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Annual Report & Accounts 2013 - NOTES
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4. OPERATING COSTS continued 4.1 Exceptional Items The Group incurred expenditure on exceptional items (as defined in accounting policy note 1.13). These are items which are both exceptional in size and nature. 2013 2012 Notes €000's €000's Costs arising on the acquisition of Sportingbet PLC - Legal advice a 3,428 - - Nominated advisors a 1,210 - - Reporting accountants a 938 - - Other professional fees a 822 - Total of professional fees 6,398 - - Underwriting a 810 - - Stamp duty and stock exchange fees a 639 - - Transaction success bonuses (see page 64) a 1,444 - Transaction costs 9,291 - Redundancies, retentions and similar a 9,017 - Contract buyouts a 2,855 - Restructuring costs 11,872 - Economic benefit from the management of the Sportingbet Spanish business b (1,452) - Boss dispute c - (208) 19,711 (208) Note a: On 19 March 2013, the Group completed the acquisition of Sportingbet PLC. Professional fees attributable to the acquisition and subsequent costs restructuring the Sportingbet business have been treated as exceptional items. Professional fees associated with the acquisition and incurred by Sportingbet amounted to €8,624,000 (£7,396,000). These have been included in the acquisition balance sheet (note 11) as liabilities. Note b: As part of the Group's acquisition of Sportingbet PLC, a call option was granted to William Hill PLC over certain assets of Sportingbet's Spanish business. The call option assets were: (i) the Spread Your Wings Spain PLC ("SYWS") Customer List; (ii) the SYWS Customer Balances; (iii) the entire issued share capital of SYWS; and (iv) the entire issued share capital of Asesores en Tecnología y Diseño, S.L. ("ATD"). William Hill exercised the call option over all of the call option assets, as a result the Group was entitled to receive the economic benefit of the assets until 16 September 2013. As explained in note 26.8, the Group does not consider that it exercised control over the Spanish business in this period and its results have not therefore been consolidated. The benefit to the Group arising from the management fee earned in the period has been shown as exceptional income. Note c: The Group had been in a number of legal disputes with Boss Media and these have now ended. The net costs incurred by the Group relating to these disputes has been taken as an exceptional item. 4.2 Employees The average monthly number of persons (including Directors) employed by the Group during the year was: 2013 2012 Number of personnel With employment contracts or service contracts 556 153 Contractors 49 7 605 160 ANNUAL REPORT 2013 40 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued for the year ended 31 December 2013