TIDMSBT
RNS Number : 3562A
Sportingbet PLC
07 October 2009
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Sportingbet Plc
__________________________________________________________________________
Audited Results for the Year Ended 31 July 2009
Sportingbet Plc, a leading online sports betting and gaming group, announces its
audited results for the year ended 31 July 2009.
Key Highlights
* Breadth of sports product increased significantly to over 8,000 different offers
per day
* Introduced live streaming to supplement in:play betting
* Launched in Romania and South Africa
* 90+ new casino style games launched in Q4
* Intention to move listing from AIM to the Official List
* Reinstatement of dividend payments. 1.0p final dividend declared
Financial Highlights
for continuing operations
+-----------------------------------+---------+--------------+---------+
| | 2009 | 2008 | |
+-----------------------------------+---------+--------------+---------+
| | GBPm | GBPm | % |
+-----------------------------------+---------+--------------+---------+
| | | | |
+-----------------------------------+---------+--------------+---------+
| Amounts Wagered | 1,577.2 | 1,347.8 | 17% |
+-----------------------------------+---------+--------------+---------+
| Net Gaming Revenue | 163.6 | 144.3 | 13% |
+-----------------------------------+---------+--------------+---------+
| EBITDA* | 39.7 | 31.0 | 28% |
+-----------------------------------+---------+--------------+---------+
| Adjusted Operating Profit* | 31.1 | 24.7 | 26% |
+-----------------------------------+---------+--------------+---------+
| Group Operating Profit | 21.9 | 0.8 | - |
+-----------------------------------+---------+--------------+---------+
| Diluted EPS (p) | 4.2 | (0.5) | - |
+-----------------------------------+---------+--------------+---------+
| Adjusted Diluted EPS* (p) | 6.0 | 4.2 | 41% |
+-----------------------------------+---------+--------------+---------+
| | | | |
+-----------------------------------+---------+--------------+---------+
| Net cash** | 23.8 | 28.6 | -17% |
+-----------------------------------+---------+--------------+---------+
| | | | |
+-----------------------------------+---------+--------------+---------+
* Adjusted to exclude exceptional items, share option charge and amortisation
** Net of long term debt and customer liabilities
Andrew McIver, Group Chief Executive, commented:
'This has been a very solid year for the Sportingbet Group. We are now seeing
consistent profitable growth resulting from the structural changes made
following our withdrawal from the US. Our focus on sports betting and
geographical diversification is helping to support earnings in these troubled
economic times. Additionally, our commitment to offer industry-leading sports
betting products and excellent customer service has helped us to recruit and
retain core customers. The Group is pleased to recommend the reinstatement of
dividends with 1.0p per share as a final dividend for the year just ended.
The new financial year has started well. Although Australian sports margin is
below long term averages it is made up for by strong European sports turnover
outperforming budget. The Board remains optimistic for the outcome of the
financial year at this stage.
Talks with the US Department of Justice are constructive and ongoing.
Finally, I am delighted to announce that it is our intention to move from AIM to
the Official List within the next six months, which will provide the basis for
our continued growth and success.'
For further information please contact:
+------------------------------------+-------------------------------------+
| Sportingbet Plc | Tel: 020 7184 1800 |
+------------------------------------+-------------------------------------+
| Andrew McIver, Group Chief | |
| Executive | |
+------------------------------------+-------------------------------------+
| Jim Wilkinson, Group Finance | |
| Director | |
+------------------------------------+-------------------------------------+
| Simon Gregory, Director of | |
| Business Development | |
+------------------------------------+-------------------------------------+
| | |
+------------------------------------+-------------------------------------+
| Maitland | Tel: 020 7379 5151 |
+------------------------------------+-------------------------------------+
| George Hudson | Mob: 07595 270 877 |
+------------------------------------+-------------------------------------+
| | |
+------------------------------------+-------------------------------------+
There is a presentation for analysts and investors at 9.30 today at the
Sportingbet Head Office: 45 Moorfields, London EC2Y 9AE. In addition, there
will be a live audio webcast available at www.sportingbetplc.com. Registration
will be made available 10 minutes prior to the presentation start time.
Chairman's Statement
Once again, I am pleased to report that Sportingbet has made significant
progress during the last financial year. The Group continues to consolidate its
position as a leader in the online sports betting market whilst growing profits
significantly. This has been achieved against the backdrop of a poor economic
climate for consumer spending in all markets and the additional adverse impact
of new taxes in one of the Group's core markets, Australia.
Regulation continues to define the internet gambling industry across Europe and
the rest of the world. In general, we continue to see pressure on European
countries to justify their national gambling regimes in light of the free-trade
requirements of international law. Such actions have seen some countries move
towards a more liberal stance and in certain cases the introduction of
regulation whilst other nations continue to receive censure from various
international trade organisations. Sportingbet strongly supports sensible, well
balanced regulation that has consumer protection at the heart of its agenda.
Corporately, the Group seeks to mitigate regulatory risk through geographic
diversification whilst retaining structural flexibility to react positively to
such regulation if, when and where it may occur.
In the United States, the Group continues to be in talks with the US Department
of Justice to seek clarification of the position of the US Authorities with
respect to the Group's previous activities and to determine whether a mutually
acceptable resolution is possible. These talks continue and are both productive
and amicable in their nature. The Board remains optimistic of reaching an
appropriate settlement but there continues to be little visibility of the likely
timing or quantum.
Our ethos is 'it's all about sport'. Sports betting is the origin and mainstay
of our business, accounting for 64% of Group net gaming revenue, and is inherent
in both the Company's name and our core branding. Our objective is to develop
our market-leading internet sports betting platforms to offer customers
something to bet on every minute of every day through a secure, user-friendly
and efficient interface. The Group's European website offers one of the world's
largest ranges of betting markets per day covering all mainstream sports and
leagues across the globe.
Outside the main business of bookmaking we continue our sports ethos by
supporting sport through various charitable and sponsorship contributions.
Sportingbet is now the main supporter of HEROS, a charity dedicated to the
welfare of former racehorses to ensure they have a comfortable existence once
their racing days are over. Sportingbet is also focused on football, the
dominant sport in Europe, and is now the main shirt sponsor for Wolverhampton
Wanderers Football Club playing in the English Premier League, Steaua Bucharest
of Romania and Slavia Sofia of Bulgaria. In Australia, the Group is the major
sponsor of the Brisbane Broncos, one of Australia's leading Rugby League teams
and Carlton Football Club, one of Australia's largest Aussie Rules teams.
The Group is also investing in the communities in which we base our operations.
In Guernsey, the location of our main European operational base, we are proud to
sponsor Heather Watson, a young Guernsey tennis player who has recently won the
US Open girl's title. Heather is now ranked number one in the UK, and number
three in the world. The Group also sponsors many local sports-based community
events such as the Guernsey Marathon. In Antigua, where the Group has held a
gaming license for many years, we have donated a significant sum to fund both
the building of a library at the Island Academy International School and
bursaries for a number of under privileged local children.
I am pleased to announce the reinstatement of dividend payments. The Group has
achieved a considerable amount since the closure of the US-facing business in
October 2006 and the payment of a 1.0p dividend marks a further stage in the
development of the business. In addition, following the Group's listing on the
AIM market of the London Stock Exchange in 2001, the Board has always been
committed to comply with the strictest codes of corporate governance and
policies. The Board has now concluded that it is an appropriate time to consider
moving the Group's listing to the Official List of the London Stock Exchange and
will shortly look to begin the process of achieving this goal.
Group Chief Executive's Review
FINANCIAL RESULTS: Year ended 31 July 2009
On 21 July 2009, the Group's licensed Italian operation, Sportingbet Italia
S.p.A. was sold. All prior year key facts and figures have been restated to
reflect the results of continuing operations for the period.
Amounts wagered for the year ended 31 July 2009 were GBP1,577.2m (2008:
GBP1,347.8m), earning net gaming revenue ("NGR") of GBP163.6m (2008: GBP144.3m).
Amounts wagered on sports betting in Europe (incorporating the financial results
for the Emerging Markets division) grew by 21.1% to GBP906.6m (2008: GBP748.5m),
earning NGR of GBP82.7m (2008: GBP68.4m). Casino and gaming contributed a
further GBP41.3m, and poker GBP18.8m, to both amounts wagered and NGR (2008:
GBP36.8m and GBP20.0m). Amounts wagered on Australian sports betting grew by
12.5% to GBP610.5m (2008: GBP542.5m), earning NGR of GBP20.8m (2008: GBP19.1m).
As a percentage of amounts wagered, the European and Australian sports NGR were
9.1% and 3.4% respectively (2008: 9.1% and 3.5%). However amounts wagered and
NGR are stated after a deduction for customer bonuses of GBP18.1m (2008:
GBP13.5m). Without the bonus deduction the equivalent numbers would have been
10.2% and 3.7% (2008: 10.0% and 3.6%).
Costs (excluding exceptional items, share option charge and amortisation) in the
year were GBP132.5m (2008: GBP119.6m), accounting for 81.0% of NGR (2008:
82.9%).
The Group earns over 90% of its revenue in currencies other than Sterling and
has benefited in the translation of these results. At constant currency the
total amounts wagered increased by 10% whilst total NGR increased by 7%. Since
the majority of the costs are incurred in the same currency as the revenue is
earned, the benefit to operating profit has been approximately GBP4.0m for the
year.
Exceptional items for the year amounted to GBP4.2m, relating to a provision
against monies due from one of the Group's European payment processing
providers. The amount owed by the third party is now in dispute and at this
time its recoverability is sufficiently unclear as to warrant the provision.
The loss for the year from discontinued operations amounted to GBP9.4m, arising
as a result of the sale of the Group's Italian operations. This loss comprises
the write down of goodwill of GBP6.4m, other associated costs of GBP1.5m and a
year to date trading loss of GBP1.5m.
Operating profit for the continuing business (before exceptional items, share
option charge and amortisation) for the year is GBP31.1m (2008: GBP24.7m).
Earnings before interest, tax, depreciation and amortisation (before exceptional
items and share option charge) were up 28.0% to GBP39.7m (2008: GBP31.0m).
Operating profit after charging exceptional items of GBP4.2m (2008: GBP12.0m),
share option charge of GBP3.1m (2008: GBP8.0m) and amortisation of other
intangible assets of GBP1.9m (2008: GBP3.9m) was GBP21.9m (2008: GBP0.8m).
Basic earnings per share (before exceptional items, share option charge and
amortisation) was 6.5p (2008: 4.8p). Diluted earnings per share (before
exceptional items, share option charge and amortisation) was 6.0p (2008: 4.2p).
Basic Group statutory earnings per share for the continuing business was 4.6p
(2008: loss 0.5p).
As at 31 July 2009, the Group had GBP44.3m (2008: GBP49.4m) of cash and liquid
resources on its balance sheet. After taking into account GBP16.5m (2008:
GBP15.2m) of customer liabilities and GBP4.0m (2008: GBP5.6m) of bank loans
secured on residential properties in the Channel Islands, net cash at the period
end stood at GBP23.8m (2008: GBP28.6m).
REVIEW OF OPERATIONS
Sportingbet Group
Since being founded ten years ago, Sportingbet has grown significantly to become
a major player in the online betting industry. Its market-leading European
sports betting platform now offers over 8,000 sports betting markets on a busy
trading day, covering a huge range of sports, leagues and bet types supplemented
by revenues generated from casino, poker and other betting games. Sportingbet
branded websites are now available in 23 different languages and the customer
call centre, located in Dublin, is able to answer queries in 42 languages.
Sportingbet's operations are focused on Europe, Australia and a burgeoning
Emerging Markets business. The European operation is based in the Channel
Islands, operating under a licence provided by the Alderney Gambling Control
Commission. This is supported by an operational centre in Dublin providing
customer services and administrative support, together with an IT function
located in London. The Group's Australian division is based in Darwin, operating
under a license provided by the Northern Territories Government. In total, the
Group now employs over 500 people.
Sport and sports betting continues to be at the heart of the Sportingbet
business. Sports betting revenues accounted for approximately 64% (2008: 60%) of
Group NGR. During the year significant additional functionality was added to the
sports product offerings in response to consumer demand. In November 2008, live
web-streaming of sport was made available to our European customer base to
complement the Group's in-running betting product ("in:play"). This
functionality allows customers to watch the game live on their PC, whilst
placing bets on a wide variety of outcomes during the event. The demand for
in:play betting is significant and now accounts for 56% of amounts wagered in
Europe. In order to further support the demand for this product, Sportingbet now
provides a round-the-clock in-running betting service on an ever wider variety
of events irrespective of an event's location or time zone.
In addition to the extension of the Group's in:play product, the coverage of
pre-match betting has also been broadened to include new sports, leagues and
betting markets. As a result, Sportingbet offers one of the most extensive
sports betting products available. This broad product offering is backed up by a
best-in-class risk management and trading team. This is demonstrated by the
continued market leading sports margin, a margin that is achieved in conjunction
with maintaining competitive pricing for the customer. The Board believes that
the Group's strength and expertise in this key operational area will stand it in
good stead to capitalise on the significant potential in this industry.
During the year the Group launched websites into two further markets, South
Africa and Romania. In South Africa, the Group acquired a licence for online
sports betting in conjunction with a local partner and launched a localised site
in February 2009. This market is currently immature and we are looking to the
2010 FIFA World Cup Finals in South Africa to help build this business. In
addition, the Group launched a Romanian language site in April 2009 in
conjunction with our very successful Greek partner. This launch has been
supported by the sponsorship of Steaua Bucharest, the largest and most popular
football team in Romania.
Europe
The European business (incorporating the financial results for the Emerging
Markets Division) continues to grow strongly with the amount wagered on sports
increasing by 21.4% to GBP917.5m (2008: GBP755.5m), generating a gross margin
(pre bonus adjustment) of GBP93.6m (2008: GBP75.4m) up 24.1%. European casino
and games revenue grew by 12.6% to GBP43.7m (2008: GBP38.8m) whilst poker
revenues declined by 7.6% to GBP22.0m (2008: GBP23.8m).
The number of sports bets placed rose by 12% to 57.5m (2008: 51.5m). The
continued increase in popularity of in:play betting has been a significant
driver of the volume growth over the past year. In:play betting accounted for
56% of the value of bets placed during the year. This popularity is evidenced by
the number of bets per customer increasing to 134 (2008: 111). The average bet
size was up 9% to GBP15.97 (2008: GBP14.66) leading to yield per sports customer
increasing from GBP161 to GBP216 per year.
During the year, a sports gross margin of 10.2% was achieved (2008: 10.0%)
despite the increase of in:play betting which tends to have a lower average
margin due to the greater proportion of straight wagers (versus multiple bets)
than pre match betting. This margin has been achieved through absolute focus on
accurate odds setting, risk management and investment in the underlying
technologies to allow the team of highly experienced traders to maximise profits
from the wagers that are taken.
Over the past 24 months, the European business has undertaken a thorough review
of its customer database. As a result of this analysis, the Group implemented a
change in marketing strategy to move from a 'quantity at any cost' to a 'quality
and value' approach. The marketing focus is now prioritised on those customer
segments that provide a significant contribution to Group performance. This has
resulted in a movement away from mass market recruitment towards the recruitment
and yield management of more valuable players.
Significant investment has also been made in the European customer service
centre as part of the continued focus on our customer base. The service centre,
based in Dublin, now employs over 150 people and has 42 language capabilities.
The investment in the Dublin operation has been recognised by the World Contact
Centre, the leading customer service industry body, through the award for Best
Customer Services in Europe.
The Group aims to derive its revenues from a broad geographical base. The Board
is aware that regulatory uncertainty exists in many markets in which the Group
operates and therefore a broad geographic base helps to reduce the impact of
potential regulatory shocks which may occur. The Group's core markets of Greece
and Spain continue to perform well with gaming revenues up 56% and 11%
respectively.
Gaming revenues from the Turkish business have fallen by 15% year-on-year,
equivalent to GBP4.1m as a result of the Group reducing the importance of this
market. Turkey accounted for approximately 12.8% of Group revenue during the
year compared to 17.2% for the prior year although the Turkish business
performed strongly during the latter part of the year.
The UK market has historically been difficult for the Group and gaming revenues
from this domain fell by 21% during the year. This market has been generally
overserviced with a relatively expensive media environment. The impact of the
recession in the UK has led to the cost of media falling, enabling the Group to
consider strategies in this market which hitherto had been prohibitively
expensive. As a result, the Group now has a number of sports-based sponsorships
in the UK including over 75 horse races throughout the summer of 2009 and the
main sponsorship of Wolverhampton Wanderers Football Club.
Eastern Europe continues to be a significant growth market, growing in aggregate
by 26% to account for 15% of Group revenues (2008: 13%). In addition, increased
focus on France and Germany, following more certainty around the longer term
regulatory outlook, has resulted in an increase in NGR of 51%. These markets are
expected to make a significant contribution to the Group's results in future
years.
Europe's casino and games offering, which accounted for 24% of the Group's
revenue, grew by 12.6% during the year. Customers continue to move away from the
traditional download casino product (down 2.5% year-on-year) in favour of more
instant casino games using Flash-based technologies (up 34.3% year-on-year). To
support this demand the Group has launched over 90 instant games in Q4, across
certain domains provided by a range of software suppliers. Further initiatives
are in place through the current financial year, to widen the availability of
these new products to other geographies as well as integrating new software
suppliers to increase the available content.
During the year, the European region generated poker rake of GBP22.0m (2008:
GBP23.8m), pre-bonus deductions, down 7.6% on the prior year. Poker now accounts
for only 12% of the Group's revenue, down from 15% in 2008. The European poker
market remains very challenging as the environment remains highly competitive
with certain large US-focused poker companies using their significant cash flows
and high liquidity to continue to attract customers from existing European only
companies.
In July 2009, the Group sold its licensed Italian operation ("Sportingbet Italia
S.p.A.") to the local management team for a nominal consideration. Sportingbet
Italia S.p.A. was acquired in May 2006, in anticipation of expected further
liberalisation of Italian online gaming regulation. These changes did not
materialise and consequently the combination of alternative betting channels
together with the lack of operational synergies with the rest of the Group's
European business, has meant Sportingbet Italia S.p.A. had been loss making
since acquisition. Whilst these losses had been reduced to the minimum
considered achievable, the Board concluded that significant financial and
managerial investment would be required to generate a profitable business in
Italy from the current base and at the present time such investment would be
better placed elsewhere in the Group's portfolio. During the first eleven months
of the financial year, Sportingbet Italia S.p.A. generated amounts wagered of
GBP14.1m and GBP2.1m of NGR, generating an operational loss of approximately
GBP1.5m.
The disposal of Sportingbet Italia S.p.A. has resulted in a loss from
discontinued operations of GBP9.4m which comprises the write down of goodwill of
GBP6.4m, a loss on disposal and other associated costs of GBP1.5m and a
year-to-date trading loss of GBP1.5m during the year.
Australia
The Australian betting market has undergone considerable change in the past
financial year. The Australian market continues to be dominated by the Totaliser
Agency Boards ("TABs") some of which remain state owned and some of which have
now been privatised. The TABs account for approximately 70% of the A$20bn+
wagering industry in Australia. The corporate bookmakers have demonstrated a
combined compound annual growth rate in turnover of over 28% over the past seven
years compared with the growth of the TABs phone and internet operations of just
9.3%. The corporate bookmaking market is dominated by four main businesses, of
which Sportingbet is the largest.
In September 2008, New South Wales and Victoria relaxed their restriction on
sports betting advertisements with other States following suit shortly
thereafter. Sportingbet, as Australia's largest independent bookmakers, was able
to increase its profile in these markets through advertising in press, TV, radio
and at sports events. It is anticipated that the internet business will be the
prime beneficiary of such advertising. In response to the relaxation in
advertising restrictions a number of States sought to impose further gambling
taxes and levies on sports and betting revenues. These taxes vary by State and
by sport and are charged in some cases on the amount wagered and in other cases
on gross margin. The taxes and levies have been implemented by the States but
remain subject to challenge by the industry.
Amounts wagered increased by 12.7% from GBP543.2m to GBP612.1m resulting in
pre-tax margin increasing 24% from GBP23.4m to GBP29.1m. Gambling taxes in
Australia amounted to GBP6.7m in the year (2008: GBP3.6m) resulting in post tax
margin increasing by 13.2% from GBP19.8m to GBP22.4m. After bonuses, NGR
increased by 8.9% from GBP19.1m to GBP20.8m.
The Australian operation comprises two elements: an internet business and a
telephone business.
The telephone operation is biased towards higher staking customers, betting
predominantly on horseracing and the business typically offers an element of
credit to the customer. The internet business, which has been built from scratch
over the last five years, is more recreational in nature and covers a greater
diversity of sports. No credit is offered for internet customers. The different
bias of the two operations leads the internet business to have a higher gross
margin percentage than the telephone operation.
The internet business accounts for 34% of the amounts wagered and 46% of the
gross margin. The number of bets placed on the internet has grown by 59% over
the prior year.
Over the year we have seen the effect of the global financial crisis impacting
on the higher staking telephone customers. In particular, the number of bets per
telephone customer has decreased 26% from an average of 149 bets per year to 110
per year. The average bet size has also fallen by 9% from A$663 to A$603.
Emerging Markets
In accordance with the Board's desire for a broad geographical base, the Group
has invested in its Emerging Markets Division for the past two years. The
primary focus of this division is to identify new potential markets for online
gambling, to understand the gambling culture, propensities and regulation in
these regions and, if appropriate, launch into these markets. This expansion in
our global footprint also helps to support the sustained increase in the Group's
global sports offering which is proving to be increasingly popular with its
existing European sports customers. The Emerging Markets financial performance
is currently incorporated within the European Division's financial report.
The Emerging Markets Division has been focused primarily on two regions, Brazil
and Canada. During the year, the Group acquired a sports betting licence from
South Africa, in conjunction with a local partner. This licensed South African
business was launched in February 2009.
In Brazil the Group has developed a strong business over the past two years,
growing fourfold over the prior year, albeit from a relatively low base. The
Sportingbet brand has developed a strong media presence in Brazil as well as
being the main sponsor of the Brazilian Football league's second division - home
of Corinthians, the country's most popular football team. The experience gained
from this market will be used to launch into other geographies in the region.
All profits are currently being reinvested in this market.
REGULATORY DEVELOPMENTS
The supply of betting and gaming services continues to be subject to a complex,
inconsistent and often protectionist approach by jurisdictions worldwide.
However, action to address this by international trade bodies (such as the World
Trade Organisation and the European Commission) has resulted in the censuring of
certain nations and, increasingly, the introduction of regulatory regimes for
the activity.
The Group continues to provide its services only from jurisdictions where it is
licensed and regulated, and that therefore the supply of services from these
jurisdictions (where its regulator and applicable local laws deem the gambling
transaction to take place) is explicitly legal.
In order to provide its worldwide gambling service, the Group currently
maintains licences in Alderney, Antigua and Barbuda, Australia, South Africa and
the UK.
Major issues of note in the last 12 months (all of which have been widely
reported) include:
(a) the possibility that the UK will impose financial requirements on offshore
operators who target the local gambling market;
(b) an ongoing move towards liberalisation of the gambling sector in a number
of EU jurisdictions, including France, Denmark, Italy (through a wider
regulatory regime) and Sweden;
(c) greater European Commission pressure on EU and EFTA Member States
(principally Norway) to justify their national gambling regimes (including
proposed new regulatory regimes) in light of the free trade requirements of
international law; and
(d) increasing attempts to impose indirect taxes (via product fees) on gambling
operators by certain States in Australia.
The European Union (EU)
EU Member States are subject to scrutiny from The European Commission (the
"Commission") and, as guardian of the EC Treaty, it closely monitors existing
and developing legislation in the EU. The principal method by which the
Commission has applied pressure on Member States is through the use of
infringement proceedings against EU Member States in contravention of EC law.
Through such proceedings, the Commission has asked a number of States to amend
their laws restricting the free movement of gambling services. The ongoing
pressure from the Commission, and in some cases national court decisions
declaring domestic legislation to be incompatible with EC law, has led to a
domestic review of prohibitive legislation in a number of jurisdictions,
including France, Italy, Sweden and Denmark.
On 9 September 2009, the European Court of Justice (the "ECJ") delivered its
judgment in Case C-42/07 between Departamento de Jogos da Santa Casa da
Misericordia de Lisboa ("Santa Casa") and Bwin, and effectively upheld the
Portuguese national law restricting certain betting and gaming activities to the
State monopoly, Santa Casa. While the ECJ maintained the need for restrictions
on gambling services to be justified in the public interest, the judgment is
unambiguous in its vindication of State monopolies as an effective method for
doing so.
Spain
As a result of the uncertainty over the legality of the provision of online
gambling, which is not expressly prohibited by Spanish law, Spain has
historically adopted a tolerant approach to the supply of foreign gambling
services into the jurisdiction.
Madrid and the Basque Region have both introduced licensing regimes for online
betting, which has led to the Spanish government taking steps towards a
nationwide system of regulation which will permit operators to obtain a Spanish
gambling licence. The draft legislative process is ongoing, and has been subject
to criticisms, including accusations of a lack of transparency and failure to
consult stakeholders. As a result, other Spanish regions, including
Castilla-Leon and La Rioja, have announced their intention to regulate the
sector on a regional basis.
United Kingdom
The Group operates a licence granted by the Alderney Gambling Control
Commission, and is therefore permitted to advertise in the UK under the Gambling
Act 2005, which permits UK advertising for Alderney licensees on the back of
Alderney's whitelisted status.
In April 2009, the Department for Culture, Media and Sport ("DCMS") announced
that overseas gambling operators who advertise in the UK may face new financial
and regulatory requirements to ensure a more even financial treatment of UK
operators and non-UK operators who target the UK market. The DCMS is due to
report its findings to Parliament before the end of 2009.
France
France has historically been a staunch opponent of the provision of online
gambling services by operators without a French licence.
In light of this approach, the Commission has put substantial pressure on
France's domestic regulation of online gambling, stating that its laws are not
compatible with EC law. As a result of such pressure, France is to regulate the
online gambling sector. Specifically, France will liberalise the online sports
betting and skill gaming market (including poker), but will not liberalise
online gaming. The draft online gambling law produced by France was subject to a
number of critical comments by the Commission, but it is understood that the
licensing system it introduces will be in force prior to the World Cup 2010. The
Commission is certain to monitor the draft law as it progresses through the
French legislature, and it is understood that it will carry out a full
assessment of the final version to determine its compatibility with EC law.
Germany
Despite criticism from the Commission, the Interstate Gambling Treaty remains in
force in Germany. The Treaty effectively provides that all forms of online
gambling are unlawful where they are targeted at German residents.
While the current official position in Germany is that the Treaty is not to be
amended, we understand that the German government is under intense pressure from
the Commission and at a political level internally to amend the legislation.
Furthermore, enforcement action against operators where they actively target
German residents (including through local marketing) has been curbed due to the
lack of clarity in the legal position.
In our view, therefore, legislation that was intended to almost comprehensively
block online gambling has had only limited effect and the general inability of
the German government to block online gambling websites, coupled with the
questionable legality of the legislation, has led to a continued supply of
online gambling services, and an absence of extra-territorial enforcement
against the activity.
Italy
Italy has changed its monopoly-orientated stance on online gambling and has
started to permit a number of non-Italian bookmakers to obtain licences to
operate online betting offerings from certain outlets such as newsagents, bars
and cafes.
In addition, Italy has recently announced that it is to legislate for the
licensing of online poker cash games, casino games, betting exchanges and
betting on virtual events during the course of 2009. The draft legislation will
be submitted to the Commission during the course of 2009, with the intention to
commence licensing by the end of 2009.
Italy currently requires that even EU-licensed operators obtain an additional
gambling licence in Italy in order to target its domestic market. However, such
an approach is potentially in breach of the EU principle of mutual recognition
of businesses licensed elsewhere in the EU, and it remains to be seen whether
such a stance will be permitted by the Commission in the long term.
Norway
Outside of the EU, the EFTA Surveillance Authority (the "Authority") has held
that draft Norwegian legislation prohibiting the processing of payments for
gambling infringes EFTA laws on the freedom to provide services and the free
movement of capital. Norway is legally obliged to take account of the
Authority's comments and, if it fails to reflect them in the legislation, the
Authority is likely to instigate infringement proceedings, formally requiring
that the legislation is changed. In our view, such infringement proceedings, if
not complied with, may ultimately result in the Norwegian legislation being
referred to the EFTA Court by the Authority.
REST OF THE WORLD
Turkey
Anti-online gambling legislation was introduced in Turkey in February 2007 to
underpin the State monopoly, although it remains legal for customers to transact
with offshore online operators. The Group continues to accept bets from Turkish
residents, although it does not have employees, nor does it conduct advertising,
in the territory.
Australia
The lack of consistency in the approach and implementation of state and federal
legislation across Australia has resulted in uneven regulation of the online
gambling sector. This is particularly evident in the protectionist legislation
in relation to the payment of fees for the use of sports products (e.g. race
fields and sporting fixtures) which is levied against betting operators in
Australia in a supposed bid to prevent illegal gambling and to police the
dissemination of information in this field. Such fees are levied on operators
licensed in Australia, in addition to taxes they pay in their licensing state.
Race fields legislation exists in every Australian state except the Australian
Capital Territory and the Northern Territory; in addition no fees are currently
payable in Western Australia and Tasmania as the relevant legislation has not
yet come into effect. The race fields legislation, however, is subject to
ongoing legal challenge, principally on the grounds that it is an
unconstitutional violation of Australian free trade principles. The High Court
has already ruled against such fees on the grounds that they are an unfair (and
unconstitutional) restriction on competition.
Unlike race fields, and with the exception of Victoria, no state or territory
has legislation that specifically requires betting operators to pay fees for the
use of sporting fixture information. However, a general principle has developed
under which corporate bookmakers enter into direct commercial agreements with
the national administrative bodies for each sport. Such agreements typically
provide for a fee equivalent to 5% of revenue to be paid to the administrative
bodies.
United States
The US continues to prohibit online gambling supplied from offshore.
Despite the current prohibitive position, there have been suggestions that, in
light of the economic downturn in the US and the resultant loss of revenue for
land-based casino operators, liberalisation may occur in the online gambling
market. Increasing pressure from consumers and lobby groups has also resulted in
legislative proposals. To date these have not amounted to a change in the
existing prohibitive regime.
The Group continues in its discussions with the US Department of Justice to seek
clarification of the position of the US Authorities with respect to the Group's
previous activities and whether a mutually acceptable resolution is possible.
These talks continue and are productive and amicable in their nature. The Board
continues to be optimistic of reaching a settlement but has little visibility of
the likely timing or quantum.
Asia
The regulatory regime in many Asian countries is currently prohibitive and, at
present, the Group has no operations or activities in Asia.
LISTING
It has for some time been Sportingbet's intention to seek a listing on the
Official List of the London Stock Exchange. Following the Group's initial
listing on OFEX in April 1999 and subsequent admission to AIM in January 2001,
Sportingbet has matured to become a leading player in the online gaming industry
with a market capitalisation of over GBP300m. The Board believes that the
Official List will be a more appropriate platform for the continued growth of
the Group by increasing Sportingbet's profile, assisting in the liquidity of the
Company's shares and providing a greater range of potential investors for the
Company.
The listing is expected in the first quarter of 2010 and further information
regarding this move will be issued in due course.
DIVIDEND
The Group plans to reinstate the payment of a dividend of 1.0p for the year
ended 31 July 2009. A considerable amount has been achieved since the closure
of the US-facing business in October 2006 through efforts to restructure the
business and the reinstatement of a dividend marks a further stage in the
development of the Group. The intention to pay such a dividend is not expected
to affect the discussions about any possible future agreement or financial
settlement with the US Department of Justice.
The 1.0p dividend will be paid on 8 January 2010 to shareholders on the register
on 11 December 2009 subject to shareholder approval at the Annual General
Meeting to be held on 18 December 2009. The Group plans to follow a progressive
dividend policy, subject to market conditions.
OUTLOOK
The Group's focus will remain on sports betting through further investment in
IT, product and marketing. Strong consumer demand is driving the development of
our in:play product which now offers round-the-clock live-betting opportunities
for our customers, supplemented by live video footage. We continue to increase
the number of markets we serve and plan to extend our footprint each year.
Whilst these embryonic markets take time to mature, early indications from new
markets have been encouraging.
CURRENT TRADING
Overall the new financial year has commenced in line with expectations. European
sports betting continues to power the business with amounts wagered ahead of our
expectations at this stage. Casino and games continue to perform in line with
prior years whilst poker remains a difficult market.
In Australia, the amounts wagered are only marginally ahead of the prior year.
Additionally, the first two months of the year have experienced a lower than
average sports margin in Australia due to a high percentage of favourites
winning events.
However, given the strong sign-up and turnover trends in the core European
sports business, the Board remains optimistic for the outcome of the financial
year at this stage.
Sportingbet Plc
Consolidated Income Statement
Year ended 31 July 2009
+------------------------------------------------------------+-------+------------+------------+
| | | Total | Total |
+------------------------------------------------------------+-------+------------+------------+
| | | Year ended | Year ended |
+------------------------------------------------------------+-------+------------+------------+
| | | 31 July | 31 July |
| | | 2009 | 2008 |
+------------------------------------------------------------+-------+------------+------------+
| |Notes | GBPm | GBPm |
+------------------------------------------------------------+-------+------------+------------+
| | | | Restated |
+------------------------------------------------------------+-------+------------+------------+
| | | | |
+------------------------------------------------------------+-------+------------+------------+
| Amounts wagered | 4 | 1,577.2 | 1,347.8 |
+------------------------------------------------------------+-------+------------+------------+
| | | | |
+------------------------------------------------------------+-------+------------+------------+
| Net gaming revenue | 3, 4 | 163.6 | 144.3 |
+------------------------------------------------------------+-------+------------+------------+
| | | | |
+------------------------------------------------------------+-------+------------+------------+
| Administrative expenses excluding exceptional items, share | | (132.5) | (119.6) |
| option charge and amortisation of other intangible assets | | | |
+------------------------------------------------------------+-------+------------+------------+
| | | | |
+------------------------------------------------------------+-------+------------+------------+
| Group operating profit before exceptional items, share | | 31.1 | 24.7 |
| option charge and amortisation of other intangible assets | | | |
+------------------------------------------------------------+-------+------------+------------+
| | | | |
+------------------------------------------------------------+-------+------------+------------+
| Other administrative expenses: | | | |
+------------------------------------------------------------+-------+------------+------------+
| * Exceptional items | 5 | (4.2) | (12.0) |
+------------------------------------------------------------+-------+------------+------------+
| * Share option charge | 6 | (3.1) | (8.0) |
+------------------------------------------------------------+-------+------------+------------+
| * Amortisation of other intangible assets | | (1.9) | (3.9) |
+------------------------------------------------------------+-------+------------+------------+
| Total administrative expenses | | (141.7) | (143.5) |
+------------------------------------------------------------+-------+------------+------------+
| | | | |
+------------------------------------------------------------+-------+------------+------------+
| Group operating profit | | 21.9 | 0.8 |
+------------------------------------------------------------+-------+------------+------------+
| | | | |
+------------------------------------------------------------+-------+------------+------------+
| Finance income | | 0.7 | 0.8 |
+------------------------------------------------------------+-------+------------+------------+
| Finance costs | | (0.3) | (0.4) |
+------------------------------------------------------------+-------+------------+------------+
| | | | |
+------------------------------------------------------------+-------+------------+------------+
| Profit before taxation | | 22.3 | 1.2 |
+------------------------------------------------------------+-------+------------+------------+
| | | | |
+------------------------------------------------------------+-------+------------+------------+
| Taxation | | (0.5) | (3.5) |
+------------------------------------------------------------+-------+------------+------------+
| | | | |
+------------------------------------------------------------+-------+------------+------------+
| Profit/(loss) for the year | | 21.8 | (2.3) |
+------------------------------------------------------------+-------+------------+------------+
| | | | |
+------------------------------------------------------------+-------+------------+------------+
| Loss for the year from discontinued operations | | (9.4) | (2.0) |
+------------------------------------------------------------+-------+------------+------------+
| | | | |
+------------------------------------------------------------+-------+------------+------------+
| Profit/(loss) for the year | | 12.4 | (4.3) |
+------------------------------------------------------------+-------+------------+------------+
| | | | |
+------------------------------------------------------------+-------+------------+------------+
| Profit/(loss) attributable to the equity holders of the | | 12.4 | (4.3) |
| parent | | | |
+------------------------------------------------------------+-------+------------+------------+
| | | | |
+------------------------------------------------------------+-------+------------+------------+
| | | | |
+------------------------------------------------------------+-------+------------+------------+
| Profit/(loss) per ordinary share - continuing operations | | | |
+------------------------------------------------------------+-------+------------+------------+
| Basic | 7 | 4.6p | (0.5)p |
+------------------------------------------------------------+-------+------------+------------+
| Diluted | 7 | 4.2p | (0.5)p |
+------------------------------------------------------------+-------+------------+------------+
| | | | |
+------------------------------------------------------------+-------+------------+------------+
| Profit/(loss) per ordinary share | | | |
+------------------------------------------------------------+-------+------------+------------+
| Basic | 7 | 2.6p | (0.9)p |
+------------------------------------------------------------+-------+------------+------------+
| Diluted | 7 | 2.4p | (0.9)p |
+------------------------------------------------------------+-------+------------+------------+
Sportingbet Plc
Consolidated Balance Sheet
As at 31 July 2009
+--------------------------------------------------------------+-------+------------+------------+
| | | As at | As at |
| | | 31 July | 31 July |
| | | 2009 | 2008 |
+--------------------------------------------------------------+-------+------------+------------+
| | Notes | GBPm | GBPm |
+--------------------------------------------------------------+-------+------------+------------+
| Non-current assets | | | |
+--------------------------------------------------------------+-------+------------+------------+
| Goodwill | | 41.2 | 53.0 |
+--------------------------------------------------------------+-------+------------+------------+
| Other intangible assets | | 15.9 | 15.2 |
+--------------------------------------------------------------+-------+------------+------------+
| Property, plant and equipment | | 21.9 | 21.1 |
+--------------------------------------------------------------+-------+------------+------------+
| Non-current receivables | | - | 0.5 |
+--------------------------------------------------------------+-------+------------+------------+
| Deferred tax asset | | 1.4 | 0.7 |
+--------------------------------------------------------------+-------+------------+------------+
| | | 80.4 | 90.5 |
+--------------------------------------------------------------+-------+------------+------------+
| Current assets | | | |
+--------------------------------------------------------------+-------+------------+------------+
| Trade and other receivables | | 13.4 | 7.5 |
+--------------------------------------------------------------+-------+------------+------------+
| Cash and cash equivalents | | 44.3 | 49.4 |
+--------------------------------------------------------------+-------+------------+------------+
| Derivatives | | 0.7 | - |
+--------------------------------------------------------------+-------+------------+------------+
| | | 58.4 | 56.9 |
+--------------------------------------------------------------+-------+------------+------------+
| | | | |
+--------------------------------------------------------------+-------+------------+------------+
| Current liabilities | | | |
+--------------------------------------------------------------+-------+------------+------------+
| Trade and other payables | | (41.0) | (52.8) |
+--------------------------------------------------------------+-------+------------+------------+
| Interest bearing loans and borrowings | | (4.0) | (5.6) |
+--------------------------------------------------------------+-------+------------+------------+
| Contingent consideration | | (0.5) | (4.5) |
+--------------------------------------------------------------+-------+------------+------------+
| | | | |
+--------------------------------------------------------------+-------+------------+------------+
| Net current assets/(liabilities) | | 12.9 | (6.0) |
+--------------------------------------------------------------+-------+------------+------------+
| | | | |
+--------------------------------------------------------------+-------+------------+------------+
| Non-current liabilities | | | |
+--------------------------------------------------------------+-------+------------+------------+
| Long-term provisions | | (0.1) | (0.1) |
+--------------------------------------------------------------+-------+------------+------------+
| | | (0.1) | (0.1) |
+--------------------------------------------------------------+-------+------------+------------+
| | | | |
+--------------------------------------------------------------+-------+------------+------------+
| Net assets | | 93.2 | 84.4 |
+--------------------------------------------------------------+-------+------------+------------+
| | | | |
+--------------------------------------------------------------+-------+------------+------------+
| | | | |
+--------------------------------------------------------------+-------+------------+------------+
| Equity | | | |
+--------------------------------------------------------------+-------+------------+------------+
| Issued share capital | | 0.5 | 0.5 |
+--------------------------------------------------------------+-------+------------+------------+
| Shares to be issued | | - | 9.0 |
+--------------------------------------------------------------+-------+------------+------------+
| Share premium | | 59.4 | 56.3 |
+--------------------------------------------------------------+-------+------------+------------+
| Retained earnings | | 33.3 | 20.1 |
+--------------------------------------------------------------+-------+------------+------------+
| Foreign exchange reserve | | - | (1.5) |
+--------------------------------------------------------------+-------+------------+------------+
| Total equity | | 93.2 | 84.4 |
+--------------------------------------------------------------+-------+------------+------------+
Sportingbet Plc
Consolidated Cash Flow Statement
Year ended 31 July 2009
+--------------------------------------------------------+-------+------------+------------+
| | | Year ended | Year ended |
+--------------------------------------------------------+-------+------------+------------+
| | | 31 July | 31 July |
| | | 2009 | 2008 |
+--------------------------------------------------------+-------+------------+------------+
| | Notes | GBPm | GBPm |
+--------------------------------------------------------+-------+------------+------------+
| | | | |
+--------------------------------------------------------+-------+------------+------------+
| Group profit/(loss) after taxation | | 12.4 | (4.3) |
+--------------------------------------------------------+-------+------------+------------+
| | | | |
+--------------------------------------------------------+-------+------------+------------+
| Depreciation | | 4.7 | 3.7 |
+--------------------------------------------------------+-------+------------+------------+
| Software amortisation | | 4.0 | 2.8 |
+--------------------------------------------------------+-------+------------+------------+
| Other amortisation | | 1.9 | 3.9 |
+--------------------------------------------------------+-------+------------+------------+
| Loss on disposal | | 7.9 | - |
+--------------------------------------------------------+-------+------------+------------+
| Share option charge | 6 | 3.1 | 8.0 |
+--------------------------------------------------------+-------+------------+------------+
| Finance income | | (0.4) | (0.4) |
+--------------------------------------------------------+-------+------------+------------+
| Taxation | | 0.5 | 3.5 |
+--------------------------------------------------------+-------+------------+------------+
| Operating cash flows before movements in working | | 34.1 | 17.2 |
| capital | | | |
+--------------------------------------------------------+-------+------------+------------+
| | | | |
+--------------------------------------------------------+-------+------------+------------+
| Increase in receivables | | (4.8) | (0.7) |
+--------------------------------------------------------+-------+------------+------------+
| (Decrease)/increase in payables | | (9.7) | 17.9 |
+--------------------------------------------------------+-------+------------+------------+
| Cash generated by operations | | 19.6 | 34.4 |
+--------------------------------------------------------+-------+------------+------------+
| | | | |
+--------------------------------------------------------+-------+------------+------------+
| Income tax paid | | (2.6) | (1.4) |
+--------------------------------------------------------+-------+------------+------------+
| Net cash from operating activities | | 17.0 | 33.0 |
+--------------------------------------------------------+-------+------------+------------+
| | | | |
+--------------------------------------------------------+-------+------------+------------+
| Purchases of property, plant and equipment | 8 | (6.1) | (12.2) |
+--------------------------------------------------------+-------+------------+------------+
| Purchases of software | | (6.6) | (2.8) |
+--------------------------------------------------------+-------+------------+------------+
| Acquisitions | | (4.5) | (4.6) |
+--------------------------------------------------------+-------+------------+------------+
| Interest received | | 0.3 | 0.4 |
+--------------------------------------------------------+-------+------------+------------+
| Net cash from discontinued operations | | (1.2) | - |
+--------------------------------------------------------+-------+------------+------------+
| Cash used in investing activities | | (18.1) | (19.2) |
+--------------------------------------------------------+-------+------------+------------+
| | | | |
+--------------------------------------------------------+-------+------------+------------+
| Exercise of share options | | (0.1) | - |
+--------------------------------------------------------+-------+------------+------------+
| New bank loans raised | | - | 0.3 |
+--------------------------------------------------------+-------+------------+------------+
| Purchase of own shares | | (3.0) | - |
+--------------------------------------------------------+-------+------------+------------+
| Repayment of borrowings | | (1.6) | - |
+--------------------------------------------------------+-------+------------+------------+
| Net cash from financing activities | | (4.7) | 0.3 |
+--------------------------------------------------------+-------+------------+------------+
| | | | |
+--------------------------------------------------------+-------+------------+------------+
| Net (decrease)/increase in cash and cash equivalents | | (5.8) | 14.1 |
| in the period | | | |
+--------------------------------------------------------+-------+------------+------------+
| | | | |
+--------------------------------------------------------+-------+------------+------------+
| Cash and cash equivalents at beginning of period | | 49.4 | 34.5 |
+--------------------------------------------------------+-------+------------+------------+
| | | | |
+--------------------------------------------------------+-------+------------+------------+
| Effect of foreign exchange rate changes | | 0.7 | 0.8 |
+--------------------------------------------------------+-------+------------+------------+
| | | | |
+--------------------------------------------------------+-------+------------+------------+
| Cash and cash equivalents at end of period | | 44.3 | 49.4 |
+--------------------------------------------------------+-------+------------+------------+
| | | | |
+--------------------------------------------------------+-------+------------+------------+
Sportingbet Plc
Consolidated Statement of Recognised Income and Expense
Year ended 31 July 2009
+-----------------------------------------------------------------+----------+----------+
| | Year | Year |
| | ended | ended |
| | 31 July | 31 July |
| | 2009 | 2008 |
+-----------------------------------------------------------------+----------+----------+
| | GBPm | GBPm |
+-----------------------------------------------------------------+----------+----------+
| | | |
+-----------------------------------------------------------------+----------+----------+
| Amounts initially recycled to equity under designated cash flow | 1.2 | - |
| hedges | | |
+-----------------------------------------------------------------+----------+----------+
| | | |
+-----------------------------------------------------------------+----------+----------+
| Amounts recycled to the income statement to match the hedged | (0.5) | - |
| items | | |
+-----------------------------------------------------------------+----------+----------+
| | | |
+-----------------------------------------------------------------+----------+----------+
| Exchange differences on translation of foreign operations | 1.5 | 1.1 |
+-----------------------------------------------------------------+----------+----------+
| | | |
+-----------------------------------------------------------------+----------+----------+
| Net income recognised directly in equity | 2.2 | 1.1 |
+-----------------------------------------------------------------+----------+----------+
| | | |
+-----------------------------------------------------------------+----------+----------+
| Profit/(loss) for financial period | 12.4 | (4.3) |
+-----------------------------------------------------------------+----------+----------+
| | | |
+-----------------------------------------------------------------+----------+----------+
| Total recognised income and expense for the period | 14.6 | (3.2) |
+-----------------------------------------------------------------+----------+----------+
| | | |
+-----------------------------------------------------------------+----------+----------+
| Attributable to: | | |
+-----------------------------------------------------------------+----------+----------+
| | | |
+-----------------------------------------------------------------+----------+----------+
| Equity holders of the parent | 14.6 | (3.2) |
+-----------------------------------------------------------------+----------+----------+
| | | |
+-----------------------------------------------------------------+----------+----------+
| | 14.6 | (3.2) |
+-----------------------------------------------------------------+----------+----------+
Sportingbet Plc
Notes to the Financial Information
Year Ended 31 July 2009
1. Accounting policies
Basis of preparation
The financial information has been prepared in accordance with the accounting
policies set out in the Group's Annual Report and audited accounts for the year
ended 31 July 2009 which are based on the recognition and measurement principles
of IFRS in issue as adopted by the European Union (EU) and are effective at 31
July 2008 or are expected to be adopted and effective at 31 July 2008, our first
annual reporting date at which we are required to use IFRS as adopted by the EU.
The Group has chosen not to adopt IAS 34 in the preparation of this financial
information in accordance with the AIM rules. The accounting policies have been
applied consistently throughout the Group for the purposes of preparation of
this financial information.
The financial information set out in this announcement does not constitute the
Group's statutory accounts, as defined in Section 435 of the Companies Act 2006,
for the years ended July 31 2009 or July 31 2008, but is derived from the 2009
Annual Report. Statutory accounts for 2008 have been delivered to the Registrar
of Companies and those for 2009 will be delivered in due course. The auditors
have reported on those accounts; their reports were unqualified, however they
included a reference to an emphasis of matter in both years with regard to
regulatory uncertainty and the reports did not contain statements under section
498(2) or 498(3) of the Companies Act 2006.
2. Discontinued operations
On 21 July 2009, the Group's licensed Italian operation, Sportingbet Italia
S.p.A. was sold to the local management team for a nominal consideration.
Sportingbet Italia S.p.A. was acquired by the Group in May 2006, in anticipation
of expected further liberalisation of the Italian online gaming regulation. This
did not materialise and consequently Sportingbet Italia S.p.A. has been loss
making since acquisition.
Whilst these losses have been reduced to the minimum considered achievable the
Board has concluded that significant financial and managerial investment would
be required to generate a profitable business in Italy and such investment would
be better placed elsewhere in the Group's portfolio.
+------------------------------------------------------+------------+------------+
| | Year ended | Year ended |
| | 31 July | 31 July |
| | 2009 | 2008 |
+------------------------------------------------------+------------+------------+
| | GBPm | GBPm |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Amounts wagered | 14.1 | 16.4 |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Net gaming revenue | 2.1 | 2.7 |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Administrative expenses | (3.6) | (4.7) |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Operating loss | (1.5) | (2.0) |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Taxation | - | - |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Loss for the year | (1.5) | (2.0) |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Loss on disposal | (7.9) | - |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Loss for the period from discontinued operations | (9.4) | (2.0) |
+------------------------------------------------------+------------+------------+
Sportingbet Plc
Notes to the Financial Information
Year Ended 31 July 2009
2. Discontinued operations (continued)
+------------------------------------------------------+------------+------------+
| | Year ended | Year ended |
| | 31 July | 31 July |
| | 2009 | 2008 |
+------------------------------------------------------+------------+------------+
| | GBPm | GBPm |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Loss after taxation | (1.5) | (2.0) |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Depreciation | 0.2 | 0.2 |
+------------------------------------------------------+------------+------------+
| Operating cash flows before movements in working | (1.3) | (1.8) |
| capital | | |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Decrease/(increase) in receivables | 0.4 | (0.1) |
+------------------------------------------------------+------------+------------+
| (Decrease)/increase in payables | (0.3) | 2.0 |
+------------------------------------------------------+------------+------------+
| Cash generated by operations | 0.1 | 1.9 |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Net cash from operating activities | (1.2) | 0.1 |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Purchases of property, plant and equipment | - | (0.3) |
+------------------------------------------------------+------------+------------+
| Cash used in investing activities | - | (0.3) |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Net cash from financing activities | - | - |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Net decrease in cash and cash equivalents in the | (1.2) | (0.2) |
| period | | |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Cash and cash equivalents at beginning of period | 1.2 | 1.4 |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Cash and cash equivalents at end of period | - | 1.2 |
+------------------------------------------------------+------------+------------+
3. Net gaming revenue
Net gaming revenue for the period has been calculated as follows:
+------------------------------------------------------+------------+------------+
| | Total | Total |
| | 2009 | 2008 |
+------------------------------------------------------+------------+------------+
| | GBPm | GBPm |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Gaming revenue | 181.7 | 157.8 |
+------------------------------------------------------+------------+------------+
| Promotional bonuses | (18.1) | (13.5) |
+------------------------------------------------------+------------+------------+
| | 163.6 | 144.3 |
+------------------------------------------------------+------------+------------+
Sportingbet Plc
Notes to the Financial Information (Continued)
Year Ended 31 July 2009
4. Primary and secondary segmental information
For management purposes, the Group is currently organised into three
geographical regions - Europe, Australia and Emerging Markets. These operating
divisions are the basis on which the Group reports its primary segment
information.
The following table presents revenue and profit information and certain asset
and liability information regarding the Group's business segments for the years
ended 31 July 2009 and 31 July 2008.
Emerging Markets refer to the Group's operations in Canada, Brazil and South
Africa.
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| 2009 | | | | | Continuing | Discontinued |
| | | | | | operations | operations |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| | Europe | Australia | Emerging | Unallocated | Total | Total |
| | | | Markets | central | | |
| | | | | costs | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Amounts wagered | 938.7 | 610.5 | 28.0 | - | 1,577.2 | 14.1 |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Net gaming revenue | 139.4 | 20.8 | 3.4 | - | 163.6 | 2.1 |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Depreciation | (7.5) | (0.6) | - | (0.4) | (8.5) | (0.2) |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Administrative | (95.4) | (14.6) | (3.3) | (10.7) | (124.0) | (3.4) |
| expenses excluding | | | | | | |
| exceptional items, | | | | | | |
| share option charge | | | | | | |
| and other | | | | | | |
| amortisation | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Group operating | 36.5 | 5.6 | 0.1 | (11.1) | 31.1 | (1.5) |
| profit before | | | | | | |
| exceptional items, | | | | | | |
| share option charge | | | | | | |
| and other | | | | | | |
| amortisation | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Other | | | | | | |
| administrative | | | | | | |
| expenses: | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| >Exceptional items | (4.2) | - | - | - | (4.2) | - |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| > Share option | (1.5) | (0.6) | - | (1.0) | (3.1) | - |
| charge | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| > Other | (1.9) | - | - | - | (1.9) | - |
| amortisation | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Total | (110.5) | (15.8) | (3.3) | (12.1) | (141.7) | (3.6) |
| administrative | | | | | | |
| expenses | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Operating | 28.9 | 5.0 | 0.1 | (12.1) | 21.9 | (1.5) |
| profit/(loss) | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Balance sheet | | | | | | |
| information | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Total assets | 114.8 | 24.0 | - | - | 138.8 | - |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Total liabilities | (36.5) | (9.0) | - | - | (45.5) | - |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Expenditure | 11.7 | 1.0 | - | - | 12.7 | - |
| incurred to acquire | | | | | | |
| property, plant and | | | | | | |
| equipment and | | | | | | |
| intangible assets | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
Sportingbet Plc
Notes to the Financial Information (Continued)
Year Ended 31 July 2009
4. Primary and secondary segmental information (continued)
For segmental information by activity, revenue is attributed to three principal
areas of activity: sports betting, casino gaming and poker.
+--------------------------------------------+---------+---------+---------+---------+
| 2009 | Sports | Casino | Poker | Total |
| | betting | gaming | rake | |
+--------------------------------------------+---------+---------+---------+---------+
| | GBPm | GBPm | GBPm | GBPm |
+--------------------------------------------+---------+---------+---------+---------+
| Amounts wagered | 1,517.1 | 41.3 | 18.8 | 1,577.2 |
+--------------------------------------------+---------+---------+---------+---------+
| | | | | |
+--------------------------------------------+---------+---------+---------+---------+
| Net gaming revenue | 103.5 | 41.3 | 18.8 | 163.6 |
+--------------------------------------------+---------+---------+---------+---------+
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| 2008 | | | | | Continuing | Discontinued |
| | | | | | operations | operations |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| | Europe | Australia | Emerging | Unallocated | Total | Total |
| | | | Markets | central | | |
| | | | | costs | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Amounts wagered | 795.2 | 542.5 | 10.1 | - | 1,347.8 | 16.4 |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Net gaming revenue | 123.5 | 19.1 | 1.7 | - | 144.3 | 2.7 |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Depreciation | (5.2) | (0.6) | - | (0.5) | (6.3) | (0.2) |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Administrative | (85.9) | (11.2) | (2.7) | (13.5) | (113.3) | (4.5) |
| expenses excluding | | | | | | |
| exceptional items, | | | | | | |
| share option charge | | | | | | |
| and other | | | | | | |
| amortisation | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Group operating | 32.4 | 7.3 | (1.0) | (14.0) | 24.7 | (2.0) |
| profit before | | | | | | |
| exceptional items, | | | | | | |
| share option charge | | | | | | |
| and other | | | | | | |
| amortisation | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Other | | | | | | |
| administrative | | | | | | |
| expenses: | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| >Exceptional items | (12.0) | - | - | - | (12.0) | - |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| > Share option | (5.8) | (1.3) | - | (0.9) | (8.0) | - |
| charge | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| > Other | (3.9) | - | - | - | (3.9) | - |
| amortisation | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Total | (112.7) | (13.2) | (2.7) | (14.9) | (143.5) | (4.7) |
| administrative | | | | | | |
| expenses | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Operating | 10.7 | 6.0 | (1.0) | (14.9) | 0.8 | (2.0) |
| profit/(loss) | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Balance sheet | | | | | | |
| information | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Total assets | 133.9 | 13.5 | - | - | 147.4 | - |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Total liabilities | (53.7) | (9.3) | - | - | (63.0) | - |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
| Expenditure | 13.7 | 1.0 | - | - | 14.7 | 0.3 |
| incurred to acquire | | | | | | |
| property, plant and | | | | | | |
| equipment and | | | | | | |
| intangible assets | | | | | | |
+---------------------+---------+-----------+----------+-------------+------------+--------------+
Sportingbet Plc
Notes to the Financial Information (Continued)
Year Ended 31 July 2009
4. Primary and secondary segmental information (continued)
For segmental information by activity, revenue is attributed to three principal
areas of activity: sports betting, casino gaming and poker.
+--------------------------------------------+---------+---------+---------+---------+
| 2008 | Sports | Casino | Poker | Total |
| | betting | gaming | rake | |
+--------------------------------------------+---------+---------+---------+---------+
| | GBPm | GBPm | GBPm | GBPm |
+--------------------------------------------+---------+---------+---------+---------+
| Amounts wagered | 1,291.0 | 36.8 | 20.0 | 1,347.8 |
+--------------------------------------------+---------+---------+---------+---------+
| | | | | |
+--------------------------------------------+---------+---------+---------+---------+
| Net gaming revenue | 87.5 | 36.8 | 20.0 | 144.3 |
+--------------------------------------------+---------+---------+---------+---------+
5. Exceptional items
The following exceptional costs were incurred:
+-----------------------------------------------------+---------+---------+---------+
| | | 2009 | 2008 |
+-----------------------------------------------------+---------+---------+---------+
| | Notes | GBPm | GBPm |
+-----------------------------------------------------+---------+---------+---------+
| | | | |
+-----------------------------------------------------+---------+---------+---------+
| Reorganisation costs relating to UIGEA | (a) | - | 3.3 |
+-----------------------------------------------------+---------+---------+---------+
| Transfer of licensable activities to the Channel | (b) | - | 4.0 |
| Islands | | | |
+-----------------------------------------------------+---------+---------+---------+
| Transfer of EMEA and poker customer services | (c) | - | 0.3 |
| operation to Dublin | | | |
+-----------------------------------------------------+---------+---------+---------+
| Paradise - Boss migration | (d) | - | (0.3) |
+-----------------------------------------------------+---------+---------+---------+
| Transfer of Spanish customer services operation to | (e) | - | 4.7 |
| Dublin | | | |
+-----------------------------------------------------+---------+---------+---------+
| Provision against monies due from payment | (f) | 4.2 | - |
| processing provider | | | |
+-----------------------------------------------------+---------+---------+---------+
| | | 4.2 | 12.0 |
+-----------------------------------------------------+---------+---------+---------+
(a) The impact of the passing of the UIGEA and the subsequent decision to
close the US-facing part of Paradise Poker and dispose of the remaining
US-facing operations resulted in a number of reorganisation costs (including
redundancies and other related costs amounting to GBPnil (2008: GBP3.1m) and
retention and loyalty payments to retained employees of GBPnil (2008: GBP0.2m)).
(b) The costs relating to the transfer of the licensable activities to
Alderney and Guernsey include redundancy, recruitment, training, temporary
accommodation and other related costs.
(c) The costs to create the dedicated EMEA and poker customer services and
fraud centre in Dublin comprise redundancy, recruitment, training, temporary
accommodation and other related costs.
(d)Paradise - Boss migration costs relating to the migration of Paradise Poker
players to the Boss Media platform include redundancy, one-off migration
marketing and other related costs.
(e) The costs to transfer the Spanish language customer services centre to
Dublin include recruitment, training, temporary accommodation costs, one-off
marketing, the termination payment to the former Spanish partner and other
related costs.
(f) Provision against monies due from one of the Group's European payment
processing providers, where the amount owed by the third party is in dispute and
its recoverability is not sufficiently clear.
6. Share option charge
+--------------------------------------------------------+------------+------------+
| | Total | Total |
| | 2009 | 2008 |
+--------------------------------------------------------+------------+------------+
| | GBPm | GBPm |
+--------------------------------------------------------+------------+------------+
| | | |
+--------------------------------------------------------+------------+------------+
| Share option charge | 3.1 | 7.6 |
+--------------------------------------------------------+------------+------------+
| Social security costs on share options | - | 0.4 |
+--------------------------------------------------------+------------+------------+
| | 3.1 | 8.0 |
+--------------------------------------------------------+------------+------------+
Sportingbet Plc
Notes to the Financial Information (Continued)
Year Ended 31 July 2009
7. Earnings per share
+--------------------------+------------+--------------+-------+------------+--------------+--------+
| | Continuing | Discontinued | Total | Continuing | Discontinued | Total |
+--------------------------+------------+--------------+-------+------------+--------------+--------+
| | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 |
+--------------------------+------------+--------------+-------+------------+--------------+--------+
| | | | | | | |
+--------------------------+------------+--------------+-------+------------+--------------+--------+
| Profit/(loss) per | | | | | | |
| ordinary share | | | | | | |
+--------------------------+------------+--------------+-------+------------+--------------+--------+
| Basic | 4.6p | (2.0)p | 2.6p | (0.5)p | (0.4)p | (0.9)p |
+--------------------------+------------+--------------+-------+------------+--------------+--------+
| Diluted | 4.2p | (1.8)p | 2.4p | (0.5)p | (0.4)p | (0.9)p |
+--------------------------+------------+--------------+-------+------------+--------------+--------+
| | | | | | | |
+--------------------------+------------+--------------+-------+------------+--------------+--------+
| Adjusted earnings per | | | | | | |
| ordinary share | | | | | | |
| (before exceptional | | | | | | |
| items, share option | | | | | | |
| charge and amortisation) | | | | | | |
+--------------------------+------------+--------------+-------+------------+--------------+--------+
| Basic | 6.5p | (0.3)p | 6.2p | 4.8p | (0.5)p | 4.3p |
+--------------------------+------------+--------------+-------+------------+--------------+--------+
| Diluted | 6.0p | (0.3)p | 5.7p | 4.2p | (0.4)p | 3.8p |
+--------------------------+------------+--------------+-------+------------+--------------+--------+
The calculation of basic earnings per share is based on the profit/(loss) on
ordinary activities after taxation attributable to shareholders of Sportingbet
Plc and the weighted average number of shares in issue during the year.
Due to the size of non-cash items the Group has adjusted its earnings per
ordinary share to exclude exceptional items, share option charge and
amortisation:
+--------------------------+------------+--------------+-------+------------+--------------+--------+
| | Continuing | Discontinued | Total | Continuing | Discontinued | Total |
+--------------------------+------------+--------------+-------+------------+--------------+--------+
| | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 |
+--------------------------+------------+--------------+-------+------------+--------------+--------+
| | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm |
+--------------------------+------------+--------------+-------+------------+--------------+--------+
| Basic earnings | 21.8 | (9.4) | 12.4 | (2.3) | (2.0) | (4.3) |
+--------------------------+------------+--------------+-------+------------+--------------+--------+
| Exceptional items | 4.2 | - | 4.2 | 12.0 | - | 12.0 |
+--------------------------+------------+--------------+-------+------------+--------------+--------+
| Share option charge | 3.1 | - | 3.1 | 8.0 | - | 8.0 |
+--------------------------+------------+--------------+-------+------------+--------------+--------+
| Amortisation | 1.9 | - | 1.9 | 3.9 | - | 3.9 |
+--------------------------+------------+--------------+-------+------------+--------------+--------+
| Adjusted earnings | 31.0 | (9.4) | 21.6 | 21.6 | (2.0) | 19.6 |
+--------------------------+------------+--------------+-------+------------+--------------+--------+
During the year the Group had the following weighted average number of shares in
issue and potentially dilutive shares:
+----------------------------------------------------+----------------------------------------------------+----------------+
| | 2009 | 2008 |
+ +----------------------------------------------------+----------------+
| | No. | No. |
+----------------------------------------------------+----------------------------------------------------+----------------+
| Weighted average number of shares in issue | 477,099,664 | 454,244,357 |
+----------------------------------------------------+----------------------------------------------------+----------------+
| | | |
+----------------------------------------------------+----------------------------------------------------+----------------+
| Employee share schemes | 39,630,748 | 38,686,358 |
+----------------------------------------------------+----------------------------------------------------+----------------+
| Contingent consideration | - | 19,187,386 |
+----------------------------------------------------+----------------------------------------------------+----------------+
| | | |
+----------------------------------------------------+----------------------------------------------------+----------------+
| Fully diluted number of weighted average number of | 516,730,412 | 512,118,101 |
| shares in issue | | |
+----------------------------------------------------+----------------------------------------------------+----------------+
Sportingbet Plc
Notes to the Financial Information (Continued)
Year Ended 31 July 2009
7. Earnings per share (continued)
As at 31 July 2009 the Group had the following shares in issue and potentially
dilutive shares:
+---------------------------------------------------+---------------------------------------------------+------------------+
| | 2009 | 2008 |
+ +---------------------------------------------------+------------------+
| | No. | No. |
+---------------------------------------------------+---------------------------------------------------+------------------+
| Number of shares in issue | 483,987,106 | 472,011,023 |
+---------------------------------------------------+---------------------------------------------------+------------------+
| | | |
+---------------------------------------------------+---------------------------------------------------+------------------+
| Employee share schemes | 39,630,748 | 38,686,358 |
+---------------------------------------------------+---------------------------------------------------+------------------+
| Contingent consideration | - | 19,187,386 |
+---------------------------------------------------+---------------------------------------------------+------------------+
| | | |
+---------------------------------------------------+---------------------------------------------------+------------------+
| Fully diluted number of shares in issue | 523,617,854 | 529,884,767 |
+---------------------------------------------------+---------------------------------------------------+------------------+
8. Property, plant and equipment
Additions to property, plant and equipment were GBP6.1m during the year (2008:
GBP12.2m), relating primarily to the purchase of two residential properties in
Guernsey and IT hardware.
9. Movement in Group equity
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| | Issued | Share | | | Profit | Foreign | |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| | share | premium | Shares | Own | and | exchange | |
| | | | to | | loss | | |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| | capital | account | be | shares | account | reserve | Total |
| | | | issued | | | | |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| As at August 2007 | 0.4 | 42.9 | 14.6 | - | 16.8 | (2.6) | 72.1 |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| | | | | | | | |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| Acquisitions | 0.1 | 13.4 | (5.6) | - | - | - | 7.9 |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| Share option charge | - | - | - | - | 7.6 | - | 7.6 |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| Loss for the year | - | - | - | - | (4.3) | - | (4.3) |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| Foreign currency exchange | - | - | - | - | - | 1.1 | 1.1 |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| | | | | | | | |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| As at 1 August 2008 | 0.5 | 56.3 | 9.0 | - | 20.1 | (1.5) | 84.4 |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| | | | | | | | |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| Acquisitions | - | 3.1 | (9.0) | - | - | - | (5.9) |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| Share option charge | - | - | - | - | 3.1 | - | 3.1 |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| Profit for the year | - | - | - | - | 12.4 | | 12.4 |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| Purchase of own shares | - | - | - | (3.0) | - | - | (3.0) |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| Issue of own shares in | - | - | - | 3.0 | (3.0) | - | - |
| lieu of options | | | | | | | |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| Hedging reserve | - | - | - | - | 0.7 | | 0.7 |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| Foreign currency exchange | - | - | - | - | - | 1.5 | 1.5 |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| | | | | | | | |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
| As at 31 July 2009 | 0.5 | 59.4 | - | - | 33.3 | - | 93.2 |
+---------------------------+---------+---------+---------+--------+---------+----------+-------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UUGWPUUPBGBQ
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