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Annual Report & Accounts 2013 - REPORT OF THE GROUP FINANCE DIRECTOR
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ANNUAL REPORT 2013 14 REPORT OF THE GROUP FINANCE DIRECTOR continued SUMMARISED CASHFLOW The Group's cashflow position for 2013 is summarised below: Table 9: Summarised cashflow 2013 €millions Clean EBITDA 38.3 Less: - Exceptional items (19.7) - Betboo earnout (6.4) - Expenditure of tangible and intangible fixed assets for cash (0.0) - Corporate taxes paid (less recovered) (0.4) - Deficit in Sportingbet Balance sheet (from above) (49.6) Add: - Contribution from William Hill 42.6 - Loan from William Hill 8.0 - Cash raised in issue of share options 0.3 And: Net movements in working capital 14.1 27.2 Less: restricted cash (7.4) Net operating cashflows 19.8 Less: Dividends paid (equating to 75.75% of cashflow) (15.0) Net cashflow for year 4.8 Add: restricted cash balances 7.4 Add: Cash at 1 January 2013 6.6 Cash at 31 December 2013 18.8 NON-CURRENT LIABILITIES These consist of three principal items: a.) Interest free loan from William Hill As part of the Sportingbet acquisition there was a loan facility from William Hill of up to £15 million. At the balance sheet date the amount drawn-down amounted to £6.9 million, of which £2.3 million is repayable in less than one year and thus accounted for as a current liability and the balance is shown on the GVC balance sheet as a non-current liability. It is repayable in two further equal instalments, by 31 December 2015 and 30 June 2016. Should GVC declare dividends in excess of 58 €cents per share, William Hill are entitled to receive an accelerated repayment equal to the excess of the actual dividend over 58 €cents per share. Whilst the loan is interest free, IAS 39 requires GVC to account for imputed interest calculated at 4%. 2013 €000's Gross amount of loan payable after one year 5,504 Imputed interest (356) Amount recognised in non-current liabilities 5,148 b.) Deferred consideration on Betboo Under accounting rules, this item is a combination of gross amounts payable, €8.4 million at 31 December 2013, and which can vary, but are subject to a cap, and the "unwinding of the discount", €0.8 million and chargeable to the Income Statement. Following the migration of the Betboo software to the existing Sportingbet platform in the second-half of 2013 there was a minor change in the staging of the earn-out payments, but not the ultimate quantum.