2023 | 2022 | |
Carrying amount (non-current borrowings) (GBP m) | 142.6 | 83.5 |
EUR carrying amount (m) | EUR 137.0 | EUR 62.0 |
SEK carrying amount (m) | SEK 300.0 | SEK 371.0 |
Hedge ratio | 1:1 | 1:1 |
Change in carrying amount of borrowings as a result of foreign | ||
currency movements since 1 January, recognised in other | ||
comprehensive income (GBP m) | ‑4.0 | 1.6 |
Change in value of hedged item used to determine hedge | ||
effectiveness (GBP m) | 4.0 | ‑1.6 |
Weighted average hedged rate for the year (EUR:GBP) | 1.151 | 1.170 |
Weighted average hedged rate for the year (SEK:GBP) | 13.222 | 12.467 |
As at December 2023 | As at December 2022 | |||||
Less | Between | Less | Between | |||
than | 1 and 5 | 5+ | than | 1 and 5 | 5+ | |
(GBP m) | 1 year | years | years | 1 year | years | years |
Deferred income | 5.3 | – | – | 5.9 | – | – |
Trade and other payables 1 | 211.5 | – | – | 193.6 | – | – |
Customer balances | 71.1 | – | – | 80.2 | – | – |
Lease liabilities | 14.9 | 27.3 | 0.2 | 13.6 | 39.7 | 0.3 |
Contingent consideration | – | – | – | 2.2 | – | – |
Borrowings | 10.0 | 151.1 | – | 7.8 | 157.9 | – |
Put/call option liabilities | 24.7 | – | – | – | – | – |
Total | 337.5 | 178.4 | 0.2 | 303.3 | 197.6 | 0.3 |
As at | As at | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
AA‑ | 63.9 | 68.9 |
A+ | 43.8 | 44.9 |
A | 7.2 | 9.8 |
A‑ | 6.3 | 13.5 |
BBB+ | 0.1 | 0.1 |
BBB | 2.8 | 2.5 |
BBB‑ | 24.9 | 24.2 |
Not rated 1 | 91.3 | 91.0 |
Total cash and cash equivalents | 240.3 | 254.9 |
Kindred Group | ||||
excluding | ||||
31 December 2023 | Relax Gaming | Relax Gaming | ||
(GBP m) | (B2C) 1 | (B2B) | Eliminations | Total |
Gross winnings revenue (B2C) | 1,168.3 | – | 3.6 | 1,171.9 |
Other revenue (B2B) | – | 51.7 | ‑13.1 | 38.6 |
Total revenue | 1,168.3 | 51.7 | -9.5 | 1,210.5 |
Betting duties | ‑318.0 | – | – | -318.0 |
Marketing revenue share | ‑37.7 | – | – | -37.7 |
Other cost of sales | ‑175.5 | ‑8.0 | 8.5 | -175.0 |
Gross profit | 637.1 | 43.7 | -1.0 | 679.8 |
Marketing costs | ‑219.5 | ‑1.2 | – | -220.7 |
Total administrative expenses | ‑295.7 | ‑22.5 | – | -318.2 |
Items affecting comparability | ‑72.6 | ‑0.1 | – | -72.7 |
Profit from operations | 49.3 | 19.9 | -1.0 | 68.2 |
Kindred Group | ||||
excluding | ||||
31 December 2022 | Relax Gaming | Relax Gaming | ||
(GBP m) | (B2C) | (B2B) | Eliminations | Total |
Gross winnings revenue (B2C) | 1,041.4 | – | 1.5 | 1,042.9 |
Other revenue (B2B) | – | 35.7 | ‑9.9 | 25.8 |
Total revenue | 1,041.4 | 35.7 | -8.4 | 1,068.7 |
Betting duties | ‑272.8 | – | – | -272.8 |
Marketing revenue share | ‑41.8 | – | – | -41.8 |
Other cost of sales | ‑172.1 | ‑5.6 | 7.4 | -170.3 |
Gross profit | 554.7 | 30.1 | -1.0 | 583.8 |
Marketing costs | ‑226.0 | ‑1.8 | 0.6 | -227.2 |
Total administrative expenses | ‑265.4 | ‑18.2 | – | -283.6 |
Items affecting comparability | 58.3 | – | – | 58.3 |
Profit from operations | 121.6 | 10.1 | -0.4 | 131.3 |
Kindred | |||||
Central, | Group | ||||
Eastern and | excluding | ||||
31 December 2023 | Western | Southern | Relax Gaming | ||
(GBP m) | Europe | Nordics | Europe | Other | (B2C) |
Gross winnings revenue (B2C) | 707.5 | 284.6 | 123.4 | 52.8 | 1,168.3 |
Betting duties | ‑244.5 | ‑33.1 | ‑20.1 | ‑20.3 | -318.0 |
Marketing revenue share | ‑23.8 | ‑6.0 | ‑4.2 | ‑3.7 | -37.7 |
Other cost of sales | ‑80.2 | ‑56.0 | ‑23.4 | ‑15.9 | -175.5 |
Gross profit | 359.0 | 189.5 | 75.7 | 12.9 | 637.1 |
Kindred | |||||
Group | |||||
Central, | excluding | ||||
Eastern and | Relax | ||||
31 December 2022 | Western | Southern | Gaming | ||
(GBP m) | Europe | Nordics | Europe | Other | (B2C) |
Gross winnings revenue (B2C) | 573.3 | 303.4 | 110.9 | 53.8 | 1,041.4 |
Betting duties | ‑198.5 | ‑34.1 | ‑17.9 | ‑22.3 | -272.8 |
Marketing revenue share | ‑22.8 | ‑8.6 | ‑5.0 | ‑5.4 | -41.8 |
Other cost of sales | ‑70.6 | ‑63.7 | ‑21.9 | ‑15.9 | -172.1 |
Gross profit | 281.4 | 197.0 | 66.1 | 10.2 | 554.7 |
Year ended | Year ended | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Sports betting | 446.1 | 439.8 |
Casino & games | 664.3 | 550.5 |
Poker | 34.4 | 29.7 |
Other | 23.5 | 21.4 |
Gross winnings revenue (B2C) | 1,168.3 | 1,041.4 |
Year ended | Year ended | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Betting duties | 318.0 | 272.8 |
Marketing revenue share | 37.7 | 41.8 |
Other cost of sales | 175.0 | 170.3 |
Marketing costs | 220.7 | 227.2 |
Administrative expenses | ||
Salary costs (research costs) | 36.3 | 35.8 |
Other salary costs | 127.8 | 105.0 |
Total salaries | 164.1 | 140.8 |
Fees payable to statutory auditors | 1.2 | 1.2 |
Loss on disposal of property, plant and equipment | 0.1 | 0.1 |
Loss on disposal of intangible assets | 0.2 | 0.3 |
Other | 89.0 | 85.0 |
Other operating expenses | 90.5 | 86.6 |
Depreciation of property, plant and equipment | 11.1 | 14.0 |
Depreciation of right-of-use assets | 13.8 | 12.1 |
Amortisation of intangible assets | 38.7 | 30.1 |
Total administrative expenses | 318.2 | 283.6 |
Items affecting comparability | ||
Personnel restructuring costs | 9.6 | 0.3 |
Regulatory sanctions | 0.2 | 8.0 |
Market closure and contract termination costs | 33.8 | 2.5 |
Subsidy for warrants, incentive programme | – | 0.8 |
Strategic review costs | 4.9 | – |
Other losses/(gains) | 3.4 | ‑69.9 |
Impairment losses | 20.8 | – |
Total items affecting comparability | 72.7 | -58.3 |
Year ended | Year ended | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Annual statutory audit | 1.0 | 0.9 |
Non‑audit services | 0.2 | 0.3 |
1.2 | 1.2 |
Year ended | Year ended | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Gross wages | 126.3 | 107.3 |
Employee share schemes – value of employee services | ||
(see note 22) | 8.0 | 7.4 |
Employee warrants (see note 22) | 0.1 | 0.1 |
Social security costs | 20.4 | 18.0 |
Pension costs | 9.3 | 8.0 |
164.1 | 140.8 |
Year ended | Year ended | |
31 December | 31 December | |
Average number of employees for the year | 2023 | 2022 |
Finance, legal, administration and management | 492 | 494 |
Marketing (including trading) | 607 | 502 |
Customer services | 350 | 341 |
Research and development | 1,051 | 877 |
2,500 | 2,214 |
Year ended | Year ended | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Interest and fees payable on bank borrowings | 10.1 | 4.7 |
Interest on lease liabilities | 1.2 | 1.2 |
11.3 | 5.9 |
Year ended | Year ended | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Interest receivable on convertible bond and bank deposits | 2.2 | 0.8 |
Foreign exchange gains on dividend | 0.4 | 0.6 |
2.6 | 1.4 |
Year ended | Year ended | ||
31 December | 31 December | ||
(GBP m) | Note | 2023 | 2022 |
Current tax: | |||
Income tax expense | 23.3 | 20.1 | |
Deferred tax: | |||
Deferred tax credit | 21 | ‑11.0 | ‑13.4 |
Total tax expense | 12.3 | 6.7 |
Year ended | Year ended | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Profit before tax | 59.5 | 126.8 |
Taxation at the basic income tax rate of 35 (2022: 35) per cent | 20.8 | 44.4 |
Effects of: | ||
Tax recoverable 1 | ‑41.8 | ‑35.1 |
Overseas tax rates | ‑3.1 | ‑5.3 |
Items of income/expenditure not taxable/deductible 2 | 13.6 | ‑19.3 |
Other 3 | 22.8 | 22.0 |
Total tax expense | 12.3 | 6.7 |
Year ended | Year ended | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Deferred tax charge in relation to: | ||
Share‑based payments | 0.3 | – |
Total income tax recognised directly in equity | 0.3 | – |
Year ended | Year ended | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Earnings | ||
Earnings attributable to the owners of Kindred Group plc for the | ||
purposes of basic and diluted earnings per share | 46.5 | 119.9 |
Number of shares | ||
Weighted average number of outstanding shares for the | ||
purposes of basic earnings per share | 215,590,888 | 220,068,616 |
Effect of dilutive potential ordinary shares – share awards and | ||
share options | 2,456,921 | 2,025,865 |
Weighted average number of outstanding shares for the | ||
purposes of diluted earnings per share | 218,047,809 | 222,094,481 |
Earnings per share GBP | ||
Earnings per share | 0.22 | 0.54 |
Diluted earnings per share | 0.21 | 0.54 |
Other intangible assets | ||||||||
Development | Computer | Customer | Gambling | Brands and | ||||
(GBP m) | Note | Goodwill | costs | software | relationships | licences | domains | Total |
Cost | ||||||||
At 1 January 2022 | 442.3 | 159.0 | 8.5 | 58.2 | 37.9 | 151.0 | 414.6 | |
Additions | – | 36.9 | 0.4 | – | 1.0 | – | 38.3 | |
Disposals | – | ‑12.1 | ‑0.1 | – | – | – | -12.2 | |
Currency translation adjustment | 10.7 | 3.0 | – | 1.3 | 2.9 | 3.1 | 10.3 | |
At 31 December 2022 | 453.0 | 186.8 | 8.8 | 59.5 | 41.8 | 154.1 | 451.0 | |
Additions | – | 45.6 | 0.2 | – | 0.1 | – | 45.9 | |
Additions – through business combinations | – | – | – | – | 0.3 | – | 0.3 | |
Disposals | – | ‑16.4 | ‑3.4 | – | ‑1.7 | – | -21.5 | |
Currency translation adjustment | ‑5.7 | ‑1.6 | ‑0.3 | ‑0.6 | ‑1.4 | ‑1.6 | -5.5 | |
At 31 December 2023 | 447.3 | 214.4 | 5.3 | 58.9 | 39.1 | 152.5 | 470.2 | |
Accumulated amortisation | ||||||||
At 1 January 2022 | 13.8 | 84.7 | 7.0 | 43.9 | 3.8 | 19.9 | 159.3 | |
Charge for the year | 4 | – | 25.4 | 0.7 | 1.4 | 2.6 | – | 30.1 |
Disposals | – | ‑11.3 | – | – | – | – | -11.3 | |
Currency translation adjustment | 0.8 | 1.0 | – | 0.7 | 0.5 | 0.3 | 2.5 | |
At 31 December 2022 | 14.6 | 99.8 | 7.7 | 46.0 | 6.9 | 20.2 | 180.6 | |
Charge for the year | 4 | – | 33.6 | 0.5 | 1.5 | 3.1 | – | 38.7 |
Impairment losses recognised in the year | – | 5.3 | – | – | 11.7 | – | 17.0 | |
Disposals | – | ‑16.1 | ‑3.4 | – | ‑0.9 | – | -20.4 | |
Currency translation adjustment | ‑0.7 | ‑0.8 | ‑0.2 | ‑0.3 | ‑0.3 | ‑0.3 | -1.9 | |
At 31 December 2023 | 13.9 | 121.8 | 4.6 | 47.2 | 20.5 | 19.9 | 214.0 | |
Net book value | ||||||||
At 31 December 2023 | 433.4 | 92.6 | 0.7 | 11.7 | 18.6 | 132.6 | 256.2 | |
At 31 December 2022 | 438.4 | 87.0 | 1.1 | 13.5 | 34.9 | 133.9 | 270.4 |
Other intangible | |||
assets with | |||
Goodwill | indefinite lives | ||
CGU | (GBP m) | (GBP m) | Description |
Group | 170.0 | 41.5 | The Group’s key business asset – the Kindred platform – is considered the lowest level of assets that generate independent cash flows and accordingly |
operations | the Group’s operations in territories that are serviced by the single instance of Kindred Group’s platform are considered to be part of one ‘Group | ||
operations’ CGU. Following the migration of the US states of New Jersey and Pennsylvania to the Kindred platform during 2023, these states are | |||
now considered a part of the Group Operations CGU (until such point that the operations are closed during 2024, as announced in November 2023). | |||
Solfive | 5.6 | – | Previously acquired online gambling business which continues to operate on a substantially separate basis, with no dependency on or interaction |
with the main Kindred Group platform. It generates independent cash inflows from a third-party platform and is thus determined to be a separate CGU. | |||
32Red | 100.8 | 59.9 | Previously acquired online gambling business which continues to operate on a substantially separate basis, with no dependency on or interaction |
with the main Kindred Group platform. It generates independent cash inflows from a third-party platform and is thus determined to be a separate CGU. | |||
North America | – | – | Certain states in the North American business (with the exception of New Jersey and Pennsylvania noted above) have service agreements with third |
parties to host their platforms. As these platforms are hosted independently of Kindred Group’s platform, the cash inflows are generated independently. | |||
All intangible assets within this CGU are definite lived. Once the Group’s North American operations are closed during 2024 (following the | |||
announcement in November 2023), this CGU will no longer be applicable for the Group. | |||
Relax Gaming | 157.0 | 31.2 | The previously acquired game producer, Relax Gaming, constitutes different business activity to that of Kindred Group. Relax Gaming produces and |
licenses in-house developed and third-party games through a B2B operational model. It has a separate active market for its outputs and is not | |||
dependent on any other revenue streams or single instances of platforms within Kindred Group and is thus determined to be a single separate CGU. |
As at December 2023 | As at December 2022 | |||||||
Group | Relax | Group | Relax | |||||
(GBP m) | operations | Solfive | 32Red | Gaming | operations | Solfive | 32Red | Gaming |
EBITDA margin (per cent) 1 | 18.3–28.3 | 12.0–13.1 | 30.0–34.3 | 45.8–54.5 | 18.5–24.8 | 12.1–13.0 | 26.2–30.2 | 47.0–64.3 |
Risk adjusted discount rate (per cent) 2 | 10.9 | 10.9 | 10.2 | 12.6 | 12.3 | 12.3 | 11.6 | 13.6 |
Long-term growth rate (per cent) 3 | 2.0 | 2.0 | 2.0 | 2.0 | 2.0 | 2.0 | 2.0 | 2.0 |
Office | ||||
equipment, | ||||
Computer | fixtures and | |||
(GBP m) | Note | hardware | fittings | Total |
Cost | ||||
At 1 January 2022 | 51.7 | 36.5 | 88.2 | |
Additions | 7.8 | 1.7 | 9.5 | |
Disposals | ‑2.0 | – | 2.0 | |
Currency translation adjustment | ‑0.2 | 1.0 | 0.8 | |
At 31 December 2022 | 57.3 | 39.2 | 96.5 | |
Additions | 7.8 | 1.8 | 9.6 | |
Disposals | ‑13.7 | ‑2.1 | -15.8 | |
Currency translation adjustment | ‑1.1 | ‑0.6 | -1.7 | |
At 31 December 2023 | 50.3 | 38.3 | 88.6 | |
Accumulated depreciation | ||||
At 1 January 2022 | 39.5 | 25.0 | 64.5 | |
Charge for the year | 4 | 7.5 | 6.5 | 14.0 |
Disposals | ‑1.9 | – | -1.9 | |
Currency translation adjustment | – | 0.8 | 0.8 | |
At 31 December 2022 | 45.1 | 32.3 | 77.4 | |
Charge for the year | 4 | 7.5 | 3.6 | 11.1 |
Disposals | ‑13.6 | ‑2.1 | -15.7 | |
Impairment | 0.2 | 1.7 | 1.9 | |
Currency translation adjustment | ‑0.7 | ‑0.4 | -1.1 | |
At 31 December 2023 | 38.5 | 35.1 | 73.6 | |
Net book value | ||||
At 31 December 2023 | 11.8 | 3.2 | 15.0 | |
At 31 December 2022 | 12.2 | 6.9 | 19.1 |
As at | As at | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Right-of-use assets (net) | 36.9 | 49.7 |
Lease liabilities: | ||
Current | 15.3 | 13.6 |
Non‑current | 25.9 | 37.8 |
41.2 | 51.4 |
Year ended | Year ended | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Depreciation of right-of-use assets | 13.8 | 12.1 |
Interest expense (included in finance costs) | 1.2 | 1.2 |
Expense relating to short‑term leases (included in other | ||
operating expenses) | 1.6 | 2.0 |
Income from subleasing right‑of‑use assets (included in other | ||
operating expenses) | 1.1 | 1.1 |
Proportion of | ||
Place of | ownership and | |
Name of subsidiary | incorporation | voting power % |
Betchoice Corporation Pty Ltd | Australia | 100% |
Kindred South Development Pty Ltd | Australia | 100% |
Unibet Australia Pty Ltd | Australia | 100% |
Blankenberge Casino-Kursaal NV | Belgium | 100% |
Geerit BVBA | Belgium | 100% |
Kindred Belgium NV | Belgium | 100% |
Star Matic BVBA | Belgium | 100% |
Unibet ON Inc | Canada | 100% |
Kindred Denmark ApS | Denmark | 100% |
Kindred Estonia OU | Estonia | 100% |
Relax Tech Services Oü | Estonia | 93% |
Relax Tech Finland Oy | Finland | 93% |
Kindred France SAS | France | 100% |
32 Red Limited | Gibraltar | 100% |
Kindred (Gibraltar) Limited | Gibraltar | 100% |
Platinum Gaming Limited | Gibraltar | 100% |
Relax Gaming (Gibraltar) Ltd | Gibraltar | 93% |
Firstclear Limited | Great Britain | 100% |
Kindred (London) Limited | Great Britain | 100% |
Kindred Services Limited | Great Britain | 100% |
Kindred Individuals Private Limited | India | 100% |
Relax Gaming International Ltd | Isle of Man | 93% |
Kindred Italy SRL | Italy | 100% |
Kindred IP Limited | Malta | 100% |
Lexbyte Digital Limited | Malta | 100% |
Maria Holdings Limited | Malta | 100% |
Moneytainment Media Limited | Malta | 100% |
Optdeck Service Limited | Malta | 100% |
Relax Gaming Ltd | Malta | 93% |
Relax Holding Ltd | Malta | 93% |
Spooniker Ltd | Malta | 100% |
SPS Betting France Limited | Malta | 100% |
Trannel International Limited | Malta | 100% |
Proportion of | ||
Place of | ownership and | |
Name of subsidiary | incorporation | voting power % |
Unibet (Belgium) Limited | Malta | 100% |
Unibet (Denmark) Limited | Malta | 100% |
Unibet (Germany) Limited | Malta | 100% |
Unibet (Holding) Ltd | Malta | 100% |
Unibet (Italia) Limited | Malta | 100% |
Unibet Services Limited | Malta | 100% |
Relax Tech Services DOO | Serbia | 93% |
Kindred Spain Tech, S.L. | Spain | 100% |
Kindred People AB | Sweden | 100% |
PR Entertainment (I Stockholm) AB | Sweden | 100% |
Relax Tech Sweden AB | Sweden | 93% |
Kindred Nederland B.V. | The Netherlands | 100% |
Unibet Interactive Inc. | USA | 100% |
As at 31 December 2023 | As at 31 December 2022 | |||||
(GBP m) | Level 2 | Level 3 | Total | Level 2 | Level 3 | Total |
Financial assets | ||||||
Derivatives | – | – | – | 1.1 | 0.2 | 1.3 |
Financial liabilities | ||||||
Contingent consideration | – | – | – | – | 2.2 | 2.2 |
Put/call option liabilities | – | 24.7 | 24.7 | – | – | – |
Deferred income | – | 5.3 | 5.3 | – | 5.9 | 5.9 |
Derivatives | 1.0 | – | 1.0 | – | – | – |
As at | As at | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Due within one year: | ||
Trade receivables | 2.9 | 3.0 |
Other receivables | 35.5 | 30.3 |
Prepayments | 26.0 | 33.2 |
64.4 | 66.5 |
As at | As at | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Due within one year: | ||
Trade payables | 22.2 | 18.4 |
Other taxation and social security | 6.3 | 6.0 |
Other payables | 1.8 | 2.2 |
Accruals | 187.5 | 173.0 |
217.8 | 199.6 |
As at 31 December 2023 | As at 31 December 2022 | |||||
Non‑ | Non‑ | |||||
(GBP m) | Current | current | Total | Current | current | Total |
Property provisions | 1.4 | 1.9 | 3.3 | 1.3 | 1.9 | 3.2 |
Employee provisions | 6.1 | – | 6.1 | 0.7 | – | 0.7 |
Operational provisions | 6.0 | – | 6.0 | 16.4 | – | 16.4 |
Customer claims provisions | 9.2 | – | 9.2 | 1.5 | – | 1.5 |
Contract termination and onerous | ||||||
contract provisions | 11.3 | – | 11.3 | – | – | – |
34.0 | 1.9 | 35.9 | 19.9 | 1.9 | 21.8 |
Contract | |||||
termination | |||||
and | |||||
onerous | |||||
Property | Employee | Operational | contract | ||
(GBP m) | provisions | provisions | provisions | provisions | Total 1 |
At 1 January 2023 | 3.2 | 0.7 | 16.4 | – | 20.3 |
Additional provisions recognised | – | 8.3 | 0.6 | 11.3 | 20.2 |
Amounts utilised during the year | – | ‑2.6 | ‑9.6 | – | -12.2 |
Unused amounts reversed | – | ‑0.3 | ‑1.2 | – | -1.5 |
Foreign exchange movements | 0.1 | – | ‑0.2 | – | -0.1 |
At 31 December 2023 | 3.3 | 6.1 | 6.0 | 11.3 | 26.7 |
As at | As at | |
31 December | 31 December | |
2023 | 2022 | |
AUD | 4% | 4% |
DKK | 4% | 4% |
EUR | 49% | 48% |
GBP | 18% | 18% |
SEK | 8% | 7% |
USD | 5% | 4% |
Other | 12% | 15% |
100% | 100% |
As at | As at | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
GBP | – | 52.0 |
EUR | 118.3 | 53.9 |
SEK | 23.5 | 29.6 |
Total borrowings | 141.8 | 135.5 |
(GBP m) | Borrowings | Leases | Total |
At 1 January 2022 | 111.6 | 55.4 | 167.0 |
Net cash flows | 22.5 | ‑13.1 | 9.4 |
Lease acquisitions and remeasurements | – | 8.2 | 8.2 |
Other non‑cash movements | ‑0.2 | 1.1 | 0.9 |
Foreign exchange movements | 1.6 | ‑0.2 | 1.4 |
At 31 December 2022 | 135.5 | 51.4 | 186.9 |
Net cash flows | 10.0 | ‑14.3 | -4.3 |
Lease acquisitions and remeasurements | – | 4.2 | 4.2 |
Other non‑cash movements | 0.3 | 1.0 | 1.3 |
Foreign exchange movements | ‑4.0 | ‑1.1 | -5.1 |
At 31 December 2023 | 141.8 | 41.2 | 183.0 |
Unremitted | Property, plant | Tax | Intangible | |||||
(GBP m) | Note | earnings | and equipment | losses | assets | Leases 2 | Other 2 | Total 2 |
At 1 January 2022 | ||||||||
Deferred tax liabilities | – | – | – | ‑16.8 | ‑8.2 | ‑5.7 | -30.7 | |
Deferred tax assets | 8.9 | 3.0 | 11.2 | – | 8.8 | 3.8 | 35.7 | |
Credit/(charge) to income for the year | 8 | 11.1 | 1.0 | 2.0 | 0.6 | ‑0.4 | ‑0.9 | 13.4 |
Other balance sheet movements 1 | – | – | – | ‑0.4 | – | ‑0.4 | -0.8 | |
Currency translation adjustment | – | – | 0.2 | ‑0.3 | – | – | -0.1 | |
At 31 December 2022 | ||||||||
Deferred tax liabilities | – | – | – | -16.9 | -7.9 | -5.6 | -30.4 | |
Deferred tax assets | 20.0 | 4.0 | 13.4 | – | 8.1 | 2.4 | 47.9 | |
Credit/(charge) to income for the year | 8 | 10.6 | – | ‑0.1 | 0.4 | 0.6 | ‑0.5 | 11.0 |
Other balance sheet movements 1 | – | – | – | – | – | ‑0.3 | -0.3 | |
Currency translation adjustment | – | – | ‑0.1 | 0.1 | – | – | – | |
At 31 December 2023 | ||||||||
Deferred tax liabilities | – | – | – | -16.4 | -5.5 | -5.6 | -27.5 | |
Deferred tax assets | 30.6 | 4.0 | 13.2 | – | 6.3 | 1.6 | 55.7 |
As at | As at | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Deferred tax liabilities | ‑27.5 | ‑30.4 |
Deferred tax assets | 55.7 | 47.9 |
Net assets | 28.2 | 17.5 |
Performance targets | Achievement vs target over 2021–2022 | AESP result |
EBITDA | 124% | 100% (capped) |
Performance targets | Achievement vs target over 2020–2022 | PSP result |
EBITDA | 139% | 100% (capped) |
Gross contribution | 118% | 100% (capped) |
Free cash flow per share | 151% | 100% (capped) |
PSP awards 1 | Share options | AESP awards 1 | ||||||||||
17 Jun | 1 Jun | 1 Jun | 1 Jul | 1 Jun | 1 Jul | 1 Mar | 1 Sep | 1 Mar | 1 Sep | 1 Apr | 1 Oct | |
Grant date | 2020 | 2021 | 2022 | 2023 | 2022 | 2023 | 2021 | 2021 | 2022 | 2022 | 2023 | 2023 |
Average share price prior to grant GBP | – | – | – | – | 98.67 | 116.83 | – | – | – | – | – | – |
Exercise price GBP | – | – | – | – | 118.40 | 140.19 | – | – | – | – | – | – |
Number of employees | 174 | 190 | 203 | 106 | 6 | 5 | 1,567 | 298 | 1,732 | 340 | 2,042 | 195 |
Shares under award/option | 1,072,865 | 543,695 | 698,813 | 380,201 | 479,616 | 274,001 | 470,400 | 60,300 | 779,400 | 102,900 | 816,800 | 58,800 |
Vesting period (years) | 3 | 3 | 3 | 3 | 3.5 | 3.5 | 2 | 1.5 | 2 | 1.5 | 2 | 1.5 |
Expected volatility % | 64 | 41 | 44 | 36 | 28 | 41 | 54 | 41 | 43 | 45 | 41 | 34 |
Award/option life (years) | 3 | 3 | 3 | 3 | 3.5 | 3.5 | 2 | 1.5 | 2 | 1.5 | 2 | 1.5 |
Expected life (years) | 3 | 3 | 3 | 3 | 3.5 | 3.5 | 2 | 1.5 | 2 | 1.5 | 2 | 1.5 |
Risk-free rate % | – | – | – | – | 1.38 | 3.12 | – | – | – | – | – | – |
Expected dividends expressed as dividend yield % | 3.94 | 2.63 | 4.17 | 4.13 | – | – | 2.78 | 2.41 | 4.37 | 4.83 | 3.82 | 4.52 |
Fair value per award/option GBP | 3.97 | 11.59 | 7.13 | 7.38 | 1.25 | 2.34 | 11.22 | 13.21 | 7.07 | 6.49 | 8.36 | 7.12 |
2023 | 2022 | |
PSP | Number | Number |
Outstanding at 1 January | 2,085,882 | 2,093,415 |
Vested | ‑874,533 | ‑549,365 |
Granted | 380,201 | 698,813 |
Lapsed | ‑300,236 | ‑156,981 |
Outstanding at 31 December | 1,291,314 | 2,085,882 |
2023 | 2022 | |
AESP | Number | Number |
Outstanding at 1 January | 1,139,750 | 450,100 |
Vested | ‑362,200 | – |
Granted | 875,600 | 882,300 |
Lapsed | ‑212,650 | ‑192,650 |
Outstanding at 31 December | 1,440,500 | 1,139,750 |
2023 | 2022 | |
Options | Number | Number |
Outstanding at 1 January | 479,616 | – |
Granted | 274,001 | 479,616 |
Lapsed | ‑239,808 | – |
Outstanding at 31 December | 513,809 | 479,616 |
2023 | 2022 | |
Warrants | Number | Number |
Outstanding at 1 January | 299,759 | – |
Granted | – | 299,759 |
Outstanding at 31 December | 299,759 | 299,759 |
As at | As at | |
31 December | 31 December | |
(GBP) | 2023 | 2022 |
Authorised: | ||
At 31 December – 1,600,000,000 (2022: 1,600,000,000) ordinary | ||
shares of GBP 0.000625 each | 1,000,000 | 1,000,000 |
Issued and fully paid up: | ||
At 1 January and 31 December – 230,126,200 (2022: | ||
230,126,200) ordinary shares of GBP 0.000625 each | 143,829 | 143,829 |
Year ended | Year ended | ||
31 December | 31 December | ||
(GBP m) | Note | 2023 | 2022 |
Gross profit | 679.8 | 583.8 | |
Marketing costs | 4 | ‑220.7 | ‑227.2 |
Salaries | 4 | ‑164.1 | ‑140.8 |
Other operating expenses | 4 | ‑90.5 | ‑86.6 |
Underlying EBITDA | 204.5 | 129.2 | |
Personnel restructuring costs | 4 | ‑9.6 | ‑0.3 |
Regulatory sanctions | 4 | ‑0.2 | ‑8.0 |
Market closure and contract termination costs | 4 | ‑33.8 | ‑2.5 |
Subsidy for warrants, incentive programme | 4 | – | ‑0.8 |
Strategic review costs | 4 | ‑4.9 | – |
Other (losses)/gains | 4 | ‑3.4 | 69.9 |
EBITDA | 152.6 | 187.5 | |
Revenue | 1,210.5 | 1,068.7 | |
Underlying EBITDA margin | 17% | 12% |
Year ended | Year ended | ||
31 December | 31 December | ||
(GBP m) | Note | 2023 | 2022 |
Cash and cash equivalents | 29 | 240.3 | 254.9 |
Customer balances | 19 | ‑71.1 | ‑80.2 |
Unrestricted cash | 169.2 | 174.7 | |
Less: Borrowings | 20 | ‑141.8 | ‑135.5 |
Net cash | 27.4 | 39.2 | |
EBITDA | 152.6 | 187.5 | |
Net cash to EBITDA ratio | 0.18 | 0.21 |
Year ended | Year ended | ||
31 December | 31 December | ||
(GBP m) | Note | 2023 | 2022 |
Net cash generated from operating activities | 164.0 | 138.7 | |
Purchases of property, plant and equipment | 12 | ‑9.6 | ‑9.5 |
Development and acquisition costs of intangible assets | 11 | ‑45.9 | ‑38.3 |
Interest paid on lease liabilities | ‑1.2 | ‑1.2 | |
Repayment of lease liabilities | ‑13.1 | ‑11.9 | |
Adjust for: customer balance movement | 9.1 | ‑8.2 | |
Free cash flow | 103.3 | 69.6 |
Year ended | Year ended | ||
31 December | 31 December | ||
(GBP m) | Note | 2023 | 2022 |
Revenue | 105.3 | 82.7 | |
Administrative expenses | 3 | -1.4 | -1.3 |
Underlying profit before items affecting comparability | 103.9 | 81.4 | |
Impairment losses | 3 | -67.3 | – |
Strategic review costs | 3 | -4.9 | – |
Other gains | 3 | 0.1 | 73.1 |
Losses on disposal of investments | 3 | – | -17.8 |
Profit from operations | 31.8 | 136.7 | |
Finance costs | 4 | -10.1 | -4.4 |
Finance income | 5 | 0.4 | 0.6 |
Profit before tax | 22.1 | 132.9 | |
Income tax expense | 6 | -9.5 | -10.6 |
Profit for the year | 12.6 | 122.3 |
Year ended | Year ended | ||
31 December | 31 December | ||
(GBP m) | Note | 2023 | 2022 |
Profit for the year | 12.6 | 122.3 | |
Other comprehensive income | |||
Gains/(losses) on net investment hedge | 2C | 4.0 | -1.6 |
Total comprehensive income for the year | 16.6 | 120.7 |
As at | As at | ||
31 December | 31 December | ||
(GBP m) | Note | 2023 | 2022 |
Assets | |||
Non-current assets | |||
Investments in subsidiaries | 7 | 789.9 | 829.1 |
Other non-current assets | 0.1 | 0.1 | |
790.0 | 829.2 | ||
Current assets | |||
Taxation recoverable | 40.6 | 63.6 | |
Financial assets at fair value through profit and loss | 14 | 24.7 | – |
Trade and other receivables | 9 | 0.1 | – |
Cash and cash equivalents | 10 | 0.1 | 0.7 |
65.5 | 64.3 | ||
Total assets | 855.5 | 893.5 | |
Equity and liabilities | |||
Capital and reserves | |||
Share capital | 11 | 0.1 | 0.1 |
Share premium | 11 | 81.5 | 81.5 |
Currency translation reserve | 11 | 8.8 | 4.8 |
Retained earnings | 303.6 | 390.9 | |
Total equity | 394.0 | 477.3 |
As at | As at | ||
31 December | 31 December | ||
(GBP m) | Note | 2023 | 2022 |
Non-current liabilities | |||
Borrowings | 12 | 141.8 | 135.5 |
141.8 | 135.5 | ||
Current liabilities | |||
Trade and other payables | 13 | 295.0 | 278.5 |
Other financial liabilities at fair value through profit | |||
and loss | 14 | 24.7 | 2.2 |
319.7 | 280.7 | ||
Total liabilities | 461.5 | 416.2 | |
Total equity and liabilities | 855.5 | 893.5 |
Currency | ||||||
Share | Share | translation | Retained | Total | ||
(GBP m) | Note | capital | premium | reserve | earnings | equity |
Balance at 1 January 2022 | 0.1 | 81.5 | 6.4 | 378.5 | 466.5 | |
Comprehensive income | ||||||
Profit for the year | – | – | – | 122.3 | 122.3 | |
Other comprehensive income for the year | – | – | -1.6 | – | -1.6 | |
Total comprehensive income | – | – | -1.6 | 122.3 | 120.7 | |
Transactions with owners | ||||||
Employee share schemes – value of employee services | 16 | – | – | – | 2.1 | 2.1 |
Sale of warrants, incentive programme | 16 | – | – | – | 0.4 | 0.4 |
Treasury share purchases | 11 | – | – | – | -43.9 | -43.9 |
Disposal/utilisation of treasury shares | 11 | – | – | – | 5.3 | 5.3 |
Dividends paid | 15 | – | – | – | -73.8 | -73.8 |
Total transactions with owners | – | – | – | -109.9 | -109.9 | |
At 31 December 2022 | 0.1 | 81.5 | 4.8 | 390.9 | 477.3 | |
Comprehensive income | ||||||
Profit for the year | – | – | – | 12.6 | 12.6 | |
Other comprehensive income for the year | – | – | 4.0 | – | 4.0 | |
Total comprehensive income | – | – | 4.0 | 12.6 | 16.6 | |
Transactions with owners | ||||||
Employee share schemes – value of employee services | 16 | – | – | – | -4.0 | -4.0 |
Treasury share purchases | 11 | – | – | – | -34.2 | -34.2 |
Disposal/utilisation of treasury shares | 11 | – | – | – | 12.7 | 12.7 |
Dividends paid | 15 | – | – | – | -74.4 | -74.4 |
Total transactions with owners | – | – | – | -99.9 | -99.9 | |
At 31 December 2023 | 0.1 | 81.5 | 8.8 | 303.6 | 394.0 |
Year ended | Year ended | ||
31 December | 31 December | ||
(GBP m) | Note | 2023 | 2022 |
Operating activities | |||
Profit from operations | 31.8 | 136.7 | |
Adjustments for: | |||
Impairment losses | 67.3 | – | |
Share-based payments | 8.7 | 7.4 | |
Other gains | -0.2 | -76.8 | |
Non-cash investment movements | -28.1 | -87.2 | |
Increase in trade and other receivables | -24.6 | -0.1 | |
Increase in trade and other payables | 6.3 | 68.3 | |
Cash flows from operating activities | 61.2 | 48.3 | |
Net income taxes received | 48.2 | 54.0 | |
Net cash generated from operating activities | 109.4 | 102.3 | |
Investing activities | |||
Settlement of contingent consideration | -1.9 | -4.4 | |
Net cash used in investing activities | -1.9 | -4.4 | |
Financing activities | |||
Interest paid | -9.9 | -5.3 | |
Dividends paid | 15 | -74.0 | -73.2 |
Treasury share purchases | 11 | -34.2 | -43.9 |
Sale of warrants, incentive programme | 16 | – | 0.4 |
Proceeds from borrowings | 12 | 95.6 | 76.7 |
Repayment of borrowings | 12 | -85.6 | -54.2 |
Net cash used in financing activities | -108.1 | -99.5 | |
Net decrease in cash and cash equivalents | -0.6 | -1.6 | |
Cash and cash equivalents at the beginning | |||
of the year | 0.7 | 2.3 | |
Cash and cash equivalents at the end of the year | 10 | 0.1 | 0.7 |
As at 31 December 2022 | ||
Less than | Between | |
(GBP m) | 1 year | 1–5 years |
Amounts due to subsidiaries (note 13) | 278.1 | – |
Accruals (note 13) | 0.4 | – |
Borrowings (note 12) | 7.8 | 157.9 |
Contingent consideration (note 2B and note 14) | 2.2 | – |
Total | 288.5 | 157.9 |
Year ended | Year ended | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Administrative expenses | ||
Directors ’ remuneration | 0.9 | 0.8 |
Other operating costs | 0.5 | 0.5 |
Total administrative expenses | 1.4 | 1.3 |
Items affecting comparability | ||
Impairment losses | 67.3 | – |
Strategic review costs | 4.9 | – |
Other gains | -0.1 | -73.1 |
Losses on disposal of investments | – | 17.8 |
Total items affecting comparability | 72.1 | -55.3 |
Year ended | Year ended | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Interest and fees payable on bank borrowings | 10.1 | 4.4 |
Year ended | Year ended | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Foreign exchange gain on dividend payment | 0.4 | 0.6 |
Year ended | Year ended | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Current tax: | ||
Current tax expense (at 35 per cent) | 35.0 | 28.8 |
Amounts recoverable on intra-group dividend income | -25.5 | -21.1 |
Deferred tax: | ||
Deferred tax charge (note 8) | – | 2.9 |
Total tax charge | 9.5 | 10.6 |
Year ended | Year ended | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Profit before tax | 22.1 | 132.9 |
Tax on profit at 35 (2022: 35) per cent | 7.7 | 46.5 |
Tax effect of: | ||
Impairment provision | 23.6 | – |
Amounts recoverable on intra-group dividend income | -25.5 | -21.1 |
Expenses/income not deductible/taxable for tax purposes | 3.7 | -17.7 |
Reversal of prior year deferred tax asset | – | 2.9 |
Total tax charge | 9.5 | 10.6 |
GBP m | |
Cost of investments: | |
At 1 January 2022 | 2,625.0 |
Additional investments in subsidiaries | 79.8 |
Share award charge allocated to subsidiaries (note 16) | 7.4 |
At 31 December 2022 | 2,712.2 |
Additional investments in subsidiaries | 19.4 |
Share award charge allocated to subsidiaries (note 16) | 8.7 |
At 31 December 2023 | 2,740.3 |
Provision for impairment: | |
At 1 January 2022 | 1,883.1 |
Charged to income statement | – |
At 31 December 2022 | 1,883.1 |
Charged to income statement | 67.3 |
At 31 December 2023 | 1,950.4 |
Net book value: | |
At 31 December 2023 | 789.9 |
At 31 December 2022 | 829.1 |
GBP m | |
At 1 January 2022 | 2.9 |
Charged to the income statement (note 6) | -2.9 |
At 31 December 2022 | – |
Charged to the income statement (note 6) | – |
At 31 December 2023 | – |
As at | As at | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Unused capital losses | – | – |
As at | As at | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Other receivables | 0.1 | – |
0.1 | – |
As at | As at | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Cash at bank and in hand | 0.1 | 0.7 |
As at | As at | |
31 December | 31 December | |
(GBP) | 2023 | 2022 |
Authorised | ||
At 31 December – 1,600,000,000 (2022: 1,600,000,000) | ||
ordinary shares of GBP 0.000625 each | 1,000,000 | 1,000,000 |
Issued and fully paid up: | ||
At 1 January and 31 December – 230,126,200 | ||
(2022: 230,126,200) ordinary shares of GBP 0.000625 each | 143,829 | 143,829 |
As at | As at | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
GBP | – | 52.0 |
EUR | 118.3 | 53.9 |
SEK | 23.5 | 29.6 |
Total borrowings | 141.8 | 135.5 |
(GBP m) | GBP m |
At 1 January 2022 | 111.6 |
Net cash flows | 22.5 |
Other non-cash movements | -0.2 |
Foreign exchange movements | 1.6 |
At 31 December 2022 | 135.5 |
Net cash flows | 10.0 |
Other non-cash movements | 0.3 |
Foreign exchange movements | -4.0 |
At 31 December 2023 | 141.8 |
As at | As at | |
31 December | 31 December | |
(GBP m) | 2023 | 2022 |
Amounts due to subsidiaries | 292.3 | 278.1 |
Accruals | 2.7 | 0.4 |
295.0 | 278.5 |
(GBP m) | 2023 | 2022 |
Dividend paid | 74.4 | 73.8 |
Dividend per share (GBP) | 0.345 | 0.337 |