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Annual Report & Accounts 2015 - NOTES TO THE COMPANY FINANCIAL STATEMENTS
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3. inVestments 2015 2014 €000's €000's investment in subsidiary undertakings at 1 January 148,563 148,563 additions 5 - disposals (64,506) - at 31 december 84,062 148,563 2015 2014 €000's €000's available for sale financial asset at 1 January 3,801 5,394 impairment (1,216) (1,593) at 31 december 2,585 3,801 total investments 31 december 86,647 152,364 during the year the Company disposed of its interests in Gaming VC Cyprus 1 limited and intera N.V. to another entity within the Group. available for sale asset Where an entity holds, directly or indirectly through subsidiaries, less than 20 per cent of the voting power of an investee, it is presumed that the entity does not have significant influence and therefore an investment does not qualify as an associate unless such influence can be clearly demonstrated. on 14 may 2014, the Company acquired a 15% stake in Betit holdings limited ('Bhl') from Betit securities limited ('Bsl'). the consideration was for €3.5 million, which was attributed to both the available for sale asset (€5.2 million) and the option liability (€1.7 million) taken on at acquisition. the asset held for sale consideration, together with professional fees incurred at the time, amounted to a total upfront cost of €5.4 million which was impaired at 31 december 2014 to €3.8 million. although the Company has a director on the Board of Bhl and has influence through its shareholding over the payment of dividends the director does not participate in policy making decisions, and the entity is unlikely to be in a dividend paying position over the lifetime of the investment. the Company does not believe there is evidence to rebut the presumption it does not have significant influence over Bhl and therefore the investment is not considered to be an associate and has been accounted for as an available for sale asset. the available for sale asset is required to be re-measured at fair value at each reporting date. Changes in the fair value will be recognised in other comprehensive income, except for impairment losses which are recognised through profit or loss as a deduction from clean eBitda. the Company engaged a third party valuations specialist to value the asset. in valuing the underlying business of Bhl, a discounted cash flow model was used, applying a long-term growth rate of 2% (2014: 2%) to the Company's forecasts and a discount rate of 18% (2014: 18%) (based on comparison to industry peers and observable inputs). Based on this model, the value as at 31 december 2015 of the asset held for sale was €2.6 million, leading to an impairment of €1.2 million. 96 GVC HOLDINGS PLC ANNUAL REPORT 2015 notes to the company financial statements continued for the year ended 31 december 2015