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Annual Report & Accounts 2015 - NOTES
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the expected volatility is based on the historic volatility (calculated based on the weighted average remaining life of the share options), adjusted for any expected changes to future volatility due to publicly available information. there are no market conditions associated with the share option grants with the exception of those issued in 2014 as noted above. 21. financial instrUments and risK manaGement the Group's principal financial instruments as at 31 december 2015 comprise cash and cash equivalents. the main purpose of these financial instruments is to finance the Group's operations. the Group has other financial instruments which mainly comprise receivables and payables, which arise directly from its operations. during the year, the Group entered into a foreign currency option to hedge its exposure to the potential GBP funding requirement for the acquisition of bwin.party, which was to be part-funded by a euro-denominated loan. other than that, the Group did not use derivative financial instruments to hedge its exposure to foreign exchange or interest rate risks arising from operational, financing and investment activities. during 2015, the Group did not hold or issue derivative financial instruments for trading purposes. 21.1 market risk market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates which will affect the Group's income or value of its holdings of financial instruments. exposure to market risk arises in the normal course of the Group's business. 21.2 foreign exchange risk Foreign exchange risk arises from transactions, recognised assets and liabilities and net investments in foreign operations. during the year, the Group entered into a foreign currency option to hedge its exposure to the potential GBP funding requirement for the acquisition of bwin.party, which was to be part-funded by a euro-denominated loan. other than that, the Group does not use foreign exchange contracts to hedge its currency risk. the Group dividend is declared in the euro. shortly before the dividend is due to be paid, the Company sells euros and buys British Pounds for an amount equal to the dividend. the Group has investments in foreign operations which are all denominated in euros, minimising the Group's exposure to currency translation risk. 21.2.1 analysis of the statement of Financial Position by Currency at 31 december 2015 euro GBp other total €000's €000's €000's €000's non-current assets 149,310 9,570 286 159,166 Receivables and prepayments 11,745 9,923 12,950 34,618 Winunited option 3,808 - - 3,808 tax reclaimable 293 5,672 7 5,972 other taxes reclaimable 6 6 - 12 Cash and cash equivalents 18,587 6,628 2,955 28,170 total current assets 34,439 22,229 15,912 72,580 trade and other payables (5,927) (18,898) (7,191) (32,016) Balances with customers (6,717) (5,393) (2,698) (14,808) loans - (3,711) - (3,711) deferred consideration (1,606) - - (1,606) share option liability - (9,740) - (9,740) Forward contract liability (9,877) - - (9,877) taxation payable (7,251) - - (7,251) other taxation liabilities (731) (1,128) (161) (2,017) total current liabilities (32,109) (38,870) (10,050) (81,029) net current assets/(liabilities) 2,330 (16,641) 5,862 (8,449) Betit option - (736) - (736) interest bearing loan and borrowings (19,821) - - (19,821) share option liability - (2,036) - (2,036) total non-current liabilities (19,821) (2,772) - (22,593) total assets less total liabilities 131,819 (9,843) 6,148 128,124 GVC HOLDINGS PLC ANNUAL REPORT 2015 79 notes to the consolidated financial statements