in each case of whether an exception has been adopted by the Group.
Business combinations 
The Group has elected not to apply IFRS 3 ‘Business Combinations’ retrospectively to business combinations that took place before the 30
December 2003. As a result, in the opening balance sheet, goodwill arising from past business combinations amounting to £732.3m, remains as
stated under UK GAAP at 30 December 2003.
Employee benefits 
The Group has recognised actuarial gains and losses in relation to employee benefit schemes at 30 December 2003. The Group has recognised
actuarial gains and losses in full in the period in which they occur in the statement of recognised income and expense in accordance with the
amendment to IAS 19 ‘Employee Benefits’, issued on 16 December 2004.
Share-based payments
The Group has elected to apply IFRS 2 ‘Share-based Payment’ to all relevant share based payment transactions granted but not fully vested at
29 December 2004.
Financial instruments 
The Group has applied IAS 32 ‘Financial Instruments: Disclosure and Presentation’ and IAS 39 ‘Financial Instruments: Recognition and
Measurement’ for all periods presented and has therefore not taken advantage of the exemption in IFRS 1 that would enable the Group to only
apply these standards from 28 December 2005. 
General 
The financial statements have been prepared on the historical cost basis, except for the revaluation of certain financial instruments. 
William Hill PLC Annual Report & Accounts 2004 Pro-forma Notes to the Financial Statements (prepared in accordance with IFRS)
72
Pro-forma Notes to the Financial Statement
(prepared in accordance with IFRS) 3. Presentation of financial information
The primary statements within the financial information contained in this document have been presented substantially in accordance with IAS 1
‘Presentation of Financial Statements’. However, this format and presentation may require modification in the event that further guidance is
issued and as practice develops.
4. Net cash from operating activities
52 weeks ended
28 December 2004
£m
Operating profit 233.0
Adjustments for:
Share of result of associate (2.1)
Depreciation of property, plant and equipment 15.3
Depreciation of computer software 0.9
Gain on disposal of property, plant and equipment (0.6)
Cost charged in respect of share remuneration 1.3
Defined benefit pension cost less cash contributions (2.6)
245.2
Operating cash flows before movements in working capital:
Decrease in receivables 0.5
Increase in payables 1.6
Cash generated by operations 247 .3
Income taxes paid (57 .4)
Interest paid (25.2)
Net cash from operating activities 164.7
Cash and cash equivalents (which are presented as a single class of assets on the face of the balance sheet) comprise cash at bank and other
short-term highly liquid investments with a maturity of three months or less.
73
William Hill PLC Annual Report & Accounts 2004 Pro-forma Notes to the Financial Statements (prepared in accordance with IFRS) 5. Explanation of transition to IFRSs
This is the first year that the Group has presented its financial statements prepared in accordance with IFRS. The following disclosures are
required in the year of transition. For the purposes of preparing this pro-forma information, the last financial statements prepared under UK
GAAP were for the 52 weeks ended 30 December 2003 and the date of transition to IFRS was taken to be 31 December 2003.
Reconciliation of equity at 31 December 2003 (date of transition to IFRS):
Effects of
transition to
UK GAAP IFRS IFRS
Notes £m £m £m
Goodwill 732.3 – 732.3
Other intangible assets a – 2.8 2.8
Property, plant and equipment a 101.0 (2.8) 98.2
Interest in associate 0.8 – 0.8
Deferred tax assets b,c,d,g 6.2 15.7 21.9
Total non-current assets 840.3 15.7 856.0
Inventories 0.4 – 0.4
Trade and other receivables 15.7 – 15.7
Cash and cash equivalents 46.4 – 46.4
Total current assets 62.5 – 62.5
Total assets 902.8 15.7 918.5
Trade and other payables d,e,f (93.1) 31.3 (61.8)
Tax liabilities (48.1) – (48.1)
Bank overdraft and loans (45.9) – (45.9)
Bank loans due after more than one year (366.6) – (366.6)
Retired benefit obligations b,g (31.7) (13.9) (45.6)
Deferred tax liabilities c – (1.3) (1.3)
Total liabilities (585.4) 16.1 (569.3)
Net assets 317 .4 31.8 349.2
Equity
Called-up share capital 42.2 – 42.2
Share premium account 311.3 – 311.3
Merger reserve (26.1) – (26.1)
Own shares (5.0) – (5.0)
Hedging and other reserves d 2.1 (3.4) (1.3)
Retained earnings c,e,f,g (7 .1) 35.2 28.1
Total equity 317 .4 31.8 349.2
William Hill PLC Annual Report & Accounts 2004 Pro-forma Notes to the Financial Statements (prepared in accordance with IFRS)
74
Pro-forma Notes to the Financial Statements
(prepared in accordance with IFRS) 5. Explanation of transition to IFRS (continued)
Reconciliation of equity at 28 December 2004:
Effects of
transition to
UK GAAP IFRS IFRS
Notes £m £m £m
Goodwill h 736.2 (2.9) 733.3
Other intangible assets a,h – 18.7 18.7
Property, plant and equipment a 119.0 (14.8) 104.2
Interest in associate 2.9 2.9
Deferred tax assets b,c,d,g,i 6.5 18.1 24.6
Total non-current assets 864.6 19.1 883.7
Inventories 0.3 – 0.3
Trade and other receivables 15.4 – 15.4
Cash and cash equivalents 60.5 – 60.5
Total current assets 76.2 – 76.2
Total assets 940.8 19.1 959.9
Trade and other payables d,e,f (106.9) 39.1 (67 .8)
Tax liabilities (46.9) – (46.9)
Bank overdraft and loans (49.8) – (49.8)
Bank loans due after more than one year (447 .7) – (447 .7)
Retired benefit obligations b,g (38.5) (16.8) (55.3)
Deferred tax liabilities c,h – (3.8) (3.8)
Total liabilities (689.8) 18.5 (671.3)
Net assets 251.0 37 .6 288.6
Equity
Called-up share capital 40.5 – 40.5
Share premium account 311.3 – 311.3
Capital redemption reserve 1.7 – 1.7
Merger reserve (26.1) – (26.1)
Own shares (59.3) – (59.3)
Hedging and other reserves d – (1.7) (1.7)
Retained earnings c,e,f,g,i (17 .1) 39.3 22.2
Total equity 251.0 37 .6 288.6
75
William Hill PLC Annual Report & Accounts 2004 Pro-forma Notes to the Financial Statements (prepared in accordance with IFRS) 5. Explanation of transition to IFRS (continued)
Notes to the reconciliation of equity
(a) Software classification – application software, which can be run independently from any specific hardware configuration, is typically
included within other intangibles under IFRS rather than tangible assets as is the norm under UK GAAP . The effect of this is to reclassify
software of £14.8m (30 December 2003 – £2.8m) from tangible assets to intangible assets. Total net assets are not affected by this
adjustment.
(b) Deferred tax associated with pension liabilities – under IFRS deferred tax relating to the pension scheme cannot be netted off against the
pension liability as it is under UK GAAP . This has the effect of increasing the Group’s deferred tax asset by £16.5m (30 December 2003 –
£13.6m) with a consequent increase in the net pension liability presented. Net assets are not affected by this adjustment.
(c) Deferred tax on rolled over gains – under IFRS deferred tax on rolled over capital gains must be provided for, while under UK GAAP this is
not necessary if the intention is to retain (for the foreseeable future) the assets into which the capital gains have been rolled. The effect of
this is an increase of £1.5m (30 December 2003 – £0.7m) in recognised deferred tax liabilities. In addition, due to more restrictive rules on
the ability to offset deferred tax liabilities and assets, the deferred tax liabilities and assets are grossed up by £1.3m (30 December 2003 –
£0.6m).
(d) Financial instruments – all derivative instruments are required by IFRS to be carried on the balance sheet at fair value. Under IFRS, hedge
accounting for derivatives is only allowed where detailed documentation in accordance with IAS 39 is in place. This allows the movements
in fair values of the relevant derivative instrument (but not the related borrowings) to be recognised directly in reserves and therefore not
impact earnings. This issue will have no impact on the Group’s earnings as acceptable hedge accounting documentation has been in place
since 30 December 2003. However the balance sheet does reflect a financial liability of £2.5m (30 December 2003 – £4.8m) representing the
fair value of the relevant derivatives, as well as a related deferred tax asset of £0.8m (30 December 2003 – £1.4m) offset by corresponding
entries in a new ‘hedging reserve’. 
(e) Dividends – under IFRS dividends payable may only be recorded as a liability of the Group when a legal or constructive liability has been
incurred. This is likely to be when the dividend proposed by the Board is made public on the announcement of the Group’s results. Currently
under UK GAAP , dividends are recorded in the period to which they relate, even if only proposed after the period end. This has the effect of
increasing the net assets of the Group by the amount of the proposed dividend of £43.1m (30 December 2003 – £37 .6m).
(f) Holiday pay – it is accepted practice under IFRS to provide for pay for holidays to which staff are entitled but which they have not yet taken.
This has resulted in the recognition of an accrual for holiday pay of £1.5m (30 December 2003 – £1.5m).
(g) Pensions – a small difference arises in the valuation of the pension scheme assets under IFRS, because pension assets must be valued
using bid prices rather than using mid-market prices as is the convention under UK GAAP . This results in an increase in the pension scheme
liability of £0.3m (30 December 2003 – £0.3m) and a consequent adjustment to deferred tax assets of £0.1m (30 December 2003 – £0.1m).
(h) Acquisitions – the Group has elected not to apply IFRS 3 ‘Business Combinations’ retrospectively to business combinations that took place
before the 30 December 2003. 
The Group has adopted IFRS 3 ‘Business combinations’ in full for the 52 weeks ended 28 December 2004. This has resulted in the
recognition of additional intangible fixed assets of £3.9m and related deferred tax liabilities of £1.0m. Under UK GAAP the intangible fixed
assets would have been recognised in goodwill and the deferred tax liability would not have arisen.
(i) Deferred tax assets have been reduced by £0.6m to reflect the reduced charge for share remuneration (see IFRS income statement
reconciliation).
William Hill PLC Annual Report & Accounts 2004 Pro-forma Notes to the Financial Statements (prepared in accordance with IFRS)
76
Pro-forma Notes to the Financial Statements
(prepared in accordance with IFRS) 5. Explanation of transition to IFRS (continued)
Reconciliation of profit or loss for 2004:
Effects of
transition to
UK GAAP IFRS IFRS
Notes £m £m £m
Revenue 8,287 .7 – 8,287 .7
Cost of sales (7 ,726.3) – (7 ,726.3)
Gross profit 561.4 – 561.4
Other operating income 4.3 4.3
Other operating expenses a (336.8) 2.0 (334.8)
Share of results of associate b 3.1 (1.0) 2.1
Operating profit 232.0 1.0 233.0
Investment income 1.9 – 1.9
Finance costs (28.6) – (28.6)
Profit before tax 205.3 1.0 206.3
Tax c (57 .0) (0.4) (57 .4)
Profit for the period 148.3 0.6 148.9
Notes to the reconciliation of profit or loss for 2004
(a) Share remuneration – the basis of charging the income statement for share-based remuneration under IFRS is that the options granted are
valued at fair value using an option pricing model rather than the intrinsic value of the option as was the case under UK GAAP . In addition
the costs of SAYE schemes are chargeable under IFRS whereas they are not chargeable under UK GAAP , and the IFRS transitional
arrangements mean that options granted before 7 November 2002 do not attract a charge under IFRS although they were chargeable under
UK GAAP . The overall effect of these differences is a charge under IFRS that is £2.0m less in comparison with that reported under UK GAAP . 
(b) Associate profit – under IFRS, the share of the associate’s result included in the Group’s operating profit is after a charge for interest and tax.
These items were shown within the Group’s interest and tax charges under UK GAAP . This has the effect of reducing operating profit by
£1.0m, representing the tax charge of the associate.
(c) Tax charge – the tax charge is £0.4m higher under IFRS compared to UK GAAP reflecting a combination of: 
– £0.6m increase related to the different deferred tax charge accompanying the adjustment for share remuneration referred to in (a)
above;
– £0.8m increase reflecting a deferred tax movement on capital gains rolled over, which are ignored under UK GAAP but provided for
under IFRS; and
– £1.0m reduction arising from the different treatment of associate tax highlighted in (b) above.
Explanation of material adjustments to the cash flow statement for 2004
There are no significant adjustments between the cash flow statements produced under IFRS and UK GAAP .
77
William Hill PLC Annual Report & Accounts 2004 Pro-forma Notes to the Financial Statements (prepared in accordance with IFRS) 2004 2003 2002 2001 2000
(restated) (restated) (restated)
£m £m £m £m £m
Summarised results:
Turnover 8,287 .7 5,945.8 3,365.3 2,452.2 2,042.4
Operating profit before exceptional items 
(including associates) 232.0 200.4 140.8 112.0 84.6
Operating profit after exceptional items  
(including associates) 232.0 200.4 120.7 112.0 84.6
Profit on ordinary activities after exceptional items 
and before taxation 205.3 169.5 31.8 27 .3 3.0
Profit for the financial period 148.3 124.3 20.4 18.4 0.9
Summarised balance sheets:
Assets employed:
Fixed assets 858.1 834.1 827 .9 796.0 788.4
Net current (liabilities)/assets (120.9) (118.4) (83.5) 8.6 14.6
Creditors: amounts falling due after more
than one year (447 .7) (366.6) (470.3) (851.2) (860.0)
Share of net liabilities of associate – – (1.2) – (1.0)
Pension (liability)/asset (38.5) (31.7) (28.0) (2.2) 18.7
Net assets/(liabilities) 251.0 317 .4 244.9 (48.8) (39.3)
Financed by:
Shareholders’ funds/(deficit) 251.0 317 .4 244.9 (48.8) (39.3)
Key statistics:
† EBITDA (£m) 251.5 221.7 158.8 128.6 98.6
* Basic earnings per share (pre-exceptionals) 36.2p 29.7p 16.6p 6.9p 0.3p
* Diluted earnings per share (pre-exceptionals) 35.5p 29.3p 16.5p 6.9p 0.3p
Dividends per share 16.5p 12.5p 8.7p – –
Share price – high £5.68 £4.30 £2.87 – –
Share price – low £4.20 £1.93 £1.96 – –
† EBITDA represents profit on ordinary activities before finance charges, tax, depreciation and amortisation and excludes exceptional items
and impairment of goodwill.
* Earnings per share figures for 2000 are based on a notional weighted average number of shares of 270.7m.
William Hill PLC Annual Report & Accounts 2004 Five year summary
78
Five year summary amusement with prize electronic slot machines into which customers insert coins to play games of chance; current UK regulations
machines or AWPs allow up to two AWPs in each LBO, each of which can pay cash prizes of up to £25
BAGS Bookmakers Afternoon Greyhound Services Limited, a non profit making company set up by various
bookmakers, including William Hill
Company William Hill PLC
DCMS Department of Culture, Media and Sport
FOBTs Fixed odds betting terminals, being self service terminals situated in LBOs offering fixed odds bets
Gambling Bill Proposed legislation regarding the modernisation of the laws relating to betting and gaming within the UK
Gaming Board The Gaming Board for Great Britain, the regulatory body for casinos, bingo clubs, gaming machines and
larger lotteries (including all local lotteries but excluding the National Lottery)
gross profit tax or GPT a duty charged by the UK Government of 15% of a bookmaker’s gross win, introduced in October 2001
gross win total customer stakes less customer winnings
horse racing levy a levy attributable to bets taken on horse racing and payable to the Horserace Betting Levy Board, primarily
for purposes of augmenting the prize money available for winning horses and providing certain racecourse
amenities
LBO licensed betting office
SIS Satellite Information Services (Holdings) Limited or its subsidiary Satellite Information Services Limited, as
the context requires
sportsbook bets accepted on sporting and other events
William Hill or the Group the Company and its subsidiaries, or any of them, as the context may require
79
William Hill PLC Annual Report & Accounts 2004 Glossary
Glossary imprima de bussy – C90962 ●
Internet Betting
Racing/Sports: www.williamhill.co.uk
Mobile Internet: www.williamhill.co.uk/wap/
On-line Casino: www.williamhillcasino.com
On-line Poker: www.williamhillpoker.com
●
Telephone Betting
Debit: 0800 44 40 40
Credit: 0800 289 892
●
Retail Betting
Over 1,600 shops throughout the UK
Customer Helpline: 08705 18 17 15
●
Corporate Website
www.williamhillplc.co.uk
●
Record date for final dividend – 6 May, 2005
●
Annual General Meeting – 19 May, 2005
●
Payment date for final dividend – 2 June, 2005
●
Date of announcement of interim results – 2 August, 2005
●
Payment date of interim dividend – 5 December, 2005
Key dates 1
William Hill PLC
Registered office: Greenside House, 50 Station Road, Wood Green, London N22 7TP
Tel: 020 8918 3600 Fax: 020 8918 3775
Reg no: 4212563 England