27th Feb 2008 07:01
William Hill PLC27 February 2008 Wednesday, 27th February 2008 WILLIAM HILL PLC ANNOUNCEMENT OF PRELIMINARY RESULTS William Hill PLC (the 'Group') today announces its results for the 53 weeksended 1 January 2008 ('the period'). Highlights include the following: • Gross win up 6% to £983.7m (2006: £931.3m) • Profit on ordinary activities before finance charges and exceptional items down 2% to £286.7m (2006: £292.2m) • Cash generated from operations before tax and interest down 1% to £310.7m (2006: £313.9m) which represents 108% of operating profit • Adjusted basic earnings per share (EPS) pre exceptionals up 4% to 47.4 pence (2006: 45.5 pence) and basic EPS post exceptionals down 2% to 44.7 pence • Total pre-tax exceptional items of £14.2m comprising NextGen non-cash impairment charge of £20.9m and sale and leaseback profits of £6.7m • Proposed final dividend up 7% to 15.5 pence per share (2006: 14.5 pence per share) payable on 5 June 2008 to shareholders on the register on 2 May 2008 • The Group has purchased 7.9m shares for £46.0m via on-market share buybacks in the period • In the seven weeks to 19 February 2008, the Group's gross win has increased by 4%, against a strong comparative period Commenting on the results, Charles Scott, Chairman, said: "2007 has seen the Group deliver a solid performance in light of the additionalcost burden from a full year's charge for Amusement Machine Licence Duty (AMLD)and the competitive market environment in which our Interactive businessoperates. Taking the main channels in turn:- Looking forward to 2008 we remain confident in the prospects for our largestbusiness - the Retail channel - which despite the incremental costs of Turf TVwill be driven forward by continued machine income growth, the full year impactof evening opening, targeted investment in estate development and our ongoingfocus on underlying cost control. We expect 2008 to be a transitional year for the Interactive channel as we makethe necessary investments to lay the foundations for future growth. The mostsignificant of these is the replacement of our Interactive sportsbook technologysystem with the new, more flexible ORBIS platform. We will also be focusing onexploiting the opportunities available to our online gaming business. I am pleased to welcome Ralph Topping as our Chief Executive. Ralph joinedWilliam Hill in 1973 and has held various positions within the company,including most recently Group Director, Operations and previously RetailOperations Director and Internet Director. He brings a deep knowledge of thebusiness and more than 35 years of industry experience to the role. In line with our progressive dividend policy, the Board is proposing to increasetotal dividends for the year by 7%." Enquiries: Ralph Topping, Chief Executive Tel: 0208 918 3910 Simon Lane, Group Finance Director Tel: 0208 918 3910 Nilay Patel, Corporate Finance Manager Tel: 0208 918 3736 Deborah Spencer, Brunswick Tel: 0207 404 5959 There will be a presentation to analysts at 9.00 am today at the Lincoln Centre,18 Lincoln's Inn Field, London WC2. Alternatively, it is possible to listen tothe presentation by dialling + 44 (0) 20 7138 0820 using the conference code3492762#. The presentation will be recorded and will be available for a periodof one week by dialling +44 (0) 20 7806 1970 and using the replay access number3492762#. The slide presentation will be available on the Investor Relations section ofthe website: www.williamhillplc.co.uk. Review of 2007 performance A summary of the key financial results is set out in the table below: Gross win Operating profit before exceptional items 2007 2006 2007 2006 £m £m £m £m-------------------------- --------- --------- --------- ---------Retail 802.6 736.0 229.8 225.9Interactive 119.8 130.5 50.9 61.5Telephone 53.0 57.5 16.1 16.7Other 8.3 7.3 1.1 (0.6)International joint ventures - - (2.6) -Associate - SIS - - 3.3 3.6Central overheads - - (11.9) (14.9)------------------------- --------- --------- --------- --------- 983.7 931.3 286.7 292.2------------------------- --------- --------- --------- --------- The Retail channel, which constitutes 82% of the Group's gross win, continued toperform strongly driven by encouraging gross win growth and good cost control.This was achieved notwithstanding the full year effects of the imposition ofAMLD and the absence of a major football tournament. We estimate that theseitems in total had an impact on the Group of approximately £16m in comparisonwith 2006, although the effects of this were partly offset by 2007 being a53-week period. Interactive has had a difficult period, impacted by technologyissues and a very competitive market, while Telephone produced a stable result,despite lower high-staking customer volumes year-on-year. In addition, 2007 hasseen the start of our long-term investments in the Italian and Spanish marketsvia our international joint ventures with Codere. Profit before finance charges and exceptional items was £5.5m lower than lastyear but earnings per share excluding exceptional items increased by 4%,benefiting from one-off tax movements. The Board is recommending a finaldividend of 15.5 pence per share, an increase of 7% on last year consistent withthe Group's policy of returning surplus capital via dividends and sharebuybacks. Retail channel The Retail channel's gross win grew by 9% to £802.6m (7% excluding the effectsof the 53rd week) and pre-exceptional profit increased by 2% to £229.8m. Thisperformance was achieved notwithstanding the adverse full year impact in 2007from the imposition of AMLD in August 2006, as well as the 2006 comparativesincluding incremental gross win associated with the football World Cup. Gross win from over the counter (OTC) increased by 3%, while machines gross winwas up 15% (both excluding the 53rd week). Growth was facilitated by a largerestate (reflecting estate development and bolt-on acquisitions) and the extendedopening hours allowed from 1 September by the Gambling Commission. We believethat further benefits from extended hours will come through in the future aspunters become more familiar with the new trading hours available. The impact of sporting results on OTC gross win year-on-year was broadly neutralas the effects of favourable football results in the earlier part of the yearwere largely offset by disappointing results in September and October.Horseracing gross win was impacted by the poor summer weather and a consequenthigh level of fixture cancellations (88 in 2007 compared to 46 in 2006). The average number of gaming machines in the estate increased to 8,382 (2006:8,218) in the period. The average net contribution per machine per week was £466(2006: £433). This was a strong performance from machines, which has absorbedthe additional cost from the imposition of AMLD in August 2006 that hasadversely affected average weekly profitability of each terminal by £38. Thisperformance was achieved despite the advent of the smoking ban from 1 July andwas driven by staff training, content improvements, tight management of machinedowntime and the extended opening hours allowed from 1 September. In January2008, we renegotiated our machines supply contracts on improved terms with ourexisting supplier Inspired Gaming and also introduced a new supplier to theestate, Global Draw. We expect that these flexible supply arrangements willdrive product innovation and service performance, which should enable us todeliver continued growth in our machines income. Costs in the channel were up 11%, driven by the extended betting shop openinghours, the effects of the 53rd week, increases in the average number of LBOs(mainly affecting staff and property costs) and development activity within theexisting estate (mainly affecting property and depreciation costs). We completed 282 development and LBO refurbishment projects in 2007 including 39new licences, 65 extensions and resites and 178 LBO refurbishments. Overall, wespent £46.8m on estate development in 2007. 2007 has also seen the acquisition and speedy integration of two small chains ofLBOs, TH Jennings (Harlow Pools) Limited comprising 22 LBOs acquired for totalconsideration of £21.5m and Eclipse Bookmakers Limited comprising 7 LBOsacquired for a total consideration of £3.2m. Both chains have tradedsatisfactorily since their respective acquisitions. At 1 January 2008, we had 2,234 LBOs in the United Kingdom, 9 in the ChannelIslands, 2 in the Isle of Man and 49 in the Republic of Ireland; a total of2,294. Interactive channel Interactive had a disappointing year with gross win falling by £10.7m to £119.8mand operating profit falling by £10.6m to £50.9m. The Interactive sportsbook site has continued to be impacted by the relativeinflexibility of our current technology configuration. This inflexibility ismost notable in respect of in-running betting where the limitations of ourtechnology prevented us from matching the increasing number of in-runningbetting opportunities available from our competitors. The Group had beenaddressing this technology deficiency through its replacement NextGen technologyprogramme. In November 2007, following the notification of a delay in theimplementation of the NextGen programme, the Board instigated a review of theproject by external consultants. The review concluded that, while the NextGenprogramme would deliver the expected benefits in due course, the implementationwould require greater investment and take longer than originally envisaged. Thereview also identified that proven technology was available that could beimplemented more rapidly and at a lower comparative cost. The Board concludedthat this was the preferred option and decided to terminate the NextGenprogramme. This decision resulted in an exceptional non-cash impairment chargein relation to the NextGen technology programme of £20.9m in the 2007 resultswith further related restructuring charges of approximately £4m expected to beincurred in 2008. In January 2008, we agreed heads of terms to purchase the ORBIS technologyplatform. ORBIS is the industry-leading platform and once implemented, willallow us to compete on a level playing field with our competitors, especially inthe number and variety of in-running markets we can offer. We aim to implementORBIS by the end of November 2008 and will invest in programme management skillsto ensure that we meet this implementation target. The Board took a number of other initiatives in the period to address therelative underperformance of the Interactive sportsbook. Changes have been madewithin the Interactive management team and there has been an increasedinvestment in the content on the site including the live streaming of eventssuch as horse racing and the Australian Tennis Open with the aim of drivingincreased traffic to the site. In addition, we have improved our current offerto clients through expanded payment methods, market leading pricing on selectedfootball bets, easier navigation of the website and improved internet searchengine optimisation capabilities. Gaming revenues largely stabilised in 2007 following the loss of poker businessin the second half of 2006 that resulted from changes in US legislation. Arcadegames performed strongly driven by new games and products. We launched 9 newarcade games during the period that expanded our offering to 26 games. We alsointroduced internet based bingo and skill games in the period and bingo, inparticular, has been very successful and has exceeded initial expectations.Casino revenues are lower than last year in part reflecting a cannibalisation ofcasino revenue by arcade games and also a lower average yield per player. Pokerhad a difficult first 6 months of the year but the introduction of a closed loop(which means that poker winnings should be recycled amongst our clients withinthe Cryptologic poker room) and lower limit tables has seen a stabilisation ofrevenue in what has traditionally been the slower second half of the year. Total active accounts increased to 432,000 as at 1 January 2008 (26 December2006: 405,000). Costs in the channel increased 6%, largely due to higher depreciation associatedwith increased investment in systems partly offset by the effects of lowermarketing costs, following the football World Cup investment in the previousyear. Telephone channel Telephone gross win fell by £4.5m to £53.0m and operating profit decreased by£0.6m to £16.1m. This result was achieved notwithstanding the World Cup benefiting thecomparative figures and lower high-staking customer activity in the period.While the Telephone channel is our most mature, we believe that it shouldcontinue to deliver stable earnings whilst providing a valuable facility tocustomers who are attracted by good quality service and a quick and convenientway to get their bets processed. We ended the year with 146,000 active telephone customers (26 December 2006:160,000). The 2006 number of accounts was boosted by recruitment activityassociated with the World Cup. Costs incurred by the channel were reduced by 12% principally due to lowermarketing spend in respect of the World Cup and rationalisation of staff costs. International activities 2007 has seen further progress in developing our operations in Spain and Italyin conjunction with our joint venture partner, Codere. In Spain, the joint venture has launched its Spanish brand - Victoria Apuestasand has developed the infrastructure needed to manage and control the jointventure operations. We are expecting to be awarded an operational licence forthe Madrid region imminently. We aim to secure up to 34 owned outlets in thisregion by the end of the year together with a similar number of third partyoutlets, subject to obtaining local licensing and planning permissions. We havealso successfully secured one of the three licences available in the Basqueregion of Spain, which entitles us to open betting outlets in that region. Wehope to have 8 betting shops and 56 other betting outlets operational by the endof the year in this region. Some of the unsuccessful bidders have challengedthis award. The Basque government has indicated that it will respond to thisappeal by the end of February 2008. We remain confident that our licence will beconfirmed. In December 2006, as part of a process of deregulating betting within Italy,William Hill and Codere were jointly awarded 20 concessions to operatehorseracing-betting shops, 7 concessions to operate sports betting shops and 28concessions relating to sports betting points. Progress has been made in 2007 inidentifying and acquiring locations to exploit these concessions and under theterms of the concessions, they have to be ready to commence trading by September2008 and the majority are expected to be operational before then. We are alsoinvestigating potential shop acquisition opportunities in Italy to expand ourfootprint. Remote licences relating to horseracing and sports betting were alsoapplied for and granted and the internet sites have commenced trading inFebruary of this year. The Board notes that both Spain and Italy are new markets for William Hill andexpect that it will take a period of time to develop these opportunities. Operating expenses Full-year expenses before exceptional items(net of operating income) for the Group were £480.2m, an increase of 8%. Excluding the effects of the 53rd week and the extended opening hours from 1st September, costs are estimated to have risen by 4%. Staff costs (which represented roughly half of our total costs) increased by 7%over the comparable period, mainly reflecting the 53rd week, extended openinghours from September, a 3% increase in the average number of LBOs trading in theperiod and an inflation-based pay award to staff of 3%. Property costs, whichrepresented 17% of our total costs, were up 15% over the comparable periodreflecting higher energy costs and increases in rent and rates, in part drivenby an increase in average LBO size and also a greater number of LBOs. Depreciation costs increased 20% due to increased investment in the LBO estateand IT systems, including gaming products. The cost of providing pictures anddata to our LBOs was up 9% over the comparable period due to the increased sizeof the estate and the costs of extra content to support the extended openinghours. Advertising and marketing costs were down 9% over the comparable periodmainly due to the absence of the World Cup marketing campaign, which wasincluded in the 2006 comparative figures. Approximately £3.0m was incurred inthe period in preparation for the introduction of the new Gambling Commissionregime, of which £1.2m was non-recurring. Looking forward, we will continue to focus on cost discipline and remainconfident that cost increases will remain in the 4-6% historical cost rangeexcluding the incremental effects of evening opening and Turf TV. Regulatory development The Gambling Act 2005 came into force on 1 September 2007 with the GamblingCommission taking on its role of implementing and policing the detailedregulations, licence conditions and guidance that will govern gambling in GreatBritain. We welcome the establishment of the Gambling Commission and support itsobjective to regulate gambling in the public interest by keeping crime out ofgambling, by ensuring that gambling is conducted fairly and openly, and byprotecting children and vulnerable people from being harmed or exploited bygambling. We have engaged with the Commission, working with it to try and establishworkable regulations in time for the 1st September deadline. We look forward tomaintaining a positive dialogue with the Commission in years to come. We havealso undertaken a significant training programme during the year to inform allour staff of the requirements of the Act and their responsibilities under thenew regime. Cost of content On 11 January 2008, we entered into a five year contract with Amalgamated RacingLimited, trading as Turf TV, for the provision of live coverage of all horse races taking place at those horserace courses for which Turf TV has exclusive rights. By agreeing this contract the Group has ensured that it is able to provide pictures of UK racing to our customers in the United Kingdom, the Isle of Man, Channel Islands and the Republic of Ireland from that date and has obtained certainty on the cost of that service for the next five years. The Group, together with the Bookmakers Afternoon Greyhound Services Limited and other bookmakers, is currently party to litigation against Turf TV and various others over allegations of breaches of competition law. On 20 February 2008, the Government announced its intention that the 47th Levy scheme be settled on terms similar to those included in the 46th Levy scheme. We were disappointed with this outcome but welcomed the comments in the accompanying statement that the Government accepted an argument could be put forward that bookmakers' subscriptions to the new Turf TV service constitute a commercially based flow of money to horseracing. We share the Government's desire to move away from a statutory levy and we look forward to engaging with the Government and the horseracing industry in the near future on developing a commercial arrangement for the support of horseracing going forward. Taxation The main taxation change in the period was the reduction from 30% to 28% in theheadline rate of corporation tax, which becomes effective from 1 April 2008. Asthe Group has significant non-cash deferred tax liabilities associated with itsacquired betting licences, the rate change has led to a one-off reduction in thetax charge of £11.3m, resulting from the restatement of these liabilities basedon the reduced corporation tax rate. Consequently, the Group's effective rate oftax (before exceptional items and associate income) was 25.3%, as compared to29.6% in 2006 and the UK statutory rate for 2007 of 30%. Cashflow and net indebtedness The Group generated net cash inflow from operating activities before financingand tax of £310.7m, £3.2m lower than the comparable period. The Group paid£77.7m in net debt service costs, paid £71.8m in corporation tax, invested£97.3m in capital expenditure and acquisitions (including joint-ventureinvestments), paid £78.5m in dividends and spent £43.5m (net of SAYE optionreceipts) purchasing its own shares. Net indebtedness increased to £1,083.9m at 1 January 2008 (26 December 2006 -£1,043.4m) as a result of the above. Returns to shareholders The Company is proposing to pay a final dividend of 15.5 pence per share (2006:14.5 pence per share) on 5 June 2008 to shareholders on the register on 2 May2008. The 7% increase in the proposed final dividend is in line with the Group'spolicy of returning surplus capital via dividends and share buybacks. Theproposed level of total dividend corresponds to a dividend cover ratio of 1.9times (26 December 2006 - 2.1 times). The Company normally aims to pay interimand final dividends that represent approximately one third and two thirds,respectively, of total dividends. The Company obtained a renewed authority from shareholders at the Annual GeneralMeeting held in May 2007 to buyback up to 10% of the issued share capital. In2007, the Company bought back 2% of its opening share capital, all of which wascancelled. The aggregate cost (after expenses and stamp duty) of the acquired 2%of issued share capital was £46.0m. From June 2002, the date of its initial public offering to the end of 2007, theCompany has bought back a total of 19% of its original issued share capital(inclusive of shares bought back into treasury) returning £448.5m toshareholders and paid dividends totalling a further £326.5m (excluding theproposed dividend of 15.5 pence per share to be paid in June 2008). Approximately 2% of the issued share capital at the end of 2007 is held astreasury shares to meet future awards under the Group's various incentive andshare remuneration schemes. Financial structure and liquidity Following the acquisition of Stanley Retail in June 2005, the Board consideredthe optimal capital structure and financing arrangements for William Hill as apublic company. Accordingly, the Group secured new facilities of £1.2bn with aconsortium of banks. £600m of the new facilities has been structured as afive-year revolving credit facility and £600m as a five-year term loan. Thesefacilities are repayable in March 2010. In June 2006, the Group arranged afurther new five-year bank facility of £250m. This facility is repayable in July2011. The directors believe that these facilities are currently sufficient tomeet the projected working capital and investment needs of the Group. The Company has hedged its exposure to interest rates on its forecast floatingrate debt by entering into a series of interest rate swaps and collars. As at 1January 2008, approximately 40% of its forecast exposure is fixed via interestrate swaps reducing to 10% by the end of 2012. A further 40% is subject tointerest rate collar arrangements as at 1 January 2008, also reducing to 10% bythe end of 2012. The remaining exposure is at floating rates. The Board will continue to reviewperiodically the borrowing and hedging arrangements to ensure that they remainappropriate to the needs of the Group and take account of changes in marketconditions and business plans. In September 2005, the Board announced it intended to maintain an efficient andflexible capital structure and would achieve these objectives by targeting aratio of net debt to earnings before exceptional items, interest, tax,depreciation and amortisation (EBITDA) of approximately 3.5 times to be achievedover the medium term. By the end of December 2007, the Group net debt to EBITDAratio was 3.4 times. The Board remains focussed on maintaining an efficient balance sheet and willcontinue to return surplus capital to shareholders through its progressivedividend policy and share buyback programme as appropriate. Equally, the Boardremains committed to growing the business and will invest in appropriateopportunities both via capital expenditure and bolt-on acquisitions in its corebusiness, where its assessment indicates that shareholder value will bemaximised. Reconciliation of gross win to revenue Due to the requirements of accounting standards, the Group discloses a differenttop line measure of activity (revenue) in its accounts from gross win. Thedifference between the two measures is the VAT payable on machine income and thefollowing is a reconciliation for the periods presented between gross win andrevenue as disclosed in the attached financial statements: 53 weeks to 1 52 weeks to 26 Jan 2008 Dec 2006 £m £mGross win 983.7 931.3VAT on machine income (43.3) (37.1)---------------------------- -------- ---------Revenue 940.4 894.2---------------------------- -------- --------- Current trading In the seven weeks to 19 February 2008, the Group's gross win has increased by4%. This represents a solid start to the year given the strong prior yearcomparatives. To date we have seen no evidence that a slow down in consumer spending is havingan adverse impact on our business although at this early stage of the cycle itis difficult to be definitive. The Board notes that historically, the Group'sbusiness has proven to be less exposed to the economic cycle than many otherconsumer facing industries. Since the last economic downturn, however, thebusiness has significantly increased its income generated from gaming machinesin LBOs and online betting and gaming. It is difficult to predict with anycertainty how these income streams will react under conditions of economicpressure. For the year as a whole, we remain confident of further growth in the Retailbusiness. The Group remains focused on cost and believes that like for like costgrowth can continue to be contained within the historic range of 4-6%. However,the business will need to absorb incremental costs associated with the new TurfTV contract and the full year impact of extended winter opening hours. The performance of the interactive sportsbook is expected to continue to beimpacted until the new ORBIS platform is fully up and running towards the end ofthe year. The development of our International business continues. Until these businessesreach scale we would anticipate absorbing some operating losses, which in 2008are expected to be approximately £8 million. Overall, the Board remains confident about the prospects for the business bothin the UK and internationally. Chief Executive appointment On 21 February 2008, the Board announced the appointment of Ralph Topping asChief Executive. Mr Topping was previously Group Director, Operations forWilliam Hill, with responsibility for the Group's UK-based operations. He wasappointed to the Board of William Hill PLC in April 2007. Mr Topping joinedWilliam Hill in 1973 and has held various positions within the Group, includingRetail Operations Director and Internet Director. Mr Topping brings a deepknowledge of the William Hill business and more than 35 years of industryexperience to the role. Consolidated Income Statementfor the 53 weeks ended 1 January 2008 53 weeks 52 weeks ended ended Before Exceptional 1 January 26 December exceptional items 2008 2006 items (note 3) Total Notes £m £m £m £m-------------------- ------ ---------- --------- ---------- ----------Continuing Operations Amounts wagered 2 14,792.3 - 14,792.3 13,235.9-------------------- ------ ---------- --------- ---------- ---------- Revenue 2 940.4 - 940.4 894.2Cost of sales (174.2) - (174.2) (160.3)-------------------- ------ ---------- --------- ---------- ----------Gross profit 2 766.2 - 766.2 733.9Other operating income 10.4 - 10.4 6.3Other operating expenses (490.6) - (490.6) (451.6)Exceptional operating expense 3 - (20.9) (20.9) -Share of results of associates and joint ventures 0.7 - 0.7 3.6-------------------- ------ ---------- --------- ---------- ----------Operating profit 2 286.7 (20.9) 265.8 292.2Exceptional profit on saleand leaseback of properties 3 - 6.7 6.7 -Investment income 4 24.3 - 24.3 13.0Finance costs 5 (87.6) - (87.6) (69.8)-------------------- ------ ---------- --------- ---------- ----------Profit before tax 2 223.4 (14.2) 209.2 235.4Tax 3,6 (56.3) 4.5 (51.8) (68.6)-------------------- ------ ---------- --------- ---------- ----------Profit for the period 9 167.1 (9.7) 157.4 166.8-------------------- ------ ---------- --------- ---------- ----------Earnings per share (pence)Basic 8 44.7 45.5Diluted 8 44.3 44.9-------------------- ------ ---------- --------- ---------- ---------- Consolidated Statement of Recognised Income and Expensefor the 53 weeks ended 1 January 2008 53 weeks 52 weeks ended ended 1 January 26 December 2008 2006 Notes £m £m---------------------------------- ------ ---------- ----------(Loss)/gain on cash flow hedges (1.6) 14.3Actuarial gain on defined benefitpension scheme 12.9 16.7Tax on items taken directly to equity (1.3) (9.5)Change in associate net assets due toshare repurchase - (1.7)---------------------------------- ------ ---------- ----------Net income recognised directly in equity 10.0 19.8Transferred to income statement on cashflow hedges 9 (7.6) 0.7Profit for the period 157.4 166.8---------------------------------- ------ ---------- ----------Total recognised income and expense forthe period 159.8 187.3---------------------------------- ------ ---------- ---------- Consolidated Balance Sheetas at 1 January 2008 Notes 1 January 26 December 2008 2006 £m £m----------------------------------- ------ ---------- ----------Non-current assetsIntangible assets 1,365.9 1,342.7Property, plant and equipment 214.7 207.0Interest in associates and jointventures 12.7 5.3Deferred tax asset 1.9 8.5----------------------------------- ------ ---------- ---------- 1,595.2 1,563.5----------------------------------- ------ ---------- ----------Current assetsInventories 0.6 0.5Trade and other receivables 32.3 30.4Cash and cash equivalents 69.4 98.7Derivative financial instruments 5.2 14.4----------------------------------- ------ ---------- ---------- 107.5 144.0----------------------------------- ------ ---------- ----------Total assets 1,702.7 1,707.5----------------------------------- ------ ---------- ---------- Current liabilitiesTrade and other payables (90.8) (108.6)Current tax liabilities (51.8) (66.3)Borrowings (1.2) (0.9)Derivative financial instruments (4.7) (5.6)----------------------------------- ------ ---------- ---------- (148.5) (181.4)----------------------------------- ------ ---------- ---------- Non-current liabilitiesBorrowings (1,152.1) (1,141.2)Retirement benefit obligations (3.3) (25.1)Deferred tax liabilities (165.7) (169.3)----------------------------------- ------ ---------- ---------- (1,321.1) (1,335.6)----------------------------------- ------ ---------- ---------- Total liabilities (1,469.6) (1,517.0)----------------------------------- ------ ---------- ---------- Net assets 233.1 190.5----------------------------------- ------ ---------- ---------- EquityCalled-up share capital 9 35.4 36.2Share premium account 9 - 311.3Capital redemption reserve 9 6.8 6.0Merger reserve 9 (26.1) (26.1)Own shares held 9 (34.4) (46.9)Hedging and translation reserves 9 3.2 9.4Retained earnings 9 248.2 (99.4)----------------------------------- ------ ---------- ----------Total equity 9 233.1 190.5----------------------------------- ------ ---------- ---------- Consolidated Cash Flow Statementfor the 53 weeks ended 1 January 2008 Notes 53 weeks 52 weeks ended ended 1 January 26 December 2008 2006 £m £m----------------------------------- ------ ---------- ----------Net cash from operating activities 10 149.6 204.6----------------------------------- ------ ---------- ----------Investing activitiesDividend from associate 2.0 -Interest received 11.6 2.9Proceeds on disposal of property,plant and equipment 5.7 5.9Proceeds on disposal of share inassociate 1.8 -Proceeds on exceptional sale offreehold properties 9.8 -Purchases of property, plant andequipment (42.8) (55.2)Purchases of betting licences (5.3) (1.9)Expenditure on computer software (15.8) (10.8)Acquisition of subsidiaries 11 (25.2) -Investment in joint ventures (8.2) ------------------------------------ ------ ---------- ----------Net cash used in investingactivities (66.4) (59.1)----------------------------------- ------ ---------- ---------- Financing activitiesPurchase of own shares (47.9) (178.4)SAYE share option redemptions 4.4 1.0Dividends paid 9 (78.5) (70.9)Repayments of borrowings - (125.0)New bank loans raised 9.7 250.0New debt facility issue costs - (2.2)New finance leases - 2.1Collar premiums paid (0.2) ------------------------------------ ------ ---------- ----------Net cash used in financingactivities (112.5) (123.4)----------------------------------- ------ ---------- ----------Net (decrease)/increase in cash andcash equivalents in the period (29.3) 22.1Cash and cash equivalents at startof period 98.7 76.6----------------------------------- ------ ---------- ----------Cash and cash equivalents at end ofperiod 69.4 98.7----------------------------------- ------ ---------- ---------- Notes to the Group Financial Statementsfor the weeks ended 1 January 2008 1. Basis of accounting General information William Hill PLC is a company incorporated in the United Kingdom under theCompanies Act 1985. The address of the registered office is Greenside House, 50Station Road, London, N22 7TP. These financial statements are presented in pounds sterling because that is thecurrency of the primary economic environment in which the Group operates. Adoption of new and revised standards In the current year the Group has not been subject to any new mandatoryInternational Financial Reporting Standards (IFRS). Four Interpretations issuedby the International Financial Reporting Interpretations Committee are effectivefor the current period. These are: IFRIC 7 Applying the Restatement Approachunder IAS 29; IFRIC 8 Scope of IFRS 2; IFRIC 9 Reassessment of EmbeddedDerivatives; and IFRIC 10 Interim Financial Reporting and Impairment. Theadoption of these Interpretations has not led to any changes in the Group'saccounting policies. At the date of authorisation of these Group financial statements, the followingStandards and Interpretations, which have not been applied in these Groupfinancial statements, were in issue but not yet effective: IFRS 7 Financial instruments: disclosures; IFRS 8 Operating segments; IFRIC 11 IFRS 2 - Group and Treasury Share Transactions; IFRIC 12 Service Concession Arrangements; IFRIC 13 Customer Loyalty Programmes; and IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. The Directors anticipate that the adoption of these Standards andInterpretations in future periods will have no material impact on the financialstatements of the Group except for additional disclosures on capital andfinancial instruments when IFRS 7 comes into effect for periods commencing on orafter 1 January 2007. The financial statements for the 53 weeks ended 1 January 2008, which have beenapproved by a committee of the Board of Directors on 26 February 2008, have beenprepared on the basis of accounting policies set out in the Group's statutoryaccounts for the 52 weeks ended 26 December 2006. This preliminary report shouldtherefore be read in conjunction with the 2006 financial statements. The financial statements set out in this preliminary announcement do notconstitute the Company's statutory accounts for the 53 week period ended 1January 2008 or the 52 week period ended 26 December 2006, but is derived fromthose accounts. Statutory accounts for the 52 week period ended 26 December 2006have been delivered to the Registrar of Companies and those for the 53 weekperiod ended 1 January 2008 will be delivered following the Company's AnnualGeneral Meeting. The auditors have reported on those accounts and their reportswere unqualified and did not contain statements under section 237(2) or (3)Companies Act 1985. Whilst the financial information included in this preliminary announcement hasbeen computed in accordance with IFRS, this announcement does not itself containsufficient information to comply with IFRS. The Company expects to publish fullfinancial statements that comply with IFRS in April 2008. Basis of accounting The Group financial statements have been prepared in accordance withInternational Financial Reporting Standards (IFRS). The Group financialstatements have also been prepared in accordance with IFRS adopted by theEuropean Union and therefore the Group financial statements comply with Article4 of the EU IAS Regulation. The financial statements have been prepared on the historical cost basis, exceptfor the revaluation of certain financial instruments. Basis of consolidation The Group financial statements incorporate the financial statements of theCompany and entities controlled by the Company (its subsidiaries) made up to 1January 2008. Control is achieved where the Company has the power to govern thefinancial and operating policies of an investee entity so as to obtain benefitsfrom its activities. The results of subsidiaries acquired or disposed of during the year are includedin the consolidated income statement from the effective date of acquisition orup to the effective date of disposal, as appropriate. Where necessary,adjustments are made to the financial statements of subsidiaries to bring theaccounting policies used into line with those used by the Group. All intra-Grouptransactions, balances, income and expenses are eliminated on consolidation. Business combinationOn acquisition, the assets, liabilities and contingent liabilities of asubsidiary are measured at their fair values at the date of acquisition. Anyexcess of the cost of acquisition over the fair values of the identifiable netassets acquired is recognised as goodwill. Any deficiency of the cost ofacquisition below the fair values of the identifiable net assets acquired (i.e.discount on acquisition) is credited to profit and loss in the period ofacquisition. 2. Segment information For management purposes, the Group is currently organised into three operatingdivisions - Retail, Interactive and Telephone. These divisions are the basis onwhich the Group reports its primary segment information. Business segment information for the 53 weeks ended 1 January 2008: Retail Interactive Telephone Other Corporate Group £m £m £m £m £m £m------------------ ------- ------- ------- ------- ------- ------- Amounts wagered 13,022.5 1,182.0 559.2 28.6 - 14,792.3Payout (12,263.2) (1,062.2) (506.2) (20.3) - (13,851.9)------------------ ------- ------- ------- ------- ------- -------Revenue 759.3 119.8 53.0 8.3 - 940.4GPT, duty, leviesand other cost ofsales (137.6) (23.2) (12.3) (1.1) - (174.2)------------------ ------- ------- ------- ------- ------- -------Gross profit 621.7 96.6 40.7 7.2 - 766.2Depreciation (26.1) (6.9) (1.5) (0.3) (1.1) (35.9)Other administrativeexpenses (365.8) (38.8) (23.1) (5.8) (10.8) (444.3)Exceptionaloperating expense - (20.9) - - - (20.9)Share of resultof associates andjoint ventures - - - - 0.7 0.7------------------ ------- ------- ------- ------- ------- -------Operatingprofit/(loss) 229.8 30.0 16.1 1.1 (11.2) 265.8Exceptional profit on sale and leaseback ofproperties - - - - 6.7 6.7Investment income - - - - 24.3 24.3Finance costs - - - - (87.6) (87.6)------------------ ------- ------- ------- ------- ------- -------Profit/(loss)before tax 229.8 30.0 16.1 1.1 (67.8) 209.2------------------ ------- ------- ------- ------- ------- ------- Business segment information for the 53 weeks ended 1 January 2008: Retail Interactive Telephone Other Corporate Group £m £m £m £m £m £m------------------ ------- ------- ------- ------- ------- -------Balance sheet informationTotal assets 1,386.4 117.9 85.0 16.3 97.1 1,702.7Totalliabilities (53.5) (25.3) (5.7) (0.5) (1,384.6) (1,469.6)Investment in associateand joint ventures - - - - 12.7 12.7Capital additions 42.2 16.1 1.4 0.1 1.0 60.8Included within Total assets: Goodwill 687.8 97.2 80.4 7.1 - 872.5 Other intangibles with indefinite lives 483.9 - - - - 483.9------------------ ------- ------- ------- ------- ------- ------- Business segment information for the 52 weeks ended 26 December 2006: Retail Interactive Telephone Other Corporate Group £m £m £m £m £m £m------------------ ------- ------- -------- ------- ------- -------Amounts wagered 11,486.0 1,060.3 659.9 29.7 - 13,235.9Payout (10,787.1) (929.8) (602.4) (22.4) - (12,341.7)----------------- ------- ------- -------- ------- ------- -------Revenue 698.9 130.5 57.5 7.3 - 894.2GPT, duty, levies andother cost of sales (120.5) (26.0) (12.9) (0.9) - (160.3)------------------ ------- ------- -------- ------- ------- -------Gross profit 578.4 104.5 44.6 6.4 - 733.9Depreciation (23.5) (4.9) (0.7) (0.2) (0.5) (29.8)Other administrativeexpenses (329.0) (38.1) (27.2) (6.8) (14.4) (415.5)Share of resultof associate - - - - 3.6 3.6------------------ ------- ------- -------- ------- ------- -------Operatingprofit/(loss) 225.9 61.5 16.7 (0.6) (11.3) 292.2Investment income - - - - 13.0 13.0Finance costs - - - - (69.8) (69.8)------------------ ------- ------- -------- ------- ------- -------Profit/(loss)before tax 225.9 61.5 16.7 (0.6) (68.1) 235.4------------------ ------- ------- -------- ------- ------- -------Balance sheet informationTotal assets 1,360.9 127.1 95.8 18.9 104.8 1,707.5Total liabilities (54.7) (26.6) (4.4) (0.5) (1,430.8) (1,517.0)Investment inassociate - - - - 5.3 5.3Capital additions 52.5 9.1 9.1 - 1.0 71.7Included withinTotal assets: Goodwill 681.0 97.2 80.4 7.1 - 865.7 Other intangibles with indefinite lives 454.7 - - - - 454.7------------------ ------- ------- -------- ------- ------- ------- The Retail distribution channel comprises all activity undertaken in LBOsincluding gaming machines. Other activities include on-course betting andgreyhound stadia operations. Net assets/(liabilities) have been allocated by segment where assets andliabilities can be identified with a particular channel. Corporate net assetsinclude corporation and deferred tax, net borrowings and pension liability aswell as any assets and liabilities that cannot be allocated to a particularchannel other than on an arbitrary basis. There are no inter-segmental sales within the Group. In accordance with IAS 14 'Segment Reporting', segment information bygeographical location is not presented as the Group's revenue and profits ariseprimarily from customers in the United Kingdom with significantly less than 10%(the minimum required by IAS 14 to necessitate disclosure) of revenue andprofits generated from customers outside of this jurisdiction. Similarly, only asmall portion of the Group's net assets is located outside of the UnitedKingdom. 3. Exceptional items Exceptional items are those items the Group considers to be one-off or materialin nature that should be brought to the readers' attention, in understanding theGroup's financial performance. Exceptional items are as follows: 53 weeks ended 52 weeks ended 1 January 26 December 2008 2006 £m £m------------------------------ --------- ---------Impairment in relation to termination ofNextGen programme (1) (20.9) -Sale and leaseback of LBO properties (2) 6.7 ------------------------------- --------- --------- (14.2) ------------------------------- --------- --------- (1) In November 2007, the Board of directors instigated a review of the NextGen programme. As a result of the review, the programme was terminated. This decision resulted in an impairment charge of £20.9m, consisting of £20.5m internally developed software and £0.4m computer hardware. (2) Income arose from the sale and leaseback of 24 LBO properties and is shown net of costs. Exceptional tax (charges)/credit are as follows: 53 weeks ended 52 weeks ended 1 January 26 December 2008 2006 £m £m------------------------------ --------- ---------Deferred tax charge on held over capitalgain on sale and leaseback of LBO's (1.4) -Tax relief expected in respect ofassets impaired 5.9 ------------------------------- --------- --------- 4.5 ------------------------------- --------- --------- 4. Investment income 53 weeks ended 52 weeks ended 1 January 26 December 2008 2006 £m £m------------------------------ --------- ---------Interest on bank deposits 4.0 2.9Fair value gains on interest rate swapstransferred from equity for cash flow hedgesof floating rate debt 7.6 -Expected return on pension scheme assets 12.7 10.1------------------------------ --------- --------- 24.3 13.0------------------------------ --------- --------- 5. Finance costs 53 weeks ended 52 weeks ended 1 January 26 December 2008 2006 £m £m------------------------------ --------- ---------Interest payable and similar charges:Bank loans and overdrafts 74.2 57.8Amortisation of finance costs 1.7 1.3------------------------------ --------- ---------Net interest payable 75.9 59.1Interest on pension scheme liabilities 11.7 10.7------------------------------ --------- --------- 87.6 69.8------------------------------ --------- --------- 6. Tax on profit on ordinary activities The tax charge comprises: 53 weeks ended 52 weeks ended 1 January 26 December 2008 2006 £m £m------------------------------ --------- ---------Current tax: UK corporation tax at 30% 61.6 66.5 UK corporation tax - prior periods (4.7) (6.4)------------------------------ --------- ---------Total current tax charge 56.9 60.1------------------------------ --------- ---------Deferred tax: Origination and reversal of timing differences 1.4 5.1 Impact from changes in statutory tax rates (11.3) - Adjustment in respect of prior years 4.8 3.4------------------------------ --------- ---------Total deferred tax (credit)/charge (5.1) 8.5------------------------------ --------- ---------Total tax on profit on ordinary activities 51.8 68.6------------------------------ --------- --------- The effective tax rate in respect of ordinary activities before exceptionalcosts and excluding associate and joint venture income is 25.3% (52 weeks ended26 December 2006 - 29.6%). The effective tax rate in respect of ordinaryactivities after exceptional items and excluding associate and joint ventureincome was 24.8% (52 weeks ended 26 December 2006 - 29.6%). The current period'scharge is lower than the statutory rate of 30% mainly due to a reduction inmainstream corporation tax rates from 30% to 28% from 1 April 2008. This changehas resulted in a deferred tax credit arising from the reduction in the balancesheet carrying value of deferred tax net liabilities to reflect the anticipatedrate of tax at which those liabilities are expected to reverse. The differences between the total current tax shown above and the amountcalculated by applying the standard rate of UK corporation tax to the profitbefore tax is as follows: 53 weeks ended 52 weeks ended 1 January 26 December 2008 2006 £m % £m %-------------------------------- ------- ------ -------- ------ Profit before tax 209.2 235.4Less: share of results of associates andjoint ventures (0.7) (3.6)-------------------------------- ------- ------ -------- ------ 208.5 100.0 231.8 100.0-------------------------------- ------- ------ -------- ------Tax on Group profit at standard UKcorporation tax rate of 30% 62.6 30.0 69.5 30.0 Impact of changes in statutory tax rates (11.3) (5.4) - -Adjustment in respect of prior periods 0.1 - (3.0) (1.3)Permanent differences - non deductibleexpenditure 1.0 0.5 2.1 0.9Permanent differences - non taxable income (0.6) (0.3) - --------------------------------- ------- ------ -------- ------Total tax charge 51.8 24.8 68.6 29.6-------------------------------- ------- ------ -------- ------ The Group earns its profits primarily in the UK, therefore the tax rate used fortax on profit on ordinary activities is the standard rate for UK corporationtax, currently 30%. 7. Dividends proposed and paid 53 weeks 52 weeks 53 weeks 52 weeks ended ended ended ended 1 January 26 December 1 January 26 December 2008 2006 2008 2006 Per share Per share £m £m-------------------- -------- --------- -------- ---------Equity shares: - current year interim dividend paid 7.75p 7.25p 27.3 25.6 - prior year final dividend paid 14.5p 12.2p 51.2 45.3-------------------- -------- --------- -------- --------- 22.25p 19.45p 78.5 70.9-------------------- -------- --------- -------- ---------Proposed dividend 15.5p 14.5p 53.8 51.2-------------------- -------- --------- -------- --------- The proposed final dividend of 15.5p will, subject to shareholder approval, bepaid on 5 June 2008 to all shareholders on the register on 2 May 2008. In linewith the requirements of IAS 10 - 'Events after the Balance Sheet Date', thisdividend has not been recognised within these results. Under an agreement signed in November 2002, The William Hill Holdings 2001Employee Benefit Trust agreed to waive all dividends. As at 1 January 2008, thetrust held 0.03m ordinary shares. In addition, the Company does not paydividends on the 6.5m shares held in treasury. The Company estimates that 347.2mshares will qualify for the final dividend. 8. Earnings per share The earnings per share figures for the respective periods are as follows: 53 weeks ended 52 weeks ended 1 January 26 December 2008 2006 Pence Pence------------------------------ --------- ---------Basic - adjusted 47.4 45.5Basic 44.7 45.5Diluted 44.3 44.9------------------------------ --------- --------- An adjusted earnings per share, based on profit for the period beforeexceptional items, has been presented in order to highlight the underlyingperformance of the Group. The calculation of the basic and diluted earnings per share is based on thefollowing data: 53 weeks ended 52 weeks ended 1 January 26 December 2008 2006 £m £m------------------------------ --------- --------- Profit after tax for the financial period 157.4 166.8Exceptional items (note 3) 14.2 -Exceptional items - tax credit (note 3) (4.5) ------------------------------- --------- ---------Profit after tax for the financial periodbefore exceptional items 167.1 166.8------------------------------ --------- --------- Number (m) Number (m)------------------------------ --------- ---------Weighted average number of ordinary sharesfor the purposes of basic earnings per share 352.2 366.7Effect of dilutive potential ordinary shares:Employee share awards and options 3.4 4.7------------------------------ --------- ---------Weighted average number of ordinary sharesfor the purposes of diluted earnings pershare 355.6 371.4------------------------------ --------- --------- The basic weighted average number of shares excludes shares held by The WilliamHill Holdings 2001 Employee Benefit Trust and those shares held in treasury assuch shares do not qualify for dividends. The effect of this is to reduce theaverage number of shares by 7.9m in the 53 weeks ended 1 January 2008 (52 weeksended 26 December 2006 - 10.4m). 9. Reserves Hedging Called- Capital and up Share redemp- Own transl- share premium tion Merger shares ation Retained capital account reserve reserve held reserves earnings Total £m £m £m £m £m £m £m £m ---------------- ------ ------ ------ ------ ------ ------ ------ ------At 28 December 2005 39.1 311.3 3.1 (26.1) (57.5) (1.1) (20.2) 248.6Profit for the financialperiod - - - - - - 166.8 166.8Dividends paid (note 7) - - - - - - (70.9) (70.9)Items taken directly tostatement of recognisedincome and expense - - - - - 9.8 10.0 19.8Expense recognised inrespect of shareremuneration - - - - - - 3.0 3.0Shares purchased andcancelled (2.9) - 2.9 - - - (178.4) (178.4)Transfer to income - - - - - 0.7 - 0.7Transfer of own shares to recipients - - - - 10.6 - (9.7) 0.9---------------- ------ ------ ------ ------ ------ ------ ------ ------At 27 December 2006 36.2 311.3 6.0 (26.1) (46.9) 9.4 (99.4) 190.5Profit for the financialperiod - - - - - - 157.4 157.4Dividends paid (note 7) - - - - - - (78.5) (78.5)Items taken directly tostatement of recognisedincome and expense - - - - - 1.2 8.9 10.1Expense recognised inrespect of shareremuneration - - - - - - 2.6 2.6Shares purchased andcancelled (0.8) - 0.8 - - - (46.0) (46.0)Transfer to income - - - - - (7.6) - (7.6)Transfer of own shares torecipients - - - - 12.5 - (8.1) 4.4Cancellation of sharepremium - (311.3) - - - - 311.3 -Exchangedifferences ontranslation of overseasoperations - - - - - 0.2 - 0.2---------------- ------ ------ ------ ------ ------ ------ ------ ------At 1 January2008 35.4 - 6.8 (26.1) (34.4) 3.2 248.2 233.1---------------- ------ ------ ------ ------ ------ ------ ------ ------ Shares were cancelled during the period as part of the Company's share buybackprogramme. Own shares held at 1 January 2008 amounting to £34.4m comprise 6.5m shares(nominal value - £0.6m) held in treasury purchased for £34.4m and 0.03m shares(nominal value - £0.003m) held in The William Hill Holdings 2001 EmployeeBenefit Trust purchased for £0.04m. The shares held in treasury were purchasedat a weighted average price of £5.32. At 1 January 2008 the total market valueof own shares held in treasury and in the Trust was £34.0m. The share premium reserve records the excess of the cash actually received onthe issue of shares over the nominal amount of the share capital issued. On 20June 2007 the High Court of Justice confirmed the reduction in share premium,allowing its transfer to retained earnings. 10. Notes to the cash flow statement 53 weeks ended 52 weeks ended 1 January 26 December 2008 2006 £m £m------------------------------ --------- ---------Operating profit before exceptional items 286.7 292.2Adjustments for:Share of result of associates and jointventures (0.7) (3.6)Depreciation of property, plant andequipment 27.8 27.1Depreciation of computer software 8.1 2.7Loss/(gain) on disposal of property, plantand equipment 0.4 (0.5)Gain on disposal of LBOs and administrativebuildings (5.1) (4.0)Gain on disposal of SIS shares (1.7) -Cost charged in respect of shareremuneration 2.6 3.0Defined benefit pension cost less cashcontributions (7.9) (8.1)Foreign exchange reserve movement 0.2 -Movement on financial derivatives (0.9) -Movement in provisions - (7.5)------------------------------ --------- ---------Operating cash flows before movements inworking capital: 309.5 301.3 Increase in inventories (0.1) (0.1)Decrease/(increase) in receivables 0.2 (11.0)Increase in payables 1.1 23.7------------------------------ --------- ---------Cash generated by operations 310.7 313.9Income taxes paid (71.8) (53.9)Interest paid (89.3) (55.4)------------------------------ --------- ---------Net cash from operating activities 149.6 204.6------------------------------ --------- --------- Cash and cash equivalents (which are presented as a single class of assets onthe face of the balance sheet) comprise cash at bank and other short-term highlyliquid investments with a maturity of three months or less. 11. Acquisitions During the period the Group acquired 2 small chains of bookmakers, details ofwhich are given below: T.H Jennings (Harlow Pools) Limited On 10 January 2007, the Group acquired all of the issued share capital of T.HJennings (Harlow Pools) Limited ('Jennings') for total cash consideration of£21.5m including costs of £0.3m. The capitalised goodwill on this transactionwas £5.8m. Jennings contributed £6.3m revenue and £1.9m to the Group's profitbefore taxation for the period between 11 January 2007 and 1 January 2008. Eclipse Bookmakers Limited On 25 January 2007, the Group acquired all of the issued share capital ofEclipse Bookmakers Limited ('Eclipse') for total cash consideration of £3.2mincluding costs of £0.1m. The capitalised goodwill on this transaction was£1.0m. Eclipse contributed £1.3m revenue and £0.2m to the Group's profit beforetaxation for the period between 26 January 2007 and 1 January 2008. Both transactions have been accounted for by the purchase method of accounting.The goodwill arising on these transactions is subject to an annual impairmentreview in accordance with IAS 36 'Impairment of assets'. The following tablesets out the book values of the identifiable assets and liabilities acquiredduring the period and their fair value to the Group: Book values ---------------------- Fair value Fair value Jennings Eclipse Total adjustments to Group £m £m £m £m £m----------------- -------- -------- -------- -------- --------Non-current assetsIntangible assets 0.3 - 0.3 23.6 23.9Property, plant &equipment 0.5 0.1 0.6 (0.1) 0.5Deferred tax assets 0.2 - 0.2 - 0.2Current assetsTrade and otherreceivables 2.8 0.1 2.9 - 2.9Cash 0.1 - 0.1 - 0.1----------------- -------- -------- -------- -------- --------Total assets 3.9 0.2 4.1 23.5 27.6----------------- -------- -------- -------- -------- --------Current liabilitiesTrade and other payables (2.6) (0.3) (2.9) - (2.9)Non-current liabilitiesDeferred tax liabilities - - - (6.8) (6.8)----------------- -------- -------- -------- -------- --------Total liabilities (2.6) (0.3) (2.9) (6.8) (9.7)----------------- -------- -------- -------- -------- --------Net assets acquired 1.3 (0.1) 1.2 16.7 17.9----------------- -------- -------- -------- -------- --------Net assets acquired 17.9Goodwill arising 6.8 --------Total consideration 24.7 --------Satisfied by:Cash consideration 23.6Retention creditor 1.1 --------Total consideration 24.7 -------- Net cash outflows in respect of these acquisitions comprised:Cash consideration (23.6)Bank loans, cash at bank and in hand acquired (1.6) --------- (25.2) --------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
WMH.L