32Red Plc
13 March 2007
32Red Plc
('32Red' or 'the Company')
Preliminary results for the year ended 31 December 2006
32Red, the UK focused casino, poker and sportsbook operator today announces
preliminary results for the year ended 31 December 2006.
Financial highlights
2006 2005
Net gaming win £14.44m £9.77m
Gross profit £4.36m £3.49m
(Loss)/Profit before taxation (£3.74m) £1.30m
(Loss)/earnings per share (7.0p) 2.8p
Casino revenues £9.42m £8.90m
Poker revenues £1.49m £0.84m
Key points
Successfully renegotiated banking facilities with The Royal Bank of Scotland plc
(see separate announcement)
Proposed placing to raise £3m
Casino and poker continue to build customer base and profits
Proposed move of Betdirect operations to Gibraltar to be completed by June 2007
thereby making significant savings in betting and gaming taxes and levies
Management team strengthened during the year through the appointment of Finance
Director and Trading Director
Key performance indicators
Significant customer growth
• Active Customers in 2006 84,595 (2005 : 17,587)
• New Customers in 2006 42,866 (2005 : 14,451)
Casino
• Active casino players up 90% to 20,184 (2005 : 10,605)
• New casino players up 103% to 16,663 (2005 : 8223)
• Cost per Acquisition £135 (2005: £205)
Poker
• Active poker players up 161% to 18,272 (2005 : 6992)
• New poker players up 142% to 15,088 (2005 : 6228)
• Cost per Acquisition £20 (2005: £69)
Betdirect
• Active players 46,139
• New Betdirect players 11,115
Current trading
• Trading since the year end has been in line with management
expectations
Commenting on the results Ed Ware, Chief Executive Officer, said:
'2006 has been a year of transition for the company: we have continued to grow
our casino and poker platforms and acquired a strategically important sportsbook
operation. Integration with our other businesses will be complete by June 2007
delivering the planned benefits of significant cost savings and improving our
ability to migrate players across platforms and games.
'Trading this year has been as expected. We have renegotiated our banking
facilities and seek to further strengthen our financial position through a
placing, creating a sound footing for the future.'
13 March 2007
Enquiries:
32Red plc Tel: +350 49 396
Ed Ware, CEO
Jon Hale, Finance Director
College Hill Tel: 020 7457 2020
Matthew Smallwood
Jamie Ramsay
32Red Plc
Chairman's Statement
I am pleased to set out below my review of the Director's Report and Financial
Statements of 32Red Plc (the 'Company') for the year ended 31 December 2006. The
results include 29 weeks trading from Betdirect which was acquired from Sportech
plc on the 7 June 2006.
Financial review
Net gaming wins for 32Red Plc, 32Red Ltd, Bet Direct Ltd and Bet Direct N.V.
(the 'Group') during the year ended 31 December 2006 increased by 48% to £14.44m
(year ended 31 December 2005:£9.77m). 2006 gaming wins were driven by increased
contributions from both the casino, up 5.5% on prior year and from poker, up
77.2% on 2006. This is particularly pleasing given the adverse effects of the
hot UK summer and the 2006 FIFA World Cup felt by the industry. Net gaming wins
include a contribution of £3.53m Gross Win from Betdirect.
Prior to acquisition, Betdirect has historically made a loss and has experienced
difficult trading conditions during the period of ownership ended 31 December
2006. As reported across the sector there has been an abnormally high number of
winning favourites in UK horseracing markets, which, allied with unfavourable
Champions League football results in September, has severely impacted gross win
margins experienced by Betdirect.
As a direct result of the performance of Betdirect, the Group made a loss of
£3.7m for the year ended 31 December 2006 (2005: profit of £1.3m). The Board
does not recommend payment of a dividend in 2006 (2005: 3.08p per share).
Acquisition of Betdirect
Betdirect was acquired on 7 June 2006 for a total consideration of £12.5m (less
customer balances). Betdirect offers online, interactive TV, mobile and
telephone based sportsbetting as well as other remote gaming products.
The Board has highlighted three areas, which, allied with a return to normal
sporting results, are fundamental to moving the Betdirect business to
profitability:-
1. The completion of the relocation of operations from Liverpool to Gibraltar,
thereby making significant savings in betting and gaming taxes and levies.
2. The implementation of operational improvements including the appointment of a
new Trading Director, the launch of a new website with new and more in depth
markets, the implementation of the new player tracking and risk assessment
software and more efficient online-focused marketing campaigns.
3. The successful cross-selling between casino and poker and sportsbetting. The
upgraded Betdirect poker and casino products have already been launched and the
32Red sportsbook will be launched in the first half of 2007.
The completion of the Betdirect acquisition concludes the initial phase of our
move into sportsbetting and provides our customers with a full suite of remote
gambling products. Whilst much remains to be done to move the Betdirect business
into profitability, we are pleased with the acquisition and are encouraged by
the opportunities presented by it.
Financing restructure
As a direct result of trading experienced at Betdirect the Company, as reported
in December 2006, breached a covenant with The Royal Bank of Scotland plc with
whom 32Red Plc has an outstanding loan of approximately £5.4m as at 31 December
2006.
The Company announces today that it intends to raise approximately £3m before
expenses from a Placing (see separate announcement). I am also pleased to
announce that the Company has entered into a revised loan facility with its
bankers for £3.5m. We are pleased to maintain a constructive relationship with
The Royal Bank of Scotland plc and believe that our revised gearing forms a
sound financial platform for the upcoming phase in the Company's development.
Strategy
The changes in US legislation support the Company's long term strategy not to
market in the US and Betdirect's policy has always been rigorously to prohibit
US based customers. The business was, therefore, largely unaffected by the
passing of the Unlawful Internet Gambling Enforcement Act in the US during
October 2006. As previously stated, the Group's strategy is only to commit funds
to new markets once our research shows that such markets are viable.
Board
The Board has been strengthened by the appointment of three directors during the
year. Ed Andrewes was appointed on 23 February 2006 as Development Director,
Martin Saunders was appointed as Trading Director on 21 October 2006 and Jon
Hale was appointed as Finance Director on 1 December 2006. These three key
appointments further underline our belief that strong management will be central
to our future success. The Executive team now boasts approximately 80 years
experience in the betting and gaming industry.
Bruno Callaghan will resign his post as non-executive director at the AGM and I
would like to take this opportunity to thank Bruno for all his hard work since
the Company was incorporated. The Board expects to appoint a replacement later
in the year.
Outlook
The focus for the forthcoming year will be on relocating the Betdirect operation
to Gibraltar and moving that business into profitability. The Company will
benefit from all departments being based in one location engendering operational
synergies and consistent delivery of our strategies.
Trading in 2007 to date has been in line with management expectations despite
the high level of UK horse racing cancellations. I would like to take this
opportunity to thank all our employees for their continued hard work during 2006
and I look forward to an exciting year in 2007.
David Fish QC
Chairman, 32Red Plc
32Red Plc
CEO's Statement
2006 has been very much a transitional year for the Company following the
acquisition of Betdirect from Sportech plc in June. 2006 has also been a
turbulent one for the industry as a whole and the Company faces two key
challenges in 2007:-
1. The Betdirect business has historically been loss making and is likely to
remain so whilst it resides in the UK. I am delighted with the operational
improvements made to date and I am confident that the Board has the necessary
expertise to move the business to profitability during 2007. The acquisition
will allow the business to offer the full suite of casino, poker and sportsbook
products across two strong gaming brands.
2. While the changes in US legislation support the Company's long term strategy
not to market in the US, the UK and European market is likely to become more
competitive during 2007. The strength of the 32Red Casino is founded on a highly
professional customer service team and approach to marketing. I am therefore
delighted that the Company recently won the Casinomeister Best Casino of the
Year award for the fourth consecutive year, and feel that the Company is well
positioned to meet this challenge.
Key Performance Indicators
Total revenues increased by 48% to £14.44m, including a contribution of £3.96m
from the Betdirect business acquired in June. Active customers in 2006 grew to
84,595 (2005: 17,587) and new customers grew to 42,866 (2005: 14,451).
Casino
Total Casino revenues during 2006 increased by 5.5% to £9.42m (2005: £8.93m).
This was not withstanding the undoubted distraction to our players during the
FIFA World Cup Finals and the longest period of extended warm weather in UK
history. In the circumstances and despite a good first half of the year, we are
pleased to improve year-on-year Gross Win.
The number of casino active players totalled 20,184, up 90% on 2005 with new
casino players totalling 16,663, which is an increase of 103% on the prior year.
The large number of new players can in part be attributed to the launch of the
new Dash Casino product in September and the commencement of the Aston Villa
sponsorship in July. With such a large number of new players, it is unsurprising
that casino player yield totalled £453, down 46% on 2005.
Cost per Acquisition, which is inclusive of affiliate costs, but net of free
bets reduced to £135 (if calculated excluding poker marketing costs) during the
year (2005: £205). The changes in US legislation in October did not directly
affect the 32Red business, but the UK market will become more competitive and
the effectiveness of the Company's marketing will be closely monitored during
2007.
As an operator licensed and regulated by the Government of Gibraltar, we believe
the Company to be well placed to continue to expand its profile in its main
market, the United Kingdom. 32Red plc is monitoring the developments in the UK
with respect to the Gambling Act 2005, which comes into force in September 2007.
Poker
Poker revenues during 2006 increased by 77% to £1.49m (2005:£0.86m) despite the
reduced levels of activity experienced in June during the 2006 FIFA Football
World Cup finals. While the recovery in the latter half of the year is
encouraging, significant growth opportunities for the product remain both in the
United Kingdom and in Europe.
The number of active poker players totalled 18,272, up 161% on 2005 with new
poker players totalling 15,088, which is an increase of 142% on the prior year.
With new player recruitment levels reaching record levels during the year,
player yields suffered and the Annual Player yield during the year was £73, down
30% on prior year.
Cost per Acquisition, which is inclusive of affiliate costs, but net of free
bets decreased to £20 during 2006 (2005: £69). While the poker market is likely
to become more competitive during 2007, the Company believes that the
acquisition of Betdirect in June 2006 will provide a fruitful player database
for its poker product. The Company firmly believes that a sportsbook customer
has a high propensity to play poker and the cross-selling opportunity between
poker and sportsbetting will be key to the growth of Poker in 2007.
Betdirect
Betdirect generated Gross Win revenues of £3.53m since acquisition from 46,139
active customers. Betdirect has attracted 11,115 new customers since acquisition
and the average customer yield was £77 per customer since acquisition.
The Betdirect online gaming platform was successfully migrated to Gibraltar in
September 2006 and the telephone betting arm has been successfully trialed in
Gibraltar, but will remain in the UK for Cheltenham and Aintree. The Company
entered into a 3 month consultation process with the employees of Betdirect on
10 November 2006 and, following the completion of the consultation process, the
remaining business will be relocated to Gibraltar by June 2007.
Software Partners
32Red is first and foremost a betting and gaming operator. We believe that the
most effective solution for gaming software and a betting engine is through
partnering with the respective leaders in these fields. Our longstanding
relationship with Microgaming for casino and poker software continues to
strengthen and we believe that Orbis provide the best sportsbetting platform.
Edward Ware
CEO, 32Red Plc
32Red Plc
Consolidated Income Statement for the year ended 31 December 2006
Notes 2006 2005
£ £
Net gaming wins 1+3 14,443,459 9,770,770
Cost of sales (10,081,473) (6,280,899)
Gross profit 4,361,986 3,489,871
Administrative expenses
Other administrative expenses (7,741,255) (1,482,494)
Provision for restructuring of Betdirect (305,094) -
Share issue expenses - (718,414)
(8,046,349) (2,200,908)
Operating (loss)/profit 2 (3,684,363) 1,288,963
Finance income 169,071 11,501
Finance costs (229,463) -
(Loss)/profit before taxation for the year (3,744,755) 1,300,464
Tax on profit on ordinary activities 5 26,531 (225)
(Loss)/profit for the year (3,718,224) 1,300,239
(Loss)/earnings per share (pence)
Basic 4 (7.0) 2.8
Diluted 4 (7.0) 2.7
Dividends
Dividends paid in the year (pence per share) - 3.08
Dividends paid in the year (£) - 1,460,100
32Red Plc
Consolidated Balance Sheet as at 31st December 2006
Notes 2006 2005
£ £
Assets
Non-current
Intangible assets 6 12,636,495 168,165
Property, plant and equipment 7 1,731,813 425,718
14,368,308 593,883
Current
Trade and other receivables 861,407 297,283
Cash and cash equivalents 4,945,626 1,471,027
5,807,033 1,768,310
Total assets 20,175,341 2,362,193
Equity
Equity attributable to shareholders of 32Red Plc
Called up share capital 113,350 94,871
Share premium 11,400,728 942,629
Share option reserve 232,540 99,344
Retained earnings (3,872,161) (158,614)
Total equity 7,874,457 978,230
Current liabilities
Social security and other taxes 94,194 60,128
Bank loan due within one year 5,416,667 -
Trade and other payables 6,484,929 1,323,835
Provisions for other liabilities and 305,094 -
charges
Total liabilities 12,300,884 1,383,963
Total equity and liabilities 20,175,341 2,362,193
32Red Plc
Consolidated Statement of Cash Flows for the year ended 31 December 2006
2006 2005
£ £
Operating activities
(Loss)/profit for the year before (3,657,832) 1,288,738
interest
Amortisation 857,606 35,559
Depreciation 531,617 125,576
Loss on disposal of fixed assets (13,516) -
Change in trade and other receivables (27,152) (260,398)
Change in trade and other payables 2,363,033 574,014
Share options granted 137,873 93,122
191,629 1,856,611
Investing
activities
Acquisition of subsidiaries (11,607,546) -
Additions to other intangible assets (98,737) (44,149)
Additions to tangible assets (883,276) (267,311)
Disposal of tangible assets 39,676 -
Interest received 169,071 11,501
(12,380,812) (299,959)
Financing
activities
Proceeds from share issue 11,297,262 302,500
Share issue costs set against equity (820,684) (215,000)
Proceeds from borrowings 6,500,000 -
Repayment of borrowings (1,083,333) -
Interest paid (229,463) -
Dividends paid - (1,460,100)
15,663,782 (1,372,600)
Cash and cash equivalents, beginning of period 1,471,027 1,286,975
Net increase in cash and cash equivalents 3,474,599 184,052
Cash and cash equivalents, end of period 4,945,626 1,471,027
32Red Plc
Consolidated Statement of Changes in Equity for the year ended 31 December 2006
Equity attributable to equity holders of 32Red Plc Total Equity
Share Share premium Share Retained
capital options earnings
reserve
£ £ £ £ £
Balance at 1 January 2005 94,200 855,800 6,908 561 957,469
Shares issued 671 301,829 - - 302,500
Share options granted - - 93,122 - 93,122
Share options exercised - - (686) 686 -
Profit for the period - - - 1,300,239 1,300,239
Dividends - - - (1,460,100) (1,460,100)
Share issue expenses - (215,000) - - (215,000)
Balance 1 January 2006 94,871 942,629 99,344 (158,614) 978,230
Shares issued 18,479 11,278,783 - - 11,297,262
Share options granted - - 137,873 - 137,873
Share options exercised - - (4,677) 4,677 -
Loss for the period - - - (3,718,224) (3,718,224)
Share issue expenses - (820,684) - - (820,684)
Balance 31 December 2006 113,350 11,400,728 232,540 (3,872,161) 7,874,457
Notes
1. Basis of preparation
The financial statements have been prepared in accordance with International
Financial Reporting Standards ('IFRS') as adopted by the European Union as
issued by International Accounting Standards Board ( IASB). The accounting
policies that have been applied in the opening balance sheet have also been
applied through out all periods presented in these financial statements. These
accounting policies comply with each IFRS that is mandatory for accounting
periods ending on 31st December 2006. The financial statements have been
prepared under the historical cost convention and on a going concern basis,
which is dependant upon the Company signing a revised bank facility with its
bankers, following a breach of covenant in 2006. The revised loan facility of
£3.5m was signed on 9 March 2007 and is subject to the Company raising net funds
of at least £2.25m via a Placing.
The directors have prepared revised forecasts incorporating these facilities
which indicate that the Group has sufficient resources to continue in operation
for the foreseeable future.
The directors have reviewed the accounting policies used by the Group and
consider them to be the most appropriate. No changes have been made from the
prior year.
The following standards, issued by the IASB, have not been adopted by the Group
and the Group is currently assessing the impact these standards will have on the
presentation of the consolidated results in future periods:
IFRS 7 - Financial Instruments: Disclosure (effective for accounting periods
beginning on or after 1 January 2007)
IFRS 7 introduces new disclosures to improve the information about financial
instruments. It requires the disclosure of qualitative and quantitative
information about exposure to risks arising from financial instruments,
including specified minimum disclosures about credit risk, liquidity risk and
market risk, including sensitivity to market risk. It replaces the disclosure
requirements in IAS 32 'Financial Instruments: Disclosure and Presentation'.
IFRS 8 - Operating segments (effective for accounting periods beginning on or
after 1 January 2009)
IFRS 8 contains requirements for the disclosure of information about an entity's
operating segments and also about the entity's products and services, the
geographical areas in which it operates, and its major customers. The standard
is concerned only with disclosure and replaces IAS 14 'Segment reporting'.
2. Operating result
2006 2005
£ £
This is stated after charging/(crediting) :
Auditors remuneration - audit fees 50,000 30,000
- taxation 12,500 -
- due diligence 75,000 -
- reporting accountant fees - 64,688
Depreciation of owned property, plant and equipment 531,617 125,576
Amortisation of other intangible fixed assets 857,606 35,559
Share issue expenses - 718,414
Operating lease rentals 219,716 25,244
Foreign exchange losses/(gains) 57,252 (22,831)
Amortisation and depreciation are charged to administrative expenses.
Auditors remuneration in respect of IPO fees incurred during the period were £
nil (2005: £129,376). Half of these costs have been charged to the income
statement and half have been offset against equity
3. Segment information
Business segment
The Company has three business segments and performance can be analysed as follows:
2006 2005
£ £
Casino
Net gaming wins 9,420,724 8,929,140
Segmental gross profit before marketing costs 4,978,701 5,139,083
Poker
Net gaming wins 1,491,532 841,630
Segmental gross profit before marketing costs 739,782 469,077
Sports book
Net gaming wins 3,531,202 -
Segmental gross profit before marketing costs 2,618,943 -
Consolidated
Net gaming wins 14,443,459 9,770,770
Gross profit before marketing costs 8,337,426 5,608,160
Marketing costs (3,975,440) (2,118,289)
Administration expenses (8,046,349) (2,200,908)
Operating (loss)/profit (3,684,363) 1,288,963
The Directors consider that is neither possible nor meaningful to distinguish
aggregate marketing costs, administration expenses or other operating income
between the three business segments.
Aggregate net assets are split between the three business segments as follows:
2006 2005
£ £
Casino
Trade and other receivables 137,656 276,537
Cash and cash equivalents 4,414,859 1,342,252
Trade and other payables (607,277) (833,435)
3,945,238 785,354
Poker
Trade and other receivables 3,139 20,746
Cash and cash equivalents 31,991 128,775
Trade and other payables (345,611) (490,400)
(310,481) (340,879)
Sports book
Goodwill, domain names and player database 12,167,673 -
Trade and other receivables 757,085 -
Cash and cash equivalents 498,776 -
Trade and other payables (5,568,514) -
Provisions (305,094) -
7,549,926 -
Consolidated net assets 11,184,683 444,475
Other non-current assets 2,200,637 593,883
Social security and other taxes (94,194) (60,128)
Bank loan (5,416,667) -
7,874,459 978,230
Non-current assets are used by all the business segments and an appropriate
split is not available. Furthermore 'other employee obligations' relate to all
business segments equally and can not be split in a meaningful way.
Geographical segment
The Company's performance can also be reviewed by considering the geographical
markets in which the Company operates
2006 2005
£ £
Net gaming wins by geographical market
UK & Ireland 11,984,035 8,005,360
Europe 1,187,678 646,298
Rest of the World 1,271,746 1,119,112
14,443,459 9,770,770
Following the changes in US legislation, 32Red no longer accepts any bets from
the United States with effect from 9am, Friday 13 October 2006. Betdirect, the
Company's UK focussed sports betting operation, has never accepted bets from the
USA.
The Group uses the following procedures to block US bets:
• the Group's payment processors are configured to block any purchases on
debit/credit cards from the USA
• registration of player accounts from the USA is disabled as an option from
the Group's registration processes
• software is in place to detect IP addresses not matching the player's
country of registration
• IP blocking software is used to identify IP addresses that are potentially
from the USA
2006 2005
£ £
Total assets by geographical location
UK (4,385,901) -
Gibraltar 12,260,360 978,230
7,874,459 978,230
Non-current assets of £13,847,001 (2005: £nil) in the UK and £362,213 (2005:
£311,460) in Gibraltar were acquired during the year
4. Earnings per share
Basic earnings per share have been calculated by dividing the net results
attributable to ordinary shareholders by the weighted average number of shares
in issue during the relevant financial periods.
The weighted average number of shares used for basic earnings per share amounted
to 53,077,615 shares (2005: 47,180,999).
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares. For share options, a calculation is done to determine
the number of shares that could have been acquired at fair value (determined as
the average annual market share price of the Company's shares) based on the
monetary value of the subscription rights attached to the outstanding share
options. The number of shares calculated as above is compared with the number of
shares that would have been issued assuming the exercise of the share options.
The effect of dilutive share options has been excluded from the dilutive
earnings per share calculation for 2006 as their inclusion would be
anti-dilutive.
2006 2005
£ £
Net (loss)/profit attributable to (£3,718,224) 1,300,239
ordinary shares
Weighted average number of ordinary
shares:
for basic earnings 53,077,615 47,180,999
for diluted earnings 55,060,615 48,681,381
Basic earnings per share (£0.070) 0.028
Diluted earnings per share (£0.070) 0.027
Weighted average number of ordinary shares for basic 53,077,615 47,180,999
earnings
Weighted average options 1,983,000 1,500,382
Weighted average number of ordinary shares for diluted 55,060,615 48,681,381
earnings
5. Taxation 2006 2005
£ £
Tax on profit on ordinary activities 450 225
The Company has been granted tax exempt status under the Companies (Taxation and
Concessions) Ordinance. Under the terms of such status an annual charge of £450
is payable to the Government. Provided the Company complies with the necessary
criteria, payment of such charges will satisfy the Company's tax obligation in
Gibraltar in relation to the year ended 31 December 2006.
2006 2005
£ £
(Loss)/profit before taxation (3,744,755) 1,300,464
Add : UK tax losses not utilised 3,424,451 -
Less : tax exempt profit (902,720) (1,300,464)
Taxable profit (1,223,024) -
Current tax charge - -
Deferred Tax (26,981) -
Tax exempt fee 450 225
Tax charge (26,531) 225
The Group has UK tax losses of approximately £3.4 million (2005: £nil) available
to offset against future taxable profits in the UK
6. Intangible assets
Goodwill Domain Names Website Software Total
& Player Development License
Database
£ £ £ £ £
Cost
At 1 January 2005 - - 77,645 158,664 236,309
Additions - - 30,177 13,972 44,149
At 1 January 2006 - - 107,822 172,636 280,458
Additions - - 98,193 544 98,737
Fair value of 4,737,673 8,200,000 - 289,526 13,227,199
assets on
acquisition of
Betdirect
At 31 December 4,737,673 8,200,000 206,015 462,706 13,606,394
2006
Amortisation
At 1 January 2005 - - 36,787 39,947 76,734
Provided during - - 18,363 17,196 35,559
the year
At 1 January 2006 - - 55,150 57,143 112,293
Provided during - 770,000 31,948 55,658 857,606
the year
At 31 December - 770,000 87,098 112,801 969,899
2006
Net book value
At 31 December 4,737,673 7,430,000 118,917 349,905 12,636,495
2006
At 31 December - - 52,672 115,493 168,165
2005
Goodwill acquired has been allocated to the sports book business. The Group
tests goodwill for impairment annually or more frequently if there are
indications that goodwill might be impaired. The recoverable amount is
determined from value in use calculation. Management estimate by assumptions for
the value in use calculations and growth rates based on past experience and
expectation of future changes in the market. The discount rates are based on
Company specific weighted average cost of capital percentages. A period of five
years has been used for the value in use calculations.
7. Property, plant and equipment
Motor Vehicles Computer and Leasehold Total
Office Improvements
Equipment
£ £ £ £
Cost
At 1 January 2005 85,000 339,425 7,383 431,808
Additions 25,000 228,883 13,428 267,311
At 1 January 2006 110,000 568,308 20,811 699,119
Additions 47,795 835,481 - 883,276
Acquisition of Bet Direct - 980,596 - 980,596
Disposals (25,000) (14,676) - (39,676)
At 31 December 2006 132,795 2,369,709 20,811 2,523,315
Depreciation
At 1 January 2005 7,677 138,671 1,477 147,825
Charge for the year 22,010 99,444 4,122 125,576
At 1 January 2006 29,687 238,115 5,599 273,401
Charge for the year 23,630 503,825 4,162 531,617
On disposals (13,333) (183) - (13,516)
At 31 December 2006 39,984 741,757 9,761 791,502
Net book value
At 31 December 2006 92,811 1,627,952 11,050 1,731,813
At 31 December 2005 80,313 330,193 15,212 425,718
8. Publication of Non-Statutory Accounts
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined under Gibraltar company.
The summarised balance sheet at 31 December 2006 and the summarised profit and
loss account, summarised cash flow statement and associated notes for the year
then ended have been extracted from the Group's 2006 statutory financial
statements upon which the auditors opinion is unqualified and unmodified.
Those financial statements have not yet been delivered to the registrar of
companies.
This information is provided by RNS
The company news service from the London Stock Exchange