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Annual Report & Accounts 2012 - NOTES
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GVC HOLDINGS PLC NOTES TO THE FINANCIAL STATEMENTS 6.1 Taxation Amounts Recognised in the Balance Sheet Current Tax Deferred Tax Payable Receivable Asset Liability Total €000's €000's €000's €000's €000's Balances at 1 January 2011 (1,525) 1,356 - - (169) Paid/(received) during the year ended 31 December 2011 1,627 (1,356) - - 271 (Charge)/credit in income statement for prior years (63) - 38 - (25) (Charge)/credit in income statement for the year ended 31 December 2011 (1,810) 1,529 45 - (236) Balances at 31 December 2011 (1,771) 1,529 83 - (159) Balances at 1 January 2012 (1,771) 1,529 83 - (159) Paid/(received) during the year ended 31 December 2012 1,946 (1,529) - - 417 Charge in income statement for prior years (70) - - - (70) (Charge)/credit in income statement for the year ended 31 December 2012 (1,290) 943 - - (347) Balances at 31 December 2012 (1,185) 943 83 - (159) Income taxes principally represent tax on the profits of the operations of Gaming VC Corporation Limited, the Group's licensed business in Malta. Tax reclaimable represents a portion of the tax paid by Gaming VC Corporation Limited (a wholly owned subsidiary company incorporated in Malta), which is refundable by the Maltese tax authorities to GVC Holdings PLC shortly after the submission of the audited accounts and tax computation for Gaming VC Corporation Limited. Unrelieved tax losses remain available to offset against future trading profits. Should suitable taxable profits arise, these losses would represent a deferred tax asset of approximately €595,000. 7. DISCONTINUED OPERATIONS On 10 April 2012, the Group announced that it had entered into an arrangement to dispose of its Betaland business to a third party for a nominal sum. The declining profitability of Betaland led the Board to conclude that it was no longer in the shareholders' interests for the Group to continue to own this business, the disposal was completed on 4 May 2012. At the time of disposal the net assets of this business were nil. The results from Betaland are shown below: 2012 2011 €000's €000's Net gaming revenue 4,500 20,006 Cost of sales (1,451) (3,041) Gross profit 3,049 16,965 Marketing and revenue shares (2,995) (12,806) Contribution 54 4,159 Other operating costs (1,059) (2,524) Clean EBITDA/cashflow from operating activities (1,005) 1,635 Exceptional items - (904) EBITDA (1,005) 731 Depreciation and amortisation (173) (233) Financial income and expenses 1 3 Loss before tax (1,177) 501 Tax 63 (24) Loss after tax (1,114) 477 *Provision against deferred proceeds on the disposal of Betpro There were no cash flows from financing or investing activities in the period before disposal or in the prior year. 39