REG - GVC Holdings PLC - Interim Results <Origin Href="QuoteRef">GVC.L</Origin> - Part 2

EntainAnnouncement

28/08/2015 07:02

- Part 2: For the preceding part double click  ID:nRSb3793Xa 

CAPITAL 
 
                                     Number of shares  
 At 1 January 2015 and 30 June 2015  61,276,480        
 
 
Share options currently in issue are: 
 
                                                                                                                 Exercise price  Number of shares  
 Directors and executives*                                                                                       1p              3,450,000         
 Provided to third parties following underwriting commitments made at the time of the Sportingbet acquisition**  2.335p          156,947           
 
 
*350,000 of these share options relate to cash settled share options. The
remaining balance relates to equity settled share options. 
 
13.        INVESTMENT IN BETIT SECURITIES LIMITED 
 
On 14 May 2014, the Group acquired a 15% stake in Betit Holdings Limited
('BHL') from Betit Securities Limited ('BSL'). The consideration was E3.5
million, which together with professional fees incurred at the time amounted
to a total upfront cost of E3.6 million. The Group has a call option to
acquire the balance of the outstanding shares. There is also a put option.
These options, are, under IAS 39, required to be valued, and are shown within
both Non-current assets and non-current liabilities. 
 
                                      30 June2015  30 June2014  31 Dec2014  
 Available for sale financial asset                                         
 Original cost                        -            3,500        -           
 Incidental acquisition costs         -            149          -           
 Put option at fair value             -            1,745        -           
 Effect of                            -            (1,593)      -           
 Balance at start of period           3,801        -            3,801       
 Balance at end of period             3,801        3,801        3,801       
                                                                            
 Non-current liability to put option  (1,745)      (1,745)      (1,745)     
 
 
There were no significant changes in the fair value of the asset or the
options as at 31 December 2014 or 30 June 2015. Accordingly no adjustments
have been made to the carrying value of the asset since inception. 
 
14.        RESTATEMENTS 
 
The Group has made two modest restatements to the 30 June 2014 interim
financial statement due to clarification of accounting treatments associated
with the investment in Betit. 
 
14.1   Restatements in the Consolidated Income Statement 
 
 Six months ended 30 June 2014           Reference  Original  Restatements  Restated  
                                                    E000's    E000's        E000's    
 Revenue                                            105,066   -             105,066   
 Cost of sales                                      (48,344)  -             (48,344)  
 Contribution                                       56,722    -             56,722    
 Other expenditure                                  (34,367)  -             (34,367)  
 Share based payments                               (124)     -             (124)     
 Depreciation and amortisation                      (1,772)   -             (1,772)   
 Effect of valuing the Betit put option  a          -         (1,593)       (1,593)   
 Financial income                                   8         -             8         
 Financial expense                                  (855)     -             (855)     
 Profit before tax                                  19,612    (1,593)       18,019    
 Taxation                                           (447)     -             (447)     
 Profit after tax                                   19,165    (1,593)       17,572    
 
 
14.2   Restatements in the Consolidated Statement of Financial Position 
 
                                            Reference  Original  Restatements  Restated  
                                                       E000's    E000's        E000's    
 Investments                                a          3,649     152           3,801     
 Trade and other payables                   b          (26,225)  3,680         (22,545)  
 Interest bearing loans and borrowings      b          -         (945)         (945)     
 Non-interest bearing loans and borrowings  b          -         (2,735)       (2,735)   
 Betit option liability                     a          -         (1,745)       (1,745)   
 All other assets and liabilities                      166,247   -             166,247   
                                                       143,671   (1,593)       142,078   
 
 
 a.  Represents the entries to recognise the fair value of the put and call options associated with Betit as discussed in note 13 above. At the time the 2014 interim financial statements were published the fair value exercise had not been completed.                                                                                          
 b.  Represents reclassifications of the current portions of the William Hill interest free loan and finance lease liabilities which were included within trade and other payables in the 2014 interim financial statements. The reclassifications aid comparison with the 31 December 2014 audited consolidated Statement of Financial Position.  
 
 
15.       SUBSEQUENT EVENTS 
 
On 2 July 2015, GVC received notice that 37 Entertainment Inc, a company
incorporated in Quebec, had filed legal proceedings against GVC Holdings plc
in Quebec. GVC believes the claim is without merit and intends to robustly
contest the claim. 
 
- Ends - 
 
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