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Stride Gaming plc Annual report and financial statements 2015
Stride Gaming plc Annual report and financial statements 2015 Our portfolio of diverse brands uses a combination of proprietary 
and purchased software to provide a unique and compelling 
online gaming experience to a rapidly growing customer base.
in the UK online gaming space
One of the leading bingo-led operators
Strategic Report
01 Highlights
02 At a glance
04 The business today
06 Chairman’s statement
08 Chief Executive’s statement
10 Business model
11 The market
12 Strategy
13 Principal risks and uncertainties
14 Chief financial officer’s review
Corporate Governance
16 Board of Directors 
18 Statement from the Chair of the 
Remuneration Committee 
21 Statement from the Chair of the 
Audit Committee
23 Directors’ report
Financial Statements
24 Independent auditor’s report 
25 Consolidated statement of profit or loss 
and other comprehensive income
26 Consolidated statement 
of financial position
27 Consolidated statement of cash flows
28 Consolidated statement of changes 
in equity
29 Notes forming part of the 
financial statements
52 Corporate information
Find out more online
www.stridegaming.com CORPORATE Governance Financial Statements Strategic Report
01
Stride Gaming plc 
Annual report and financial statements 2015
HIGHLIGHTS
Operational summary
 » Successful IPO on AIM on 19 May 2015 raising £11.2 million before expenses
 » Organic growth complemented by the successful completion of three acquisitions:
 » Acquisition of InfiApps Limited, a profitable, internationally focused, mobile social gaming company, 
for total consideration payable of up to $40.0 million 
 » Acquisition of the trade and assets of Table Top Entertainment Limited (“TTE”), including the brands 
Jackpot Café, Jackpot Liner and King Jackpot, and the acquisition of the proprietary gaming platform 
from Nextec Software Inc, in aggregate for total consideration of £14.7 million
 » Acquisition of Spacebar Media for consideration of £6.0 million
 » Launch of three new brands: Bingo Extra, Magical Vegas and Big Top Casino 
 » Obtained an Italian gaming licence and a stake in a Spanish operation
 » Completion of migration of several brands into responsive, adaptive-based website (“RAD”), 
which is more mobile and tablet oriented 
Financial highlights
Operational highlights
*   Stride Gaming plc was incorporated on 25 February 2015 and subsequent to this on 19 May 2015 acquired, via a share for share exchange, the entire share 
capital of the group headed by Daub Alderney Limited. Following this Group reorganisation the financial statements for the period ended 31 August 2015 have 
been prepared on a merger accounting basis as though this group structure had always been in place (see note 1 for further details).
**
 
Adjusted EBITDA excludes income or expenses that relate to exceptional items and non-cash charges relating to share-based payments. 
***
 
Funded player means an active player has made a deposit with his own funds within the last three months.
****
 
Percentages exclude three brands which are download-only technology.
Net gaming revenue (“NGR”)
*
 £m
£27.8m
L 227%
Adjusted EBITDA
**
 £m
£7.3m
L 508%
Gross assets £m
£48.7m
L 740%
2014 2014 2014
8.5
0.8 5.8
2015 2015 2015
27.8 7.0 48.7
Funded players
***
 
52,000
L 278%
Yield per player £
£112
L 14%
Mobile and touch
****
 % of the NGR
48.9%
L 148%
2014 2014 2014
13,750
98
19.7
2015 2015 2015
52,000 112 48.9 Strategic Report
02
Stride Gaming plc 
Annual report and financial statements 2015
AT A GLANCE
Stride Gaming is an online gaming operator in both the bingo-led and social 
gaming market, using its proprietary and purchased software to provide online 
bingo and social gaming to players. Stride Gaming only operates in 
regulated markets. 
Online bingo pioneers since 2013
In the real-money gaming market, Stride Gaming is focused on the UK market, is 
licensed, and only operates from the regulated jurisdictions of the UK and Alderney.
Social gaming expertise
InfiApps, an internationally focused mobile social gaming company, gives 
Stride Gaming presence in the social gaming segment of online gaming, 
across new international markets.
The Group operates a multi-branded 
strategy, which includes the online 
bingo brands Kitty Bingo, Lucky 
Pants Bingo, Bingo Extra, Jackpot 
Café, Jackpot Liner and King 
Jackpot, together with the online 
casino brands Spin and Win, 
Magical Vegas and Big Top. 
The acquisition complements the current platform 
and enables Stride Gaming to offer its content in 
social gaming as well as expand the real money 
gaming offering in the App vertical. InfiApps 
operates multiple brands with the primary 
brand being Slot Bonanza.
500k+
monthly active 
users of InfiApps’ 
games worldwide
1.6m
registered players
52,000
funded players
9
online gaming brands
$17.4bn
forecast in worldwide 
social gaming revenue 
by 2019
*
*  Source: Transparency 
Market Research CORPORATE Governance Financial Statements Strategic Report
03
Stride Gaming plc 
Annual report and financial statements 2015
90+
proprietary games
Proprietary platform
The Group’s proprietary platform ensures that it can optimise the gaming 
experience without needing to rely on third-party software providers or pay 
additional royalty costs. 
Having control of the software underpinning the Group’s operations will 
also enable easier entry into other regulated jurisdictions. The Company also 
launched a new responsive platform (“RAD”), which enables Stride Gaming 
to maintain a consistent user experience across a multitude of devices, as 
well as enabling the Group to increase its mobile-centric customer base.  Strategic Report
04
Stride Gaming plc 
Annual report and financial statements 2015
THE BUSINESS TODAY
With offices located in the UK (London), Mauritius, Israel, South Africa 
and Guernsey, Stride Gaming has over 190 staff committed to continue 
investing in game development and provide a unique, compelling and 
entertaining experience to its ever growing customer base.
Passionate
Passionate by being fierce and 
excited about what we deliver
Creative
Creative by being pioneers 
and always leading the way 
in our industry
Respectful
Respectful by being thoughtful 
to those we work with and 
appropriate in our communications
Our values
1
2
3
4
5
Established business
 » 198 staff worldwide
 » Online bingo pioneers since 2013
Cash flow positive
 » Adjusted EBITDA for the year 
ended 31 August 2015 of 
£7.3 million
 » High cash conversions
Regulated markets
 » UK focused
 » Italian licence
 » Stake in a Spanish operation
Proprietary software
 » Optimisation of KPIs
 » Enhancing player retention
 » No royalties paid
Proven acquisitions
 » TTE acquisition in September 2014
 » SBM acquisition in February 2015
 » InfiApps acquisition in July 2015 CORPORATE Governance Financial Statements Strategic Report
05
Stride Gaming plc 
Annual report and financial statements 2015
At the same time the Company is committed to delivering 
strong, sustainable returns for its shareholders. 
The listing was primarily designed to facilitate the Company’s 
organic and acquisitive growth strategy and to take advantage 
of the consolidation in the online bingo industry driven by 
increasing regulation and the Point of Consumption tax. 
The Group believes it is making excellent progress in this 
strategy through the acquisition of InfiApps and achieving 
robust organic growth and other operational milestones. 
The response to the listing was extremely positive and 
the Group welcomes its new shareholders. 
Our market
page 11
Our strategy
page 12
Our mission
The Group’s mission is to be one 
of the leading regulated gaming 
operators through owning its own 
proprietary software platform 
and multi-branded strategy.
T he listing on AIM
On 19 May 2015, the Company 
successfully listed on AIM, raising 
£11.2 million before expenses. 
Accountable
Accountable by being 
responsible and having 
ownership for the work we do
Collaborative
Collaborative by being dedicated 
to succeed as a team
Innovative
Innovative by being original 
in everything we do
* Source: Newzoo Social Casino Gaming Report.
Slot Bonanza is the franchise that 
is played most hours per week 
with 7.5% of the players playing 
it for 15 hours or more per week
*
. 06
Stride Gaming plc 
Annual report and financial statements 2015
Strategic Report
Highlights
 » Listed on AIM raising £11.2 million 
before expenses
 » Delivered record-level growth across 
all the key performance indicators of 
the business
 » Acquired InfiApps, to move into the 
social gaming segment of online gaming
 » Added three new brands 
to the platform: Bingo Extra, 
Magical Vegas and Big Top Casino 
 » Further development of proprietary 
software and in-house platform 
CHAIRMAN’S STATEMENT
Dear shareholder,
On behalf of the Board, I am delighted to present Stride Gaming’s 
results for the year ended 31 August 2015. The Group has 
performed strongly in the period and is well positioned for 
2016 and beyond. 
This year was a transformational year for the Group. We listed 
on AIM in an oversubscribed placing, raising £11.2 million before 
expenses, delivered record-level growth across all the key 
performance indicators of the business, acquired InfiApps to 
move into the social gaming segment of online gaming in line 
with our strategy, added three new brands to the platform 
and continued to develop our proprietary software and 
in-house platforms. 
The response to the Group’s admission to AIM has been extremely 
positive and the Company’s shares have performed well since 
the listing, which we believe demonstrates confidence in the 
Group’s strategic plan and in the management team’s ability 
to deliver and generate returns.
Stride Gaming’s overall strategy is to become a market leader 
in the soft gaming verticals of the online gaming industry 
and to expand our presence in the UK and in international 
markets. Our listing has enabled us to accelerate our organic 
and acquisitive growth strategy and take advantage of the 
opportunities that exist in the sector. We are clear that the 
global online gaming market will continue to be shaped by 
further consolidation as a result of increased regulation and 
taxes, and the need to add scale. In addition, the appeal of 
social gaming is growing significantly. This environment 
only serves to enhance our growth prospects and we intend 
to take full advantage of it by continuing with our stated 
organic and acquisitive growth strategy. I am pleased to 
report that the Group is making excellent progress on 
delivering on its stated strategy.
our market
page 11 CORPORATE Governance Financial Statements Strategic Report
07
Stride Gaming plc 
Annual report and financial statements 2015
Major shareholders
As at 12 November 2015 the following interests of shareholders in excess of 3% have been notified to the Company:
Number of 
shares held
Shares as % 
of issued 
share capital
GAL Holdings Ltd 21,776,838 42.45%
Pershing Nominees Limited 4,604,368 8.98%
Geneva Management Group as trustee of Storge Trust 4,366,937 8.51%
Poppy Investments Limited 4,242,983 8.27%
Bedell Trustees Limited as Trustee of Blue Rock Trust 3,732,268 7.28%
Ukudla Commodities Limited 1,870,831 3.65%
Guardian Trust Company Limited as trustee of Alon Trust 2,249,999 4.39%
Hydaco Holdings Pty Ltd 1,831,298 3.57%
As part of our buy and build strategy, as well as monitoring 
opportunities to expand into complementary verticals, we have 
successfully completed three acquisitions in the year, the 
most recent of which, InfiApps, was completed on 31 July 2015. 
A profitable internationally focused mobile social gaming 
company, the acquisition of InfiApps was immediately earnings 
enhancing and it is pleasing to see that the business has 
integrated well into the Group and is making a positive 
contribution to our product offering. 
We also believe the market will be increasingly driven by the 
use of the mobile smartphone and tablets for gaming, and 
with the launch of our Responsive platform, we are well positioned 
to increase our mobile-centric customer base. We expect organic 
growth to remain robust in the coming months as we make 
further improvements to our propriety software and the gaming 
experience. The Board remains focused on exploring 
opportunities to expand into other international markets 
and progress in this regard is already underway with the 
Italian gaming licence. 
On behalf of the Board I would like to take this opportunity to 
thank all our staff for their commitment and hard work. The 
Board also joins me in welcoming all our new shareholders. 
This past financial year has been a highly successful period 
for the Group and our long-term focus remains on delivering 
strong, sustainable returns for our shareholders. We look to 
the future with confidence.
Nigel Payne
Non-Executive Chairman
16 November 2015
The response to the Group’s 
admission to AIM has been 
extremely positive and the 
Company’s shares have performed 
well since the listing, which we 
believe demonstrates confidence 
in the Group’s strategic plan and 
in the management team’s ability 
to deliver and generate returns.”
Nigel Payne Non-Executive Chairman Strategic Report
08
Stride Gaming plc 
Annual report and financial statements 2015
Highlights
 » Strong operational performance with 
an NGR growth from real money 
gaming of 214%
 » Number of funded players reached 
52,000, representing a 278% increase 
from the prior year
 » 14.3% growth in Yield per Player 
reported at £112
 » Adjusted EBITDA is up 508% 
to £7.3 million
 » Adjusted EBITDA on real money 
gaming is up 483% at £7.0 million
CHIEF EXECUTIVE’S STATEMENT
I am pleased to report that the year ended 31 August 2015 was 
an exceptional period for Stride Gaming in which we delivered 
record results across all KPIs. We have enhanced our profitability 
and strengthened our balance sheet. The Group also made material 
progress in achieving a number of operational milestones that 
provide the Company with a platform for increased growth. 
The operation 
The reported period has delivered a strong operational 
performance with NGR growth from real money gaming 
increasing by 214%. Our organic growth has outperformed 
our expectations, a testament to what we can achieve with 
scale and through owning our own proprietary software. This 
achievement is particularly pleasing in light of the current 
climate in which margins are being squeezed due to tax, 
regulatory compliance and technology costs. 
Our number of funded players has now reached 52,000 representing 
a 278% year-on-year increase, and with software enhancements 
and continuous improvements to the backend of our platform 
we have shown a 14.3% growth in Yield per Player at £112 
(2014: £98).
Adjusted EBITDA for the Group was up 508% to £7.3 million and 
Adjusted EBITDA on real money gaming (excluding the one 
month contribution from InfiApps) was up 483% at £7.0 million. 
In the main this is attributed to the enhanced gaming offering 
from the Group, the optimisation of marketing costs and an 
increase in the life time value of our customers, where we 
continue to deliver a compelling and innovative gaming 
experience across a multitude of devices including mobile, 
tablet and PC.
We remain committed to enhancing our performance in real 
money terms and in social gaming verticals. The Group today 
has close to 200 staff across five countries. 
Acquisitions
Acquisitions remain an integral part of the Group’s growth 
strategy in order to take advantage of the consolidation in the 
sector and to move into complementary verticals. The Group’s 
ability to successfully integrate acquisitions was demonstrated 
following the acquisition of the trade and assets of Table Top 
Entertainment Limited (including the brands Jackpot Café, 
Jackpot Liner and King Jackpot) and the acquisition of the 
propriety gaming platform from Nextec Software Inc; in 
aggregate for a total consideration of £14.7 million as well as 
Spacebar Media for consideration of £6.0 million.
As part of our strategy to move into complementary verticals 
and to diversify from solely bingo, on 31 July 2015 Stride Gaming 
successfully acquired InfiApps, a profitable internationally 
focused mobile social gaming company. The total consideration 
payable for the acquisition is up to $40 million. Of this, an initial 
consideration of US$22 million in cash was paid, together with 
additional earn-out consideration of up to $18 million payable 
in cash, determined by the EBITDA generated by InfiApps in 
the two years following completion of the acquisition. The 
acquisition provides us with a strong and profitable presence 
in the social gaming segment of online gaming across new 
our strategy
page 12 CORPORATE Governance Financial Statements Strategic Report
09
Stride Gaming plc 
Annual report and financial statements 2015
The year ended 31 August 2015 was 
an exceptional year for Stride 
Gaming in which we delivered 
record results across all KPIs. 
We have enhanced our profitability 
and strengthened our balance sheet. 
The Group also made material 
progress in achieving a number 
of operational milestones that 
provide the Company with a 
platform for increased growth.”
Eitan Boyd  Chief Executive Officer
and international geographies. The global social gaming 
segment is expected to grow from $5.4 billion in 2012 to 
$17.4 billion in 2019 (Source: Transparency Market Research). 
The acquisition has been immediately earnings enhancing 
and with some 5.2 million player downloads of the flagship 
game, Slot Bonanza, and over 550,000 monthly active users 
worldwide, it adds material scale and reach to Stride Gaming’s 
existing operations. 
For the financial year ended 31 December 2014, InfiApps 
generated turnover of $13.7 million (2013: $4.6 million), EBIT 
of $3.6 million (2013: $1.0 million) and profit before tax of 
$3.4 million (2013: $1.0 million). In the financial year ended 
31 December 2014, 69% of InfiApp’s revenue was generated 
from North America. For the five months to 31 May 2015, 
InfiApps generated turnover of $8.3 million and profit before 
tax of $2.3 million. These audited numbers are presented 
under US GAAP.
Our market 
Our markets continue to remain robust and, according to the 
UK Gambling Commission, revenue in the UK gaming industry 
is expected to pass £3 billion by 2016. The UK online gaming 
market, including casino, bingo-led and poker, is estimated to 
grow to approximately £1.6 billion of NGR by 2016 with 
bingo-led online gaming estimated to account for 32.3%. 
Our industry is currently experiencing a wave of M&A activity 
driven by increasing regulation, taxes, compliance, and technology 
costs. Companies are recognising that in order to survive in 
this more challenging regulatory environment they need to 
add scale. 
We believe these increasing pressures, particularly the Point 
of Consumption tax (“POC tax”) is likely to squeeze out a 
number of smaller scale online bingo operators as they will 
not be able to absorb such an impact on their margins. At the 
other end of the market, we believe the larger operators will 
prioritise their marketing spend on their core products and 
less so on bingo. This presents an online bingo operator with 
scale an opportunity to increase market share both from 
organic growth and acquisition.
Mobile 
The market is being increasingly driven by the use of the mobile 
smartphone and tablets for gaming, and with the launch of 
our new Responsive adaptive platform (“RAD”), which enables 
us to maintain a consistent user experience across a multitude 
of devices, Stride Gaming is well positioned to increase its 
mobile-centric customer base. The effects of this strategy 
are already being seen, and on the brands that support mobile 
devices, 48.9% of NGR is now mobile driven (2014: 19.7%). 
The RAD platform places great focus on mobile usability and 
we believe it will serve to further expedite our growth in the mobile 
sector. This is the fastest growing sector in the UK gambling 
industry with the percentage of customers betting on a mobile 
device increasing from 29% in 2013 to 43% in 2014, and in total 
30% of overall bingo search volume is attributed to mobile 
devices (Online Gambling and Betting: Mintel, 2014). 
International markets 
Another major growth opportunity we outlined in our strategy 
was to expand into international markets. I am pleased to report 
that the Group has obtained remote gambling licenses from the 
UK and Italian Gambling Commissions (“AAMS”), the latter of which 
provides us with an opportunity to access the Italian market. 
Outlook 
Our strategy remains focused on growing organically and through 
acquisition. As well as organic growth prospects remaining 
strong, we believe there are significant acquisition opportunities 
available, and we will continue to monitor potential selective 
strategic acquisitions that support our existing operations or 
that allow us to expand into complementary verticals. We believe 
the outlook for the Stride Gaming Group is exciting. 
Stuart Eitan Boyd
Chief Executive Officer
16 November 2015 Strategic Report
10
Stride Gaming plc 
Annual report and financial statements 2015
Business MODel
Proprietary Software
Stride Gaming uses its own proprietary 
and purchased software, which allows 
the Group to operate a multi-branded 
offering across both the real money 
gaming and social gaming verticals. 
This strategy enables the Group to 
optimise the business model both on 
acquisition of players and players’ loyalty.
Our business model is focused on driving highly engaged users to our multi -branded 
offering as well as providing an entertaining gaming experience.
Multi-brand 
offering and 
social gaming
Marketing
Customer retention
Business Intelligence
Our business model is supported by: 
Our Team
Stride Gaming prides itself on 
delivering a unique experience 
to our customers by having a 
team that is highly skilled, 
passionate and innovative.
Content
A high level of player 
satisfaction is achieved with 
proprietary gaming content 
including a large variety of 
promotions and different 
types of jackpots.
Distribution
Our brands are available 
across a multitude of platforms 
including the PC, big screen 
and small screen mobiles and 
via the different app stores.
Regulation
Operating only in regulated 
markets ensures the 
longevity of the operation 
and confidence customers 
have in our product offering.
marketing
Key to the business model is the marketing 
mix through both offline and online means 
including search, affiliate marketing and 
TV in which we economically acquire a 
like-minded customer base.
Customer Retention 
Customer Retention Management is a vital 
component to the business model, and 
by providing an entertaining gaming 
experience across the different brands 
we are thus ensuring players’ satisfaction 
and loyalty.
Business Intelligence 
Business Intelligence continues to play an 
important role in both attracting the right 
customers and in our ability to increase 
customer engagement by providing a 
personalised gaming experience. CORPORATE Governance Financial Statements Strategic Report
11
Stride Gaming plc 
Annual report and financial statements 2015
THE MARKET
The UK total online gaming market is set to pass £3 billion by 2016, 
in which UK bingo-led gaming is estimated to reach 32.3% of 
online gaming (casino, poker, bingo led). 
UK online gaming (2016E)
Source: UK Gambling Compliance Research Services Report, September 2014.
The UK online bingo-led gaming market
UK online bingo-led NGR (£m)
Source: UK Gambling Compliance Research Services Report, September 2014.
 Online casino  Bingo led  Online poker
496.3
2014E
390.9
2011
509.7
2015E
440.9
2012
529.1
2016E
475.2
2013
Market share
*
Source: Company’s estimates based on the market share breakdown 
for 2012 and 2013 in the Gambling Compliance Report, September 2014.
*  Real money gaming market share (by NGR).
**  Jackpot Joy was part of Gamesys, recently acquired by 
the Intertain Group (TSX:IT).
Jackpot Joy
**
25%
Gala Bingo 14%
Mecca Bingo 12%
Tombola 9%
Bwin.Party 5%
888 4%
William Hill 4%
Sky Bingo 2%
2% Ladbrokes
2% Bet365
2% Paddy Power
Others 15%
Stride Gaming 5%
Market opportunity
Recent UK regulatory changes on 
real money gambling will require 
operators to be licensed by the UK 
gaming commission and incur a 15% 
Point of Consumption gambling tax in 
relation to bets made by UK customers.
Tax, compliance and new technological standards will 
squeeze out the smaller operators with lower margins and 
force larger operators to prioritise their marketing spend 
more towards their core product. Stride Gaming believes 
this presents a significant opportunity to grab market share 
both from organic and acquisitive growth. 
Stride Gaming, with its recognised brands, proprietary software 
platform and its highly experienced management team, believes 
it is well positioned to capitalise on this strategic opportunity. 
Market share
In the real money gaming vertical, the 
Group is focused on the UK bingo market. 
With its strong organic growth using a 
multi-branded strategy and proprietary 
software, together with the acquisition 
of TTE, it has achieved significant 
market penetration in a short time.
57% 32% 11%
Source: UK Gambling Compliance Research Services Report, September 2014. Strategic Report
12
Stride Gaming plc 
Annual report and financial statements 2015
Strategy
Our strategy is to maximise shareholder value by achieving growth through 
organic and acquisitive means. We aim to deliver organic growth by enhancing 
our proprietary platforms, and continue optimising our business model. Strategic 
acquisitions will allow the Company to enter new verticals and provide scale to 
existing verticals.
Organic growth Licensing of 
proprietary 
software
Acquisitive growth
01 02 03
 » License the platform 
on a B2B basis 
 » Offer white label solutions
 » Grab market share due to 
POC tax
 » Entry into new regulated markets
 » Expand product offering
 » Enhance the mobile platform
 » Grow our UK bingo 
market share
 » Entry into new verticals
 » Expand into new markets
 » Acquire media and 
technology assets CORPORATE Governance Financial Statements Strategic Report
13
Stride Gaming plc 
Annual report and financial statements 2015
Principal Risks and Uncertainties
Regulation and taxation
As a provider of online gambling services, the Group operates 
within a highly regulated sector. Online gambling is prohibited 
or restricted in some countries and regulated in others. While 
the Group is currently licensed in the UK and Alderney, Baldo 
is licensed in Italy and QSB Gaming in Spain, other foreign 
governments and regulatory authorities are also considering 
legislative and regulatory proposals that directly govern the 
provision of gambling and internet commerce. To monitor 
further changes the Group procures legal advice with regard 
to its activities in its principal countries of operation and 
monitors updates on any potential future jurisdiction where it 
may start accepting customers. The latter is important as the 
Group’s growth rate, strategy and future revenue streams are, 
to a certain extent, affected by the regulation of new markets 
and the subsequent growth of end-user interest and acceptance 
in such newly regulated markets.
The Group currently holds licences with respect to its activities 
from the Alderney Gambling Control Commission and the UK 
Gambling Commission as a result of the recently introduced 
Gambling (Licensing and Advertising) Act 2014. As of 
1 December 2014 the United Kingdom introduced changes 
to the basis on which remote gambling operators are taxed, 
moving from a point of supply to a point of consumption basis. 
The principal financial effect is increased costs in the form 
of a tax levied at 15% on all UK-based online revenue, which 
had a direct impact on adjusted EBITDA. 
The Group actively monitors taxation risk and takes such steps 
as it considers necessary to minimise such risks.
IT systems and ensuring business continuity
The Group’s business is at risk from disruption of key systems 
and assets on which it depends on. The functioning of the IT 
systems within the Group’s businesses or those of third parties 
on which it relies could be disrupted for reasons either within 
or beyond their control, including, but not limited to, accidental 
damage, disruption to the supply of utilities or services, including 
the internet infrastructure, security breaches, and general systems 
failure. Any substantial disruptions could impact the Group’s 
ability to generate revenue and offer services to customers, 
which in turn could affect the Group’s reputation, performance 
and financial position. 
To mitigate this risk, the Group will continue to invest in its 
IT systems and technology to ensure that the network 
infrastructure performs well and is reliable. 
Adapting to changing technologies and user preferences
Online bingo and social gaming are both evolving products 
and the Group’s success is dependent on its continued 
popularity and innovation. Failure by the Group to adapt to 
changing market needs and developing opportunities may 
have an impact on the ability to attract and retain players 
which could lead to a reduction in revenues and profitability. 
Furthermore, with the emergence and development of new 
products, new technologies, or new player practices, there 
is a risk that the Group’s existing services, products and 
proprietary technology may be considered obsolete.
In an industry that is characterised by the development of new 
products, technologies and end-user practices, the Group will 
continue to invest significant resources in research and 
development in order to enhance its technology, products 
and services. 
Operational risks 
Dependence on relations with third parties
The Group engages with a number of providers of non -proprietary 
third-party games and payment processing services. In the 
event that there is any interruption to the products or services 
provided by third parties, or if there are problems in supplying 
the products, or if one or more ceased to be provided or is 
provided on onerous terms to the Group, this could have 
an adverse effect on the Group’s business and performance. 
To mitigate this risk, the Group uses reliable industry suppliers 
as well as ensuring that contractual agreements with key 
partners are adequate to offer protection to the Group.
Customer reliance
The Group’s business is reliant on its real money players and 
social gamers. If for whatever reason they chose not to play 
the Group’s sites and games in the future, then this would 
have a material adverse impact on the Group’s financial 
performance. This risk is mitigated by the continuous 
investment in different marketing campaigns and incentives 
to retain key customers and attract new ones. Furthermore, 
the Group will remain competitive in the market, by responding 
to technological advances and changes in players’ taste in 
a timely and cost-effective manner.
Retention of key personnel
The Group’s future success is heavily dependent on the 
personal efforts and abilities of the Directors and senior 
management, some of whom are the founders of the Group. 
If any of these persons terminate their roles within the Group, 
or materially change or reduce their roles within the Group, 
the Group may not be able to replace them or their services 
on a timely basis with other professionals capable of making 
comparable contributions to the Group. Furthermore, the 
Group’s ability to compete effectively in the markets in which 
it operates depends upon its ability to retain and motivate its 
existing workforce. Any loss of Directors or senior management 
could have a material adverse effect on the Group’s results 
of operations and financial position. To mitigate this risk the 
Group works hard to retain its key management personnel 
through appropriate remuneration schemes and personal 
development programmes.  Strategic Report
14
Stride Gaming plc 
Annual report and financial statements 2015
Chief Financial Officer’s Review
Highlights
 » NGR growth of 227% to £27.8 million 
(2014: £8.5 million)
 » Adjusted EBITDA increased by 508% 
to £7.3 million (2014: £1.2 million)
 » Strong balance sheet with gross assets 
of £48.7 million (2014: £5.8 million)
 » Cash and cash equivalents of 
£7.4 million (2014: £Nil)
The Group delivered NGR growth of 227% to £27.8 million 
(2014: £8.5 million) for the financial period. This top line growth 
was a result of the acquisition of the Table Top Entertainment 
(“TTE”) brands in September 2014, along with strong organic 
growth reflected in the level of player activity. Of the total 
NGR for 2015, £1.1 million was also attributed to the InfiApps 
acquisition, an international mobile social gaming company, 
which the Group acquired on 31 July 2015. 
Cost of sales at £2.8 million (2014: £Nil) relates to the POC tax, 
which became effective in December 2014, part way through 
the 2015 financial year.
Distribution costs, including licensing, processing, royalties 
and marketing, totalled £9.9 million (2014: £5.7 million). 
The increase has been driven by marketing costs (up 55%), 
but is in line with our expectations, reflecting the drive 
to capitalise on organic growth. The Group has managed 
to make an incremental cost reduction as a result of the 
integration of the TTE sites into the Daub Alderney platform. 
This has taken the form of a reduction in royalty payments in 
relation to the software on the TTE sites, and from processing 
charges from Stride Gaming’s payment intermediary as a 
result of the larger scale of the business. 
Administration costs of £7.8 million (2014: £1.6 million) 
increased as a result of the pre-IPO reorganisation of the 
Stride Gaming Group during the first half of the year. Back 
office operations were integrated for both the legacy TTE 
and the Daub Alderney platform operations, which resulted 
in additional cost reductions for the Group. Capitalisation 
of proprietary software development costs at £0.25 million 
(2014: £Nil) represents 30% of total development spend, 
while amortisation of capitalised development costs 
was £0.02 million (2014: £Nil). 
Adjusted EBITDA increased by 508% to £7.3 million 
(2014: £1.2 million), reflecting an Adjusted EBITDA margin 
of 26% (2014: 14%). The result excludes the share-based 
payment charge on share options provided to certain 
consultants and the Executive Directors of the Group 
(£0.3 million), one off AIM listing costs (£1.2 million), 
Financial key performance indicators
2015
£’000
2014
£’000
NGR 27,811 8,489
Adjusted EBITDA 7,315 1,191
Cash and cash equivalents 7,388 —
Gross assets 48,737 5,830
corporate governance
page 16 CORPORATE Governance Financial Statements Strategic Report
15
Stride Gaming plc 
Annual report and financial statements 2015
Balance sheet and cash flow
The Group has a strong balance sheet with gross assets of 
£48.7 million (2014: £5.8 million), including cash and cash 
equivalents of £7.4 million (2014: £Nil). As a result of the IPO 
and the TTE and InfiApps acquisitions, the acquired assets, 
including proprietary software, developed software and other 
assets, strengthened the Group’s financial position.
Due to the Group’s strong financial performance, substantial 
cash flow of £4.6 million (2014: £Nil) was generated from 
operating activities, reflecting a high cash conversion rate 
of 105%. During the period, the Group spent £0.5 million 
(2014: £Nil) and £0.2 million (2014: £Nil) on intangible assets 
and on capitalisation of internally generated development 
costs, respectively. Proceeds of £10.6 million (net of share 
issue costs) were raised during the Company’s IPO through 
the issue of 8.4 million new shares. 
In March 2015, as part of the pre-IPO reorganisation, a 
£7.5 million dividend was declared, partly to clear a balance 
from the shareholder group, with £3.0 million paid in cash.
EPS and dividend
Reported basic and diluted earnings per share was 0.948p 
(2014: 2.711p) and 0.931p (2014: 2.711p), respectively. As the 
business is cash generative and highly profitable, it is the 
Board’s intention to adopt a progressive dividend policy in 
the future.
Ronen Kannor
Chief Financial Officer
16 November 2015 
The Group delivered NGR growth of 
227% to £27 .8 million (2014: £8.5 million) 
for the financial period. Of the total NGR 
for 2015, £1. 1 million was attributed to 
InfiApps, an international mobile social 
gaming company which the Group 
acquired on 31 July 2015. The Group has 
a strong balance sheet with gross assets 
of £48.7 million (2014: £5.8 million) 
including cash and cash equivalents 
of £7.4 million (2014: £Nil).”
Ronen Kannor Chief Financial Officer
costs associated with the acquisition of InfiApps (£1.9 million) 
and contingent remuneration (£0.2 million). Profit before tax is 
down to £0.4 million (2014: £0.8 million) as a result 
of exceptional costs, share-based payments and listing costs.
Group reorganisation, share placing and acquisitions
Stride Gaming plc was incorporated on 25 February 2015 in 
Jersey and on 19 May 2015 acquired Daub Alderney Limited, the 
real money gaming operator, via a share-for-share exchange 
including its subsidiaries, Spacebar Media Limited, Shifttech 
Limited, Baldo Line SRL and SRG Services Limited, which 
provide support services to the Group. 
The Company was admitted to trading on AIM on 19 May 2015, 
placing 8.4 million shares raising £11.2 million (£10.6 million 
net of share issue costs) to support the Group’s buy and build 
and organic growth strategy, and to provide working capital 
for the development of the Group’s proprietary software 
platform offering. 
Subsequent to admission, on 31 July 2015, the Group 
completed the acquisition of InfiApps Limited, an international 
mobile social gaming operator, for $22 million in cash, 
together with an earn-out consideration of up to another 
$18 million over a two-year period determined by the 
EBITDA generated. For the acquisition of InfiApps, an 
£8 million shareholder loan was received at a 7.5% 
annual interest rate with a two-year repayment period.  16
CORPORATE Governance
Stride Gaming plc 
Annual report and financial statements 2015
Board of directors 
Stuart Eitan Boyd Chief Executive Officer
Eitan has over 15 years of experience in the gambling sector. 
He was a founder of the GlobalCom bingo network (now 
the Dragonfish platform), one of the largest bingo networks 
worldwide, which was sold to 888 Holdings plc for $42 million 
in 2007. He was responsible for building the Wink Bingo 
network until it was sold to 888 Holdings plc for £60 million 
in 2010. He is highly experienced in driving product design, 
marketing, processes and customer services thus ensuring 
high level of satisfaction from both clients and investors. 
Eitan is a graduate of the Accelerated Development Program 
at Chicago Booth Business School (London, England) and holds 
a BA Honours degree in Economics from Tel Aviv University. 
He was recently awarded the Small Business Person of 
the Week by the Independent and participates in the LSE 
ELITE program.
Nigel T errence Payne Non-Executive Chairman
Nigel has over 24 years of experience as a director of both publicly 
listed and private companies. He has extensive experience of 
listing companies and fund raising, notably in his current role 
as non-executive director of AIM-quoted Gama Aviation Plc 
and previously as CEO of Sportingbet Plc. 
Sportingbet was one of the world’s largest internet gambling 
companies and made a number of acquisitions whilst listed on 
the London Stock Exchange (both FTSE listed and AIM quoted). 
Nigel holds an Executive MBA from the IMD Business School 
(Lausanne, Switzerland) and a degree in economics and 
accounting from the University of Bristol.
Chairman’s introduction 
to corporate governance
There are no specific corporate governance 
guidelines which apply generally to companies 
incorporated in Jersey. However, the Directors 
are subject to various general fiduciary duties 
and duties of skill and diligence under Jersey 
company laws and statute.
Furthermore, although companies traded 
on AIM are not required to provide corporate 
governance disclosure, or follow guidelines in 
the UK Corporate Governance Code (the “Code”) 
issued by the Financial Reporting Council 
(“FRC”), the Directors recognise the value 
and importance of high standards of 
corporate governance.
The Directors support high standards of 
corporate governance and confirm that they 
comply with the recommendations on corporate 
governance made by the Quoted Companies 
Alliance as far as is practicable, taking into 
account the Company’s size and stage 
of development. The Board is responsible 
for formulating, reviewing and approving the 
Company’s strategy, budgets and corporate 
actions. To this end, the Board holds 
regular Board meetings and has established 
Remuneration and Audit Committees. 
Details on the composition of the Board and 
reports from the Chairs of the Remuneration 
and Audit Committees follow this Corporate 
Governance Statement.
Nigel Payne
Non-Executive Chairman
Key to Committees
Audit Committee Chairman A
A
Audit Committee A
R
Remuneration Committee Chairman R
Remuneration Committee R 17
CORPORATE Governance Financial Statements Strategic Report
Stride Gaming plc 
Annual report and financial statements 2015
Darren Brett Sims Chief Operating Officer
Darren has over ten years’ experience in the gambling sector. 
He was instrumental in the sale of GlobalCom Limited to 
888 Holdings Plc. 
As vice president of bingo within 888, he was responsible 
for the integration of the GlobalCom Limited business, the 
launch of the 888.com bingo vertical and was part of the team 
that established the Dragonfish Technology – the B2B arm of 
888 Holdings Plc. 
Upon completion of his contract with 888 Holdings Plc, 
he returned to Spacebar Media, where he rejoined Eitan Boyd 
just prior to the sale of Wink Bingo to 888 Holdings Plc. 
He holds a Bachelor of Commerce (Honours) degree from 
the University of Witwatersrand, South Africa.
John Le Poidevin Non-Executive Director
John is a Fellow of the Institute of Chartered Accountants in 
England and Wales and a former partner in a major accounting 
firm where, as Head of Consumer Markets, he developed an 
extensive breadth of experience and knowledge across the 
leisure and retail sectors in the UK and overseas. John is now 
a non-executive on several boards, primarily of consumer or 
online technology related businesses and he therefore brings 
a wealth of relevant experience both to the sector in which the 
Group operates and in terms of corporate governance, audit, 
risk and financial reporting. Furthermore, he has previously 
advised on the flotations of a number of UK and international 
companies including 888 Holdings Plc. 
Ronen Kannor Chief Financial Officer
Ronen joined Stride Gaming at the end of October 2014 and 
has over twelve years’ experience in financial management 
roles within the real estate and business intelligence sectors. 
He has wide ranging CFO experience in all aspects of financial 
and operational management in a number of companies, including 
KC Development Inc, Publicis Group and Ernst & Young 
(Israel branch). 
Ronen holds an MBA in accounting and finance from the 
Tel Aviv College of Management, is a Certified Public Accountant 
(The Institute of Certified Public Accountants, Israel) and holds 
a BBA in accounting and finance from the Tel Aviv College 
of Management.
Adam Batty Non-Executive Director
Adam is currently general counsel and company secretary at 
Selfridges Group, where he is a member of the Selfridges Group 
executive team and a director of their main operating companies. 
A corporate lawyer by training, Adam worked in private practice 
at Norton Rose Fulbright and in an investment bank before 
joining Mitchells & Butlers PLC in 2002 where he spent five years 
as legal director (and, latterly, risk and compliance director), 
before joining the Domino’s Pizza Group Plc in 2007 where 
he spent five years as general counsel and company secretary, 
which involved being a member of their operating boards in 
the UK, Germany and Switzerland.
A A R R 18
CORPORATE Governance
Stride Gaming plc 
Annual report and financial statements 2015
Statement from the Chair of the Remuneration Committee 
Year ended 31 August 2015
Below is set out the annual report of the Remuneration 
Committee. The report comprises a description of how the 
Committee operates; a brief overview of the remuneration 
policy; and details of compensation paid to the Board of 
Directors within the financial year.
On admission to AIM, the Committee provided share options 
to Executive Directors, aligning their interests with shareholders 
in terms of value creation in the crucial post-listing period, 
with a broader review of the remuneration policy to follow 
during the year. This review was undertaken during summer 
2015 with a view to ensure the remuneration levels set were 
competitive, recognised the skills and experience of the 
Executive Directors and reflected the Company’s status on 
AIM. The Committee further reviewed the operation of variable 
incentive plans to ensure they have the correct link between 
performance and reward. 
As a result of this review, the Committee proposed some 
changes to the operation of the policy for FY15/16, which 
are summarised below:
 » increases to base salaries which set them in line with 
equivalent roles at companies of a similar size and 
complexity, recognising the capabilities and strong 
performance to date;
 » introduction of a pension contribution;
 » annual bonus maximum quantum to be set by reference 
to each individual’s salary, with performance assessed 
against a combination of financial and non-financial 
measures linked to the Company’s KPIs;
 » an annual award of performance shares subject to a 
combination of measures assessed over a three year 
performance period; and
 » an increase in the fees paid to Non-Executive Directors, 
reflecting the increased time commitments as an 
established AIM-listed company.
The Committee is satisfied that the revised remuneration policy 
operates in such a way as to incentivise Company growth and 
development, and reward for strong performance. The first 
annual award of performance shares will be made in the 2015/16 
financial year, and this will further serve to align Directors’ 
interests with those of the Company and its shareholders. 
Remuneration Committee report
The Remuneration Committee (the “Committee”) is appointed 
by the Board, and is formed of Non-Executive Directors. 
In the year the Committee was chaired by Adam Batty; 
the other members of the Committee were Nigel Payne 
and John Le Poidevin. 
The Committee met three times during the year and all Committee 
members attended every meeting. The Committee’s terms of 
reference are available for public inspection on the Company’s 
website at www.stridegaming.com.
Other members of the Board of Directors are invited to attend 
meetings when appropriate, but no Director is present when 
his or her remuneration is discussed. New Bridge Street (“NBS”), 
a part of Aon Hewitt Limited, provided advice to the Committee 
during the year. NBS is a signatory to the Remuneration 
Consultants’ Group code of conduct and has no other 
connection with the Company other than in the provision 
of advice on remuneration. 
The Committee’s principal duties are as follows:
 » to review and make recommendations in relation to the 
Company’s Senior Executive remuneration policy;
 » to apply these recommendations when setting the specific 
remuneration packages for each Executive Director, the 
Company Chairman and other selected members of senior 
management and to include annual bonuses, the eligibility 
requirements for long-term incentive schemes, pension rights, 
contracts of employment and any compensation payments;
 » to ensure that the remuneration policy is aligned with the 
short and long-term strategy of the Company; 
 » to manage performance measurements and make 
awards under the Company’s annual bonus and long-term 
incentive plans; 
 » to consult with key shareholders with regards to remuneration 
where appropriate and take their views into account; and 
 » to manage reporting and disclosure requirements relating 
to Executive remuneration. 
Pay policy
The remuneration policy is designed to provide an appropriate 
level of compensation to senior management such that they 
are sufficiently incentivised and rewarded for their strong 
performance, responsibility and experience. Using appropriate 
measures of performance as well as equity-based rewards 
helps to align the interests of the Directors with those of the 
Company’s shareholders. 
The Committee has taken into account market data when 
setting remuneration levels, positioning Executives’ pay at 
a broadly mid-market level relative to similar-sized AIM-listed 
companies, as well as those from the gaming sector. This 
provides a package which is both fair and competitive within 
the market.
Base salary
Base salaries are reviewed on an annual basis, and any 
increases become effective from the start of the financial 
year. From 1 September 2015, Eitan Boyd and Darren Sims 
are entitled to a base salary of £250,000 and Ronen Kannor 
is entitled to a base salary of £150,000.  19
CORPORATE Governance Financial Statements Strategic Report
Stride Gaming plc 
Annual report and financial statements 2015
Pension and benefits
From 1 September 2015 Executive Directors will be entitled 
to a pension contribution of up to 10% of salary in the form 
of a defined contribution to a pension plan and/or as a cash 
supplement. Additionally, the Executives are entitled to benefits 
in kind, including the provision of life assurance, group income 
protection and private medical and dental insurance.
Annual bonus
The remuneration policy allows the Committee, at its discretion, 
to make annual cash bonus awards to the Executive Directors, 
which will normally be limited to a value of 100% of salary 
per annum. 
Stretching performance targets are determined by the 
Committee at the start of the financial year, which are fully 
aligned with the Company’s strategy and objectives. These 
targets are typically financial in nature (e.g. Adjusted EBITDA), 
with a minority of the bonus payable for the achievement of 
qualitative strategic and personal performance targets. 
For financial targets a sliding scale target range will be 
used, with no bonus payable for this element unless a 
threshold level of performance is achieved.
The Committee retains the discretion to increase a bonus to 125% 
of salary in exceptional circumstances where actual performance 
significantly exceeds targets set at the start of the financial year. 
It is intended that this flexibility would only be used in limited 
scenarios, reflecting the dynamic nature of the market.
Long-term incentives
The Executives received an award of share options at IPO, 
which vest in equal tranches on the first, second and third 
anniversaries of listing. These awards were intended to 
reward Executives for successful completion of the IPO 
and to promote and incentivise future share price growth. 
The Company will make an annual long-term incentive 
award in the 2015/16 financial year. This will be in the form 
of performance shares, with a three year vesting period, 
subject to stretching performance conditions set at the time 
of grant, which are likely to include metrics based on financial 
performance in line with our key objectives of delivering 
returns to our shareholders through achievement of our 
growth strategy and continued service. The Committee 
believes these performance measures will help to drive 
strong performance over the long term. 
The initial awards of performance shares are expected to be 
made at a face value of 100% of salary for Executive Directors. 
Non-Executive Director fees
Fees for Non-Executive Directors are set with reference 
to market data, time commitment, and chairmanship of 
Board Committees. 
From 1 September 2015, the Chairman of the Board, 
Nigel Payne, is eligible for a fee of £48,000 per annum. 
The two other Non-Executive Directors, Adam Batty and 
John Le Poidevin, are eligible for annual fees of £42,000. 
Other than this fee, and appropriate travel expenses to 
and from Board meetings, no additional compensation 
will be payable. 
Pay and conditions elsewhere in the Company
The Committee takes into account remuneration conditions 
within the Company as a whole when determining Executive 
pay levels. Other members of staff are eligible for annual 
bonuses based on business and personal performance. 
Service agreements
The Executive Directors’ service agreements provide that their employment with the Company is on a rolling basis, subject 
to written notice being served by either party of not less than six months.
The current service contracts and letters of appointment include the following terms:
Date of contract Notice period
Executive Directors Eitan Boyd 11 May 2015 six months
Darren Sims 11 May 2015 six months
Ronen Kannor 11 May 2015 six months
Non-Executives Adam Batty 19 May 2015 three months
Nigel Payne 8 May 2015 three months
John Le Poidevin 19 May 2015 three months
Under these service contracts, the Company may terminate an Executive Director’s employment immediately by making a payment 
in lieu of base salary, benefits and statutory entitlements, and any bonus or commission payments pro-rated for the duration of 
the notice period. No bonus would be payable in the event of an Executive Director’s resignation. The Company has agreed that 
for the financial year ending 31 August 2016 the total remuneration payable to Darren Sims shall be equal to the total remuneration 
payable to the CEO. Post-terminative restrictive covenants also apply for a six-month period.  20
CORPORATE Governance
Stride Gaming plc 
Annual report and financial statements 2015
Statement from the Chair of the Remuneration Committee 
continued 
Year ended 31 August 2015
Directors’ Remuneration Report
The Directors received the following remuneration for the financial year ended 31 August 2015:
Salary 
and fees
4
 
£’000
Benefits 
in kind 
1
£’000
Pension
£’000
Annual 
bonus 
2
£’000
Share-based
payments
3
£’000
2015 
total
£’000
2014 
total 
£’000
Executive Directors
Eitan Boyd 117 2 6 252 66 443 —
Darren Sims 114 2 6 252 66 440 —
Ronen Kannor 69 1 3 156 45 274 —
Non-Executives
Adam Batty 7 — — 15 — 22 —
Nigel Payne 16 — — 15 — 31 —
John Le Poidevin 13 — — 15 — 28 —
Aggregate emoluments 336 5 15 705 177 1,238 —
1 Including the provision of life assurance, group income protection, and private medical and dental insurance. 
2 Represents the annual bonus payable in December 2015 for performance up to the end of the 2014/15 financial year.
3 Represents the cost of awarding share options during the year.
4 The amounts in this table cover the period from 1 February 2015 to 31 August 2015.
Outstanding share-based awards
The following share-based payment awards were outstanding during the year:
Award 
type
Date 
of grant
At 
admission
Granted in 
year
Lapsed in 
year
Vested in 
year
At 
year end
Market 
price 
at date 
of grant
Exercise 
price
Eitan Boyd Share options 18 May 2015 750,000 — — — 750,000 £1.32 £1.32
Darren Sims Share options 18 May 2015 750,000 — — — 750,000 £1.32 £1.32
Ronen Kannor Share options 18 May 2015 500,000 — — — 500,000 £1.32 £1.32
Statement of Directors’ interests
The table below sets out the beneficial interests in shares and the fully vested share options of all Directors holding office as at 
31 August 2015.
Ordinary shares Unexercised share options Total interests
On admission 
and 
31 August 
2015
At 
31 August 
2014
On admission 
and 
31 August 
2015
At 
31 August 
2014
On admission 
and 
31 August 
2015
At 
31 August 
2014
Eitan Boyd 2,249,999 — — — 2,249,999 —
Darren Sims 937,498 — — — 937,498 —
Ronen Kannor — — — — — —
Adam Batty 22,727 — — — 22,727 —
Nigel Payne — — — — — —
John Le Poidevin 37,879 — — — 37,879 — 21
CORPORATE Governance Financial Statements Strategic Report
Stride Gaming plc 
Annual report and financial statements 2015
Statement from the Chair of the Audit Committee
Year ended 31 August 2015
This is the first report of the Audit Committee following 
the Company’s flotation on AIM in May 2015.
The Committee has responsibility for, amongst other things, 
the planning of, reviewing and reporting to the Board on financial 
reporting, internal financial control and risk management, 
and the involvement of the Company’s auditor in that process. 
The Committee focuses in particular on compliance with 
corporate governance, accounting standards and legal 
requirements, together with maintaining an effective 
system of internal financial control.
The Committee advises the Board on the statement by the 
Directors that the annual report, when read as a whole, is fair, 
balanced and understandable and provides the information 
necessary for shareholders to assess the Group’s performance, 
business model and strategy. The ultimate responsibility for 
reviewing and approving the annual report and the half-yearly 
report remains with the Board as a whole.
The Committee also has responsibility for the consideration 
of the requirement for, and scope of, the internal audit and for 
reviewing the performance, independence and effectiveness 
of the external auditor.
In the short period since flotation, our focus has been 
to work with management and the external auditor to plan 
for and monitor the integrity of the half-yearly report issued 
in May 2015 and the annual report and financial statements 
for the year ended 31 August 2015 and the audit thereof.
Our programme for the 2015/16 year includes a review of the 
financial risks and internal control framework to manage those 
risks, work on which has already commenced and we expect 
to conclude in the first six months of our financial year. As part 
of this review we will also consider and keep a watching brief 
over the need for an internal audit.
Introduction
All three Non-Executive Directors are members of the Audit 
Committee. The Committee was formed in May 2015 and met 
once in the four months prior to the year end and, subsequent 
to the year end, has met on two further occasions. All Committee 
members attended every meeting. The Committee’s terms of 
reference are available for public inspection on the Company’s 
website at www.stridegaming.com.
John Le Poidevin, as a Fellow of the Institute of Chartered 
Accountants in England and Wales, former audit partner and 
chair of other public company audit committees, has recent 
and relevant financial experience. Both Nigel Payne and 
Adam Batty have many years of relevant financial and audit 
committee experience and Nigel is also a Chartered Accountant.
By invitation of the Audit Committee Chair, Ronen Kannor, the 
Chief Financial Officer, has attended all Committee meetings 
held to date, as did representatives of BDO LLP, the external 
auditor. Other Executive Directors have been invited to attend 
Committee meetings where relevant for them to do so. The 
Audit Committee also meets with the external auditor without 
any Executive Directors present and the Audit Committee Chair 
met with BDO separately on several occasions to discuss 
matters, including the audit process.
Key activities during the period
With there being less than four months between the flotation 
on AIM and the Company’s year end of 31 August 2015, the 
focus of the Audit Committee’s activities during the period 
has been centred around the effective planning, implementation 
and review of our financial reporting processes.
During the period we have:
 » reviewed and monitored the integrity of the published financial 
information, including the half-yearly report, the preliminary 
announcement and the annual report and financial statements;
 » considered the independence and objectivity of the 
external auditor;
 » planned for the Company’s year end and reviewed the 
audit plan;
 » assessed the key risks which could have a material 
impact on the financial statements; and
 » reviewed significant issues and areas of judgement applied 
in the preparation of the financial statements.
Financial reporting and significant financial judgements
Set out below are the significant issues considered by the 
Audit Committee and discussed with the external auditor 
in relation to the financial statements and how these were 
then subsequently addressed.
Revenue recognition
Revenue recognition gives rise to a risk over completeness, 
existence, accuracy and presentation in the statement of 
comprehensive income of net gaming revenue and also involves 
judgements as to estimates and treatment of certain customer 
bonuses and the liability required in respect of progressive 
jackpots. With the acquisition of InfiApps Limited, the Group 
also has a new “social” revenue stream, which requires 
judgement over the recognition policy to be adopted with 
regard to the game offerings and contractual arrangements 
with customers.  22
CORPORATE Governance
Stride Gaming plc 
Annual report and financial statements 2015
Statement from the Chair of the Audit Committee continued
Year ended 31 August 2015
Financial reporting and significant financial judgements continued
Revenue recognition continued
The Committee reviewed the internal control procedures in 
respect of revenue recognition and discussed with management 
and the external auditor the accounting policies adopted 
and judgements made in respect of revenue recognition for 
both the real money and social gaming revenue streams and 
confirmed that they are appropriate and in line with relevant 
accounting standards and industry practice.
Business combinations
The Group has undertaken a number of acquisitions and 
Group restructurings in the year to 31 August 2015, which 
gives rise to risk in terms of ensuring the application of the 
appropriate accounting treatment, assessing the fair values 
of assets and liabilities and consideration at the time of 
acquisition and, subsequently, at the period of the resultant 
goodwill and any impairment thereof.
The Committee discussed with management its approach 
to determining the fair value of the assets and liabilities of 
the various acquisitions in the period, including consideration 
of any external reports commissioned, any contingent 
consideration involved and the underlying assumptions 
adopted by management in assessing the carrying value 
of goodwill. The Committee discussed these with the auditor 
and confirmed how these assumptions compared with industry 
standards and were supported by historical trends within the 
businesses acquired.
Capitalisation of software development costs
The Group incurred external and internal software development 
costs during the period that it is required to capitalise if they 
meet the criteria of IAS 38 and which in turn gives rise to a risk 
that costs are not capitalised in line with these requirements.
The Committee reviewed the controls and processes in 
respect of the Group’s review of costs capitalised as software 
development expenditure and management’s judgements 
of how these costs met the criteria of IAS 38. The Committee 
also discussed with the external auditor the reasonableness 
of the amortisation period used for each project where costs 
have been capitalised and confirmed that they were appropriate 
and in line with industry standards.
Other issues
In addition to the above items, other areas considered by the 
Committee in relation to the financial statements included the 
adequacy of tax provisions and disclosures, the completeness 
of related party disclosures, the treatment of share issue and 
IPO costs and the fair value of share options granted in the period.
Internal control and risk review process
Whilst the Committee is responsible for reviewing the financial 
risks and internal controls to mitigate these, the Board as a 
whole is responsible for reviewing the overall business risks 
and risk management procedures. The Group’s principal risks 
and uncertainties, together with mitigating actions and the 
internal controls and risk management procedures, are set 
out on page 13 of the annual report.
External auditor and independence
The Committee reviewed the effectiveness of the auditor following 
the Company’s flotation in May 2015 and satisfied itself that 
the auditor was delivering an effective service. Subsequent 
discussions was held with both management and the external 
auditor to agree how an effective service would be delivered 
as part of the planning for the year-end audit process. The 
Committee continues to be satisfied that the auditor is delivering 
the necessary level of service, scrupulousness and robust 
challenge in its work. An annual review of ongoing audit services 
will be carried out by the Committee, together with a formal 
assessment of the external auditor’s independence.
The external auditor acted as reporting accountant on the 
Company’s AIM flotation and has also provided tax advisory 
and due diligence services during the financial reporting period. 
The analysis of audit, audit-related and non-audit fees is provided 
in note 3 to the financial statements. The Group has engaged 
a number of other accounting firms to carry out such work 
during the reporting period and the Committee satisfied itself 
that where the external auditor carried out non-audit work that 
it undertook its standard independence procedures in relation 
to those engagements and that they were selected by the 
Company on the basis of specific expertise or familiarity 
with the areas under review. The Committee required the external 
auditor to confirm in writing that it remained independent in its 
scrutiny of the financial statements and had sufficient policies 
and procedures in place, including the use of separate teams 
and different engagement partners for any non-audit work. 
The Committee was satisfied that the external auditor’s 
independence and objectivity were not compromised by 
the non-audit work undertaken in the financial period.
John Le Poidevin
Chairman of the Audit Committee
16 November 2015 23
CORPORATE Governance Financial Statements Strategic Report
Stride Gaming plc 
Annual report and financial statements 2015
Directors’ Report
Year ended 31 August 2015
The Directors present their report and consolidated financial 
statements for the year ended 31 August 2015.
Principal activities and review of the business
The Group’s principal activities during the year continued to be 
that of an online, real money, bingo-led operator, with expansion 
into social gaming following the acquisition of InfiApps Ltd on 
31 July 2015. A review of the business and a description of the 
principal risks and uncertainties are set out in the Chairman’s 
Statement and the Chief Executive’s Statement.
Results and dividends
The profit for the year, after taxation and exceptional items, 
amounted to £415,000 (2014: £846,000). A pre-IPO dividend 
of £7.5 million was declared in the year ended 31 August 2015 
(2014: £Nil). The Board is not recommending a final dividend. 
Further details of the results for the year are included in 
the Chairman’s, Chief Executive’s and Chief Financial 
Officer’s statements.
Future developments
Future developments are discussed in the Chairman’s 
Statement and Chief Executive’s Statement.
Directors’ interests and remuneration
Details of the Directors’ interests and remuneration are included 
in the Statement from the Chair of the Remuneration Committee.
Political and charitable donations
During the year, the Company made charitable contributions 
totalling £17,786 (2014: £Nil).
Disclosures to auditor
The Directors who held office at the date of approval of this 
Directors’ Report confirm that, so far as they are aware, there 
is no relevant audit information of which the Company’s 
auditor is unaware; and each Director has taken steps that 
ought to have been taken as a Director to make themselves 
aware of any relevant audit information and to establish that 
the Company’s auditor is aware of that information.
BDO LLP have expressed their willingness to continue in office 
and a resolution to reappoint them will be proposed for the 
Annual General Meeting.
Financial instruments
Details of the Group’s financial risk management objectives and 
policies are included in note 21 to the financial statements.
Events after reporting date
For significant events after the reporting period please refer 
to note 25 of the financial statements.
Going concern
The Board is satisfied that the Group has adequate financial 
resources to continue to operate for the foreseeable future 
and is financially sound. For this reason, the going concern 
basis is considered appropriate for the preparation of 
financial statements.
Statement of Directors’ responsibilities
The Directors are responsible for preparing the annual reports 
and the Group financial statements in accordance with applicable 
law and regulations. Jersey company law requires the Directors 
to prepare accounts for each financial period. Under that law, 
and as required by the AIM Rules for Companies, the Directors 
have elected to prepare the Group financial statements in 
accordance with International Financial Reporting Standards 
(“IFRSs”) as adopted by the European Union (“EU”). In preparing 
these financial statements, the Directors are required to:
 » present fairly the Group financial position, financial 
performance and cash flows;
 » select suitable accounting policies in accordance with IAS 8 
Accounting Policies, Changes in Accounting Estimates and 
Errors and apply them consistently;
 » present information, including accounting policies, in a 
manner that provides relevant, reliable, comparable and 
understandable information;
 » make judgements that are reasonable; 
 » provide additional disclosures when compliance with the 
specific requirements in IFRSs, as adopted by the EU, is 
insufficient to enable users to understand the impact of 
particular transactions, other events and conditions on the 
Group’s financial position and financial performance; and
 » state whether the Group financial statements have been 
prepared in accordance with IFRSs, as adopted by the EU, 
subject to any material departures disclosed and explained 
in the financial statements.
Website publication
The Directors are responsible for ensuring the annual report 
and the financial statements are made available on a website. 
Financial statements are published on the Company’s website 
in accordance with legislation in the UK governing the preparation 
and dissemination of financial statements, which may vary from 
legislation in other jurisdictions. The maintenance and integrity 
of the Company’s website is the responsibility of the Directors. 
The Directors’ responsibility also extends to the ongoing 
integrity of the financial statements contained therein.
Approval and signature
Ronen Kannor
Chief Financial Officer
16 November 2015 Financial Statements
24
Stride Gaming plc 
Annual report and financial statements 2015
INDEPENDENT AUDITOR’S REPORT 
For the year ended 31 August 2015
Independent auditor’s report to the members of Stride Gaming plc
We have audited the accompanying consolidated financial 
statements of Stride Gaming Plc and its subsidiaries for the 
year ended 31 August 2015 which comprise of the consolidated 
statement of financial position, the consolidated statement of 
profit or loss and other comprehensive income, the consolidated 
statement of changes in equity and the consolidated statement 
of cash flows for the period then ended and related notes. The 
financial reporting framework that has been applied in their 
preparation is International Financial Reporting Standards 
(“IFRSs”) as adopted by the European Union.
This report is made solely to the Company’s members, as a body, 
in accordance with Article 113A of the Companies (Jersey) 
Law 1991. Our audit work has been undertaken so that we 
might state to the company’s members those matters we are 
required to state to them in an auditor’s report and for no other 
purpose. To the fullest extent permitted by law, we do not accept 
or assume responsibility to anyone other than the Company 
and the Company’s members as a body, for our audit work, 
for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditor
As explained more fully in the Statement of Directors’ 
Responsibilities, the Directors are responsible for the 
preparation of the consolidated financial statements and 
for being satisfied that they give a true and fair view. Our 
responsibility is to audit and express an opinion on the 
consolidated financial statements in accordance with applicable 
law and International Standards on Auditing (UK and Ireland). 
Those standards require us to comply with the Financial 
Reporting Council’s (“FRC’s”) Ethical Standards for Auditors.
Scope of the audit of the consolidated financial statements
An audit involves obtaining evidence about the amounts and 
disclosures in the consolidated financial statements sufficient 
to give reasonable assurance that the consolidated financial 
statements are free from material misstatement, whether 
caused by fraud or error. This includes an assessment of: 
whether the accounting policies are appropriate to the Company’s 
circumstances and have been consistently applied and 
adequately disclosed; the reasonableness of significant 
accounting estimates made by the Directors; and the overall 
presentation of the consolidated financial statements. In addition, 
we read all the financial and non-financial information in the 
annual report to identify material inconsistencies with the 
audited consolidated financial statements and to identify any 
information that is apparently materially incorrect based on, 
or materially inconsistent with, the knowledge acquired by us 
in the course of performing the audit. If we become aware of 
any apparent material misstatements or inconsistencies we 
consider the implications for our report.
Opinion on consolidated financial statements
In our opinion the consolidated financial statements: 
 » give a true and fair view of the state of the Group’s affairs as 
at 31 August 2015 and of its profit for the year then ended; 
 » have been properly prepared in accordance with International 
Financial Reporting Standards as adopted by the European 
Union; and
 » have been properly prepared in accordance with the Companies 
(Jersey) Law 1991.
Opinion on other matters
In our opinion other information given in the annual report 
is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters 
where the Companies (Jersey) Law 1991 requires us to report 
to you if, in our opinion:
 » proper accounting records have not been kept, or proper 
returns adequate for our audit have not been received from 
branches not visited by us; or
 » the consolidated financial statements are not in agreement 
with the accounting records and returns; or
 » we have not received all the information and explanations 
we require for our audit.
Kieran Storan (senior statutory auditor)
For and on behalf of BDO LLP , statutory auditor 
55 Baker Street
London
United Kingdom
16 November 2015
BDO LLP is a limited liability partnership registered in England 
and Wales (with registered number OC305127). CORPORATE Governance Financial Statements Strategic Report
25
Stride Gaming plc 
Annual report and financial statements 2015
Consolidated statement of profit or loss and other 
comprehensive income
for the year ended 31 August 2015
Note
2015 
£’000
2014 
£’000
Net gaming revenue 1 27,811 8,489
Cost of sales (2,753) —
Gross profit 25,058 8,489
Distribution costs 3 (9,896) (5,679)
Administrative expenses 3 (7,847) (1,619)
Adjusted EBITDA 7,315 1,191
Share-based payments 3 (306) —
Acquisition costs 3 (1,893) —
Contingent remuneration 3 (217) —
Listing costs 3 (1,179) (90)
Amortisation of intangible assets 3 (2,520) (255)
Depreciation 3 (47) —
Operating profit 1,153 846
Finance expense 5 (793) —
Profit before tax 360 846
Tax credit 8 55 —
Profit after tax 415 846
Other comprehensive income:
Items that will or may be reclassified to profit or loss — —
Exchange gains arising on translation of foreign operations 7 —
Total comprehensive income for the period attributable  
to the equity holders of the parent entity 422 846
 
Earnings per Share (p) 9
Basic 0.948 2.711
Diluted 0.931 2.711
The notes on pages 29 to 51 form part of these financial statements. Financial Statements
26
Stride Gaming plc 
Annual report and financial statements 2015
Consolidated statement of financial position
at 31 August 2015
Note
2015 
£’000
2014 
£’000
ASSETS
Non-current assets
Property plant and equipment 11 234 —
Intangible assets 12 36,367 —
Other receivables 14 248 83
Deferred tax asset 18 231 —
Available-for-sale investments 6 — —
37,080 83
Current assets
Trade and other receivables 14 4,241 5,747
Income tax receivable 28 —
Cash and cash equivalents 16 7,388 —
11,657 5,747
Total assets 48,737 5,830
LIABILITIES
Non-current liabilities
Trade and other payables 15 100 —
Loans and borrowings 17 8,000 —
Deferred tax liability 18 2,133 —
10,233 —
Current liabilities
Trade and other payables 15 6,585 1,242
Income tax payable 33 —
Loans and borrowings 17 1,083 —
7,701 1,242
Total liabilities 17,934 1,242
Net assets 30,803 4,588
Issued capital and reserves attributable to owners of the parent
Share capital 19 502 312
Share premium 10,608 —
Merger reserve 3,013 (312)
Shares to be issued 4,132 —
Capital contribution 14,271 6,999
Share option reserve 266 —
Foreign currency translation reserve 7 —
Retained earnings (1,996) (2,411)
Total equity 30,803 4,588
The notes on pages 29 to 51 form part of these financial statements.
Approved by the Board on 16 November 2015 and signed on its behalf by:
Ronen Kannor Stuart Eitan Boyd
Director Director CORPORATE Governance Financial Statements Strategic Report
27
Stride Gaming plc 
Annual report and financial statements 2015
Consolidated statement of cash flows
for the year ended 31 August 2015
Note
2015 
£’000
2014 
£’000
Cash flows from operating activities
Profit for the year 415 846
Adjustments for:
Depreciation of property, plant and equipment 11 47 —
Amortisation of intangible assets 12 2,520 255
Finance expense 5 793 —
Share-based payment expense 266 —
Income tax credit 8 (55) —
3,986 1,101
Increase in trade and other receivables (2,450) (1,339)
Decrease in trade and other payables 3,080 238
Cash generated from operations 4,616 —
Income taxes paid (68) —
Net cash flows from operating activities 4,548 —
Investing activities
Acquisition of subsidiaries, net of cash acquired 23 (18,061) —
Purchases of property, plant and equipment 11 (83) —
Purchase of intangibles 12 (467) —
Capitalised development costs 12 (246) —
Net cash used in investing activities (18,857) —
Financing activities
Issue of ordinary shares, net of issue costs 10,693 —
Capital contribution from shareholder 6,000 —
Proceeds from borrowings 8,000 —
Dividends paid 10 (3,000) —
Net cash from financing activities 21,693 —
Net increase in cash and cash equivalents 7,384 —
Cash and cash equivalents at beginning of year — —
Exchange gains on cash and cash equivalents 4 —
Cash and cash equivalents at end of year 16 7,388 —
A description of the significant non-cash movements is given in note 26. 
The notes on pages 29 to 51 form part of these financial statements. Financial Statements
28
Stride Gaming plc 
Annual report and financial statements 2015
Consolidated statement of changes in equity
for the year ended 31 August 2015
Share 
capital 
£’000
Share 
premium 
£’000
Merger 
reserve 
£’000
Shares to
 be issued
 reserve 
£’000
Capital 
contribution
 reserve 
£’000
Share 
option 
reserve 
£’000
Foreign
 currency
 translation 
reserve 
£’000
Retained 
earnings 
£’000
Total
equity 
£’000
1 September 2013 312 — (312) — 4,999 — — (3,257) 1,742
Total comprehensive income 
for the year — — — — — — — 846 846
Capital contribution — — — — 2,000 — — — 2,000
At 31 August 2014 312 — (312) — 6,999 — — (2,411) 4,588
Profit for the year — — — — — — — 415 415
Other comprehensive income — — — — — — 7 — 7
Total comprehensive income 
for the year — — — — — — 7 415 422
Contributions by and 
distributions to owners
Dividends — — — — (7,500) — — — (7,500)
Acquisition of business 
through issue of shares 105 — 3,325 — — — — — 3,430
Acquisition of intangible 
assets for shares — — — 4,132 — — — — 4,132
Capital contribution — — — — 14,772 — — — 14,772
Share-based payment — — — — — 266 — — 266
Issue of shares, net of share 
issue costs 85 10,608 — — — — — — 10,693
At 31 August 2015 502 10,608 3,013 4,132 14,271 266 7 (1,996) 30,803
The following describes the nature and purpose of each reserve within equity:
Share premium  Amount subscribed for share capital in excess of nominal value.
Merger reserve  Represents the difference between the nominal value of shares acquired by the Company in the 
share-for-share exchange with Daub Alderney Limited and the nominal value of shares issued 
to acquire them as well the satisfaction of the initial consideration in respect of the acquisition of 
the trade and assets of Table Top Entertainment Limited. 
Shares to be issued  Represents the shares to be issued in respect of the acquisition of certain intangibles assets.
Capital contribution  Represents the release of the Group’s obligation to repay borrowings of £6,999,000, the contribution 
by a shareholder of the entire share capital of Baldo Line SRL, the cash contribution by a shareholder 
to acquire Spacebar Media Limited and the £8,454,786 payment made in the form of shares by the 
shareholders to settle obligations following the acquisition of Table Top Entertainment Limited 
(Refer to note 23).
Share options  Represents the fair value of awards made under the Goup’s share option scheme (Refer to note 22).
Foreign currency 
translation reserve  Gains/losses arising on retranslating the net assets of overseas operations into Sterling.
Retained earnings  All other net gains and losses and transactions with owners not recognised anywhere else. CORPORATE Governance Financial Statements Strategic Report
29
Stride Gaming plc 
Annual report and financial statements 2015
Notes forming part of the financial statements
for the year ended 31 August 2015
1 Accounting policies
Legal status
Stride Gaming Plc which includes its subsidiaries and together forms the “Group” is a public limited liability company incorporated 
in Jersey. Stride Gaming Plc was incorporated under Companies (Jersey) Law 1991 on 25 February 2015. The address of its 
registered office is 12 Castle Street, St Helier, Jersey JE2 3RT. Stride Gaming Plc shares are listed on the Alternative Investment 
Market (“AIM”) of the London Stock Exchange. The Company is not required to present parent company information.
Basis of preparation
Stride Gaming plc was incorporated on 25 February 2015 and subsequent to this on 19 May 2015 acquired, via a share-for-share 
exchange, the entire share capital of the Group headed by Daub Alderney Limited. Following this Group reorganisation the financial 
statements for the period ended 31 August 2015 have been prepared on a merger accounting basis as though this Group structure 
had always been in place (see below for further details) and a full year of results is therefore presented. The prior year 
comparatives represent the results of Daub Alderney Limited.
The principal accounting policies adopted in the preparation of the consolidated financial statements are set out below and 
have been prepared on a historical cost basis. The policies have been consistently applied to all the years presented, unless 
otherwise stated.
The consolidated financial statements are presented in Sterling, which is also the parent’s functional currency and amounts 
are rounded to the nearest thousand, unless otherwise stated.
These financial statements have been prepared in accordance with International Financial Reporting Standards (collectively IFRSs) 
as adopted by the European Union, International Accounting Standards and Interpretations and in accordance with the requirements 
of the Companies (Jersey) Law 1991.
The preparation of financial statements in compliance with EU adopted IFRS requires the use of certain critical accounting 
estimates. It also requires Group management to exercise judgement in applying the Group’s accounting policies. The areas 
where significant judgements and estimates have been made in preparing the financial statements are disclosed below.
Changes in accounting policies
a) New standards, interpretations and amendments effective from 1 September 2014
Where relevant, new standards and amendments to existing IFRS standards that have been published and are mandatory 
for the first time for the financial year beginning 1 September 2014 have been adopted, but had no significant impact to the 
Group accounts. 
b) New standards, interpretations and amendments not yet effective
New standards, amendments to standards and interpretations that have been issued but are not yet effective (and in some 
cases have not yet been adopted by the EU) including IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts 
with Customers have not been early adopted and the Directors do not expect that the adoption of these standards will have 
a material impact on the financial statements of the Group in future periods. 
Basis of consolidation
Group reorganisation 
The consolidated financial statements shows the combination of Stride Gaming plc and Daub Alderney Limited following the 
share for share exchange completed on 19 May 2015 which falls outside the scope of IFRS 3 Business Combinations. Accordingly, 
following the guidance regarding the selection of an appropriate accounting policy provided by IAS 8 Accounting Policies: 
Changes in Accounting Estimates and Errors, the consolidated financial statements have been prepared using the principles 
of merger accounting set out in FRS 102 Section 19 and UK Generally Accepted Accounting Practice (“UK GAAP”).
When merger accounting is applied, the investment is recorded in the Company’s balance sheet at the nominal value of shares 
issued together with the fair value of any consideration paid. In the consolidated financial statements, merged subsidiary undertakings 
are treated as if they had always been a member of the Group from the date common control was achieved. The corresponding 
figures for the previous period include its results for that period, the assets and liabilities at the previous balance sheet date and 
the shares issued by the Company as consideration as if they have always been in issue. Any differences between the nominal 
value of the shares acquired by the Company and the nominal value of shares issued by the Company to acquire them are taken 
to a separate merger reserve. Financial Statements
30
Stride Gaming plc 
Annual report and financial statements 2015
Notes forming part of the financial statements continued
for the year ended 31 August 2015
1 Accounting policies continued
Basis of consolidation continued
Acquisition of subsidiaries
A subsidiary is an entity controlled directly or indirectly by the Company. Control is achieved if all three of the following elements 
are present: power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power 
to affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a change 
in any of these elements of control. The cost of the acquisition is measured at the aggregate of the fair values, at the date of exchange, 
of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree. 
Acquisition-related costs are recognised in the income statement as incurred. The acquiree’s identifiable assets and liabilities 
are recognised at their fair values at the acquisition date.
The results of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss 
and other comprehensive income from the date that control was obtained to the date that control was lost, as appropriate. 
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line 
with those used by the Group.
Common control transactions
Baldo Line SRL a 100% owned subsidiary was contributed to the Group by the former controlling shareholder. As this is a 
common control transaction it is outside the scope of IFRS 3 Business Combinations. Accordingly, following the guidance 
regarding the selection of an appropriate accounting policy provided by IAS 8 Accounting Policies: Changes in Accounting 
Estimates and Errors, the consolidated financial statements have been prepared using the principles of merger accounting 
set out in FRS 102 Section 19 and UK GAAP. The Group has therefore recognised the book value of assets and liabilities with 
a corresponding capital contribution being recorded. 
The 24.5% shareholding in QSB Gaming Limited was also contributed to the Group in the year. The investment met the definition 
of an available-for-sale financial asset and was therefore recorded at fair value on initial recognition.
Uniform accounting policies have been adopted across the Group. All intra-Group transactions, balances, income and expenses 
are eliminated on consolidation.
Foreign currencies
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities 
denominated in foreign currencies are translated at the rate of exchange ruling at the financial reporting date. Non-monetary 
assets and liabilities are translated using exchange rates prevailing at the date of the transactions. Foreign exchange differences 
arising on translation are recognised in the profit or loss account. On consolidation, the results of foreign operations are translated 
into Sterling at rates ruling when the transaction took place. All assets and liabilities of foreign operations, including goodwill 
arising on the acquisition of those operations, are translated at the rate ruling at the reporting date. Exchange differences arising 
on translating the opening net assets at the opening rate and the results of foreign operations at the actual rate are recognised 
in other comprehensive income and accumulated in the foreign currency translation reserve. On disposal of a foreign operation, 
the cumulative exchange differences recognised in the foreign currency translation reserve relating to that operation up to the 
date of disposal are transferred to the consolidated statement of profit or loss and other comprehensive income and included 
in the computation of the profit or loss on disposal.
Revenue recognition
Net gaming revenue (“NGR”) is derived from online gambling operations and is defined as the difference between the amounts 
of bets placed by the players less the amount won by players. It is stated after deduction of certain bonuses, jackpots and 
prizes granted to players. Revenue is recognised in the accounting periods in which the transactions occur.
Social gaming revenue is derived from the purchase of credits and awards on the social gaming sites. Social gaming revenue 
is recognised to the extent that it is probable economic benefits will flow to the Group and the revenue can be reliably measured. 
Revenue is recognised in the accounting periods in which the transactions occur.
Cost of sales 
Cost of sales consists primarily of gaming duties.
Distribution costs
Distribution costs represent the costs of delivering the service to the customer and primarily consist of processing and royalty 
fees, promotional and advertising costs together with gaming and other regulatory costs all of which are recognised on an 
accruals basis. CORPORATE Governance Financial Statements Strategic Report
31
Stride Gaming plc 
Annual report and financial statements 2015
Notes forming part of the financial statements continued
for the year ended 31 August 2015
1 Accounting policies continued
Administrative expenses
Administrative expenses consist primarily of staff costs, corporate and professional expenses, all of which are recognised 
on an accruals basis.
Goodwill
Goodwill represents the excess of the cost of a business combination over the total acquisition date fair value of the identifiable 
assets, liabilities and contingent liabilities acquired. Cost comprises the fair value of assets given, liabilities assumed and equity 
instruments issued, plus the amount attributable of any non-controlling interests in the acquisition and dependent on the terms 
of the sale and purchase agreement, deferred and contingent consideration. 
Goodwill is capitalised as an intangible asset with any impairment in carrying value being charged to the profit and loss 
account. Costs incurred in respect of the acquisition are expensed in full in the period of acquisition.
Contingent consideration
When contingent consideration arising on a business combination requires no ongoing employment requirements from the 
former owners in order to receive payment, the fair value of contingent consideration is included within cost at acquisition date. 
Contingent consideration is reviewed at the end of each accounting period as the consideration payable and any subsequent 
adjustments are recognised in profit or loss account.
When the former owners of an acquired subsidiary are required to remain in employment at each of the deferred or contingent 
consideration payment dates the fair value of contingent consideration is built up over the period of service to the date of payment 
with a corresponding charge to the profit or loss account. When future service is required, this is described in the financial 
statements as contingent remuneration.
Externally acquired intangible assets 
Externally acquired intangible assets including intellectual property rights, developed software applications and licenses are 
initially recognised at cost and subsequently amortised on a straight line basis over their useful economic lives which is typically 
over a period of 3–5 years or over the length of the license.
Intangible assets are recognised on business combinations if they are separable from the acquired entity or give rise to other 
contractual or legal rights. The amounts ascribed to such intangibles are arrived at using appropriate valuation techniques 
(see section related to critical estimates and judgements below).
The significant intangibles recognised by the Group, their useful economic lives and methods used to determine the cost 
(at initial recognition) of intangibles acquired in a business combination are as follows:
Intangible asset Useful economic life Valuation method
Brands 4 years Discounted cash flows
Developed software 3–10 years Relief from royalty
Customer relationship 5–10 years Discounted cash flows
Contractual relationship 5–10 years Discounted cash flows
Amortisation is charged to the profit or loss during the financial period to which it relates.
Internally generated intangible assets (development costs)
Expenditure on internally developed products is capitalised if it can be demonstrated that:
 » it is technically feasible to develop the product for it to be sold;
 » adequate resources are available to complete the development;
 » there is an intention to complete and sell the product;
 » the Group is able to sell the product;
 » sale of the product will generate future economic benefits; and
 » expenditure on the project can be measured reliably.
Capitalised development costs are amortised over the periods the Group expects to benefit from the assets generated, being 
three years. 
Development expenditure not satisfying the above criteria is recognised in the consolidated statement of profit or loss and 
other comprehensive income as incurred. Financial Statements
32
Stride Gaming plc 
Annual report and financial statements 2015
Notes forming part of the financial statements continued
for the year ended 31 August 2015
1 Accounting policies continued
Property, plant and equipment
All property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is calculated to write-off the 
cost of fixed assets on a straight line basis over the expected useful lives of the assets concerned. The principal annual rates 
used for this purpose are:
Fixtures, fittings and equipment — 20–25% straight line
Computer equipment — 33% straight line
Subsequent expenditures are included in the carrying amount of an asset or recognised as a separate asset, as appropriate, 
only when it is probable that future economic benefits will flow to the Group and the cost of the item can be measured reliably. 
All repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount and are included in the profit 
or loss.
Impairment of property, plant and equipment and internally generated assets
Impairment tests on goodwill and other intangible assets with indefinite useful economic lives are undertaken annually at the financial 
year end. Other non-financial assets are subject to impairment tests whenever events or changes in circumstances indicate that 
their carrying amount may be impaired and hence not recoverable. Where the carrying value of an asset exceeds its recoverable 
amount (i.e. the higher of value in use and fair value less costs to sell), the asset is written down to its recoverable amount. 
Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the 
smallest group of assets to which it belongs for which there are separately identifiable cash flows; its cash generating unit (“CGUs”). 
Goodwill is allocated on initial recognition to each of the Group’s CGUs that are expected to benefit from the synergies of the 
combination giving rise to the goodwill.
Impairment charges are included in the profit or loss account, an impairment loss recognised for goodwill is not reversed.
Financial instruments
Financial assets and financial liabilities are recognised on the Group’s statement of financial position when the Group becomes 
party to the contractual provisions of the instrument. Financial assets are de-recognised when the contractual rights to the 
cash flows from the financial asset expire or when the contractual rights to those assets are transferred. Financial liabilities 
are de-recognised when the obligation specified in the contract is discharged, cancelled or expired. Financial assets are either 
categorised as loans or receivables or available for sale. There are no assets classified as held-to-maturity or fair value through 
profit or loss. All financial liabilities are classified as amortised cost.
Financial assets
Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest 
method less provision for impairment. Appropriate provisions for estimated irrecoverable amounts are recognised in profit or 
loss account when there is objective evidence that the assets are impaired. Interest income is recognised by applying the effective 
interest rate, except for short-term receivables when the recognition of interest would be immaterial.
Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part of 
the counterparty or default or significant delay in payment) that the Group will be unable to collect all of the amounts due under 
the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable. 
For trade receivables, which are reported net; such provisions are recorded in a separate allowance account with the loss 
being recognised within administrative expenses in the statement of comprehensive income. On confirmation that the trade 
receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.
Cash and cash equivalents
Cash and cash equivalents comprise cash held at bank, demand deposits, and other short-term highly liquid investments that 
have maturities of three months or less from inception, are readily convertible to a known amount of cash and are subject to an 
insignificant risk of changes in value. CORPORATE Governance Financial Statements Strategic Report
33
Stride Gaming plc 
Annual report and financial statements 2015
1 Accounting policies continued
Financial instruments continued
Financial assets continued
Available for sale
Non-derivative financial assets not included in the above categories are classified as available for sale and comprise principally 
the Group’s strategic investments in entities not qualifying as subsidiaries, associates or jointly controlled entities. They are 
carried at fair value with changes in fair value, other than those arising due to exchange rate fluctuations and interest calculated 
using the effective interest rate, recognised in other comprehensive income and accumulated in the available-for-sale reserve. 
Exchange differences on investments denominated in a foreign currency and interest calculated using the effective interest 
rate method are recognised in the profit or loss statement. 
Where there is a significant or prolonged decline in the fair value of an available-for-sale financial asset (which constitutes 
objective evidence of impairment), the full amount of the impairment, including any amount previously recognised in other 
comprehensive income, is recognised in profit or loss.
On sale, the cumulative gain or loss recognised in other comprehensive income is reclassified from the available-for-sale 
reserve to profit or loss. 
Financial liabilities:
Trade and other payables
Trade payables are initially measured at their fair value and are subsequently measured at amortised cost using the effective 
interest rate method; this method allocates interest expense over the relevant period by applying the ‘effective interest rate’ 
to the carrying amount of the liability. Player liabilities are the amounts that customers place in their accounts along with any 
bonuses and progressive jackpots. These liabilities are recognised initially at fair value and subsequently at amortised cost.
Loans and borrowings
Loans and borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of 
the instrument. Such interest bearing liabilities are subsequently measured at amortised cost using the effective interest rate 
method, which ensures that any interest expense over the period to repayment is at a constant rate on the balance of the 
liability carried in the consolidated statement of financial position.
Current and deferred tax
Taxation represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit reported in the consolidated 
statement of profit or loss and other comprehensive income because it excludes items of income or expense that are taxable 
or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current 
tax is calculated using tax rates that have been enacted or substantively enacted by the reporting date. 
Deferred tax 
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is 
settled based upon tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is charged 
or credited to profit or loss, except when it relates to items credited or charged directly to equity, in which case the deferred 
tax is also dealt with in equity through other comprehensive income.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities 
in the financial information and the corresponding tax bases used in the computation of taxable profit, and is accounted for using 
the balance sheet liability method. Deferred tax assets are recognised to the extent that it is probable that taxable profits will be 
available against which deductible temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each consolidated statement of profit or loss and other comprehensive 
income date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all 
or part of the asset to be recovered.
Deferred tax is measured using tax rates that have been enacted or substantively enacted by the consolidated statement 
of financial position date and are expected to apply when the related deferred tax asset or liability is realised or settled. Financial Statements
34
Stride Gaming plc 
Annual report and financial statements 2015
Notes forming part of the financial statements continued
for the year ended 31 August 2015
1 Accounting policies continued
Operating leases
Where substantially all of the risks and rewards incidental to ownership are not transferred to the Group, these are classified as 
operating leases. The total rentals payable under the lease are charged to profit or loss on a straight line basis over the lease term.
Pension costs
The Group operates a defined contribution scheme. The amount charged to the profit or loss account in respect of pension costs 
and other post-retirement benefits is the contributions payable in the period. Differences between contributions payable in the 
period and contributions actually paid are shown as either other liabilities or prepayments in the consolidated statement of 
financial position. 
Share capital
Financial instruments issued by the Group are classified as equity only to the extent that they do not meet the definition 
of a financial liability or financial asset.
Share-based payments
Where equity-settled share options are awarded to employees (refer to note 22), the fair value of the options at the date of grant 
is charged to the profit or loss account over the vesting period. Non-market vesting conditions are taken into account by adjusting 
the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised 
over the vesting period is based on the number of options that eventually vest. Non-vesting conditions and market vesting conditions 
are factored into the fair value of the options granted. As long as all other vesting conditions are satisfied, a charge is made 
irrespective of whether the market vesting conditions are satisfied. The cumulative expense is not adjusted for failure to 
achieve a market vesting condition or where a non-vesting condition is not satisfied.
Where equity instruments are granted to persons other than employees, the profit or loss account is charged with the fair value 
of goods and services received, or in the case of an asset, recorded within the appropriate classification.
National insurance is payable on gains made by employees on exercise of share options granted to them. The eventual liability 
to national insurance is dependent on:
 » the market price of the Company’s shares at the date of exercise;
 » the number of options that will be exercised; and
 » the prevailing rate of national insurance at the date of exercise.
At each period end the potential liability is recorded as an expense within the profit or loss account and a corresponding 
provision recorded.
Dividends
Dividends are recognised when they become legally payable. In the case of interim dividends this is when paid and in the case 
of final dividends, this is when approved by the shareholders at the AGM. 
Adjusted EBITDA
The Group defines Adjusted EBITDA as the operating result before depreciation, amortisation, finance costs, and income or expenses 
that relate to exceptional items as well as non-cash charges relating to share-based payments (including employers national 
insurance). The Directors believe that Adjusted EBITDA represents more closely the underlying trading performance of the business.
Critical accounting estimates
The preparation of the consolidated financial statements under IFRS requires the Group to make estimates and judgements that 
affect the application of policies and reported amounts. Estimates and judgements are continually evaluated and are based on 
historical experience and other factors including expectations of future events that are believed to be reasonable under the 
circumstances. Actual results may differ from these estimates. Reference is made in this note to accounting policies which 
cover areas that the Directors consider require estimates and assumptions which have a significant risk of causing a material 
adjustment to the carrying amount of assets and liabilities within the next financial year. CORPORATE Governance Financial Statements Strategic Report
35
Stride Gaming plc 
Annual report and financial statements 2015
1 Accounting policies continued
Critical accounting estimates continued
Acquisition accounting and fair value of acquired assets and liabilities including contingent consideration
Identifiable assets, liabilities and contingent liabilities, including earn-outs that meet the conditions for recognition under 
IFRS 3 are recognised at their fair value at the acquisition date. The identified intangibles are capitalised if they are separable 
from the acquired entity or give rise to other contractual or legal rights. The amounts ascribed to these assets are arrived at by 
using appropriate valuation techniques to determine the fair value. Capitalised intangible assets are amortised over the useful 
economic life of the assets. This has ranged between three to five years for acquisitions to date. The fair value of contingent 
consideration, including earn-outs is based on the probability of expected cash flow outcomes and the assessment of present 
values using appropriate discount rates. Further details in relation to key estimates and judgements are set out in note 23.
Capitalisation and amortisation of development costs
The identification of development costs that meet the criteria for capitalisation is dependent on management’s judgement and 
knowledge of the work done. Development costs of gaming software platforms are separately identified. Judgements are based 
on the information available at each period end. Economic success of any development is assessed on a reasonable basis but 
remains uncertain at the time of recognition. Capitalised development costs are subject to amortisation over its useful life and 
reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. 
The Group amortises the assets over the life of the product. The estimated useful life of these assets at period end is three years.
2 Segment information
For management purposes and for transacting with customers, the Group’s operations can be segmented into the following 
reporting segments:
 » real money gaming which is its UK focused, bingo-led online operation, using its proprietary and purchased software to provide 
online bingo and related gaming activities to players. This segment only operates in regulated markets, principally the UK; and
 » social gaming which internationally provides players with entertaining applications and games.
Each of these operating segments generates independent revenues, and the risks and rewards associated with generating 
these revenues are considered to be different to each other. 
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. 
The chief operating decision maker has been identified as the management team including the Chief Executive Officer, 
Chief Operating Officer and the Chief Financial Officer.
The Group evaluates segmental performance on the basis of profit or loss from operations calculated in accordance with 
IFRS but excluding non-recurring losses, IPO and acquisition costs, and the effects of share-based payments. There are 
no inter-segment sales. 
Real 
money gaming 
2015 
£’000
Social 
gaming 
2015 
£’000
Total 
2015 
£’000
Total revenue from external customers 26,695 1,116 27,811
Adjusted EBITDA 7,044 271 7,315
Depreciation (44) (3) (47)
Amortisation (2,336) (184) (2,520)
Acquisition costs (1,893)
Listing costs (1,179)
Share-based payments including national insurance (306)
Finance expense (793)
Contingent remuneration (217)
Group profit before tax 360 Financial Statements
36
Stride Gaming plc 
Annual report and financial statements 2015
Notes forming part of the financial statements continued
for the year ended 31 August 2015
2 Segment information continued
Real 
money gaming 
2014 
£’000
Social 
gaming 
2014 
£’000
Total 
2014 
£’000
Total revenue from external customers 8,489 — 8,489
Adjusted EBITDA 1,191 — 1,191
Amortisation (255) — (255)
Listing costs (90)
Group profit before tax 846
External revenue  
by location of customers
Non-current assets  
by location of assets
2015
£’000
2014
£’000
2015
£’000
2014
£’000
United Kingdom 26,188 8,384 6,000 —
Alderney — — 14,096 —
Israel — — 16,079 —
Other 1,623 105 426 —
27,811 8,489 36,601 —
3 Operating profit
Operating profit is stated after charging the following:
2015 
£’000
2014 
£’000
Operating lease expenses 127 —
Employee benefit expenses (note 4) 3,694 9
Depreciation of property, plant and equipment 47 —
Amortisation of intangible assets 2,520 255
Auditor’s remuneration – audit services 66 42
Auditor’s remuneration – other assurance services 8 —
Auditor’s remuneration – tax advisory services 74 —
Auditor’s remuneration – corporate finance services 191 90
Listing costs
(a)
1,179 —
Acquisition costs
(b)
1,893 —
Share-based payments
(c)
 306 —
Contingent remuneration
(d)
217 —
(a)  Listing costs relate to the Group’s initial public offering and admission on AIM which completed on 19 May 2015. This excludes any costs associated with the issue 
of equity which has been allocated against share premium. 
(b)  Acquisition costs relate to the acquisition of the entire share capital of InfiApps Ltd during the year. Refer to note 23 for further information. 
(c)  During the year the Company issued share options to certain employees and consultants of the Group. The charge for the year includes national insurance. 
Refer to note 22 for further information.
(d)  Under the terms of the InfiApps Ltd acquisition the contingent remuneration payable is linked to future employment and therefore has been charged to the profit 
or loss account. Refer to note 23 for further details.  CORPORATE Governance Financial Statements Strategic Report
37
Stride Gaming plc 
Annual report and financial statements 2015
4 Employee benefit expenses
2015 
£’000
2014 
£’000
Employee benefit expenses (excluding Directors and key management personnel)
Wages and salaries 2,014 —
Pension costs 12 —
Social security contributions and similar taxes 79 —
2,105 —
Benefit expenses of Directors and key management personnel
(a)
Wages and salaries 1,180 9
Pension costs 15 —
Share-based payment expense (note 22) 222 —
Social security contributions and similar taxes 172 —
1,589 9
Total employee benefit expense including Directors and key management personnel 3,694 9
(a)  Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, including the 
Directors of the Company (listed in note 7) as well as certain Directors of subsidiary companies.
5 Finance expense
Recognised in statement of profit or loss and other comprehensive income
2015 
£’000
2014 
£’000
Loan interest (note 17) 51 —
Unwinding of discount on Table Top Entertainment Limited contingent consideration (note 23) 742 —
Total finance expense 793 —
6 Available-for-sale investment
On 1 December 2014, a related party to the Group contributed its 24.5% investment in the equity share capital of QSB Gaming Limited 
by way of a capital contribution. QSB Gaming Limited, a company based in Alderney, is an operator of online casino and bingo 
gaming sites in the Spanish market. Despite holding greater than 20% of the voting equity instruments in QSB Gaming Limited, 
the Directors do not believe that they exercise significant influence over the investee. This is on the basis that the Group has no 
representation on the board and no participation in decisions over operating and financial policies. The Group has therefore 
recorded the asset as an available-for-sale investment at fair value of £1. The fair value is based on the fact that QSB Gaming 
Limited is in early development stages and future regulatory developments are uncertain.
7 Directors’ interests and remuneration
The Directors who served during the year, and their interests in the share capital of the Company, were as follows:
£0.01 ordinary shares  
at 31 August 2015
£0.01 ordinary shares  
at 31 August 2014
Number 
of shares
Percentage 
holding
Number 
of shares
Percentage 
holding
Nigel Terrence Payne — — — —
Stuart Eitan Boyd 2,249,999* 4.49% — —
Darren Brett Sims 937,498* 1.87% — —
Ronen Kannor — — — —
John Le Poidevin 37,879 0.08% — —
Adam David Batty 22,727 0.05% — —
* Shares held via trusts. Financial Statements
38
Stride Gaming plc 
Annual report and financial statements 2015
Notes forming part of the financial statements continued
for the year ended 31 August 2015
7 Directors’ interests and remuneration continued
The following Directors held share options as at 31 August 2015:
Number of
options at
31 August 2015
Date of
grant
Exercise
 price 
in £
Vesting 
period of 
options
Stuart Eitan Boyd 750,000 18 May 2015 1.32 1–3 years
Darren Brett Sims 750,000 18 May 2015 1.32 1–3 years
Ronen Kannor 500,000 18 May 2015 1.32 1–3 years
The following table presents the Directors’ remunerations of the Company for the year ended 31 August 2015:
Salaries 
and fees 
£’000
Benefits 
£’000
Bonus 
£’000
Share 
options
£’000
Total 
2015 
£’000
Total 
2014 
£’000
Nigel Payne 16 — 15 — 31 —
Eitan Boyd 117 8 252 66 443 —
Darren Sims 114 8 252 66 440 —
Ronen Kannor 69 4 156 45 274 —
John Le Poidevin 13 — 15 — 28 —
Adam Batty 7 — 15 — 22 —
Total 336 20 705 177 1,238 —
8 Tax expense
2015 
£’000
2014 
£’000
Current tax expense
Current tax on profits for the year 80 —
Total current tax 80 —
Deferred tax expense
Origination and reversal of temporary differences (note 18) (135) —
Total deferred tax (135) —
Total tax credit (55) —
The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the 
United Kingdom applied to profits for the year are as follows:
2015 
£’000
2014 
£’000
Profit for the year 360 846
Tax using the Company’s domestic tax rate of 20.6% (2014: 22.2%) 74 188
Expenses not deductible for tax purposes 825 —
Different tax rates applied in overseas jurisdictions (954) (188)
Total tax credit (55) — CORPORATE Governance Financial Statements Strategic Report
39
Stride Gaming plc 
Annual report and financial statements 2015
9 Earnings per share
Numerator
2015 
£’000
2014 
£’000
Earnings used in diluted EPS 415 846
Denominator ’000 ’000
Weighted average number of shares used in basic EPS 43,770 31,202
Effects of:
Employee share options 177 —
Contingent share consideration on acquisition of intangible 607 —
Weighted average number of shares used in diluted EPS 44,554 31,202
10 Dividends
On 13 April 2015 Daub Alderney Limited declared a pre-IPO dividend totalling £7,500,000 comprising of £4,500,000 allocated 
against a receivable due from a related party and shareholder and the remaining £3,000,000 paid in cash. The Directors are 
not proposing any further dividend for the year (2014: £Nil). 
11 Property, plant and equipment
Fixtures, 
fittings and 
equipment 
£’000
Computer 
equipment 
£’000
Total 
£’000
Cost or valuation
At 1 September 2013 and 2014 — — —
Acquired through business combinations 57 141 198
Additions 20 63 83
At 31 August 2015 77 204 281
Accumulated depreciation 
At 1 September 2013 and 2014 — — —
Charge for the year 5 42 47
At 31 August 2015 5 42 47
Net book value
At 1 September 2013 — — —
At 31 August 2014 — — —
At 31 August 2015 72 162 234 Financial Statements
40
Stride Gaming plc 
Annual report and financial statements 2015
Notes forming part of the financial statements continued
for the year ended 31 August 2015
12 Intangible assets
Software and 
licenses
£’000
Development
costs 
£’000
Brand 
names 
£’000
Goodwill 
£’000
Customer 
and contractual 
relationships 
£’000
Total 
£’000
Cost
At 1 September 2013 and 2014 — — — — — —
Acquired through business combinations 8,109 — 2,265 14,866 7,925 33,165
Additions 5,476 — — — — 5,476
Internally generated development costs — 246 — — — 246
At 31 August 2015 13,585 246 2,265 14,866 7,925 38,887
Accumulated amortisation 
At 1 September 2013 and 2014 — — — — — —
Charge for the year 1,051 18 317 — 1,134 2,520
Foreign exchange rate movements — — — — — —
At 31 August 2015 1,051 18 317 — 1,134 2,520
Net book value
At 1 September 2013 — — — — — —
At 31 August 2014 — — — — — —
At 31 August 2015 12,534 228 1,948 14,866 6,791 36,367
Software and Licenses
Included within software and licenses additions is the acquired software and related programs from NextTec Software Inc in respect 
of the underlying gaming platform and software used by Table Top Entertainment. The contingent consideration payable is based 
on a percentage of net gaming revenue generated from the use of the software up to a maximum of £5,325,000. The amounts 
are payable on the first, second and third anniversary and will be settled through the issue of shares. The number of shares issued 
to satisfy the liabilities arising on the anniversary dates will be based on the average share price for the previous 30 days as 
adjusted to reflect a minimum market capitalisation of £75 million. The asset acquired has therefore been fair valued at the date 
of the acquisition and an intangible asset recorded of £4,132,000 with a corresponding entry to the shares to be issued reserve. 
Other additions include licenses and other software related assets.
Goodwill 
Goodwill is allocated to the following cash generating units.
2015 
£’000
2014 
£’000
Spacebar Media 5,936 —
Table Top Entertainment 4,008 —
Social Gaming 4,922 —
14,866 —
Impairment review
In accordance with IAS 36 Impairment of Assets, the Group regularly monitors the carrying value of its intangible assets. 
A detailed review was undertaken at 31 August 2015 to assess whether the carrying value of assets was supported by the 
net present value of future cash flows derived from those assets. The recoverable amounts of all the above CGUs have been 
determined from value in use calculations based on cash flow projections from formally approved budgets and long-term 
forecasts. These budgets and forecasts assume the underlying business models will continue to operate on a comparable 
basis under the current regulatory and taxation regimes, adjusted for any known changes. CORPORATE Governance Financial Statements Strategic Report
41
Stride Gaming plc 
Annual report and financial statements 2015
12 Intangible assets continued
Table Top Entertainment and Spacebar Media CGUs
The recoverable amounts of the Table Top Entertainment and Spacebar Media have been determined from value in use 
calculations based on cash flow projections covering the following five-year period and a calculation into perpetuity which 
exceeds the total values of each CGUs assets. 
The cash flows for 2016 and 2017 are based on Board-approved budgets with a long-term growth rate of 2% and a discount rate 
of 13.9%. These assumptions were based upon management’s experience, past performance and drawing on industry data 
where relevant. 
The Directors have concluded that there are no reasonably possible changes in the key assumptions which would cause the 
carrying value of goodwill and other intangibles to exceed their value in use.
Social Gaming CGU
The goodwill and related assets included within this CGU resulted from the acquisition of InfiApps Ltd (refer to note 23) which completed 
on 31 July 2015. The recoverable amount, which exceeds the total value of the CGUs assets has been determined from value in 
use calculations based on cash flow projections covering the following five-year period and a calculation into perpetuity. 
The cash flows for 2016 and 2017 are based on Board-approved budgets with a long-term growth rate of 2% and a discount rate of 20%. 
These assumptions were based upon management’s experience, past performance and drawing on industry data where relevant. 
The Directors have concluded that there are no reasonably possible changes in the key assumptions which would cause the 
carrying value of goodwill and other intangibles to exceed their value in use.
13 Subsidiaries
The principal subsidiaries of Stride Gaming Plc, all of which have been included in these consolidated financial statements, 
are as follows:
Proportion of ownership interest  
at 31 August
Name Country of incorporation 2015 2014
Spacebar Media Limited United Kingdom 100% 0%
SRG Services Limited* Mauritius 100% 0%
Shifttech (Pty) Limited* South Africa 100% 0%
Daub Alderney Limited Alderney 100% 100%
S.T.R Financials Ltd Israel 100% 0%
InfiApps Ltd* Israel 100% 0%
Baldo Line* Italy 100% 0%
* Investment held indirectly.
14 Trade and other receivables
2015 
£’000
2014 
£’000
Current
Trade receivables 1,695 68
Other receivables 279 290
Amounts due from related parties 1,211 5,389
Prepayments 1,056 —
4,241 5,747
Non-current
Other receivables 248 83
248 83 Financial Statements
42
Stride Gaming plc 
Annual report and financial statements 2015
Notes forming part of the financial statements continued
for the year ended 31 August 2015
14 Trade and other receivables continued
The carrying value of trade and other receivables classified as loans and receivables approximates fair value. All amounts shown 
in short-term trade and other receivables fall due for payment within one year. All non-current receivables are due within 
three years of 31 August 2015. 
As at 31 August 2015 there were no trade receivables (2014: £Nil) which were past due and fully impaired. There is currently 
no provision for impairment for any of the outstanding trade and other receivables (2014: £Nil). 
15 Trade and other payables
2015 
£’000
2014 
£’000
Current
Trade payables 1,688 434
Other payables 103 —
Other taxation and social security 981 —
Client liabilities and progressive prize pools 1,420 427
Contingent remuneration 172 —
Amounts due to related parties 232 218
Accruals and deferred income 1,989 163
6,585 1,242
Non-current
Contingent remuneration 45 —
Other payables 55 —
100 —
The carrying value of trade and other payables classified as financial liabilities measured at amortised cost approximates fair value. 
The contingent remuneration has arisen as a result of the InfiApps acquisition (refer to note 23).
16 Cash and cash equivalent
2015 
£’000
2014 
£’000
Cash at bank and in hand 7,388 —
Cash held on behalf of players is held in a separate (unrestricted) bank account. In the previous year, a company related by 
common shareholders held cash on behalf of the Group (refer to note 24).
17 Loans and borrowings
The book value and fair value of loans and borrowings are as follows:
2015 
£’000
2014 
£’000
Unsecured borrowings
Current
(a)
1,083 —
Unsecured borrowings
Non-current
(b)
8,000 —
(a)  The short-term interest-free borrowings are due to the previous owners of the InfiApps Ltd business. These will be repaid in accordance with the terms of the sale 
and purchase agreement within two months from the year end. 
(b)  The full value of the borrowings as at 31 August 2015 is repayable in Sterling on 30 July 2017, although the Group has the right to repay the whole or any part 
of the borrowings at any time before this date. The borrowings are incurring interest at 7.5% per annum, paid monthly in arrears.  CORPORATE Governance Financial Statements Strategic Report
43
Stride Gaming plc 
Annual report and financial statements 2015
18 Deferred tax
Deferred tax is calculated in full on temporary differences under the liability method using a tax rate based on the different 
jurisdictions it arises.
The movement on the deferred tax accounts is as shown below:
Deferred tax 
asset 
£’000
Deferred tax 
liability 
£’000
At 1 September 2013 and 2014 — —
Recognised in profit and loss – tax credit 110 25
Arising on business combination 121 (2,158)
At 31 August 2015 231 2,133
Deferred tax assets have been recognised in respect of other temporary differences where the Directors believe it is probable 
that these assets will be recovered. 
The movements in deferred tax assets and liabilities (prior to the offsetting of balances within the same jurisdiction as permitted 
by IAS 12) during the period are shown below.
Asset 
£’000
Liability 
£’000
Net 
£’000
(Charged)/
credited to 
profit or loss 
£’000
(Charged)/
credited to
equity 
£’000
Share options 110 — 110 110 —
Other temporary and deductible differences — — — — —
Business combinations 121 (2,133) (2,012) 25 —
Tax asset/(liabilities) 231 (2,133) (1,902) 135 —
Set off of tax — — — — —
Net tax assets/(liabilities) 231 (2,133) (1,902) 135 —
There were no deferred tax assets or liabilities at 31 August 2014.   Financial Statements
44
Stride Gaming plc 
Annual report and financial statements 2015
Notes forming part of the financial statements continued
for the year ended 31 August 2015
19 Share capital
Authorised
2015 
Number
2015 
£’000
2014 
Number
2014 
£’000
Total ordinary shares of 1p each 250,000,000 2,500 250,000,000 2,500
Issued and fully paid
2015 
Number
2015 
£’000
2014 
Number
2014 
£’000
Ordinary shares of 1p each
At 1 September 31,201,955 312 31,201,955 312
Issued on acquisition of business 10,464,512 105 — —
Issued on Initial public offering 8,484,848 85 — —
At 31 August 50,151,315 502 31,201,955 312
The prior year share capital reflects the shares issued to acquire Daub Alderney Limited on 25 February 2015. As per note 1, 
in line with the requirements of merger accounting the structure and share capital issued has been recorded as though it had 
always been in place.
20 Leases 
Operating leases – lessee
The total future value of minimum lease payments in respect of leased properties is as follows:
2015 
£’000
2014 
£’000
Not later than one year 227 —
Later than one year and not later than five years 309 —
536 —
21 Financial instruments – risk management
The Group is exposed through its operations to the following financial risks:
 » market risk;
 » credit risk;
 » liquidity risk; and 
 » foreign exchange risk.
The Group is exposed to risks that arise from its use of financial instruments. This note describes the Group’s objectives, policies 
and processes for managing those risks and the methods used to measure them. Further quantitative information in respect 
of these risks is presented below.
There have been no substantive changes in the Group’s exposure to financial instrument risks, its objectives, policies and 
processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated 
in this note.
Principal financial instruments
The principal financial instruments used by the Group, from which financial instrument risk arises, are as follows:
 » trade and other receivables;
 » investment in available-for-sale financial instruments; 
 » cash and cash equivalents;
 » trade and other payables; and
 » loans and borrowings. CORPORATE Governance Financial Statements Strategic Report
45
Stride Gaming plc 
Annual report and financial statements 2015
21 Financial instruments – risk management continued
Principal financial instruments continued
Financial instruments by category
Financial assets
Loans and receivables
2015 
£’000
2014 
£’000
Cash and cash equivalents 7,388 —
Trade and other receivables 3,433 5,830
Total financial assets at amortised cost 10,821 5,830
The investment in available-for-sale investments is included with the available-for-sale financial asset category and has a fair 
value of £1 at 31 August 2015 (2014: £1).
Financial liabilities 
Financial liabilities at  
amortised cost
2015 
£’000
2014 
£’000
Trade and other payables 5,704 1,242
Loans and borrowings 9,083 —
Total financial liabilities 14,787 1,242
Financial instruments not measured at fair value
The carrying value of cash and cash equivalents, trade and other receivables, trade and other payables and loans and borrowings 
approximates their fair value. 
Financial instruments measured at fair value
Other than the available-for-sale investment which is within level 3 of the financial reporting hierarchy and for which there has 
been no movement in fair value in the year, no other financial assets or liabilities are held at fair value.
General objectives, policies and processes
The Board has overall responsibility for the determination of the Group’s risk management objectives and policies and, whilst 
retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the 
effective implementation of the objectives and policies to the Group’s finance function. The overall objective of the Board is to 
set policies that seek to reduce risk as far as possible without unduly affecting the Group’s competitiveness and flexibility. 
Further details regarding these policies are set out below:
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual 
obligations. The Group’s operational credit risk is primarily attributable to receivables from payment solution providers (“PSPs”) 
and from customers who dispute their deposits made after playing on the Group’s websites. Senior management monitors PSP 
balances on a weekly basis, including aged debtor analysis, and promptly takes corrective action if pre-agreed limits are exceeded. 
Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. For banks and 
financial institutions, only independently rated parties with high ratings are accepted. 
Further disclosures regarding trade and other receivables, which are neither past due nor impaired, are provided in note 14. Financial Statements
46
Stride Gaming plc 
Annual report and financial statements 2015
Notes forming part of the financial statements continued
for the year ended 31 August 2015
21 Financial instruments – risk management continued
General objectives, policies and processes continued
Foreign exchange risk
The Group is exposed to translation and transaction foreign exchange risk. The Group’s policy in this case is to allow the subsidiary 
to settle liabilities denominated in their functional currency with the cash generated from their own operations in that currency. 
The majority of the remainder of the Group’s transactions are denominated in Sterling, therefore the Directors deem the Group’s 
exposure to all other exchange rate fluctuations to be minimal. 
Foreign currency denominated financial assets and liabilities, translated into Sterling at the closing rate, are as follows:
As at 31 August 2015
Sterling 
£’000
US Dollar 
£’000
Israeli Shekel 
£’000
Other 
£’000
Total 
£’000
Financial assets 8,594 581 1,337 309 10,821
Financial liabilities (12,369) (828) (1,259) (331) (14,787)
Total net exposure (3,775) (247) 78 (22) (3,966)
As at 31 August 2014
Sterling 
£’000
US Dollar 
£’000
Israeli Shekel 
£’000
Other 
£’000
Total 
£’000
Financial assets 5,732 — — 98 5,830
Financial liabilities (1,214) (2) — (26) (1,242)
Total net exposure 4,518 (2) — 72 4,588
Liquidity risk
Liquidity risk arises from the Group’s management of working capital and the finance charges and principal repayments on its 
short-term borrowings. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due.
The Group’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due 
and as at the end of the financial year, projections indicate that the Group expects to have sufficient liquid resources to meet 
its obligations under all reasonably expected circumstances. 
The following table sets out the contractual maturities (representing undiscounted contractual cash flows) of financial liabilities:
At 31 August 2015
Up to 
3 months 
£’000
Between 
3 and 12 
months 
£’000
Between 
1 and 2 
years 
£’000
Between 
2 and 5 
years 
£’000
Trade and other payables 3,982 1,450 172 100
Loans and borrowings 1,083 — 9,150 —
Total 5,065 1,450 9,322 100
At 31 August 2014
Up to 
3 months 
£’000
Between 
3 and 12 
months 
£’000
Between 
1 and 2 
years 
£’000
Between 
2 and 5 
years 
£’000
Trade and other payables 1,242 — — —
Total 1,242 — — — CORPORATE Governance Financial Statements Strategic Report
47
Stride Gaming plc 
Annual report and financial statements 2015
22 Share-based payment 
The Company established an equity-settled share option scheme in the year for employees and non-employees, which includes 
the following:
i)  Enterprise Management Incentive share options (“EMI Options”) which qualify for favourable tax treatment under the 
provisions of Schedule 5 to ITEPA. Holders of EMI options have up to ten years from the date of grant to exercise these 
options. The number of options and vesting dates are in accordance with each individual agreement.
ii)  Non-Qualifying options made available to employees and Executive Directors of the Group also have up to ten years 
from the date of grant to exercise the options. The exact numbers and vesting dates will be depend on each contract 
agreement, but all options will vest and will therefore be exercisable in no more than three years from the date of grant.
iii)  Non-employee options are available to Non-Executives and individuals providing services to the Company, which are 
non-employees. The vesting and exercise conditions are the same as non-qualifying options. 
Weighted 
average 
exercise 
price (p) Number
Outstanding at 1 September 2014 — —
Granted during the year 1.32 3,000,000
Outstanding at 31 August 2015 3,000,000
The exercise price of options outstanding at 31 August 2015 was £1.32 with a contractual life of three years. None of the options 
granted during the year vested on 31 August 2015, as they vest annually at each anniversary of the grant, by one third each year. 
The fair value of each option granted during the year was £0.50. Included in the outstanding number of options above are 1,000,000 
options issued to non-employees under the appropriate terms of the Share Option Scheme. 
The following information is relevant in the determination of the fair value of options granted during the year under the equity- settled 
share-based remuneration schemes operated by the Group.
2015
Option pricing model used Black Scholes
Weighted average share price at grant date (£) 1.32
Exercise price (£) 1.32
Weighted average contractual life (in years) 3
Expected volatility 55.77%
Expected dividend growth rate 0.5%
Risk-free interest rate 1.73%
The volatility assumption, measured at the standard deviation of expected share price returns, is based on a statistical analysis 
of daily share prices of comparable companies over the last three years. None of the options are exercisable at 31 August 2015.
The share-based remuneration expense comprises:
2015 
£’000
Equity-settled schemes, including national insurance 306 Financial Statements
48
Stride Gaming plc 
Annual report and financial statements 2015
Notes forming part of the financial statements continued
for the year ended 31 August 2015
23 Business Combination during the period
Acquisition of Table Top Entertainment (“TTE”)
On 4 September 2014, Daub Alderney Limited acquired the trade and assets of TTE, a company incorporated in Alderney and whose 
principal activity is the operation of online casino and bingo gaming sites. The total consideration was £12,500,000 comprising 
£3,430,000 of initial consideration settled through the issue of 670,760 shares of £0.0001 each, and further contingent consideration 
based on certain targets on first and second anniversary dates to a maximum of £9,070,000, also to be settled in shares.
The principal reason for this acquisition was to enhance the Group’s brands and revenue volumes, by acquiring established and 
leading brands with strong player bases. The Group also intends to use the expertise and the know-how acquired in the development 
of new product lines and operational efficiency. Details of the fair value of identifiable assets and liabilities acquired, purchase 
consideration and goodwill are as follows:
Book value 
£’000
Adjustment 
£’000
Fair value 
£’000
Client liabilities (145) — (145)
Progressive prize pool (784) — (784)
Other payables (142) — (142)
Cash 929 — 929
Property, plant and equipment 66 — 66
Brands — 1,171 1,171
Customer relationships — 5,521 5,521
Total net assets (76) 6,692 6,616
Fair value of consideration paid 
Initial consideration 3,430
Discount on initial consideration (519)
Fair value of contingent consideration 7,713
Total consideration 10,624
Goodwill (note 12) 4,008
The Goodwill recognised on the acquisition of the business and assets of TTE, which is not deductible for tax purposes, relates 
to the presence of certain intangible assets, such as know-how and other operating synergies.
Discount on initial consideration – under the terms of the business purchase agreement, the Group is entitled to the net profits 
derived from the acquired business from 31 July 2014 until 4 September 2014 (legal completion date) which has been returned 
by way of cash proceeds. This amounted to £519,000 and has been deducted from the initial consideration. Acquisition-related 
costs have been borne by a related party and are immaterial.
The contingent consideration which is to be settled in shares was initially recorded as a liability based on the fair value at acquisition 
and was being unwound over the respective earn-out periods to the first and second anniversaries. However, on 18 May 2015 
the terms of the existing earn-out were terminated and new arrangements were entered into such that, with effect from completion 
of the IPO, the earn-out, and hence liability would be met by certain shareholders as opposed to shares being issued by the 
Company. The liability at the date of the variation, which included unwinding of the discount to the date of the variation of 
£742,000, totalled £8,455,000 and was transferred to a capital contribution reserve.
Given the acquisition occurred on 4 September 2014 there is no material difference in the results between the start of the year 
and date of acquisition.
Acquisition of Spacebar Media Limited
On 1 February 2015, the Group acquired 100% of the voting equity instruments of Spacebar Media Limited. Spacebar Media 
Limited is a UK company whose principal activities are execution and management of marketing services together with 
development and maintenance of online gaming software. 
The principal reason for this acquisition was to leverage the knowledge and experience of Spacebar Media Limited, developed 
over a number of years in the software development arena and the marketing consultancy of online gaming brands, for the 
exclusive use of the Group.  CORPORATE Governance Financial Statements Strategic Report
49
Stride Gaming plc 
Annual report and financial statements 2015
23 Business Combination during the period continued
Acquisition of Spacebar Media Limited continued
Details of the fair value of identifiable assets and liabilities acquired, purchase consideration and goodwill are as follows:
Book value 
£’000
Adjustment 
£’000
Fair value 
£’000
Property, plant and equipment 65 — 65
Trade and other receivables 336 — 336
Cash 26 — 26
Trade and other payables (363) — (363)
Total net liabilities 64 — 64
Cash 6,000
Goodwill (note 12) 5,936
The goodwill recognised in the acquisition of Spacebar Media Limited, which is not deductible for tax purposes, includes 
certain intangible assets such as, expertise and know-how, which do not qualify for separate recognition. Acquisition-related 
costs have been borne by a related party and are not material. 
Between the date of acquisition and 31 August 2015 Spacebar Media Limited contributed £Nil to Group revenues on the basis 
that all post-acquisition revenue was inter-group. 
Acquisition of InfiApps Ltd
On 31 July 2015, the Group acquired 100% of the voting equity instruments of InfiApps Ltd (“InfiApps”), a company registered 
in Israel whose principal activity is the provision of internationally focused mobile social gaming services. The acquisition has 
provided the Group with an entry into the social gaming sector of online gaming, with users based internationally, in particular 
in the United States of America, Canada and Australia. By expanding into new verticals alongside the online bingo market the 
acquisition will combine the Group’s bingo-led expertise with InfiApps’ social gaming expertise, both of which are complementary 
offerings to each other, which provide potential for significant operational leverage on an international scale.
Details of the provisional fair value of identifiable assets and liabilities acquired, purchase consideration and goodwill are as follows:
Book value 
£’000
Adjustment 
£’000
Fair value 
£’000
Property, plant and equipment 67 — 67
Cash 585 — 585
Trade and other receivables 1,105 — 1,105
Deferred tax asset 120 — 120
Trade and other payables (702) — (702)
Loans and borrowings (848) — (848)
Brands — 1,094 1,094
Developed software — 7,778 7,778
Customer and contractual relationships — 2,404 2,404
Deferred tax liability — (2,148) (2,148)
Total net assets 327 9,128 9,455
Fair value of consideration paid
Cash 14,120
Working capital payable in cash 257
Total consideration 14,377
Goodwill (note 12) 4,922 Financial Statements
50
Stride Gaming plc 
Annual report and financial statements 2015
Notes forming part of the financial statements continued
for the year ended 31 August 2015
23 Business Combination during the period continued
Acquisition of InfiApps Ltd continued
The purchase agreement also included a two-year earn-out payable to the sellers as contingent consideration if they remain 
with the acquired company for a two-year period post-acquisition. It has been accounted for as remuneration rather than part 
of the consideration paid to acquire InfiApps in accordance with international accounting standards. The Group has recognised 
£217,000 in the profit or loss account, being the present value of the earn-out consideration having made a probability based 
assessment of the amount payable, which represents the fair value at acquisition date. The earn-out consideration has been 
calculated based on the Group’s expectation of what it will pay in relation to the earn-out agreement. The earn-out targets are 
based on the EBITDA multiple of the annual results of the acquired business. The fair value of the earn-out consideration is 
calculated by weighting the probability of achieving these targets and discounting to give an estimate of the final obligation. 
In accordance with the terms of the purchase agreement the total earn-out cannot exceed $18 million.
Total acquisition costs amounted to £1.89 million and these have been recognised in the profit or loss account.
The main factors leading to the recognition of goodwill which is not deductible for tax purposes was the presence of certain 
intangible assets, such as the assembled workforce of the acquired entity, as well as synergies gained, which do not qualify 
for separate recognition.
InfiApps contributed £1,116,000 to Group revenues and £234,000 to Group profit between the date of acquisition and 31 August 2015. 
Acquisition of Baldo Line SRL
On 16 January 2015, the ultimate controlling party prior to the IPO, contributed its 100% investment in the equity share capital 
of Baldo Line SRL by way of a capital contribution to the Group. Baldo Line S.R.L. is a company incorporated under the laws of 
Italy and holds an online gambling licence from the Italian gambling commission (“AAMS”). The contribution is outside of the 
scope of IFRS 3 Business Combinations on the basis that this is a common control transaction. The asset and liabilities have 
therefore been transferred at book value and capital contribution of £318,000 based on net asset value has been recorded: 
Book value on 
date of capital 
contribution
£’000
Intangible assets 331
Other receivables 165
Trade and other payables (178)
Total net assets 318
24 Related party transactions
The Group receives payment processing services from a company related by common significant shareholders. Fees charged 
during the year totalled £662,000 (2014: £490,000). In addition to providing processing services the company previously held 
cash on behalf of the Group and the total amount due to the Group at 31 August 2014 was £2,380,000. During the year this 
amount was novated to the ultimate controlling party prior to the IPO to clear a dividend amount due. The amount due to the 
Group at 31 August 2015 is £1,211,000. No impairment has been recognised in respect of this amount.
The ultimate controlling party prior to the IPO also held cash on behalf of the Group and, at 31 August 2014 the amount due was 
£3,041,000. No provision has been recognised in respect of this amounts and no amounts were written off during the period. 
This balance was cleared by way of a dividend prior to the IPO. In addition, the following transactions were undertaken with the 
ultimate controlling party:
 » contribution of its 100% investment in the equity share capital of Baldo Line SRL by way of a capital contribution to the Group. 
The asset and liabilities have therefore been transferred at book value and a capital contribution of £318,000 based on net asset 
value has been recorded. A total of £170,000 was due to the ultimate controlling party at 31 August 2015; 
 » acquisition of the IP rights of its designated software used in the business of Daub Alderney Limited for £875,000; 
 » contribution of a 24.5% investment in the equity share capital of QSB Gaming Limited, which was recognised at fair value of £1 
and accounted for as an available-for-sale investment; and
 » on 1 February 2015 the Group acquired 100% of the voting equity instruments of Spacebar Media Ltd (refer to note 23). 
The total consideration of £6,000,000 was contributed to the Group in cash by the ultimate controlling party by way of 
a capital contribution to enable the acquisition to be made. CORPORATE Governance Financial Statements Strategic Report
51
Stride Gaming plc 
Annual report and financial statements 2015
24 Related party transactions continued
The Group entered into related party transactions with certain other companies under control of shareholders for the provision 
of software platform, marketing and other back office services. The total purchases in the year ended 31 August 2015 were 
£1,538,000 (2014: £715,000). Total amount due by the Group at 31 August 2015 is £62,000 (2014: £86,000).
The Group received execution and management of marketing and software development services from Spacebar Media Limited 
(which was subsequently acquired by the Group on 1 February 2015 for £6,000,000 – see note 23) a company related by common 
control. Purchases of services in the period prior to acquisition were £1,000,000 (2014: £482,000). 
On 1 February 2015 the Group acquired certain assets from a company related by common control for £46,000. 
On 30 July 2015 the Group entered into a loan agreement with a shareholder for a total amount of £8,000,000. The amount 
is repayable in 24 months and is incurring interest of 7.5% per annum paid monthly in arrears. The full amount of £8,000,000 
plus one month’s of accrued interest at £51,000 was outstanding at 31 August 2015. 
As at 31 August 2015 a total of £1,083,000 of short-term interest-free borrowings are due to the previous owners of the InfiApps Ltd 
business. These will be repaid in accordance with the terms of the sale and purchase agreement within two months from the 
year end. These borrowings are unsecured. 
25 Events after the reporting date
Post-year end on the first anniversary of the acquisition of software and related programs from NextTec Software Inc 
(refer to note 12), the first part of the contingent consideration was repaid by the issue of 1,149,071 shares.
In October 2015, a total of 1,113,000 of non-qualifying options and 564,000 non-employee options were granted to various employees 
and consultants of the Group. The general terms and conditions include an exercise price of £1.32 per share, with one third 
vesting at the end of the second anniversary of the grant, and the balance vesting on the third and fourth anniversaries.
26 Non-cash movements in cash flow statement
The following transactions were significant non-cash movements during the year:
 » from the total dividends declared during the year, £3,000,000 was paid in cash, with the balance offset against a related 
party receivable;
 » included within software and licenses additions is the acquisition of the IP rights of the software used in the business of 
Daub Alderney Limited acquired from the ultimate shareholder for £875,000. This was offset against a related party receivable 
and not paid in cash; and
 » included within software and license additions is the acquired software and related programs valued at £4,132,000, from 
NextTec Software Inc in respect of the underlying gaming platform and software used by Table Top Entertainment which 
will be settled by contingently issuable shares. Financial Statements
52
Stride Gaming plc 
Annual report and financial statements 2015
Corporate information
Country of incorporation of parent company
Jersey
Legal form
Public limited company
Directors
Nigel Payne 
(Non-Executive Chairman)
Eitan Boyd 
Darren Sims 
Ronen Kannor 
John Le Poidevin 
(Non-Executive)
Adam Batty 
(Non-Executive)
Secretary and registered office
Ronen Kannor
12 Castle Street  
St Helier 
Jersey 
JE2 3RT
Company number 
117876
Auditor
BDO LLP
55 Baker Street, London W1U 7EU
Legal Advisors
Berwin Leighton Paisner LLP
Adelaide House 
London Bridge 
London  
EC4R 9HA
Nominated Advisor & Broker
Cantor Fitzgerald Europe
One Churchill Place 
London 
E14 5RB  
Design Portolio is committed to planting 
trees or every corporate communications 
project, in association with Trees or Cities.
Stride Gaming’s commitment to environmental issues is 
reflected in this annual report which has been printed on 
Novatech Digital Silk, which is an FSC® Mix Certified paper, 
ensuring that all virgin pulp is derived from well-managed 
forests and other responsible sources.  Stride Gaming plc Annual report and financial statements 2015
Stride Gaming plc
12 Castle Street
St. Helier
Jersey
JE2 3RT