A significant proportion of the Group's financial assets and liabilities are denominated in Euros, which
minimises the Group's exposure to foreign exchange risk. Management do not consider the impact
of possible exchange rate movements based on current market conditions to be material to the net
result for the year.
21.3 Interest rate risk
The Group earns interest from bank deposits. During the year, the Group held cash on deposits with
a range of maturities of less than three months. The Group had no committed borrowing facilities as
at 31 December 2009 (2008: nil).
Management do not consider the impact of possible interest rate movements based on current market
conditions to be material to the net result for the year or the equity position at the year end for either
the year ended 31 December 2008 or 31 December 2009.
21.4 Credit risk
The Group has no significant concentrations of credit risk with exposure spread over a large number
of customers. The Group does not grant credit facilities to any of its customers and the maximum
exposure to credit risk is represented by the carrying amount of each financial asset in the balance
The Group has material exposure to credit risk through amounts owed by Webdollar (a third party
collection agency owned by Boss Media, the Group's principal software provider) of c2.07 million
(2008: c2.04 million) and cash balances held with Barclays Bank plc of c11.0 million (2008: c17.2
million). The Group considers the credit risk associated with these balances to be low, having assessed
the credit ratings and financial strength of the counter-parties involved. The Group is seeking to
diversify its banking deposits to further reduce credit risk.
No provision for impairment has been made at 31 December 2009 (2008: cnil). No receivable
amounts were past due date at 31 December 2009 (2008: cnil).
21.5 Liquidity risk
At 31 December 2009, the Group had cash and cash equivalents of c19.2 million (2008: c18.8
million) and considers liquidity risk to be low for the business.
All financial liabilities at the year-end are due within one year, with the exception of the deferred
consideration on Betboo.
21.6 Fair Values
The carrying amounts of the financial assets and liabilities, including deferred consideration in the
Balance Sheet at 31 December 2009 and 2008 for the Group and Company are a reasonable
approximation of their fair values. All trade and other receivables and payables have a maturity of less
than one year.