Betting company Ladbrokes has unveiled plans to raise £275m through a new rights issue after reporting a 58 per cent decline in profits for the three months to 30 September 2009.

The company has revealed that all employees will have their salary frozen until 2011 and that it would not be paying out a final dividend in 2009 after blaming a lack of Premier League draws for its third quarter slump. It is expected that the proposed cash call will enable Ladbrokes to reduce its net debt, which stood at £962m at the end of June 2009, while placing the company in a stronger position to refinance its remaining debt.

Chris Bell, Ladbrokes' chief executive, said: "Against a weak economic environment and a recent period of lower gross win margins, we have already announced decisive cost actions which, together with further savings recently identified, will leave Ladbrokes well positioned when the upturn comes."