Annual Report & Accounts 2009 - Report of the Finance Director
Overall cash balance rose to c19.2 million from c18.8 million, although own funds rose to c17.6 million from
c17.5 million. A summary of the cash movements is shown below:
Own funds at 31 December 2008 17,502
Cash generated from trading operations 17,552
Add: tax recovered 1,652
Less: corporation tax paid (2,956)
Initial consideration and costs for Betboo (3,140)
Purchase of tangible assets (441)
Purchase of non-Betboo intangible assets (135)
Retained before dividend 12,532
Own funds at 31 December 2009 17,580
Acquisition of Betboo
On 2 July 2009, the Group acquired the trade and assets of Betboo, a leading gaming portal in the fledgling
South America market. The group paid an initial consideration of $4 million (c3 million) and is liable to an
earn-out capped at a further $26 million. The contract amounts are denominated in US dollars.
Pursuant to IFRS3, the group has estimated the total consideration of c12 million of which c9.0 million is
payable on 30 September 2012. The Group will need sufficient funds to make this payment at that time.
Under IFRS 3, the deferred consideration is discounted to its present value (Gaming VC have used a weighted
average cost of capital of 21%) which was c5.4 million at the balance sheet date. The discount is then released
to the income statement over the period of the earn out.
The estimated deferred consideration of c9.0 million will be payable on 30 September 2012. The group will
need sufficient funds to make this payment at that time and will review its ability to pay dividend in this light.
The Company was incorporated in Luxembourg. The ability of the company to pay dividends is determined
by the reserves available under Luxembourg GAAP, and not IFRS.
At 31 December 2009, the available reserves were c15.6 million - equivalent to 50.6 Euro cents per share.