REG - GVC Holdings PLC - Final Results <Origin Href="QuoteRef">GVC.L</Origin> - Part 2
23/03/2015 07:00
- Part 2: For the preceding part double click ID:nRSW1106Ia
Balance at 1 January 2014 609 40,407 84,530 359 15,191 141,096
Share option charges** - - - - 552 552
Share options exercised 4 - 850 - - 854
Dividend paid - - - - (33,607) (33,607)
Transactions with owners 4 - 850 - (33,055) (32,201)
Profit for the year - - - - 40,563 40,563
Other comprehensive income for the year - - - - - -
Total comprehensive income for the year - - - - 40,563 40,563
Balance as at 31 December 2014 613 40,407 85,380 359 22,699 149,458
* the cumulative share option reserve included within retained earnings at 31
December 2014 amounted to E5,940,000.
**total share option charge per the consolidated income statement amounted to
E736,000 the difference being the cash settled share option expense of
E184,000 which is not taken directly to retained earnings.
All reserves of the Company are distributable. Under The Isle of Man Companies
Act 2006 distributions are not governed by reserves but by the Directors
undertaking an assessment of the Company's solvency at the time of
distribution.
CONSOLIDATED STATEMENT OF CASHFLOWS
For the year ended 31 December 2014
2014 2013
E000's E000's
Cash flows from operating activities
Cash receipts from customers 221,048 173,885
Cash paid to suppliers and employees (172,668) (181,592)
Corporate taxes recovered 1,256 1,143
Corporate taxes paid (1,740) (1,580)
Net cash from operating activities 47,896 (8,144)
Cash flows from investing activities
Interest received 16 33
Acquisition earn-out payments (Betboo) (4,339) (6,378)
Acquisition (net of cash acquired) - 64,755
Investment in Betit (3,649) -
Acquisition of property, plant and equipment (802) (37)
Capitalised development costs (3,343) (4)
Net cash from investing activities (12,117) 58,369
Cash flows from financing activities
Non-interest bearing loan (from William Hill) (2,856) 8,020
Proceeds from issue of share capital 854 294
Repayment of borrowings (1,149) (31,384)
Dividend paid (33,607) (14,979)
Net cash from financing activities (36,758) (38,049)
Net (decrease)/increase in cash and cash equivalents (979) 12,176
Cash and cash equivalents at beginning of the year 18,808 6,632
Cash and cash equivalents at end of the year 17,829 18,808
NOTES TO THE FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
The financial information, which comprises the consolidated statement income
statement, the consolidated statement of comprehensive income, the
consolidated balance sheet , the consolidated statement of changes in equity,
the consolidated statement of cashflows and the related notes, is derived from
the Group financial statements for the year ended 31 December 2014, which have
been prepared under International Financial Reporting Standards as adopted by
the European Union (IFRS) and those parts of the Isle of Man Companies Act
2006 applicable to companies reporting under IFRS. It does not constitute
full accounts within the meaning of the Isle of Man Companies Act 2006. This
financial information has been agreed with the auditors for release.
The financial statements are presented in the Euro, rounded to the nearest
thousand, and are prepared on the historical cost basis with the exception of
those assets and liabilities carried at fair value. The financial statements
are prepared on the going concern basis.
Fair value is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at
the measurement date, regardless of whether that price is directly observable
or estimated using another valuation technique. In estimating the fair value
of an asset or a liability, the Group takes into account the characteristics
of the asset or liability if market participants would take those
characteristics into account when pricing the asset or liability at the
measurement date. Fair value for measurement and/or disclosure purposes in
these consolidated financial statements is determined on such a basis, except
for share-based payment transactions that are within the scope of IFRS 2,
leasing transactions that are within the scope of IAS 17, and measurements
that have some similarities to fair value but are not fair value, such as net
realisable value in IAS 2 or value in use in IAS 36.
The preparation of financial statements in conformity with IFRSs requires
directors to make judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets and liabilities, income
and expenses. The estimates and associated assumptions are based on various
factors that are believed to be reasonable under the circumstances, the
results of which form the basis of making the judgements about carrying values
of assets and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period or in the period
of the revision and future periods if the revision affects both current and
future periods.
Certain prior year information has been restated.
The Group has restated the Consolidated Income statement to reflect income
from customers previously netted-off with cost of sales, the impact of which
is shown in the table below:
Year ended 31 December 2013 Original Restatements Restated
E000's E000's E000's
Revenue 168,407 1,552 169,959
Cost of sales (65,776) (1,552) (67,328)
Contribution 102,631 - 102,631
The Group has restated the Consolidated Statement of Cashflows for the year
ended 31 December 2013. The non-interest bearing loan from William Hill is
now reflected in financing activities rather than investing activities. This
has revised net cash from investing activities in 2013 to E58,369,000 from the
previously stated E66,389,000 and net cash from financing activities to
E(38,049,000) from the previously stated E(46,069,000).
2. SEGMENTAL REPORTING
Management follows one business line with two operating segments, being Sports
and Gaming segmenting the revenues. These operating segments are monitored and
strategic decisions are made on the basis of overall operating results.
Management also monitors revenue by geographic location of its customers,
monitoring performance in Europe and Latin America.
2.1 Geographical Analysis
The Group's revenues and other income from external customers are divided into
the following geographic areas:
2014 2013
E000's E000's
Europe 197,442 148,010
Latin America and Emerging Markets 27,359 21,949
Total 224,801 169,959
The total non-current assets (other than financial instruments, investments
accounted for using the equity method, deferred tax assets and post-employment
benefit assets) located in Europe is E148,454,000 (2013: E146,381,000) and the
total located in other regions is E10,754,000 (2013: E8,387,000).
2.2 Reporting by Segment
The total deferred tax asset located in Europe is Enil (2013: Enil). There are
no deferred tax assets in other regions.
Revenues from external customers in the Group's domicile, Europe, as well as
its major markets, Europe and Latin America, have been identified on the basis
of the customer's geographical location. Non-current assets are allocated
based on their physical location.
2014 2013
Notes E000's E000's
STATEMENT OF REVENUE
Sports wagers 1,463,523 1,169,505
Sports margin 9.8% 9.6%
Gross margin 143,544 112,081
Sports NGR 110,199 90,823
Gaming NGR 114,602 91,302
224,801 182,125
Revenue recognised by GVC 224,801 169,959
Revenue recognised by B2B partners (up until 19 March 2013) - 12,166
Proforma Revenue 224,801 182,125
SEGMENTAL REPORTING
Net Gaming Revenue 224,801 169,959
Variable costs (101,513) (67,328)
Contribution 123,288 102,631
Contribution margin 55% 60%
Proforma contribution margin 55% 56%
Other operating costs 3
Personnel expenditure (43,055) (32,507)
Professional fees (4,489) (2,523)
Technology costs (20,991) (19,795)
Office, travel and other costs (5,248) (5,146)
Third party service costs (3) (2,427)
Foreign exchange differences (340) (1,934)
Clean EBITDA 49,162 38,299
Exceptional items 3 - (19,711)
Share option charges 3 (736) (730)
Effect of valuing the Betit put option (1,593) -
EBITDA 46,833 17,858
Depreciation and amortisation 3 (3,912) (3,740)
Financial income 16 627
Financial expense (869) (11)
Finance lease interest (67) (43)
Unwinding of discount on deferred consideration (710) (1,677)
Profit before tax 41,291 13,014
Taxation (728) (711)
Profit after tax from continuing operations 40,563 12,303
NET ASSETS
Non-current assets 159,208 154,768
Current assets 49,498 44,570
Current liabilities (50,446) (44,291)
Net current (liabilities)/assets (948) 279
Non-current liabilities (8,802) (13,951)
Net assets 149,458 141,096
Total assets 208,706 199,338
Total liabilities (59,248) (58,242)
2.3 Performance Summary by six month period
Total
E000's E000's
Revenue
H2-2014 119,735
H1-2014 105,066
FY-2014 224,801
H2-2013 96,777
H1-2013 73,182
FY-2013 169,959
Contribution
H2-2014 66,566
H1-2014 56,722
FY-2014 123,288
H2-2013 57,081
H1-2013 45,550
FY-2013 102,631
Clean EBITDA
H2-2014 26,808
H1-2014 22,354
FY-2014 49,162
H2-2013 20,499
H1-2013 17,800
FY-2013 38,299
3. OPERATING COSTS
2014 2013
Notes E000's E000's
Wages and salaries, including Directors (excluding incentive schemes) 21,744 18,227
Incentive schemes, including Directors 13,865 6,549
Amounts paid to long term contractors 3,270 3,763
Compulsory social security contributions 2,137 1,794
Compulsory pension contributions 627 751
Health and other benefits 758 701
Recruitment and training 654 722
Personnel expenditure (excluding share option charges) 43,055 32,507
Professional fees 4,489 2,523
Technology costs 20,991 19,795
Office, travel and other costs 5,251 5,146
Third party service costs* - 2,427
Foreign exchange differences 340 1,934
Other operating costs 74,126 64,332
Equity settled share option charges 552 730
Cash settled share option charges 184 -
Exceptional items 3.1 - 19,711
Effect of valuing the Betit put option 1,593 -
Depreciation 675 504
Amortisation 3,237 3,236
80,367 88,513
*provided to Betboo by external providers
3.1 Exceptional Items
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