Work of the board

The Board’s work during 2023

The Board and its Committees generally meet every second month throughout the year. The number of Board and Committee meetings attended by each of the Directors during the year can be seen in the table below. 

At all meetings, the CEO and CFO report on business developments, financial performance and operations, and the Chief Legal and Compliance Officer reports on legal trends in the gambling market. On a quarterly basis, the Director of Internal Audit and Controls reports any key findings and recommendations to the Audit Committee. The Chair of the Audit Committee shares these findings and a summary of other covered items with the Board each quarter. Also quarterly, Members of the Executive Committee and other senior managers attend meetings, when relevant, to update the Board on their respective areas of responsibility and to discuss potential actions. The Group Risk Manager reports annually on the risk aspects of the business.

The key items arising at Board meetings in 2023 were matters related to the Group’s strategic review initiated by the Board that led to the unanimously recommend public offer from La Française des Jeux SA, together with specific operational initiatives including: (1) the controlled cessation of the Group’s North American operations; (2) a reduction in headcount and operational costs; and (3) focus on profitable growth in core markets. In Q4 2023, the Company commenced a controlled exit from North America with the intention of fully ceasing operations by the end of the second quarter of 2024, subject to regulatory process. The exit from the Company’s loss-making North American operations allows it to reallocate resources to drive growth in its core markets where we already have an established track record. The Board has also taken the decision to reduce its current global headcount by over 300 roles during 2024, including North America. It is anticipated that the net impact will be lower as some of these roles will be replaced in low-cost locations, and the Company will also continue to invest in growth initiatives. This should create a leaner organisation, enhance the Group’s scalability, and improve focus on key growth initiatives. The full year 2024 operating expenses (including salaries) are expected to amount to approximately GBP 245 million. Taken together, expected annualised gross cost savings from exiting North America and reducing headcount and other operational costs are estimated to be approximately GBP 40 million. 

Over the course of 2023 and following the shareholders’ approval at the Extraordinary General Meeting (EGM) held on 17 May 2023, the Board has begun rolling out and implementing the Group’s share buy-back programme aimed at returning excess cash to the Company’s shareholders.

The Group’s whistle-blowing procedure

Kindred Group’s whistle-blowing procedure, “Speak Up!”, which is a safe, independent and confidential website managed by a third-party supplier, is monitored by the Director of Internal Audit and Controls and the Chair of the Audit Committee.

Sustainability

The Board of Directors has established relevant guidelines on the topic of sustainability for the Group, with the aim of ensuring its long-term capacity for value creation. Sustainability for Kindred Group has a number of different aspects: 

• Responsible gambling
• Maintaining integrity
• Running a compliant business
• Being Kindred
• Contributing to our communities

Corporate policies in each area have been approved by the Board. 

On the Executive Committee, the Chief HR Officer has executive responsibility for sustainability. Sustainability is a regular agenda item for the Board, allowing for potential changes in policy or relevant regulation to be reviewed along with specific projects and initiatives.

Board attendance

1. Peter Boggs, Gunnel Duveblad, Erik Forsberg, Carl-Magnus Månsson and Fredrik Peyron resigned from their roles as non-executive Directors at the AGM on 20 April 2023.
2. Cédric Boireau, Jonas Jansson, Andy McCue, Martin Randel and Kenneth Shea were appointed as non-executive Directors at the AGM on 20 April 2023.