BETFAIR, the privately owned betting exchange, has published its annual report for the first time, sparking speculation that it is gearing up for a stock market flotation.

The company, which is chaired by Sir Robert Horton, the former BP and Railtrack chairman, insisted that there were “no plans to float”, although a spokeswoman admitted: “Betfair can’t stay as a private company for ever.”

Stephen Hill, Betfair’s chief executive, said that there was no question of the company pursuing an initial public offering (IPO) until the proposed Gambling Bill had passed into law and the Government had concluded its review of the tax paid by betting exchanges.

Mr Hill said that he would also prefer to have secured an operating licence in a second jurisdiction. The company, which is licensed in the UK, has been fighting a lengthy battle to secure licences in Australia, where they are awarded on a state-by-state basis.

Betfair is also in discussions with the authorities in South Africa, Hong Kong, Singapore and Canada.

Mr Hill said that the main purpose of the annual report was “so that we can, once and for all, silence the unfounded allegations from certain parts of the industry that we are not paying our way”.

In the year to April 30, Betfair paid £9.3 million in gross profits tax and £3.9 million to British horseracing under the Levy system. It reported a 52 per cent jump in pre-tax profits to £13.28 million, from revenues that doubled to £66.7 million. The highest-paid director was Mr Hill, whose pay rose from £228,000 to £269,000.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax