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Annual Report & Accounts 2013 - REPORT OF THE GROUP FINANCE DIRECTOR
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ANNUAL REPORT 2013 12 REPORT OF THE GROUP FINANCE DIRECTOR continued EARNINGS PER SHARE Normalised (i.e. before exceptional items) rose 83% in 2013. Table 4: Earnings per share Normalised EPS: 58.6 €cents (2012: 32.1 €cents) Basic EPS: 22.5 €cents (2012: 29.3 €cents) Diluted Normalised EPS: 57.2 €cents (2012: 31.6 €cents) Diluted EPS: 22.0 €cents (2012: 28.8 €cents) The diluted EPS is affected by two components: grants of share options granted to employees and directors, and warrants granted to third parties pursuant to underwriting arrangements entered into in contemplation of the Sportingbet acquisition. DIVIDENDS Table 5: History of dividends paid and declared in 2013 Declaration date Fiscal year Fiscal year Paid Payable 2012 2013 2013 2014 €cents €cents €cents €cents 19 September 2012 15.0 25 January 2013 7.0 7.0 1 July 2013 10.5 10.5 25 September 2013 10.5 10.5 9 January 2014 11.5 11.5 9 April 2014 16.0 16.0 22.0 48.5 28.0 27.5 As previously announced, GVC is committed to paying dividends on a quarterly basis and paying a cash amount broadly equivalent to 75% of its net operating cashflows, taking into account an assessment of its working capital needs. The final dividend of 16.0 €cents per share will be payable on 19 May 2014 to shareholders on the register at the close of business on Friday 25 April 2014. The shares will go ex-dividend on Wednesday 23 April 2014. ACCOUNTING FOR THE SPORTINGBET ACQUISITION Table 6: Summary of the acquisition accounting of Sportingbet €000's €000's Various non-current assets at fair value 6,742 Net current liabilities excluding transaction costs (35,961) Transaction costs (8,624) Termination arrangements for Sportingbet board (5,022) (49,607) Amount discharged at completion by William Hill 42,562 (7,045) Goodwill 84,221 Issue of 29,018,075 ordinary GVC shares at £2.48 at £1 = €1.1661 83,918 The Sportingbet balance sheet was in very poor shape, GVC effectively inherited a deficit of €50 million - Sportingbet fully drew-down on its banking facilities, had placed heavy reliance on finance leases, had deeply out-of-the-money currency hedges, and legacy liabilities which fell to GVC to discharge. The inheritance of this together with the professional and other costs arising from the acquisition both by Sportingbet and GVC, and the Group's planned restructuring costs were partially offset by the contribution from William Hill and augmented by their interest free loan, which is repayable in three instalments by June 2016.