www.inspiredgaminggroup.com
Leader in Open  
Server Based Gaming
Inspired Gaming Group plc
Annual Report and Accounts 
For the period ended 29 September 2007
3 The Maltings 
Wetmore Road
Burton-on-Trent
Staffordshire
United Kingdom
DE14 1SE
Email: info@ingg.com
Tel: +44 (0)1283 512777
Fax: +44 (0)1283 519200
Inspired Gaming Group plc Annual Report and Accounts 2007 The UK’s leading
operator of
pay-to-play gaming,
betting and
entertainment terminals
The leading provider
of Open Server 
Based Gaming 
and Vending platforms 
in the UK
BAFTA winning
CGI and Effects
company
and creators of
INGG’s Virtual Racing
The leading provider
of Open
Server Based
Gaming systems
worldwide
The premier
content provider
for Open
Server Based
Gaming systems
ANNUAL REPORT AND ACCOUNTS 2007 INSPIRED GAMING GROUP PLC
Inspired Gaming Group plc
Inspired Gaming Group plc is a 
leading provider of Server Based 
Gaming systems and is the pioneer 
of Open Server Based Gaming 
(Open SBG™). Its Open SBG™ 
software platform supports an 
extensive range of content and 
hardware from third parties. This 
unprecedented flexiblity enables 
our customers to maximise the 
benefits of Server Based Gaming 
through the provision of greater 
choice to their player bases.
In the UK, the Group has built on its heritage as the largest operator of 
analogue gaming machines by transforming itself into a leading provider 
of SBG terminals. It currently operates 23,000 digital networked terminals 
including the largest estate of Fixed Odds Betting Terminals and skill with 
prize machines. Key customers include William Hill, Gala Coral Group, 
J D Wetherspoon and Mitchells & Butlers. The Group currently operates 
over 77,000 machines in the UK in total.
Inspired Gaming Group plc provides Open SBG™ software systems and 
digital networked terminals in 10 countries today. Significant customers 
include The Coca-Cola Company, Codere and Tabcorp.
The Group operates a number of highly regarded brands in the field 
of machine operation, software development, content development 
and machine design.
Business Highlights 1 
Our Markets 2
Our Products 3
Chairman’s Statement 4 
Group Co-Chief Executives’ Statement 8
Business and Financial Review 14
Board of Directors 18
Directors’ Report 20
Corporate Governance Report 22
Corporate and Social Responsibility 24
Statement of Directors’ Responsibilities 26
Independent Auditors’ Report 27
Consolidated Profit and Loss Account 28
Balance Sheets 29
Consolidated Cash Flow Statement 30
Consolidated Statement of 
Total Recognised Gains and Losses  31
Reconciliation of Movements in Equity 
Shareholders’ Funds  32
Notes to the Financial Statements 33
Definitions and Glossary of Terms  65
Company Information and Professional Advisors  66
Contents ANNUAL REPORT AND ACCOUNTS 2007 INSPIRED GAMING GROUP PLC
 Inspired Gaming Group (‘Inspired’ or ‘the Group’), a leading player in the global Open SBG™ 
market announces its results for the 52 week period ended 29 September 2007.
Financial Highlights
•  Reported Operating Profit of £11.4m and Profit before Tax of £3.8m. Adjusted PBT
1
 of £15.4m 
•  EBITdA
2
 up 28%
6
 to £26.8m and EBITA
3
 up 30%
6
 to £22.1m 
•  Reported basic earnings per share of 0.4p. Adjusted basic earnings per share
1
 of 15.4p 
•  Group Server Based Gaming (‘SBG’) turnover
4
 up by 24% to £70.6m, representing 
42% of total turnover of £166.3m (2006
5
: 33%, £171.1m)
•  SBG Software and Services (‘SBGSS’) turnover up by 88%
6
 to £16.6m at a gross 
margin of 87%
•  Net Debt at 29 September 2007 at £59.2m, down from £72.2m at the end of the last 
financial year
•  Proposed final dividend of 6.7p per ordinary share giving a total dividend per ordinary 
share for the year of 8.4p
•  Trading in the first quarter of the current financial year has been satisfactory. Pub trading 
has been weaker than expected, however the majority of the shortfall has been offset 
by a strong performance in the gaming sector and SBG-enabled cost savings
Operating Highlights 
• Substantial increase in the penetration of the Group’s SBG software platform worldwide
 –  Group owned SBG machines increased by 4,220 to 22,965 and accounted for 31% of the 
owned machine estate at year end (2006: 24%)
 –  In addition, 7,977 SBGSS licences sold to third parties during the year providing a recurring 
revenue stream in future years. In total, 11,327 licences sold as at 29 September 2007
•  Successful launch of Open SBG
TM
 Amusement With Prize (AWP) terminal during the year  
with 934 currently installed. SBG AWP now represents approximately 26% of Group’s total 
AWP weekly injection in pubs
•  Agreement to supply the Open SBG
TM
 platform and content to 1,500 FOBTs in Ladbrokes 
betting shops in the UK
•  Commencement of scale roll-out of SBG Bingo terminals across the Gala Bingo estate, with 
3,000 terminals in 36 clubs contracted to be deployed in the first half of calendar year 2008
•  Many other SBG agreements including Betfred, Paddy Power, Codere, Galaxy Entertainment, 
Stanleybet, PMC France and Clear Channel
• Since year end:
 –  The Group has renewed its supply contract with William Hill for four years and will provide 
FOBTs at 75% of its betting shops 
 –  Significant expansion of gaming supply contract with Bourne Leisure which will lead 
to the introduction of in excess of 2,000 more machines
1  Adjusted PBT is stated before Amortisation, Exceptional Items, Share-Based Payment, net losses on disposal of fixed asset 
investments and deferred consideration discount unwind within Interest Payable. 
2  ‘EBITdA’ represents Earnings Before Interest, Taxation, Non-Machine Depreciation, Amortisation, Exceptional Items and 
Share-Based Payment. EBITdA is in the opinion of the Directors, the most appropriate measure of cash profits after 
recurring investment in machines. 
3 ‘EBITA’ represents Earnings Before Interest, Taxation, Amortisation, Exceptional Items and Share-Based Payment.
4 Turnover from owned SBG machines and SBG Software and Services.
5 Unaudited proforma total for 53 weeks ended 30 September 2006.
6 Represents increase on comparative un-audited 53 week proforma period ended 30 September 2006. 
Business Highlights 2
Our Markets
Inspired Gaming Group plc operates machines across many different markets  
in the UK and overseas. 
The Pub Market
The Group operates over 9,500 skill gaming 
SBG terminals and over 1,200 SBG jukeboxes 
in pubs across the UK.
Customers include J D Wetherspoon, Mitchells 
& Butlers, Enterprise Inns and Spirit Group. 
In total the Group operates 33,000 machines 
in this sector.
“ We are delighted to see Leisure Link/Inspired 
Gaming’s Video AWP – ‘The Player’ 
increasing its density across the Industry, 
now reaching c. 000 sited and encouraged by 
its performance on the Admiral Estate 
particularly. 
 
We firmly believe that working with our 
preferred suppliers Leisure Link with both 
analogue and digital based products, we are 
best suited to be at the forefront of an 
enhanced customer experience, in an ever 
changing market place. Leisure Link are a 
valued part of the Admiral Taverns supply 
chain, with the insight, professional approach 
and forward thinking attitude that they 
deliver to us and our customers. 
 
We are firm believers that Digital Technology 
IS the way forward and welcome the 
suppliers/manufacturers who are taking the 
steps to take the Industry into the future. 
 
Digital product – whether AWP, MMT or 
Music, is improving the quality and choice 
available to our customers. 
 
As our customers are becoming more 
technologically aware – we need to cater 
for their needs and expectations.” 
Tony Guy
Head of Machines,
Admiral Taverns
The Gaming Market
The Group operates over 11,500 SBG Fixed 
Odds Betting Terminals to UK bookmakers 
including William Hill, Paddy Power, Betfred 
and others.
Gala Coral Group has over 10,000 Multi-Win 
Roulette and bingo machines supplied by the 
Group within Gala bingo and casino venues 
around the UK. 
“ Open SBG™, in the form of Gala Gaming 
Platform (GGP), has allowed us to mould 
electronic roulette to suit our vision for 
casino operations. It is an exciting time for 
us, as GGP allows us to be truly innovative to 
differentiate ourselves from the competition. 
Our only limitation now is our imagination, 
rather than the life of a piece of equipment.” 
Peter Hannibal 
Group Electronic Gaming Director, 
Gala Coral Group
The Leisure Market
The Group provides over 15,000 coin operated 
products in leisure retail venues including family 
entertainment centres, universities, airports, 
motorway services and seaside arcades.
Customers include Bourne Leisure, Welcome 
Break, Hollywood Bowl and many others. 
“ Bourne Leisure Ltd and their brands Butlins, 
Haven, British Holidays and Warners, have 
had another successful year in 2007 with our 
major arcade partners Leisure Link. Bourne 
Leisure’s confidence in Leisure Link’s ability 
to continue to improve the arcade offer 
resulted in awarding Leisure Link an additional 
 2 holiday parks for the 2008 season. Taking 
the total to 26 holiday parks and the three 
Butlins sites with Bourne Leisure.”
Ronnie Cryer
Operations Director,  
Bourne Leisure Limited
International Operations
The Group has growing SBG 
software and services presence 
in nine countries: Germany,  
Ireland, Czech Republic, Australia, 
USA, Cambodia, Mexico, Laos  
and Vietnam. Customers  
include Tabcorp and  
The Coca-Cola Company.
[ STYLE SHEETS FROM THIS FILE ARE NOT INTERCHANGEABLE WITH THE OTHER ARTWORK FILES FOR THIS JOB ] ANNUAL REPORT AND ACCOUNTS 2007 INSPIRED GAMING GROUP PLC
 Our Products
Inspired Gaming Group plc provides and operates a wide range of SBG  
and analogue entertainment, gaming and retail terminals.
Inspired Gaming Group plc’s Open Server Based Gaming Solution
The Group’s Open SBG™ solution 
delivers, whatever our customers’ business. 
Our open, networked, flexible software 
platform delivers games and entertainment 
direct to the player on any cabinet across 
multiple platforms, increasing revenue and 
reducing costs.
Our Open Application Programming 
Interfaces (APIs) support any kind 
of third-party content, while the  
Open SBG™ software platform is stable, 
reliable and extendable, enabling our 
customers to manage their entire estate 
remotely or locally in real-time. With the 
ability to deliver core offerings to a global 
audience, our customers can choose from 
over 30 functional components tailoring 
the platform to their specific needs.
Our services underpin the Open SBG™ 
platform, providing the latest in reporting, 
licence management, content management 
and release, product management
and bespoke consultancy. The Group 
provides support services to its
customers internationally.
In order for the Group to fully 
capture the growth opportunity and 
maintain its market position, Inspired 
Gaming Group plc has invested 
heavily in implementing Open 
SBG™ platforms across its  
entire estate.
Cabinets
Customers can choose from our 
range of cabinets to suit the 
customer’s environment 
Open SBG™ Software Platform
Core components
Optional components: Pick and mix  
from the Group's  0+ functional 
components to suit the needs of  
the customer’s business
Open SBG™ Managed Services
Optional managed services
The Group has developed state-of- 
the-art software products suitable  
for a range of markets
Applications
Management  
Toolset
Head-to-head
multiplayer
Cashless
Bet, stake and prize 
configuration tools
Others
Licence  
Management
Reporting
Content Management  
and Release
Product  
Management
Consultancy
Global Support Services
Field Operations
Estate Management
Configuration Database
Menu Management
Credit Management
Messaging
Hardware Management
Gaming
Casino Slots
AWP/Street Gaming 
FOBT/VLT  
Electronic Table Gaming
Virtual Sports
Entertainment
SWP
SWoP
Music
Vending
Digital Vending
[ STYLE SHEETS FROM THIS FILE ARE NOT INTERCHANGEABLE WITH THE OTHER ARTWORK FILES FOR THIS JOB ]  Strategy – SBG
The Group’s strategy remains focused on 
maximising shareholder returns through:
the improvement of the quality of the 
Group’s machine estate through the 
conversion of the majority of its 
analogue machines to higher margin 
Server Based terminals, and the 
redeployment of capital to fund 
higher returning SBG opportunities;
using SBG technology to improve 
efficiency and reduce costs of Machine 
Operations; and
developing and selling the Group’s  
SBG software platforms and digital 
content internationally and into 
diverse segments.
The Group continues to make substantial 
progress against each of these objectives. 
The transition from analogue to SBG 
continues to be managed smoothly, and 
SBG machines now account for 31% of the 
Group’s owned estate. During the last 
12 months turnover has remained stable 
despite the planned reduction in the low 
margin parts of the Group’s estate of 
analogue machines as we have focused on 
enhancing the quality of the overall estate. 
•
•
•
The analogue turnover foregone has been 
replaced with higher quality SBG sales 
which has resulted in the Group’s EBITA
2
 
margin increasing from 9.9% to 13.3%. I am 
particularly pleased to report that we have 
achieved a reduction in all key cost metrics 
(on a per machine basis) and that the Gross 
Profit from SBG Software and Services 
increased by some 129%. 
Commercial developments – 
Diverse Revenue Growth
During the period, the Group signed a 
number of significant SBG deals which 
demonstrate both a deepening of its 
relationships with a number of existing 
UK customers and the broadening of 
its international footprint. For example:
An exclusive supply contract to provide 
Fixed Odds Betting Terminals (FOBTs) 
to Betfred, the leading independent 
bookmaker.
The commencement of scale roll out 
of SBG Bingo terminals across the Gala 
Bingo estate. 3,000 terminals are 
contracted to be deployed in the 
first half of calendar year 2008.
An agreement to supply the Group’s 
Open SBG
TM
 platform and content to 
•
•
•
Chairman’s Statement
I am pleased to report the Group’s 
financial results for the 52 weeks to 
29 September 2007, the first full 
financial year since its admission to 
AIM. Reported Operating Profit for 
the period is £11.4m, and reported 
Profit before Tax £3.8m from 
Turnover of £166.3m.
EBITdA
1
 and EBITA
2
 are 28%
3
 
and 30%
3
 ahead respectively of 
the corresponding period last 
year, substantially in line with 
expectations. These results 
demonstrate the financial benefits 
associated with the Group’s 
continued transition towards Server 
Based Gaming (‘SBG’) technologies. 
Furthermore, the profit growth has 
been achieved despite significant 
investment in our growth platform 
following the strengthening of the 
leadership team, deepening of the 
software development resource and 
the creation of an international sales 
function. As a result the Group now 
has a fast growing and diverse set of 
SBG profit streams.
Financial Performance – SBG
The performance of the Group was:
  Audited Audited  Unaudited  
  statutory  statutory proforma 
  52 weeks ended  21 weeks ended  53 weeks ended  
  29 Sept 2007  30 Sept 2006  30 Sept 2006 
  £’m £’m £’m
Group Turnover  166.3m 58.0m 171.1m
Group EBITdA
1
  26.8m 10.0m 21.0m
Group EBITA
2
   22.1m 8.6m 17.0m
1  ‘EBITdA’ represents Earnings Before Interest, Taxation, Non-Machine Depreciation, Amortisation, Exceptional Items and 
Share-Based Payment. EBITdA is, in the opinion of the Directors, the most appropriate measure of cash profits after 
recurring investment in machines.
2 ‘EBITA’ represents Earnings Before Interest, Taxation, Amortisation, Exceptional Items and Share-Based Payment
3 Represents increase on comparative un-audited 53 week proforma period ended 30 September 2006.
[ STYLE SHEETS FROM THIS FILE ARE NOT INTERCHANGEABLE WITH THE OTHER ARTWORK FILES FOR THIS JOB ] ANNUAL REPORT AND ACCOUNTS 2007 INSPIRED GAMING GROUP PLC
5
1,500 FOBTs in Ladbrokes betting shops 
in the UK.
A global agreement to supply Open 
SBG™ technology to Codere SA, the 
leading international gaming operator.
A contract to supply our SBG terminals 
to Galaxy Entertainment in Macau at its 
flagship Galaxy Star World Casino.
Since the year end:
The supply contract with Bourne 
Leisure has been significantly expanded 
with the introduction of over 2,000 
more machines.
The Group has renewed its supply 
contract with William Hill for four years 
and will provide FOBTs at 75% of its 
betting shops.
Corporate Developments 
Our strong performance was delivered 
despite the significant resources taken up 
by the indicative offer received from FL 
Group hf (‘FL Group’), an international 
investment company, in the last – and 
most financially significant – quarter of 
the financial year. FL was not able to 
make a formal offer for the Company 
as a result of the prevailing conditions 
in the financial markets. 
Earlier in the financial year, the Group 
had secured a £15.3m investment from 
FL Group, through a subscription for 
6,371,667 new ordinary shares of 1p each 
(‘Subscription Shares’) at 240.5p per 
Subscription Share, the prevailing price at 
the time. With the Group seeing strong 
demand for its products by customers both 
in the UK and overseas, the proceeds 
provided the Group with increased 
financial flexibility to pursue organic growth 
and potential ‘bolt-on’ acquisitions. The 
proceeds also allow the Group to act 
quickly to take advantage of gaming 
deregulation in a number of overseas 
territories. FL Group remains a 
supportive shareholder. 
Regulatory Developments 
A number of regulatory changes have  
been introduced during the financial year, 
which have provided financial benefits to 
the Group. 
In March we saw the implementation 
of the Category C AWP machine stake 
and prize increase from 30p and £25 to 
50p and £35 respectively. As expected, 
•
•
•
•
•
Gaming
Bingo
Inspired Gaming Group plc 
is now deploying ,000 Bingo 
Wizard terminals into the Gala 
Bingo Estate. The terminals allow 
the user to play main stage bingo 
and interval bingo as well as an 
increasing range of skill games and 
AWP content. Integrated into 
Inspired supplied GGP network, 
this gives the operator the 
opportunity to present more 
entertainment opportunities to  
its customers in a fully cashless 
gaming environment.
Benefits
Fully cashless gaming, e-purse stored 
within membership card, and accessed 
though ATM style terminals in venue
Reduced queuing time for ticket 
purchase, all purchases made at terminal
Multiple bingo ticket purchase means 
more chance of winning and extended 
spend opportunities for operator
Features
Rapid deployment of new games to all 
terminals in venue
Opportunity for promotional packages 
and offers for multiple purchases
Fully integrated into existing main stage 
and prize bingo systems
•
•
•
•
•
•
[ STYLE SHEETS FROM THIS FILE ARE NOT INTERCHANGEABLE WITH THE OTHER ARTWORK FILES FOR THIS JOB ] 6
the change provided a welcome lift to 
the sector and has, to date, removed 
downward pressure on AWP machine 
rents.
In September 2007, the Gambling Act 
2005 was introduced. Two aspects of 
the Act in particular have had a positive 
impact: 
an expansion of the game content 
permitted on FOBTs (including 
Blackjack, Poker and high stakes slots) 
and an extension in shop opening 
hours; and
the ability for the Group to share in 
AWP machine revenues in pubs – 
which is particularly relevant to 
the Group’s roll-out of its Open 
SBG™ AWP terminals which 
deliver higher incomes than their 
analogue equivalents.
The Group also expects to benefit from 
the regulated growth in the casino estate 
in the UK over the coming years, through 
its suite of SBG casino product and machine 
services and supply. I would also take this 
opportunity to confirm that the Group  
has not been affected by the removal of 
Section 21 gaming machines. 
The smoking ban came into effect in England 
on 1 July 2007. We receive fixed rents for 
our analogue AWP machines located in 
pubs and since the introduction of the ban 
these have remained stable. As expected, 
we have seen a high single-digit decline 
in AWP volumes although these volume 
reductions have been concentrated in the 
lower margin and less valuable tenanted and 
free trade segments. We have seen larger 
than expected income declines in our 
shared income pub products such as 
the ITBox Skill With Prize terminal. 
We believe that the declines may be as a 
result not only of the smoking ban but also 
lower footfall associated with a general 
downturn in consumer confidence that a 
number of our pub customers have recently 
reported. As noted above, the picture is 
very different in the bookmakers where 
our SBG terminals have continued to show 
•
•
•
strong growth year-on-year since the 
commencement of the ban. We have also 
witnessed an increased demand for our SBG 
Bingo solutions as the income uplifts mitigate 
much of the adverse effects of the smoking 
ban that bingo operators have experienced. 
It is too early to evaluate any long-term 
impact on the pub sector. In Scotland, 
where the ban was introduced in March 
2006 we have experienced a very slight 
improvement in pub trading conditions. 
As in England, the SBG terminals in Scottish 
bookmakers have performed strongly during 
the period. We are monitoring conditions in 
the pubs closely. To date, we have removed 
costs in that segment and will take any 
further actions deemed necessary to 
protect Group profits. 
People
The Group has increased the depth of its 
management team throughout all areas of 
the organisation to ensure that it is properly 
resourced to exploit the global growth of 
SBG. We have also reorganised the Group 
to create fully integrated divisions centred 
on key customer groupings each with 
dedicated field and remote fix operations, 
software development and finance support. 
This has created a more profit focused and 
streamlined organisation which has enabled 
us to remove cost.
Our employees continue to perform with 
drive and commitment as we transition the 
business to a greater proportion of SBG-
related revenue. Once again, I would like to 
take this opportunity to thank them for their 
efforts and their commitment. 
Dividend
I am pleased to announce that the Board 
is recommending the payment of a maiden 
final dividend of 6.7p per Ordinary share at 
a cost of £4.7m giving a total dividend for 
the year of 8.4p per Ordinary share at a 
total cost of £5.9m. The record date will 
be 8 February 2008. 
Chairman’s Statement
continued
[ STYLE SHEETS FROM THIS FILE ARE NOT INTERCHANGEABLE WITH THE OTHER ARTWORK FILES FOR THIS JOB ] ANNUAL REPORT AND ACCOUNTS 2007 INSPIRED GAMING GROUP PLC
7
Gaming 
Casino Products 
Inspired Gaming Group plc has 
developed a range of electronic 
casino products which offer a  
wide range of cabinet solutions  
as well as a wide variety of casino 
content items.
The Multi-Win Roulette range of products 
offers up to four live roulette wheels for  
the player to bet against with ‘picture in picture’ 
from each wheel via digital video feed available 
on the terminal. There are a variety of cabinet 
options allowing flexible integration into the 
casino design.
New content items including a Virtual 
Sportsbook allow casinos to schedule virtual 
sports events from Inspired’s BAFTA award-
winning Redvision team and display events on 
large screens, offer the player the opportunities 
to bet on the outcome of the events, played 
from the same terminals as Roulette.
Benefits
Hardware design allows full integration 
into casino environment
Multiple content types available with 
more events in development, can be 
deployed via network link
Multiple wheel operation extends betting 
opportunities increasing average spend
Features
Flexible content management 
and scheduling
Fault management via remote 
diagnostic tools
Virtual Sportsbook features randomised 
race events with infinite race scenarios
•
•
•
•
•
•
Outlook
These results clearly demonstrate the 
financial benefits of the Group’s SBG 
focused strategy. These positive trends are 
expected to continue for many years given 
the general expansion of gaming globally 
and more specifically, a gaming machine 
replacement cycle which is expected to 
benefit disproportionately suppliers of  
SBG systems.
Trading in the first quarter of the current 
year has been satisfactory. The diversity of 
our profit streams together with our focus 
on fast growth areas of the gaming market  
is serving us well in financial year 2008. 
As has been widely acknowledged, the UK 
pub environment has been challenging  
due to the smoking ban in England and 
Wales coinciding with declining consumer 
confidence. This has affected machine 
incomes in that segment more than originally 
anticipated especially during the Christmas 
trading period. 
However the majority of the shortfall has 
been offset by a combination of the strong 
performance from our SBG terminals in the 
gaming sector together with SBG-enabled 
cost reductions. We have a strong pipeline 
of further SBGSS opportunities and further 
SBG-related UK cost efficiencies. The 
trading performance of the Group is, as 
ever, weighted towards the second half of 
the financial year. We anticipate this bias will 
be greater than in the past as the second 
half represents the most active trading 
period for our growing SBGSS activities 
and will see the benefit from recent 
machine management contract wins.
The Directors therefore remain optimistic 
about the future prospects of the Company.
Russell Hoyle
Chairman
25 January 2008
1  ‘EBITdA’ represents Earnings Before Interest, Taxation, 
Non-Machine Depreciation, Amortisation, Exceptional 
Items and Share-Based Payment. EBITdA is, in the opinion 
of the Directors, the most appropriate measure of cash 
profits after recurring investment in machines.
2  ‘EBITA’ represents Earnings Before Interest, Taxation, 
Amortisation, Exceptional Items and Share-Based 
Payment.
3  Represents increase on comparative un-audited 53 week 
proforma period ended 30 September 2006. 
[ STYLE SHEETS FROM THIS FILE ARE NOT INTERCHANGEABLE WITH THE OTHER ARTWORK FILES FOR THIS JOB ] 8
Group Overview
We are very pleased with the progress 
of the Group. The Group reported an 
operating profit of £11.4m after deductions 
for share-based payments (£5.0m), 
goodwill (£4.8m) (both non-cash items) 
and exceptional items (£0.9m). Profit 
before tax on the same basis is £3.8m and 
on an underlying basis is £15.4m (stated 
before amortisation, exceptional items, 
share-based payment and deferred 
consideration discount unwind within 
Interest Payable). 
The shift in the sales mix towards SBG has 
led to a significant improvement in margins 
resulting in strong EBITdA
1
 and EBITA
2
 
growth. EBITdA
1
 of £26.8m and EBITA
2
 of 
£22.1m, represent year-on-year increases 
of 28%
3
 and 30%
3
 respectively. The Group 
has increased its focus on higher quality 
SBG activities whilst selectively withdrawing 
from lower margin analogue segments.  
As expected, this resulted in turnover 
at £166.3m being in line with the 
corresponding period last year after 
adjusting for turnover from analogue 
manufacturing which was discontinued in 
the last financial year and for the fact that 
last financial year represented a 53 week 
period. Overall revenues from the Group’s 
SBG activities increased 24% to £70.6m 
and now account for 42% of Group 
turnover compared to 33% last year. 
The underlying earnings per share was 
15.4p and the basic earnings per share  
was 0.4p. 
The Directors are comfortable with the 
strength of the balance sheet as net debt 
at 29 September 2007 reduced to £59.2m 
from £72.2m at the end of the previous 
financial year. Within this, the Group had 
cash on balance sheet of £33.1m compared 
to £15.2m last year benefiting from the 
investment in the Group’s equity by FL 
Group in March. 
UK 
Turnover in our UK division was £163.1m 
resulting in an operating profit before 
taxation, goodwill amortisation and 
exceptional costs of £21.9m. The 
performance of the UK division 
is reviewed in detail below.
UK Machine Management – 
SBG and Traditional
The Group continues to focus on 
enhancing the overall quality of the estate 
and withdraw selectively from lower quality 
analogue machine contracts (which include 
non-core activities such as the operation 
of payphones). This has resulted, as 
anticipated, in a decline in total machine 
volumes during the period, accompanied 
by an increase in SBG machine volumes. 
The Group operated an estate of 83,477 
machines in the year (average throughout 
year, 2006: 91,322) consisting of gaming and 
entertainment machines which it supplied 
to a range of retailers including casinos, 
licensed betting offices, bingo halls, pubs, 
motorway service stations and holiday 
parks in the UK in return for a rent or a 
share of revenues. In the majority of cases, 
the Group provides the financial capital for 
the machines and a fully managed service 
including yield management, installation, 
repairs and collections provided by over 
1,200 operational staff.
Revenues from the Group’s owned SBG 
machines increased by 12% in the year to 
£54.0m (2006: £48.3m) driven by both 
increased yields and volumes. Income per 
SBG machine decreased by 3% reflecting  
a change in mix towards lower revenue but 
higher gross profit generating FOBTs and 
a move away from Skill With Prize (SWP) 
terminals. Average FOBT unit income 
increased by 8.9% reflecting the continued 
improvements in product quality, content 
and yield management. The average 
number of SBG machines increased by 15% 
Group Co-Chief  
Executives’ Statement
 £1 6.6m
turnover from Server Based Gaming Software 
and Services representing an increase of 88%
 £70.6m
turnover from Group Server Based Gaming 
representing  2% of total Group turnover
[ STYLE SHEETS FROM THIS FILE ARE NOT INTERCHANGEABLE WITH THE OTHER ARTWORK FILES FOR THIS JOB ] ANNUAL REPORT AND ACCOUNTS 2007 INSPIRED GAMING GROUP PLC
9
Gaming 
Fixed Odds Betting Terminal
Inspired Gaming Group plc 
provides the leading Open Server 
Based Gaming (Open SBG™) 
platform for Video Lottery and 
Fixed Odds Betting Terminals. 
Currently deployed on more 
than  ,500 terminals, the Open 
SBG™ platform allows content 
and currency, as well as gaming 
and betting rules, to be modified 
in each market to comply with 
local needs and legislative 
requirements. Content includes 
Roulette, Virtual Sports and 
numbers games, some of which 
offer bonus features.
“ Early in 2007 we selected Inspired as 
our sole partner for Fixed Odds Betting 
Terminals. Following the replacement 
of our entire estate with their industry 
leading Rainmaker terminal they successfully 
implemented the requirements of the new 
Gambling Act on September 1st. 
This involved the introduction of best in 
breed new B2 and B3 gaming content 
which has, along with excellent levels 
of service, continued to drive machine 
incomes to record breaking levels across 
the BetFred estate.”
 
John Haddock
Managing Director, Betfred
Benefits
Exceptional uptime
Regular content updates downloaded 
remotely
Terminals connected via high-speed 
ADSL network, allowing real-time, 
remote monitoring 
Real-time reporting for up-to-the-minute 
performance data
Features
Great content, managed at terminal level
Leading-edge graphics and touch screen 
technology 
Back office cashier terminal for payments 
and credit management
•
•
•
•
•
•
•
to 20,771 during the year (2006: 17,987). 
At 29 September 2007, the Group 
operated 22,965 SBG machines  
(2006: 18,745) accounting for 31% of the 
total owned estate (2006: 24%). Overall, 
SBG machine revenues accounted for 36% 
of total Machine Management revenues 
(2006: 30%). We expect the percentage  
to increase in the financial year due to the 
current roll-out of SBG AWP terminals 
to the pub estate.
At 29 September 2007, the Group 
operated 56,915 analogue machines (of 
which 5,624 were serviced but not owned), 
a year-on-year reduction, as planned, of 
17.7% (2006: 69,171, 8,689 service-only). 
Consequently, total revenues from 
analogue machines in the year declined 
by 15% to £95.7m (2006: £112.4m).  
This intended withdrawal of low  
margin analogue machines as well as the 
increase in SBG machines has led to an 
improvement in the overall gross profit 
from Machine Management from 28% to 
34%. While total revenues from Machine 
Management declined by 7% to £149.7m 
(2006: £160.7m), which reflects a 2% 
increase in the overall income per machine 
offset by a 9% decline in average machine 
numbers, the improvement in mix has 
led to Machine Management gross profit 
increasing £5.5m to £50.3m.
UK SBGSS
SBGSS activities comprise the sale to third 
parties of the Group’s SBG software 
platform, games and other content 
(including virtual sports) and SBG 
hardware. Revenue streams include 
SBG licence fees and associated recurring 
support fees, content royalties, margins 
on hardware sales and consulting fees.
UK SBGSS sales in the period were £13.5m. 
We enjoyed many successes during the 
year. Gala continued the roll-out of our 
SBG casino table gaming terminal and we 
also sold the product to Stanley Casinos. 
Gala Coral purchased licences to enable 
the commencement of roll-out of the SBG 
Bingo Wizard product in calendar year 
2008. Ladbrokes have also chosen to use 
the Group’s technology platform on 1,500 
of its FOBTs in the UK. In addition, we 
sold our solutions, to amongst others, SIS, 
Amalgamated Racing, EUK Digital and 
Clear Channel Outdoor, the world’s largest 
outdoor advertising company who will be 
using the Group’s content delivery platform 
[ STYLE SHEETS FROM THIS FILE ARE NOT INTERCHANGEABLE WITH THE OTHER ARTWORK FILES FOR THIS JOB ]  0
to broadcast advertising messages to 
venues in the leisure sector. Red Vision, the 
developer of leading edge gaming content 
acquired in June 2006, has had a very 
successful year increasing its virtual content 
revenues by 76% on a like-for-like basis. Its 
virtual sports content is now broadcast on 
over 10,500 screens worldwide.
International
The SBGSS business model forms the basis 
of the Group’s international expansion 
strategy and demand for the Group’s  
SBG products and virtual sports content 
throughout the world has been encouraging. 
During the year a specialist international 
sales team was created and momentum 
continued to build as evidenced by the 
signing of a number of new agreements 
with blue chip organisations which should 
deliver revenues over the coming years.  
In 2007 agreements were signed with 
Codere, Galaxy Entertainment, Silver 
Heritage, and Stanleybet (Cyprus), deals 
which take the Group’s products into a 
number of fast growing territories in South 
America and Asia. These follow on from 
the agreements signed with Tabcorp and 
Coca-Cola in calendar year 2006. We now 
have SBG terminals deployed in Germany, 
the Czech Republic, Mexico, Australia, the 
United States, Cambodia, Laos and 
Vietnam, and shortly in Galaxy’s flagship 
Starworld casino in Macau. 
The commercial trial to deploy Server 
Based digital vending machines for 
Coca-Cola is progressing well and machines 
have now been deployed in several cities 
in the United States and Germany including 
Philadelphia, Baton Rouge and Berlin 
following completion of the design 
and development phase. 
In summary, the International division 
delivered £3.1m of SBGSS sales in the 
year. The operating loss before taxation, 
goodwill amortisation and exceptional 
costs of £2.8m reflects the early stage 
nature of this division. The Directors 
expect International SBGSS sales to
grow significantly in the current and 
future financial years.
Following the creation of the International 
division, the Group no longer requires a 
physical presence locally in Italy and the 
decision was taken to close its Inspired 
Leisure Link Italia (ILLI) subsidiary. The 
costs of closure of £949,000 has been 
treated as an exceptional item. Future 
opportunities in Italy will be pursued 
through strategic partners, managed by the 
International division. While Italy continues 
to evolve into a leading European gaming 
jurisdiction, the pace at which it has 
adopted legislation to enable SBG has been 
disappointing and in the current financial 
year we expect to focus our international 
efforts on other regions. 
The Group holds a 20% minority stake in 
Gmatica, a leading AWP concessionary in 
Italy. As we noted in our interim results 
announcement, Gmatica received a notice 
from the Corte Dei Conti, an Italian 
administrative body, inviting it to make 
representations in relation to alleged 
breaches of the concession agreement that 
it holds with the AAMS, the Italian Gaming 
Regulator. All other concessionaries 
received similar notices and the legal 
process is ongoing. The Directors believe 
that even if Corte Dei Conti were 
successful, the outcome would not have a 
materially prejudicial impact on the Group’s 
finances. However, as a precaution, the 
Directors have written down the value  
of the Group’s stake in Gmatica by £0.4m 
to £0.7m.
Group SBG Software  
and Services (‘SBGSS’)
Overall, Group SBGSS made excellent 
progress during the period with sales 
increasing 88% to £16.6m (2006: £8.8m). 
Group Co-Chief  
Executives’ Statement
continued
[ STYLE SHEETS FROM THIS FILE ARE NOT INTERCHANGEABLE WITH THE OTHER ARTWORK FILES FOR THIS JOB ] ANNUAL REPORT AND ACCOUNTS 2007 INSPIRED GAMING GROUP PLC
 Gaming 
 Video Amusement With Prize
The Player is Inspired’s
broadband enabled Category C 
gaming machine. The graphically 
rich content and variety of
content styles appeals to a wider 
cross section of players than the 
current traditional product. 
Delivering an enhanced content 
offer is key to the appeal for new 
and lapsed players.
Benefits 
Customised content delivery to maximise 
revenue without the need to remove and 
install cabinets 
Familiar engineering and ergonomics to 
retain the traditional player 
Multi-game offer which can be customised 
to meet the commercial requirements of 
a venue including enabling a single game 
to maximise revenue hot-spots. 
Networked, broadband terminals allowing 
remote monitoring and automatic fault 
diagnostics thus minimising fault rates 
and engineer call-outs 
Features 
Touch screen technology allows easy 
play and browsing 
Optimised range of games delivering the 
ideal mix of graphically rich content 
New games delivered reliably and on a 
regular basis 
Removal of least popular content based 
on atomic play data 
More user friendly platform for new and 
lapsed players 
Familiar attract functionality to retain the 
traditional player
•
•
•
•
•
•
•
•
•
•
Furthermore, these sales were achieved at 
a significantly higher margin (2007: 87%, 
2006: 71%) reflecting the signing of a 
number of new licence agreements which 
will increase our pool of recurring revenues 
in future years. Gross Profit from SBGSS 
therefore increased by some 129% to 
£14.5m (2006: £6.3m). In total, the Group 
sold 7,977 licences during the year. Total 
licences sold as at 29 September  
were 11,327.
Direct Costs
The number of SBG terminals within the 
Group’s machine estate has now reached 
the point where, as expected, they are 
delivering significant operating efficiencies. 
Once critical mass is reached costs are 
lower for a variety of reasons:- 
SBG machine content is changed 
remotely by uploading from a central 
server. (With analogue machines, 
content can only be changed by 
physically replacing the machine);
SBG repairs can often be conducted 
remotely ‘over the wire’, obviating the 
need for expensive field staff visits; 
SBG incomes are also monitored 
remotely unlike traditional machines 
where the income data has to be 
manually retrieved. This allows the 
Group to outsource, in some instances, 
the process of cash collection to its 
retailer partners; and 
SBG machines have a longer life than 
analogue machines which, all things being 
equal, results in lower levels of capital 
expenditure and therefore a reduced 
depreciation charge. This is accentuated 
by the Group’s proven ability to lower 
the build cost of its terminals.
In the year the Group reported: 
a 6% fall in the average field cost of 
serving each machine owned by the 
Group. This translated into an absolute 
year-on-year cost decrease of £7.1m;
a 7% fall in the average depreciation 
charge for each machine owned. In total, 
depreciation fell by £7.6m year-on-year; 
and
a 17% fall on average in content and 
communications cost for each SBG 
terminal as the Group leveraged its scale. 
We expect to see further improvement in 
the Group’s key cost metrics in the current 
financial year.
•
•
•
•
•
•
•
[ STYLE SHEETS FROM THIS FILE ARE NOT INTERCHANGEABLE WITH THE OTHER ARTWORK FILES FOR THIS JOB ]  2
Group Co-Chief 
Executives’ Statement
continued
Overheads and 
Product Development
Overheads (which include the costs of 
product development and remote terminal 
support) increased by £6.3m to £38.0m, 
as expected. Not surprisingly being publicly 
quoted has led to an increase in costs. 
More significantly, we have also taken 
the decision to reinvest some of the SBG-
driven margin improvement to strengthen 
further the Group’s software development 
capacity and UK and international sales 
capacity to ensure that it can deliver on 
the significant opportunities that the rapid 
global growth of SBG presents. For 
example, the average number of design and 
development specialists employed by the 
Group has increased from 164 to 321 
during the year. The Directors believe that 
the current infrastructure is now sufficient 
to deliver the opportunities at hand and 
consequently do not expect overheads to 
increase materially in the current financial 
year beyond the level incurred in financial 
year 2007. 
Innovation is the life-blood of the Group 
and the rate of new product development 
highlights our commitment in this area. Our 
SBG product portfolio has been expanded 
to incorporate Category B3 slots, Blackjack, 
Keno, Baccarat, Video Lottery and a Casino 
Virtual Sportsbook. A number of the 
Group’s products have also been localised 
for territories throughout the world. 
Crucially, the Group’s Open SBG
TM
 
platform has enabled the creation of brand 
new gaming machine concepts such as SBG 
slots with integrated electronic roulette, 
Category B and Skills with Prizes content. 
These terminals, which have been rolled- 
out in the UK, provide the end-user with 
unprecedented choice and the venues 
with exceptional flexibility as they have the 
ability, for example, to change the content 
mix by time of day. 
Interest 
The net interest charged to the profit and 
loss account is £7.4m of which £6.8m is 
cash interest. The balance relates to  
non- cash items such as the writing back  
of the discounting factor pertaining to  
the Red Vision deferred consideration  
(£0.8m) and the amortisation of bank  
debt issue costs (£0.3m).
Tax
The total taxation charge for the year
is £3.5m. This consists of a mainstream 
corporation tax charge of £2.0m and 
deferred tax of £1.5m due to the tax rate 
change this year. The underlying tax rate in 
respect of the year of 33% was higher than 
the standard corporation tax rate of 30% 
as a result of disallowed expenditure.  
The Directors will continue to seek 
opportunities to keep the rate as low  
as possible. 
[ STYLE SHEETS FROM THIS FILE ARE NOT INTERCHANGEABLE WITH THE OTHER ARTWORK FILES FOR THIS JOB ] ANNUAL REPORT AND ACCOUNTS 2007 INSPIRED GAMING GROUP PLC
 Cash Flow
The Group generated £7.4m of operating 
cash flow after net capital expenditure of 
£53.6m. Operating cash flow is stated after 
an investment of over £5.0m in machine 
capital to fund the roll-out at Betfred in the 
latter part of the financial year (and will 
therefore deliver financial benefits for 
many years to come) and a working capital 
outflow of £8.6m due to investments 
in inventory to deliver on the pipeline of 
SBG opportunities in the current year and 
timing of creditor payments. Of the £7.4m 
of operating cash flow (after net capital 
expenditure), debt service payments 
absorbed £6.8m and tax and the interim 
dividend absorbed a further £1.1m and 
£1.2m respectively.
We expect capital expenditure in the 
current financial year to be at a similar
level to financial year 2007 in order to take 
advantage of a number of high-return SBG 
opportunities both in the UK and overseas. 
It is intended to fund these opportunities 
from the Group’s existing cash resources, 
operating cash flow and by the release of 
capital from the low returning parts of the 
Group’s machine estate.
Summary
We are pleased with the Group’s progress 
during the year, having achieved our 
financial and strategic goals. During the year 
we witnessed an increased intent from 
leading gaming organisations worldwide
to adopt SBG technologies. Our long and 
proven track record of delivering better 
machine incomes for our customers 
through SBG leaves the Group well placed 
to capitalise on this fundamental trend. In 
the short term the Group’s pub related 
business faces challenges caused by the 
smoking ban and general consumer 
weakness. We will continue to deploy
SBG to drive income growth, maximise 
efficiency and reduce costs in this segment 
to mitigate the impact of these challenges 
and we keep our strategy in the pubs 
under review. However the Group has
a diverse revenue base and the growth 
prospects in all other segments both in 
the UK and overseas remain positive. We 
look forward to further consolidating our 
strength in the Open SBG
TM
 market
in the current financial year. 
Luke Alvarez & Norman Crowley
Group Co-Chief Executives
25 January 2008
1  ‘EBITdA’ represents Earnings Before Interest, Taxation, 
Non-Machine Depreciation, Amortisation, Exceptional 
Items and Share-Based Payment. EBITdA is, in the opinion 
of the Directors, the most appropriate measure of cash 
profits after recurring investment in machines.
2  ‘EBITA’ represents Earnings Before Interest, Taxation, 
Amortisation, Exceptional Items and Share-Based 
Payment.
3  Represents increase on comparative un-audited 53 week 
proforma period ended 30 September 2006.
[ STYLE SHEETS FROM THIS FILE ARE NOT INTERCHANGEABLE WITH THE OTHER ARTWORK FILES FOR THIS JOB ]  Business 
and 
Financial 
Review
Results for the Period
Inspired Gaming Group plc is reporting results for the 52 week period ended  
29 September 2007. 
The previous financial year covered the Statutory Period from incorporation on 3 May 
2006 to 30 September 2006, a 21 week period. In addition, indicative ‘proforma’ results 
for the underlying group for the 53 weeks ended 30 September 2006 are also presented. 
It is the Directors’ opinion that these non-statutory, non-audited, proforma results 
provide a valuable indication of the performance of the business for the 53 week year 
ended 30 September 2006.  
Following the Group’s re-structuring, the principal segments of the business have been 
revised from Machine Management (SBG and analogue) and SBG software and sales, to 
UK and International.
The reported financial results in the previous financial year also included the period from 
the acquisition of Ever 2533 Limited and Inspired Broadcast Networks Limited businesses 
on 2 June 2006, to 30 September 2006, a 17 week period of trading.
Turnover
   Audited  Unaudited  
  Audited  statutory period proforma total for  
  52 weeks ended  (including 17 weeks trading)     53 weeks ended  
  29 September 2007  ended 30 September 2006  30 September 2006 
  £’000 £’000 £’000
UK (Machine Management and SBG Software)  6 , 55,698 168,637
International (SBG Software)   , 7 2,252 2,463
Total   66,28 57,950 171,100
Total revenue in the financial year was £166.3m and when compared to the previous year proforma 
53 week basis shows a decline of 2.8%. 
In the UK division the decline in turnover of 3.2% was principally due to the withdrawal of low 
margin analogue contracts and in particular the exit from supply to Punch Taverns. Turnover grew 
in our highest margin markets of Gaming, Leisure and SBG Software and Services. The shift in sales 
mix further reduces our dependency on the pub sector which now accounts for 36% of Group 
revenue compared to 44% in the previous year. 
In the International division, turnover grew by 27.8% reflecting the increasing sales momentum for 
the Group’s SBG technology. During the year a number of long-term agreements were signed with 
leading gaming organisations such as Codere and Galaxy Casinos which could lead to continued 
sales growth in the division over the coming years. 
EBITdA before exceptional costs and share-based
payment charges
   Audited Unaudited  
  Audited statutory period proforma total for  
  52 weeks ended  21 weeks ended 53 weeks ended  
   29 September 2007 30 September 2006 30 September 2006 
  £’000  £’000  £’000
Earnings before interest, tax, non-machine
depreciation, amortisation, exceptional costs
and share-based payment charge
 UK (Machine Management and SBG Software) 29,0 6 10,800 23,982 
International (SBG Software)  ( ,509) (254) (2,065)
Central
2
  (702) (502) (924)
Total  26,805 10,044 20,993
1  EBITdA (EBITDA less machine depreciation). This profit measure is used by management as a proxy for cash profits after 
recurring investment in machines.
2 Central costs consist of Plc costs and other costs which cannot be reasonably attributed to the other segments.
[ STYLE SHEETS FROM THIS FILE ARE NOT INTERCHANGEABLE WITH THE OTHER ARTWORK FILES FOR THIS JOB ] ANNUAL REPORT AND ACCOUNTS 2007 INSPIRED GAMING GROUP PLC
 5
Group
EBITdA (before exceptional costs and share-based payment charges) was £26.8m which represents 
an increase of 27.7% over the corresponding period in the previous year.
UK 
In the UK division EBITdA (before exceptional costs and shared-based payment costs) grew by 
21.0%. The principal drivers were higher incomes from our own estate of SBG machines, an 
increase in the size of the owned SBG estate itself as a result of contract wins and extension, 
increasing sales of SBG software solutions to third party customers in the UK and growth in our 
leisure channel through our holiday park business.
The profitability of the UK division has also benefited from lower field and depreciation costs 
(down £7.1m and £7.6m respectively) as the Group increases the proportion of SBG terminals 
in its owned machine estate. The connectivity and content costs per SBG terminal reduced to 
13.8% of digital SBG revenue (2006: 16%) reflecting further increase in site density and scale 
related purchasing benefits. These savings partially were reinvested in the UK division’s software 
development resource and sales function which were both expanded during the year.
International 
The demand for the Group’s SBG products internationally has been encouraging. During the year
a specialist international sales team was created and momentum continued to build with the signing 
of a number of new agreements.
Notwithstanding the increased investment in the specialist sales team, there was a reduction
in EBITdA loss (before exceptional costs and shared-based payment costs) from £2.1m in the
prior year to £1.5m.
Group Operating Profit Before Goodwill Amortisation and
Exceptional Costs
   Audited statutory  Unaudited 
  Audited period (including  proforma total for  
  52 weeks ended  17 weeks trading)  53 weeks ended  
   29 September ended 30 September  30 September 
  2007 2006 2006 
  £’000  £’000  £’000
UK  2 ,85 7,751 18,395
International  (2,8 2) (991) (2,803)
Central   (2,02 ) (1,428) (1,850)
Operating profit before goodwill amortisation  
 and exceptional costs   7,0 5 5,332 13,742
Operating profit, before goodwill amortisation, exceptional items and after accounting for share 
option schemes charge in the year is £22.1m.
Exceptional Items
The Group incurred £1m of exceptional costs in the year, £0.9m in relation to the closing of 
Inspired Leisure Link Italia S.p.A, the Group’s Italian subsidiary, comprising primarily employee 
settlement costs.
[ STYLE SHEETS FROM THIS FILE ARE NOT INTERCHANGEABLE WITH THE OTHER ARTWORK FILES FOR THIS JOB ]  6
Key Performance Indicators
  
  Audited Proforma 
  52 weeks ended 53 weeks ended 
  29 September  30 September Definition and  
  2007 2006 method of calculation
Financial
Sales growth  (2.8%) 5.2% Growth in sales in the period 
    expressed as a percentage
Operating profit margin   . % 9.9% Operating profit before 
    exceptional items, goodwill 
    and share-based payment 
    charge as a percentage of 
    sales in the period
Capital investment (£’000)  5 ,550 53,900 Purchase of tangible and  
    intangible assets net of receipts 
    from sales of fixed assets
Non financial   
Growth in owned machines ( ,97 ) (4,485) Changes in the number 
    of machines owned and  
     operated in the period
Growth owned digital machines   ,220  2,159 Changes in the number of  
    digital machines operated and  
    serviced in the period 
Digital vs. analogue    % 24% Number of digital machines 
    operated as a percentage
    of the number of machines 
    owned and operated
Balance Sheet
Goodwill
Goodwill on the balance sheet amounts to £93.0m, which arose on the acquisition of Ever 2533 
Limited and Inspired Broadcast Networks Limited and the subsequent acquisition of Red Vision 
Limited and its subsidiaries. The carrying value of goodwill for these investments is £84.1m and 
£8.9m respectively. The Directors have reviewed the carrying value of this asset and are satisfied
it is fairly stated.
 
Tangible Fixed Assets
Net capital investment in 2007 amounted to £44.8m. Tangible fixed assets at 29 September 2007 
were £94.6m. Amusement machines accounted for £85.2m.
 
Borrowings 
At the balance sheet date the net debt of the Group was £59.2m. This represented bank 
borrowings of £93.9m (the Group increased its utilisation of its acquisition facility by £7.0m during 
the year offset by a repayment of £2.4m) other loans of £0.4m, the capitalisation of debt issue costs 
arising on refinancing of £2m and £33.1m of cash. 
The Group’s borrowings are at variable rates of interest, although the Group actively manages its 
interest exposure. At the balance sheet date hedging arrangements are in place for 68% of current 
bank debt.
Cash Flow Statement
The Group generated net cash flow from operating activities of £60.9m in the period. This resulted 
in free cash flow before tax of £0.5m after interest payments (£6.8m), and capital expenditure 
(£53.6m). Cash tax paid during the period was £1.1m. The Group also paid an interim dividend
of £1.7p per Ordinary share at a cash cost of £1.2m.
Machine capital expenditure, net of disposals, during the period was £43.2m. £10.9m (25.2%) was 
spent on digital SBG machines. During the period capital investment in software and services and 
other technology developments relating to the field operations efficiency programme was £6.8m. 
Business 
and 
Financial 
Review
continued
[ STYLE SHEETS FROM THIS FILE ARE NOT INTERCHANGEABLE WITH THE OTHER ARTWORK FILES FOR THIS JOB ] ANNUAL REPORT AND ACCOUNTS 2007 INSPIRED GAMING GROUP PLC
 7
Interest
The Group incurred interest charges of £8.7m during the period, of which £6.8m is in respect
of the Group’s £93.8m of bank borrowings. £0.3m relates to the amortisation of debt issue costs 
capitalised in accordance with FRS4 ‘Capital Instruments’. A charge of £0.8m has also been incurred 
in respect of the Red Vision deferred consideration discount unwind. This non-cash charge arises as 
a result of the deferred consideration having been discounted and the difference between this 
present value and the mandatory purchase amount being accrued. The Group received £1.3m
of interest of which £1.0m is in respect of its cash balances. 
Taxation
The Group has maximised its use of capital allowances to reduce the charge for 2007 to £3.5m.
At 29 September 2007 the Group carried forward a deferred tax asset of £12.9m, primarily in 
respect of recognition of remaining unutilised capital allowances which are anticipated to be 
recovered in the proceeding financial years.
Research and Development
The main focus of development by the Group is in the areas of ongoing software, platform and 
new machine projects. Total development costs expensed to the consolidated profit and loss 
account in the period were £1.5m with a further £4.8m capitalised.
EPS/Dividends
Underlying basic earnings per share which exclude goodwill amortisation, exceptional items, share- 
based payment charge and deferred consideration discount unwind within interest payable was 
15.4p. Basic earnings per share, which includes these items, was 0.4p.
The Board have recommended a final dividend of 6.7p per Ordinary share giving a total dividend 
per Ordinary share for the year of 8.4p at a total cost of £5.9m. 
Financial Risks
Interest Rate Risk
The Group finances its operations through a mixture of retained profits and bank borrowings. 
The Group borrows at floating rates and manages its exposure to interest rate fluctuations by 
fixed rate hedges on its borrowing facility. At the date of signing the financial statements, 68% 
of Group borrowings were hedged. 
Currency Risk
The Group usually buys currency at spot rate, however, the Group recognises that its currency 
exposure may increase in the future due to the growth in overseas sales, and as more production is 
outsourced to overseas suppliers. The Group will look to minimise any increased exposure to foreign 
exchange fluctuations through the use of currency instruments if appropriate. Currently the Group 
holds small amounts of foreign currency to settle monthly trading transactions.
Liquidity Risk
The Group policy is to ensure that it has committed borrowing facilities in place in excess of its 
peak gross borrowings. The Group refinanced its operations at the time of the flotation, which has 
ensured that the Group has sufficient borrowing facilities in place for at least the next 12 months. 
International Financial Reporting Standards
The EU have directed that all AIM listed companies must comply with EU adopted International 
Financial Reporting Standards (IFRS) for their consolidated financial statements for accounting periods 
beginning after 1 January 2007. As a result the September 2008 Group consolidated financial 
statements will be prepared using IFRS. The initial impact assessment has been undertaken in the 
year. Management anticipate that the major impacts on the Group will be in accounting for intangibles, 
tangible fixed assets, goodwill, leases, deferred taxation and the presentation of financial statements.
Luke Alvarez & Norman Crowley 
Group Co-Chief Executives
25 January 2008 
[ STYLE SHEETS FROM THIS FILE ARE NOT INTERCHANGEABLE WITH THE OTHER ARTWORK FILES FOR THIS JOB ]  8
Board of 
Directors
Norman Crowley
Group Co-Chief Executive
Russell Hoyle 
Executive Chairman
Luke Alvarez 
Group Co-Chief Executive
James O’Halleran
Chairman UK and Ireland
Susan Albion
Company Secretary
Julian Paul FCA
Senior Non-Executive Director
Christopher Mills
Non-Executive Director
David Mace
Non-Executive Director
[ STYLE SHEETS FROM THIS FILE ARE NOT INTERCHANGEABLE WITH THE OTHER ARTWORK FILES FOR THIS JOB ] ANNUAL REPORT AND ACCOUNTS 2007 INSPIRED GAMING GROUP PLC
 9
Executive Directors
Russell Hoyle
Executive Chairman (aged 58)
Russell was the managing director of 
Freetraders Group, the wholesale drinks 
business of Matthew Clark, during the
period from 1993 to 1996. In 1998, he led 
the management buy-in of the company, then 
called Bass Leisure Machine Services and went 
on to serve as the chief executive officer of
the Leisure Link Group to the acquisition 
by the Company and admission to AIM 
on 2 June 2006. 
Luke Alvarez
Group Co-Chief Executive (aged 40)
Luke worked at The Boston Consulting Group 
and was head of FMCG software development 
at the US enterprise software company, 
Comshare. He moved on to become vice- 
president of business development at boo.com 
before becoming chief operating officer of 
Emap Digital, the internet division of Emap plc. 
He was a joint founder of Inspired Broadcast 
Networks Limited. Luke received a First Class 
BAHons and an Mphil in Philosophy, both 
from Cambridge University, and was a visiting 
Fulbright Scholar to the University of California 
at Berkeley.
Norman Crowley
Group Co-Chief Executive (aged 37)
Norman was head of operations for BG 
Turnkey, one of the first turnkey vendors in
the world and was responsible for fulfilment
of global roll-outs for Microsoft and Computer 
Associates. In 1995, Norman founded and 
became chief executive officer of Trinity 
Commerce, one of Europe’s first e-services 
firms. In May 1999, Norman successfully sold 
the majority of the business to Eircom plc and 
saw the handover of the business to a new 
management team. Norman was a joint founder 
of Inspired Broadcast Networks Limited. 
James O’Halleran
Chairman UK and Ireland (aged 57)
Jim was a board member of Freetraders Group 
during the period from 1993 to 1996. Prior to 
this Jim had been the sales director for Grants 
of St. James. Jim was part of the management 
buy-in of Bass Leisure Machine Services in
1998 and went on to serve as a board member 
of the Leisure Link Group and as managing 
director of Leisure Link Group Limited to the 
acquisition by the Company and admission to 
AIM on 2 June 2006. 
Non-Executive Directors
Julian Paul FCA
Senior Non-Executive Director (aged 62)
Julian is a chartered accountant who spent 
20 years as a commercial and merchant banker. 
Since 1991 he has held several senior board 
positions with companies in the media and 
entertainment sectors. He is currently deputy 
chairman of Eagle Rock Entertainment Limited, 
of which he was a founder shareholder, and 
non-executive chairman of Cellcast plc, the 
global interactive digital broadcaster. He is also 
a non-executive director of Entertainment 
Rights plc, Pilat Media Global plc, Stagecoach 
Theatre Arts plc, Ekay plc, Edge Performance 
VCT plc and The Regent Organisation Limited.
David Mace
Non-Executive Director (aged 52)
David has been involved in developing 
businesses internationally over the last  
30 years. In 1987, he led the management  
buy-out of Sea Life Centre (Holdings) Ltd, 
through to its subsequent flotation in 1992  
as Vardon plc, the leisure group. David has 
served as a non-executive director of private 
and venture capital backed companies in  
France and the UK and has also acted as 
management consultant to businesses in 
Europe, the Far East and New Zealand. He  
is a non-executive director of Lookers plc, 
Vectrix Corporation, BlueStar SecuTech Inc  
and American Leisure Group Ltd.
Christopher Mills
Non-Executive Director (aged 55) 
Christopher has been director and chief 
investment officer of J O Hambro Capital 
Management (a significant shareholder in the 
Company) since 1993 and managing director/
investment manager of North Atlantic Smaller 
Companies Investment Trust plc (NASCIT) 
since 1984. Christopher was a director of MIM 
Limited and Samuel Montagu International 
Limited up to 1984 after which he continued
as a consultant to MIM. During this time 
Christopher was responsible for strategic 
development of the group and held positions
as head of North American Venture Capital 
at INVESCO MIM and head of North American 
Investments at INVESCO MIM. Christopher
is a non-executive director of the US listed 
firms, W H Energy Services, Sunlink and
Sterling Construction and is a board member
of a number of private businesses. 
Company Secretary
Susan Albion
Company Secretary (aged 35)
Susan qualified as a solicitor with DLA in 
1998, and spent the early part of her career 
working in DLA’s Technology, Media and 
Communications team. In 2001 she joined 
the legal team at Bass Brewers and played 
an integral role in the hive-out and sale of the 
business to Coors following the judicial review 
of the Interbrew acquisition. She spent five 
years working for Coors Brewers in senior roles 
in the legal, and latterly strategy, teams before 
joining the Leisure Link Group in February 
2006. Following the admission to AIM of the 
Company in June 2006 Susan became Chief 
Commercial Officer and Company Secretary
of the Group.
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Directors’ Report
for the 52 weeks ended 29 September 2007
The Directors present the audited financial statements of the Group 
for the 52 weeks ended 29 September 2007. 
Principal Activities
The principal activity of the Group is the provision of gaming machines 
for the leisure and gaming markets. The Group’s key strategic focus is 
the development and provision of SBG software systems and SBG 
digital and networked terminals.
The principal activity of the Company is that of a holding company
for the Group.
Change of Ordinary Share Capital
On 9 March the Company increased its Ordinary share capital from 
63,938,888 by 6,371,667, and following the exercise of share options 
on 11 July 2007 further increased its Ordinary share capital by 159,847 
to 70,470,402. 
Review of Business and Future Developments
A review of activities is given in the Group Co-Chief Executives’ 
Statement which, taken with the Chairman’s Statement and the Business 
and Financial Review, represents the Company’s Business Review.
The Directors do not expect there to be any significant change
in the principal activity of either the Group or the Company 
in the foreseeable future. 
Results and Dividends 
The profit for the financial period of £256,000 (2006: loss of £2,059,000) 
has been transferred to reserves. An interim dividend of £1,196,000, 
representing 1.7p on the Ordinary shares, has been paid in the period 
(2006: nil). 
The Board is recommending the payment of a maiden final dividend of 
6.7p per Ordinary share at a cost of £4.7m giving a total dividend for the 
year of 8.4p per Ordinary share at a total cost of £5.9m. The record date 
will be 8 February 2008.
Directors and their Interests
The Directors who have served during the period are:
L L Alvarez 
N V Crowley
R B Hoyle
D C Mace
C H B Mills
J W O’Halleran
D Page  (resigned 22 January 2007)
J B Paul 
R Hoyle and J O’Halleran will retire from the Board 
in accordance with the Company’s Articles of Association and 
offer themselves for re-election.
The beneficial interests of Directors who held office at 29 September 
2007 in the share capital of the Company are shown below:
 
 At 29 September 2007 and  
 30 September 2006  
 Ordinary shares  
 Number
L L Alvarez   380,357
N V Crowley   563,652
R B Hoyle   124,706
D C Mace   –
C H B Mills   –
J W O’Halleran   –
D Page   –
J B Paul   1
As director and chief investment officer of J O Hambro Capital 
Management, C H B Mills is considered to have an interest in the shares 
owned by J O Hambro Capital Management, a substantial shareholder of 
20.5% of issued share capital. 100,000 Ordinary shares were purchased 
on 26 June 2007, and are held by Eveswise Ltd Retirement Benefit 
Scheme, a personal pension vehicle of C H B Mills. 4,000 Ordinary shares 
were purchased on 26 June 2007, and are held in trust for the dependant 
children of C H B Mills.
In the period since 30 September 2007 no additional shares have been 
purchased by Directors.
In addition, N V Crowley holds 4,949,901 convertible deferred shares  
(of which up to 3,395,154 are convertible into Ordinary shares on a 
one-to-one basis in the tranches and at the times set out in the table 
below if certain performance conditions are satisfied), and J B Paul holds 
99 convertible deferred shares. N V Crowley has no other ability to 
convert the 3,395,154 deferred shares into Ordinary shares other than 
as a result of the satisfaction of the performance criteria and unless 
additional options or other rights in the Company are granted, the 
balance of his deferred shares will not be convertible into Ordinary 
shares. Any unconverted deferred shares which are not, or are no longer, 
the subject of an option grant are non-transferable and will be cancelled 
in due course. The rights to these shares are set out in note 21.
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In addition to the above, J B Paul and D C Mace were both granted 
22,222 options on 19 July 2006 with an exercise price of £1.80. The 
exercise period for these options is July 2009–July 2016.
Other than gains in respect of D Page exercising options on 11 July 2007 
as described above, no gains have arisen on the exercise of share options 
in the period. Further details on the Executive Share Option Scheme are 
included in note 21.
Employees 
Applications for employment by disabled persons are always fully 
considered, bearing in mind the respective aptitudes and abilities of the 
applicant concerned. In the event of members of staff becoming disabled, 
every effort is made to ensure that their employment with the Group 
continues and that the appropriate training is arranged. It is policy of the 
Group that the training, career development and promotion of a disabled 
person should, as far as possible, be identical to that of a person who 
does not suffer from a disability. 
Consultation with employees or their representatives occurs at all levels, 
with the aim of enabling views to be taken into account when decisions 
are made that are likely to affect their interest, and that employees are 
aware of the financial and economic performance of their business units 
and of the Group as a whole. 
Policy and Practice on Payment of Creditors 
The Group agrees payment terms individually with suppliers prior to the 
commencement of trading and adheres to the terms of arrangements 
made. Trade creditors at the period end represented 74 days. 
Research and Development
The main focus of development for the Group is in the areas of software, 
platform and new machine projects. Total development costs expensed 
to the consolidated profit and loss account in the period were £1.5m, 
with a further £4.8 capitalised.
Details of Directors’ interests in share options (and in the case of N V Crowley, conditional conversion of deferred shares) are shown below:
Executive Share Option Scheme
      Exercise Exercise 
Date of grant R B Hoyle L L Alvarez N V Crowley
1
 J W O’Halleran D Page price period
2 June 2006
–Tranche 1 408,508 408,508 408,508 213,101 – £nil Jan 2007–May 2016
–Tranche 2 415,770 415,770 415,770 216,890 – £nil Jan 2008–May 2016
–Tranche 3 869,668 869,668 869,668 453,669 – £nil Jan 2009–May 2016
–Tranche 4 415,770 415,770 415,770 216,890 – £nil June 2006–Feb 2011
–Tranche 5 869,668 869,668 869,668 453,669 – £nil June 2006–Feb 2011
–Tranche 6 415,770 415,770 415,770 216,890 – £nil June 2006–Feb 2011
As at 29 September 2007 3,395,154 3,395,154 3,395,154 1,771,109 –
2
The market price of the Company’s shares on 29 September 2007 was £3.56. The highest and lowest market price during the Financial Year was £3.68 and £1.83 respectively.
1 N V Crowley conditional conversion of deferred shares.
2 159,847 options held by D Page were exercised on 11 July 2007 at a market price of £2.93 (see note 21).
Substantial Shareholdings
As at 16 January 2008, the Company had been notified of the following 
beneficial holdings in excess of 3% of the issued Ordinary share capital
of the Company:
   Percentage 
  Number of of issued 
  Ordinary share 
  shares  capital
J O Hambro Capital Management  14,478,998 20.5%
FL Group   13,300,000 18.9%
Apollo Management  10,170,000 14.4%
Artemis Fund Managers  6,560,011 9.3%
Goldman Sachs   5,033,653 7.1%
Financial Instruments
Details of financial risks are set out in the Business and Financial Review.
Political and Charitable Donations
During the period the Group made no political donations. Charitable 
donations with a value of £28,000 were made, consisting of donations
to The Next Step, Right to Sight and Acorns Hospice and a number of 
smaller donations to a variety of local charities and charities in which
our employees are involved. In addition, in July 2007 the Group made
a donation of £22,000 to the Responsibility in Gambling Trust (RIGT)
for the period 1 April 2007 to 31 May 2008. A car was donated to 
Mayfield and Ellastone Community First Responders Group.
Auditors
PricewaterhouseCoopers LLP were reappointed auditors during
the period. A resolution to reappoint PricewaterhouseCoopers LLP 
will be proposed at the Annual General Meeting.
By order of the Board
Luke Alvarez & Norman Crowley
Group Co-Chief Executives
25 January 2008
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Corporate Governance Report
The Board has ultimate responsibility and accountability for the Group’s 
operations. The Board approves the Group’s strategic plans, annual 
budgets and three year plans, strategic changes to the financial structure, 
material transactions, interim and preliminary announcements, annual 
report and accounts and business developments.
The Board’s corporate timetable provides for 10 full board meetings
per year to establish future strategy, review business performance and 
financial results and approve budgets. Additional meetings are scheduled 
as and when required. The Board believes that these meetings enable the 
Directors to remain fully up to date on developments within the Group 
and to exercise appropriate control over Group activities. New members 
to the Board receive appropriate induction on joining the Board to 
enable them to understand the business of the Group.
The Chairman is responsible for ensuring that agendas for Board meetings 
are set in advance and that Directors receive information sufficiently
in advance of the meeting to facilitate informed discussion. 
The Company Secretary attends all Board meetings and is responsible
for advising the Board on corporate governance matters.
All Directors have access to the advice and services of the Company 
Secretary and, if appropriate, independent professional advice at the 
expense of the Company.
The Group maintains appropriate directors’ and officers’ insurance cover.
The Company has established separate audit, remuneration and 
nomination committees, as detailed below. Each committee has its own 
terms of reference which are available on the Company’s website. At 
least once per year, each committee will review its own performance, 
constitution and terms of reference to ensure that it is operating at 
maximum effectiveness and recommend any changes it considers 
necessary to the Board of Directors for approval.
During the Financial Year 16 Board Meetings, four Audit Committee 
meetings and eight Remuneration Committee meetings were held.
The Directors attended these meetings as follows:
    
 Board  Audit  Remuneration 
Director Meetings Committee* Committee*
L L Alvarez  15 –  –
N V Crowley 15 – –
R B Hoyle 16 –   –
D C Mace 16 4 8
C H B Mills 11 – –
J W O’Halleran 13  – –
D Page (resigned 22 January 2007) 4 –  –
J B Paul 15  4 8
* Committees consist of D C Mace and J B Paul only. 
It has not been considered necessary for the Nomination Committee 
to meet during the Financial Year being the first full financial year 
of the Company since admission to AIM. 
As an AIM listed company Inspired Gaming Group plc is not required to 
comply with the Combined Code. However, the Directors acknowledge 
the importance of sound and effective corporate governance practices 
and intend to comply with these in so far as is reasonable for a business 
of the Company’s size and nature. 
The Board 
During the Financial Year the Board of Directors consisted of an 
Executive Chairman, two Group Co-Chief Executives, an Executive 
Director and three Non-Executive Directors, two of whom are 
independent, being Julian Paul and David Mace. The Chief Financial 
Officer, David Page retired from the Board on 22 January 2007. The 
biographies of Board members are set out in the Board of Directors 
section of this Annual Report.
Although Russell Hoyle is not considered independent under the 
Combined Code, having previously been chief executive officer of 
the underlying group, the Board believes him to be the best candidate  
for the position of Chairman due to his detailed knowledge of the 
business, commitment to the Group and reputation in the wider industry. 
Russell works a three day week in this role. He also acts as a non-
executive director of Business in Sport and Leisure Limited, an 
organisation which represents the interests of private sector companies in 
the sport, leisure and hospitality industry, which is an unpaid position 
requiring an average of half a day a month’s involvement.
Luke Alvarez and Norman Crowley are the Group Co-Chief Executives. 
They have successfully worked together over a number of years and have 
complementary skills and knowledge which span the diverse activities of 
the Group. 
Norman serves on the boards of Right to Sight and The Next Step, both 
of which are registered charities in Southern Ireland. In addition, Norman 
is a director of Crowley Lalor Limited, a holding company registered
in Southern Ireland. Each of these positions is unpaid. In total, Norman 
spends an average of half a day a month’s involvement with the
three positions.
The Chief Financial Officer’s Board position has not been replaced. Simon 
Kerry was appointed Group Finance Director (a non-Board position) and 
reports directly to the Group Co-Chief Executives. 
Non-Executive Directors Julian Paul and David Mace each have share 
options but are still considered to be independent as the options have
no performance conditions attached to them, and the number allocated 
is not material.
The Board considers that, with the exception of Christopher Mills who 
represents a significant shareholder (J O Hambro Capital Management), 
the Non-Executive Directors satisfy the criteria of the Combined Code 
to act as independent non-executive directors and that the Company 
thereby satisfies the criteria that smaller companies should have at least 
two independent non-executive directors. The independent Non-
Executive Directors were selected for their considerable appropriate 
business knowledge and experience. 
The Board believes its members to have an appropriate and overall good 
balance of skills and experience to direct the Group and that no individual 
or group of individuals dominates the Board’s decision making. 
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Audit Committee
An Audit Committee has been established with agreed terms of 
reference, consisting of Julian Paul (Chairman) and David Mace, both 
of whom are independent Non-Executive Directors of the Company. 
The Audit Committee carries out duties in respect of the Group as a whole. 
The Audit Committee met formally four times during the Financial 
Year. The Audit Committee is responsible for ensuring that the financial 
performance, position and proposals of the Group are properly 
monitored and reported on and for meeting the external auditors, 
reviewing their reports, statements and costs relating to interim and 
full year accounts and assessing and monitoring their independence 
and objectivity. It is also responsible for making recommendations 
on the appointment and re-appointment of external auditors. 
The Audit Committee also monitors the effectiveness of the 
Group’s internal controls and risk management systems. 
Details of the amounts paid to the external auditors during the period 
for audit and other services are set out in note 3 of the Notes to the 
Financial Statements. The Audit Committee monitors the level of non-
audit work undertaken by the auditors and ensures it is work which 
they are best suited to perform and does not present a risk to their 
objectivity. As a result of either regulatory requirements or their existing 
knowledge of the Group, the Group’s auditors are in some cases able to 
provide certain services more efficiently than other parties. In other 
circumstances, assignments are subject to independent tender and 
decisions on the allocation of work are made on the basis of competence 
and cost-effectiveness.
Remuneration Committee
A Remuneration Committee has been established with agreed terms 
of reference, consisting of David Mace (Chairman) and Julian Paul, both 
of whom are independent Non-Executive Directors of the Company. 
The Remuneration Committee met formally eight times during the 
Financial Year. It reviews the performance of the Executive Directors 
and determines and agrees with the Board policy for remuneration 
of the Executive Directors and other senior executives including 
pension rights, bonuses and other benefits. The Committee determines 
targets for any Group wide bonus scheme and approves option grants 
to individuals in the Group.
Nomination Committee
A Nomination Committee has been established with agreed terms of 
reference, consisting of Russell Hoyle (Chairman), Luke Alvarez, David 
Mace and Julian Paul, the latter two members being independent Non-
Executive Directors of the Company. 
The Board believe that the members of the Nomination Committee have 
a balance of skills and experience relevant to the wide ranging activities of 
the Group and that the structure is therefore appropriate with regard to 
the size and activities of the Group.
The Nomination Committee meets as and when necessary to review 
the structure, size and composition of the Board, recommend changes, 
consider succession planning, and identifying and nominating Board 
candidates for approval by the Board. It has not been considered necessary 
for the Nomination Committee to meet during the Financial Year being the 
first full financial year of the Company since admission to AIM. 
Risk Management/Internal Control
The Board is responsible for the Group’s system of internal controls 
and risk management and for reviewing the effectiveness of the Group’s 
risk procedures. Any such system is designed to manage rather than 
to eliminate the risk of failing to meet its business objectives and can 
only provide reasonable, and not absolute, assurance against material 
misstatement or loss. The role of management is to implement the 
Board’s policies on risk and control including reporting. 
The Board has delegated responsibility to the Audit Committee to 
monitor the effectiveness of internal controls and risk management 
systems and to make recommendations to the Board.
The Director of Risk and Compliance formally met with the Audit 
Committee once in the Financial Year without management being 
present, and has the right of direct access to the Group Co-Chief 
Executives and Audit Committee. 
During the Financial Year the processes and procedures surrounding the 
Group’s risk management and internal control systems were assessed; this 
included a review of the need for an internal audit function and whistle 
blowing procedures. The risks faced by the business are assessed on an 
ongoing basis and their likelihood and potential impact evaluated. 
Gambling Act 2005 
The Gambling Act 2005, which came into force on 1 September 2007, 
has been subject to extensive consultation and the Group has taken 
an active part in this process. The Group fully supports the objectives 
of the Gambling Act being:
Keeping crime out of gambling.
Making sure that gambling is fair and open. 
Protecting children and vulnerable people from harm.
Relations with Shareholders
The Company values the views of its shareholders and recognises their 
interest in the Group’s strategy and performance, Board membership 
and quality of management. 
Re-election of Directors
All Directors are required to seek re-election on an ongoing basis 
at intervals of no more than three years.
Going Concern Statement
After making enquiries and reviewing the Group’s budget for the period 
of 12 months from the date of these financial statements, the Board 
considers that the Company and the Group have adequate resources 
to continue operating in the foreseeable future. Therefore the going 
concern basis has been adopted in preparing these financial statements.
Julian Paul FCA
Senior Independent Non-Executive Director
25 January 2008
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Corporate and Social Responsibility 
Responsible Gambling 
Inspired Gaming Group plc is one of the largest providers of gaming 
machines for the leisure and gaming market in the UK and a leading 
player in the worldwide SBG market. 
Gambling Act 2005
A number of Group companies hold Operating Licences issued under 
the Gambling Act 2005.
The Gambling Act 2005 affords significant protection to a minority 
of people who have problems with gambling. The Company supported 
this legislation through Parliament and is committed to its success. 
Our Commitment
The Group is committed to taking a leadership role in promoting socially 
responsible gambling in the UK. The Group acknowledges that a small 
proportion of people who gamble may develop gambling problems, 
which can result in harm to themselves, their families and the broader 
community. We recognise that the industry, together with governments, 
treatment providers and individuals, have a shared objective to reduce 
the level of problem gambling, while at the same time contributing to the 
growth of a responsible leisure industry as an important component of 
the UK economy.
The Group Board are committed to promoting responsible gambling and 
to supporting the three licensing objectives 
of the Gambling Act:
Preventing gambling from being a source of crime or disorder, being 
associated with crime or disorder or being used to support crime.
Ensuring that gambling is conducted in a fair and open way. 
Protecting children and other vulnerable persons from being harmed 
or exploited by gambling.
The Group has introduced written policies and procedures to promote 
socially responsible gambling and has held training sessions for 
appropriate members of staff to ensure awareness of and compliance 
with such policies and procedures including responsible and underage 
gambling, customer interaction, help for problem gamblers and 
advertising and marketing standards. 
To further promote responsible gambling, the Group:
provides information on problem gambling in the form of posters and 
leaflets in its adult gaming and family entertainment centres and by 
providing the GamCare helpline number on gaming machines sited 
in the UK;
provides signage forbidding play by under 18s on all gaming machines 
in the UK of Category C and above;
does not permit persons under the age of 18 within adult gaming and 
licensed family entertainment centres; and
offers a facility for self exclusion. 
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Our Mission
Inspired Gaming Group’s mission is:
to promote responsible gambling to its employees, customers 
and the public;
to support those agencies, charities and programmes committed 
to researching, preventing and treating problem gambling; and
to work with Government regulators to help prevent problem 
gambling through constructive policy and regulations.
Charitable Donations
Problem Gambling
The Group understands the need for the gambling industry to be 
proactive in helping to prevent problem gambling. To this end, the Group 
has provided regular donations to the Responsibility in Gambling Trust 
(RIGT).
RIGT is a charity that was established in response to recommendations 
made by the independent Gambling Review Body in the Budd Report, 
commissioned by the Government in 2001. It recommended that an 
independent trust should be set up, and provided with voluntary funding 
by the gambling industry, to research and limit problem gambling. 
Through contributing to the RIGT, the Group will be helping to fund 
problem gambling treatment charities such as GamCare and Gordon 
House. Additionally, RIGT funds research into the causes of gambling 
problems and the best methods of prevention, as well as public  
education campaigns.
Right to Sight
Right to Sight is a charity registered in Southern Ireland whose goal is to 
eradicate preventable blindness in the world through the use of proven, 
leading edge techniques in cost recovery, training and surgical practice. 
During the Financial Year the Group facilitated the setup of Right to Sight 
which involved:
setting up and funding office space;
setting up and funding internet, communications and  
computer infrastructure;
marketing support and advice;
providing mentoring and board level support;
attending fundraising meetings; and
providing payroll and other administration support.
During the year this support allowed the charity to begin establishing 
19 separate projects, mainly in Africa, that are helping to cure some 
of the 37 million people worldwide afflicted with needless sight 
related diseases. 
For more information visit www.righttosight.com.
The Next Step
The Next Step is a charity registered in the Republic of Ireland and 
England and Wales which, with its affiliate The First Step, a charity 
registered in Georgia, was set up to address the problems of disabled 
children living in poor conditions in state institutions in Georgia.
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During the Financial Year, the Group has:
helped to project manage the construction of the new orphanage 
at Kodjori – estimated to be completed in January 2008; 
provided support to get heating to the orphanage for 100 special 
needs children at Senaki;
visited Georgia and supervised essential repairs to existing orphanages; 
provided a Board member to The Next Step board; and 
funded the purchase of a vehicle and a food and heating programme 
for the orphanage at Kaspi.
For more information visit www.nextstepchildren.org
Other Charities
The Group donated a car to the Mayfield and Ellastone Community 
First Responders Group, a first response paramedic group funded 
through charitable donations and manned by volunteers. The donated 
car has been converted into a first response vehicle equipped with 
emergency equipment.
Employees
The Group encourages staff to be involved in charity initiatives and such 
initiatives have resulted in funds being raised by employees, friends, family 
and corporate partners of the Group. Such funds have been donated to 
various charities including The Next Step and Acorns Hospice service. 
Health and Safety
It is the objective of the Group to ensure the health and safety of its 
employees and of any other persons who could be affected by its 
operations. It is the Company’s policy to provide working environments 
which are safe and without risk to health and to provide information, 
instruction, training and supervision to ensure the health and safety 
of its employees.
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Statement of Directors’ Responsibilities
The Directors are responsible for preparing the Annual Report and the 
financial statements in accordance with applicable law and regulations. 
Company law requires the Directors to prepare financial statements for 
each financial year. Under that law the Directors have elected to prepare 
the financial statements in accordance with United Kingdom Generally 
Accepted Accounting Practice (United Kingdom Accounting Standards 
and applicable law). The financial statements are required by law to give 
a true and fair view of the state of affairs of the Company and Group 
and of the profit or loss of the Group for that period. 
In preparing those financial statements, the Directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been 
followed, subject to any material departures disclosed and explained 
in the financial statements; and
prepare the financial statements on the going concern basis unless it is 
inappropriate to presume that the Company will continue in business 
in which case there should be supporting assumptions or qualifications 
as necessary. 
The Directors confirm that they have complied with the above 
requirements in preparing the financial statements.
The Directors are responsible for keeping proper accounting records 
that disclose with reasonable accuracy at any time the financial position 
of the Company and the Group and to enable them to ensure that the 
financial statements comply with the Companies Act 1985. They are also 
responsible for safeguarding the assets of the Company and the Group 
and hence for taking reasonable steps for the prevention and detection 
of fraud and other irregularities.
•
•
•
•
The Directors are responsible for the maintenance and integrity of the 
Company’s website. Legislation in the United Kingdom governing the 
preparation and dissemination of financial statements may differ from 
legislation in other jurisdictions. 
Auditors and Disclosure of Information to Auditors 
Each of the Directors at the date of approval of this report confirms that, 
so far as the Director is aware, there is no relevant audit information 
(being information needed by the Company’s auditors in connection with 
preparing their report) of which the Company’s auditors are unaware. In 
addition, each Director confirms that he has taken all the steps that he 
ought to have taken as a Director in order to make himself aware of any 
relevant audit information and to establish that the Company’s auditors 
are aware of that information 
By order of the Board
Susan Albion
Company Secretary
25 January 2008
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27
We have audited the Group and parent company financial statements 
(the ‘financial statements’) of Inspired Gaming Group plc for the 
52 weeks ended 29 September 2007 which comprise the consolidated 
profit and loss account, the Group and Company balance sheets, the 
consolidated cash flow statement, the consolidated statement of total 
recognised gains and losses, the reconciliation of movements in equity 
shareholders’ funds, and the related notes. These financial statements 
have been prepared under the accounting policies set out therein.
Respective Responsibilities of Directors and Auditors
The Directors’ responsibilities for preparing the Annual Report 
and the financial statements in accordance with applicable law and 
United Kingdom Accounting Standards (United Kingdom Generally 
Accepted Accounting Practice) are set out in the Statement of 
Directors’ Responsibilities.
Our responsibility is to audit the financial statements in accordance with 
relevant legal and regulatory requirements and International Standards 
on Auditing (UK and Ireland). This report, including the opinion, has 
been prepared for and only for the Company’s members as a body in 
accordance with Section 235 of the Companies Act 1985 and for no 
other purpose. We do not, in giving this opinion, accept or assume 
responsibility for any other purpose or to any other person to whom
this report is shown or into whose hands it may come save where 
expressly agreed by our prior consent in writing.
We report to you our opinion as to whether the financial statements 
give a true and fair view and are properly prepared in accordance 
with the Companies Act 1985. We also report to you whether in 
our opinion the information given in the Directors’ Report is consistent 
with the financial statements. 
In addition we report to you if, in our opinion, the Company has 
not kept proper accounting records, if we have not received all the 
information and explanations we require for our audit, or if information 
specified by law regarding Directors’ remuneration and other 
transactions is not disclosed.
We read other information contained in the Annual Report, and consider 
whether it is consistent with the audited financial statements. This other 
information comprises only the Directors’ Report, the Business Highlights, 
the Chairman’s Statement, the Group Co-Chief Executives’ Statement, 
the Business and Financial Review, the Corporate Governance Report, 
Our Markets, Our Products and the Corporate and Social Responsibility 
Statement. We consider the implications for our report if we become 
aware of any apparent misstatements or material inconsistencies with  
the financial statements. Our responsibilities do not extend to any  
other information.
We also, at the request of the Directors (because the Company applies 
the Listing Rules of the Financial Services Authority as if it were a listed 
company), review whether the Corporate Governance Statement reflects 
the Company’s compliance with the nine provisions of the Combined 
Code (2003) specified for our review by the Listing Rules of the Financial 
Services Authority, and we report if it does not. We are not required to 
consider whether the Board’s statements on internal control cover all 
risks and controls, or form an opinion on the effectiveness of the Group’s 
corporate governance procedures or its risk and control procedures.
Basis of Audit Opinion
We conducted our audit in accordance with International Standards on 
Auditing (UK and Ireland) issued by the Auditing Practices Board. An 
audit includes examination, on a test basis, of evidence relevant to the 
amounts and disclosures in the financial statements. It also includes an 
assessment of the significant estimates and judgements made by the 
Directors in the preparation of the financial statements, and of whether 
the accounting policies are appropriate to the Group’s and Company’s 
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information 
and explanations which we considered necessary in order to provide us 
with sufficient evidence to give reasonable assurance that the financial 
statements are free from material misstatement, whether caused by 
fraud or other irregularity or error. In forming our opinion we also 
evaluated the overall adequacy of the presentation of information 
in the financial statements.
Opinion
In our opinion:
the financial statements give a true and fair view, in accordance 
with United Kingdom Generally Accepted Accounting Practice, 
of the state of the Group’s and the parent company’s affairs as 
at 29 September 2007 and of the Group’s profit and cash flows 
for the 52 weeks then ended;
the financial statements have been properly prepared in accordance 
with the Companies Act 1985; and
the information given in the Directors’ Report is consistent with the 
financial statements.
PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
East Midlands
25 January 2008
•
•
•
Independent Auditors’ Report to the Members of Inspired Gaming Group plc
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 52 weeks ended 29 September 2007  21 weeks ended 30 September 2006
1
   Results before Goodwill  Results before Goodwill 
   goodwill amortisation  goodwill  amortisation 
   amortisation and exceptional  amortisation and exceptional  
   and exceptional  items  and exceptional  items  
   items (note 3) Total items (note 3) Total 
  Note £’000 £’000 £’000 £’000 £’000 £’000
Turnover  2 166,281 – 166,281 57,950 – 57,950
Operating costs less other operating income  3 (149,266) (5,663) (154,929) (52,618) (4,800) (57,418)
 EBITdA
2
    26,805 (882) 25,923 10,044 (3,168) 6,876
 Non-machine depreciation and amortisation  3 (4,751) (4,781) (9,532) (1,479) (1,632) (3,111)
 Share-based payment charge  21 (5,039) – (5,039) (3,233) – (3,233)
Operating profit  3 17,015 (5,663) 11,352 5,332 (4,800) 532
Loss on disposal of fixed asset investment  12 – (156) (156) – – –
Interest payable and similar charges  5 (8,662) – (8,662) (2,384) (381) (2,765)
Interest receivable and other finance income   6 1,266 – 1,266 187 – 187
Profit/(loss) on ordinary activities before taxation   9,619 (5,819) 3,800 3,135 (5,181) (2,046)
Tax charge on profit/(loss) on ordinary activities  7 (3,524) (20) (3,544) (1,003) 990 (13)
Profit/(loss) for the financial period   6,095 (5,839) 256 2,132 (4,191) (2,059)
Earnings/(loss) per share 
Basic  9   0.4p   (3.2p)
Diluted  9   0.3p   –
1 The results for the 21 weeks ended 30 September 2006 represent the 17 week trading period following the acquisition of Ever 2533 Limited and Inspired Broadcast Networks Limited 
by the Company on 2 June 2006, and the 16 week trading period following the acquisition of Red Vision Limited and its subsidiaries on 8 June 2006 (note 12).
2 ‘EBITdA’ represents earnings before interest, taxation, non-machine depreciation, amortisation and share-based payments. All results relate to continuing operations. 
There is no difference between the profit (2006: loss) on ordinary activities before taxation and the profit (2006: loss) for the financial period stated 
above and their historical cost equivalents.
Consolidated Profit and Loss Account
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29
 At 29 September 2007  At 30 September 2006
     Group  Company Group  Company 
    Note £’000 £’000 £’000 £’000
Fixed assets     
Intangible assets – goodwill    10 93,037 – 104,464 –
       – development costs and licences    10 9,056 – 4, 441 –
Tangible assets    11 94,581 – 97,244 –
Investments    12 – 57,362 766 57,362
     196,674 57,362 206,915 57,362
Current assets     
Stocks     13 9,359 – 5,105 –
Debtors     14 47,093 200,839 48,378 183,502
Investments    12 734 – – –
Cash at bank and in hand    15 33,084 15,431 15,154 296
     90,270 216,270 68,637 183,798
Creditors: amounts falling due within one year     16 (59,807) (3,546) (57,328) (2,414)
Net current assets     30,463 212,724 11,309 181,384
Total assets less current liabilities     227,137 270,086 218,224 238,746
Creditors: amounts falling due after more than one year     17 (92,714) (138,945) (99,386) (129,567)
Provisions for liabilities and charges    20 (443) – (2,591) –
Net assets (excluding pension deficit)     133,980 131,141 116,247 109,179
Pension deficit (net of deferred tax)    25 (986) – (6,569) –
Net assets (including pension deficit)     132,994 131,141 109,678 109,179
Capital and reserves     
Called up share capital     21 754 754 689 689
Share premium account     22 123,138 123,138 108,111 108,111
Profit and loss reserve    22 9,102 7,249 878 379
Equity shareholders’ funds     132,994 131,141 109,678 109,179
The financial statements including notes 1 to 27 were approved by the Board of Directors on 25 January 2008 and were signed on its behalf by:
Luke Alvarez 
Group Co-Chief Executive
25 January 2008
Balance Sheets
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 52 weeks ended   21 weeks ended 
 29 September 2007  30 September 2006 
 Group  Group
    Note £’000 £’000 £’000 £’000
Net cash inflow from operating activities    24a  60,906  17,289
Returns on investment and servicing of finance     
Interest received     999  131 
Interest paid     (7,844)  (2,148) 
Finance lease interest paid     (3)  (4) 
Issue and other facility costs incurred on borrowings     –  (4,274) 
Net cash outflow from returns on investments and servicing of finance     (6,848)  (6,295)
Tax paid      (1,072)  (25)
Capital expenditure and financial investment     
Purchase of tangible fixed assets     (53,077)  (13,901) 
Receipts from sale of fixed assets     6,330  2,752 
Purchase of intangible fixed assets     (6,796)  (1,259) 
Payments to acquire investments     (307)  – 
Receipts from sales of investments     300  – 
Net cash outflow from capital expenditure and financial investment     (53,550)  (12,408)
Acquisitions and disposals     
Cash outflow on acquisition of subsidiary undertakings    12 –  (27,597) 
Cash acquired on acquisition of subsidiary undertakings    12 –  12,456 
Fees incurred on acquisition of subsidiary undertakings    12 –  (451) 
Net cash outflow from acquisitions and disposals      –  (15,592)
Equity dividends paid      (1,196)  –
Net cash outflow before management of liquid resources and financing     (1,760)  (17,031)
Management of liquid resources     
Increase in cash held in escrow      –  (419)
Financing     
Issue of ordinary share capital     15,325  110,050 
Costs incurred on issue of share capital     (233)  (6,250) 
Movement in borrowings    24c 4,598  (71,615) 
Net cash inflow from financing      19,690  32,185
Increase in net cash    24e  17,930  14,735
Consolidated Cash Flow Statement
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31
Consolidated Statement of Total Recognised Gains and Losses
 52 weeks ended   21 weeks ended 
 29 September 2007  30 September 2006
     Group Company Group Company 
    Note £’000 £’000 £’000 £’000
Profit/(loss) for the financial period     256 3,027 (2,059) (2,854)
Actuarial gain/(loss) recognised in respect of the pension scheme   25 4,125 – (296) –
Total profit/(loss) recognised in the period     4,381 3,027 (2,355) (2,854)
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 52 weeks ended   21 weeks ended 
 29 September 2007  30 September 2006
     Group Company Group Company 
    Note £’000 £’000 £’000 £’000
Total gain/(loss) for the financial period     4,381 3,027 (2,355) (2,854)
Dividend     (1,196) (1,196) – –
Credit associated with issue of share options    21 5,039 5,039 3,233 3,233
Issue of share capital    22 15,325 15,325 115,050 115,050
Costs associated with issue of shares    22 (233) (233) (6,250) (6,250)
Total movements during the year     23,316 21,962 109,678 109,179
Opening shareholders’ funds     109,678 109,179 – –
Closing shareholders’ funds     132,994 131,141 109,678 109,179
Reconciliation of Movements in Equity Shareholders’ Funds
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33
1 Accounting Policies
The financial statements have been prepared in accordance with the Companies Act 1985 and applicable accounting standards in the United Kingdom. 
A summary of the more important policies, which have been applied consistently, is set out below. 
Basis of Accounting
The financial statements have been prepared in accordance with the historical cost convention. The Directors have reviewed the accounting policies 
and consider them to be the most appropriate ones for the Company and the Group. 
Basis of Consolidation
The consolidated financial statements incorporate the financial information of the Company and all of its subsidiaries. The results of subsidiaries
or businesses acquired or disposed of during the period are included in the consolidated profit and loss account from the date of acquisition or
up to the date of their disposal. Intra-group sales, profits and balances are eliminated fully on consolidation. 
Accounting Reference Date
The Group’s accounting reference date is 30 September. Financial statements are drawn up for a 52 week period ended within seven days of the 
accounting reference date, as permitted by the Companies Act 1985. Except where this falls above seven days outside the accounting reference
date, at which time a 53 week period applies.
Turnover
Turnover represents the amounts receivable in the ordinary course of business for goods sold and services provided after deducting discounts, 
customer incentives, sales taxes and eliminating turnover within the Group. The main revenue streams relate to gaming rental income in relation
to machines out on third party sites, along with software licence fee and development income and hardware sales.
Revenue Recognition
Machine Management
Fixed rental income is recognised on an accrued basis, based upon contracted rental rates. Rentals based upon percentage share of machine
take are recognised on an accrued basis, based upon actual machine takings and contracted percentage shares.
Server Based Gaming Software and Services
Revenue from both the sale of software and the grant of software licences is recognised when the relevant software has been accepted
by the customer and the product or licence has been received by the customer. 
For fees earned in relation to the development of commissioned software, revenue is recognised when all performance criteria are complete, 
acceptance is received from the customer, and rights to consideration become unconditional. Revenue is recorded in relation to sign-on fees at the 
point they become unconditional. Where contracts allow for billings based upon the successful completion of pre-defined stages of development, 
revenue is recognised based upon the specific terms of each contract and the entitlement of the Group to the revenue. Where the right to revenue
is contingent upon a future rental or licence agreement, revenue is recognised once both the performance criteria and the right to consideration 
have been met. 
Revenue from hardware system sales is recognised once the risks and rewards of ownership have passed to the customer. This is generally deemed
to be the point at which the hardware is accepted by the customer and it is probable that economic benefit will flow to the Group. 
In all instances, where no further vendor obligations remain and any future products or services are supplied on an arm’s length basis, the total billed 
amount is recognised as turnover. Where significant vendor obligations remain, a proportion of the revenue is deferred and only recognised once 
these obligations have been satisfied. Similarly where future products and services are supplied at a discount a proportion is deferred over the period 
to which the discount relates.
For software covered by maintenance and service contracts, revenue for the contracts is credited to the profit and loss account over the period
to which the contract relates. 
Professional services, such as implementation, training and consultancy, are recognised when the services are performed or accepted by the client.
Notes to the Financial Statements
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1 Accounting Policies continued
Analogue Assembly
Revenue from hardware system sales is recognised once the risks and rewards of ownership have passed to the customer and it is probable
that economic benefit will flow to the Group. This is generally deemed to be the point at which the hardware is accepted by the customer. 
Tangible Fixed Assets
All tangible fixed assets are stated at cost less depreciation. Volume rebates receivable on machine purchases are offset against the cost of the 
underlying machines. 
Costs associated with internally produced fixed assets are capitalised within the cost of the underlying fixed assets to the extent that they are directly 
attributable to the production of that asset. Internally produced machines in the course of construction are held in stock until they are brought into 
operation, at which point they are transferred to tangible fixed assets.
Depreciation
Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less the estimated residual value. 
It is based on prices prevailing at the date of acquisition in order to write off the cost of each asset evenly over its expected useful life as follows:
Freehold buildings over 50 years
Leasehold buildings over the shorter of the lease term and 50 years
Plant and machinery over 4–8 years
Information technology equipment over 3–5 years
Amusement machines over 2–8 years
Motor vehicles over 3–5 years
The Directors consider the net recoverable value of amusement machines on an annual basis and, where applicable, increase the depreciation
charge accordingly.
In light of the useful economic life of amusement machines, any difference between proceeds and net book value on sale is considered
to be an adjustment to depreciation.
Development Costs
Expenditure on research and development of new products is charged to the profit and loss account in the year in which it is incurred with the 
exception of expenditure on the development of certain major new product projects where the outcome of those projects is assessed as being 
reasonably certain as regards viability and technical feasibility. Such expenditure is capitalised as an intangible fixed asset and amortised over the 
expected useful economic life of the asset, from the date of first sale or installation of the product.
The length of the amortisation period applied in respect of development costs reflects the expected commercial life of the new product, and
is between three and five years. The period of amortisation is reviewed annually to ensure that it is still appropriate to the useful economic
life of the asset.
Government Grants
Government grants of a revenue nature are credited to the profit and loss account so as to match them with the expenditure to which they relate.
Grants received in respect of capital expenditure are credited to a deferred income account and are released to the profit and loss account over the 
expected useful lives of the relevant assets by equal annual instalments.
Stocks
Stocks are stated at the lower of cost and net realisable value, with due allowance being made for obsolete and slow moving items. Finished goods 
include all costs in bringing each product to its present location and condition, and include the cost of direct materials and labour plus attributable 
overheads based on a normal level of activity.
Goodwill
Positive goodwill arising on acquisitions is capitalised, classified as an asset on the balance sheet and amortised on a straight-line basis over its useful 
economic life up to a presumed maximum of 20 years. It is reviewed for impairment at the end of the first full financial period following the acquisition 
and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.
If a subsidiary or business is subsequently sold or closed, any goodwill arising on the acquisition that has not been amortised through the profit
and loss account is taken into account in determining the profit or loss on sale or closure.
Notes to the Financial Statements continued
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35
1 Accounting Policies continued
Investments
Investments are stated individually at cost less any provision for permanent diminution in value. Where deferred consideration is payable on an 
acquisition an assessment is made, based upon the information currently available, of the expected consideration payable. This amount is discounted
at a rate which is based upon the Group’s weighted average cost of capital with appropriate adjustment for the risks associated with the relevant 
business. Deferred consideration is reassessed at each period end and adjusted for any changes in the expected amount payable. 
Impairment
Tangible and intangible fixed assets are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be 
recoverable. For the purposes of assessing impairment, assets are grouped at the lowest level for which there are separately identifiable cash flows 
(identified as an Income Generating Unit ‘IGU’). The recoverable amount of the IGU is determined on a value in use computation, and where the 
value in use exceeds the carrying value of the IGU the asset is not impaired; where the carrying amount exceeds the value in use, a provision for 
impairment is raised. Estimates used in this process are key judgemental estimates in the financial statements.
The cash flow forecasts employed for the value in use computation are extracted from management’s budgets and forecasts for a three year period, 
which are approved by senior management and the Board of Directors.
The recoverable amount stemming from this exercise represents the present value of the future cash flows inclusive of the terminal values discounted 
at the Group’s weighted average cost of capital with an appropriate adjustment for the risk associated with the relevant IGU. The terminal value is 
determined by applying a growth rate applicable to the IGU being assessed.
The values applied to each of the key assumptions are derived from a combination of internal and external factors based on historical experience
and take into account the stability of cash flows typically associated with the IGU.
Foreign Currencies
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction or at the contracted rate if the transaction is covered 
by a forward foreign currency contract. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling 
at the balance sheet date or, if appropriate, at the forward contract rate. All differences are taken to the consolidated profit and loss account. 
Any exchange differences arising from the translation into Sterling of the net equity interest in overseas subsidiaries and associated undertakings are 
treated as movements in reserves net of exchange differences on translation of foreign currency borrowings used to finance overseas investments.
 
Cash
Cash includes cash floats in gaming machines on third party sites as well as cash at bank or in hand and any restricted cash.
 
Leasing and Hire Purchase Commitments
Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the Group, 
and hire purchase contracts are capitalised in the consolidated balance sheet and are depreciated over their useful lives. The capital elements of future 
obligations under leases and hire purchase contracts are included as liabilities in the balance sheet. The interest elements of the rental obligations are 
charged in the consolidated profit and loss account over the term of the leases and hire purchase contracts and represent a constant proportion of the 
balance of capital repayments outstanding.
Rentals payable under operating leases are charged in the consolidated profit and loss account on a straight-line basis over the lease term.
Lease incentives are capitalised and released to the consolidated profit and loss account over the life of the underlying lease.
Capital Instruments
Shares are included in shareholders’ funds. Other instruments are classified as liabilities if they contain obligations to transfer economic benefits, 
otherwise they are included in shareholders’ funds. The finance cost recognised in the consolidated profit and loss account in respect of capital 
instruments, other than equity shares, is allocated to years over the term of the instrument at a constant rate on the carrying amount, unless
the Directors believe that a different basis more appropriately reflects the substance of a particular investment. The Group capitalises the costs
of issuing debt and amortises this over the primary debt repayment period. 
Deferred Taxation
Deferred taxation is accounted for to recognise timing differences between the recognition of gains and losses in the financial statements and their 
recognition for taxation purposes. Full provision is made for deferred tax assets and liabilities arising from timing differences between the recognition 
of gains and losses in the financial statements and their recognition for taxation purposes.
A deferred tax liability is recognised if transactions result in the Group having an obligation to pay more tax in future years. Where transactions or 
events that have occurred before the balance sheet date give the Group the right to pay less tax in future, a deferred tax asset will only be recognised 
to the extent that it is considered to be more likely than not that it will be recovered. Deferred tax balances are not discounted.
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1 Accounting Policies continued
Financial Risk Management 
The Group’s policies in relation to financial risk management are set out in note 19. 
Pensions
The Group operates a combined pension scheme which comprises of a Defined Benefit Section and a Defined Contribution Section. The assets
of the schemes are held in separate trustee administered funds. 
Defined Benefit Section 
Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and are discounted 
at the rate of return of a high quality corporate bond of equivalent term to the scheme liabilities. The current service costs and gains and losses
on settlement and curtailments are charged to operating profit. Past service costs are recognised in the consolidated profit and loss account if the 
benefits have vested or, if they have not vested, over the period until vesting occurs. The interest cost and the expected return on assets are included 
as other financing income or interest payable. Actuarial gains and losses are recognised in the consolidated statement of total recognised gains and 
losses. The surplus, to the extent that it is considered recoverable, or deficit is recognised in full and presented on the face of the consolidated balance 
sheet net of any related deferred tax. 
Defined Contribution Section 
Contributions are charged to the consolidated profit and loss account on an accruals basis. 
Exceptional Items
Exceptional items are disclosed in the financial statements in accordance with Financial Reporting Standard 3 ‘Reporting financial performance’
and comprise material items which derive from events or transactions that fall within the ordinary activities of the Group.
Share Based Payments
On the IPO of the Company in June 2006, a 2006 Company Share Option Plan was introduced. The fair value of the employee services received
in exchange for the grant of the options is recognised as an expense. The total amount to be expensed over the vesting period is determined by 
reference to the fair value of the options granted excluding the impact of any non-market vesting conditions, for example profitability. Non-market 
vesting conditions are included in the assumptions about the number of options that are expected to become exercisable. At each balance sheet date, 
if appropriate, the Directors revise their estimate of the number of options that are expected to become exercisable. The impact of any revision to 
the original estimates are recognised in the consolidated profit and loss account. The corresponding credit for the equity-settled share-based payments 
charge exists within the profit and loss reserve. Any proceeds received net of any directly attributable transaction cost, are credited to share capital 
(nominal value) and share premium when the options are exercised. 
 
Where share options are awarded to the employees of the subsidiary companies, the amount charged is recognised in the subsidiaries’ financial 
statements as part of staff costs. This charge represents the total number of options expected to vest and the fair value of these options. The issue
of shares to the subsidiary company is accounted for as a capital contribution in the subsidiary company financial statements, which is ultimately settled 
through its inter-company account with the parent company.
Dividends
Dividends proposed by the Board of Directors but unpaid at the year end are not recognised in the financial statements until they have been
approved by the shareholders at the Annual General Meeting. Interim dividends are recognised when paid.
Provisions for Liabilities and Charges
Where the unavoidable costs of meeting the Group’s obligations under contractual arrangements exceeds the economic benefits, then the present
net obligations are recognised as a provision for onerous contracts. Provisions for other liabilities, including reorganisation expenditure, are recognised 
when there is a legal or constructive obligation to settle such liabilities.
Estimation Techniques
The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and 
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenditure 
in the reporting period. Actual results could differ from these estimates. The estimates and assumptions that have the most significant effect on the 
amounts recognised in the financial statements are:
Impairment – the Group determines whether goodwill is impaired on an annual basis or more frequently if there are indicators of impairment. Other 
non-current assets are tested for impairment if there are indicators of impairment. Impairment testing requires an estimate of future cash flows and 
the choice of a suitable discount rate. These calculations require the use of estimates which are inherently judgemental and susceptible to change 
because they require the Group to make assumptions about future supply and demand, as well as economic and market conditions.
Notes to the Financial Statements continued
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37
1 Accounting Policies continued
Pensions – the cost of defined benefit pension plans is determined using actuarial valuations. The actuarial valuation involves making assumptions about 
discount rates, expected rates of return on assets, future salary increases, mortality rates and future pension increases. 
Deferred tax – deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the
unused tax losses can be utilised. Judgement is required as to the amount that can be recognised based on the likely amount and timing of future 
taxable profits, taking into account expected tax planning. 
Fixed and intangible assets – The Group assess annually whether the useful economic life and residual values attached to its fixed and intangible
assets are appropriate. These estimates require management to make judgements based on historic trends and current market conditions.
2 Segmental Reporting
Following the Group’s restructuring, the principal segments of the business have been revised from Machine Management (SBG and analogue)
and SBG Software and Services to UK and International. The comparatives have consequently been restated to reflect the new structure, and
include a more detailed allocation of central costs.
The UK segment includes the supply of gaming and entertainment machines (SBG and analogue) to a range of retailers, in return for a rent or share
of revenues. In the majority of cases, this includes the provision of the financial capital for the machines and a fully managed service including yield 
management, installation, repairs and collection services. Additionally it includes the sale of the Group’s SBG software platform and games (including 
Red Vision’s computer generated imagery) generating revenues including licence fees, content royalties and consulting fees.
The International segment includes SBG and analogue hardware sales, and the sale of the Group’s SBG software platform and games generating 
revenues including licence fees, content royalties and consulting fees.
The Central segment reflects the cost incurred in respect of non-executive fees, audit fees, Group insurance and other corporate
costs, including share-based payment charges in respect of the PLC entity, as well as other centrally managed costs that are not directly
attributable to the other segments.
The geographical analysis has been prepared on the basis that all central costs and net interest payable are attributed to the UK.
 52 weeks ended 29 September 2007
       Profit before  
       taxation,  
       goodwill   
       amortisation  
       and   
       exceptional Profit before  
      Turnover items taxation 
Group      £’000 £’000 £’000
Business analysis:
UK      163,134 21,851  17,538
International      3,147 (2,812) (4,318)
Central      – (2,024) (2,024)
      166,281 17,015 11,196
Net interest payable      – (7,396) (7,396)
Total      166,281 9,619 3,800
Geographical analysis by destination:
UK      163,134 12,431 8,118
Europe      1,582 (1,414) (2,171)
Rest of the World      1,565 (1,398) (2,147)
Total      166,281 9,619 3,800
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2 Segmental Reporting continued
 21 weeks ended 30 September 2006 (restated)
       Profit before  
       taxation,  
       goodwill   
       amortisation  
       and   
       exceptional Profit before  
      Turnover items taxation 
Group      £’000 £’000 £’000
Business analysis:
UK      55,698 7,751 4,187
International      2,252 (991) (1,128)
Central      – (1,428) (2,527)
      57,950 5,332 532
Net interest payable      – (2,197) (2,578)
Total      57,950 3,135 (2,046)
Geographical analysis by destination:
UK      55,698 4,126 (919)
Europe      579 (255) (290) 
Rest of the World      1,673 (736) (837)
Total      57,950 3,135 (2,046)
In order to understand the development of the business a further analysis of turnover is set out below, for information only:
   52 weeks ended 29 September 2007 21 weeks ended 30 September 2006
   Analogue SBG Total Analogue SBG Total 
Turnover   £’000 £’000 £’000 £’000 £’000 £’000
UK:      
Machine Management   95,661 53,989 149,650 36,635 16,354 52,989
SBG Software and Services   – 13,484 13,484 – 2,709 2,709
   95,661 67,473 163,134 36,635 19,063 55,698
International:      
Machine Management   – – – – – –
SBG Software and Services   – 3,147 3,147 – 2,252 2,252
   – 3,147 3,147 – 2,252 2,252
UK and International:      
Machine Management   95,661 53,989 149,650 36,635 16,354 52,989
SBG Software and Services   – 16,631 16,631 – 4,961 4,961
   95,661 70,620 166,281 36,635 21,315 57,950
 At At 
 29 September 30 September 
 2007 2006 (restated)
Segmental net assets     £’000  £’000
Business analysis:  
UK      103,926  97,336
International      9,783  9,575
Central      19,285  2,767
Total      132,994  109,678
Notes to the Financial Statements continued
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39
2 Segmental Reporting continued
Central net assets comprise of assets partially offset by liabilities that cannot practically be divided between the segments, and principally includes 
other corporate net assets and borrowings. The pension deficit is disclosed in the UK segment, as the beneficiaries to the pension scheme are 
employed in this segment. Due to the way in which the Group is structured and managed it is not possible to provide an analysis of net assets 
by destination. 
3 Operating Profit 
Operating profit is stated after charging:
 52 weeks ended 29 September 2007
      Operating  
      profit before   
      goodwill Goodwill 
      amortisation amortisation 
      and exceptional and exceptional  
      items items Total 
Administration costs     Note £’000 £’000 £’000
Staff costs     4 59,252 383 59,635
 Ordinary staff costs       54,213 – 54,213
 Share-based payment charge      5,039 – 5,039
 Exceptional staff costs      – 383 383
Depreciation of tangible fixed assets      47,410 – 47,410
 Depreciation charge on amusement machines     11 44,840 – 44,840
 Depreciation charge on other owned assets      11 2,537 – 2,537
 Depreciation charge on assets held under finance lease     11 33 – 33
Depreciation of intangible fixed assets      2,181 4,781 6,962
 Amortisation of development costs and licences      10 2,181 – 2,181
 Amortisation of goodwill in subsidiaries      10 – 4,781 4,781
Operating leases      6,102 – 6,102
 Hire of plant and machinery      3,688 – 3,688
 Other operating leases      2,414 – 2,414
Other operating charges      34,321 499 34,820
 Research and development costs      165 – 165
 Other operating charges      34,321 – 34,321
 Government grants      (165) – (165)
 Exceptional operating charges      – 499 499
Operating costs less other operating income      149,266 5,663 154,929
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3 Operating Profit continued
 21 weeks ended 30 September 2006
      Operating  
      profit before   
      goodwill Goodwill 
      amortisation amortisation 
      and exceptional and exceptional  
      items items Total 
Administration costs     Note £’000 £’000 £’000
Staff costs     4 21,210 2,355 23,565
 Ordinary staff costs       17,977 – 17,977
 Share-based payment charge      3,233 – 3,233
 Exceptional staff costs      – 2,355 2,355
Depreciation of tangible fixed assets      18,089 – 18,089
 Depreciation charge on amusement machines     11 17,208 – 17,208
 Depreciation charge on other owned assets      11 855 – 855
 Depreciation charge on assets held under finance lease     11 26 – 26
Depreciation of intangible fixed assets      598 1,632 2,230
 Amortisation of development costs and licences      10 598 – 598
 Amortisation of goodwill in subsidiaries      10 – 1,632 1,632
Operating leases      2,032 – 2,032
 Hire of plant and machinery      1,190 – 1,190
 Other operating leases      842 – 842
Other operating charges      10,689 813 11,502
 Research and development costs      108 – 108
 Other operating charges      10,581 – 10,581
 Government grants      – – –
 Exceptional operating charges      – 813 813
Operating costs less other operating income      52,618 4,800 57,418
The parent company has taken advantage of Section 230 of the Companies Act 1985 and has not presented its company profit and loss account in 
these financial statements. The Group profit includes a £3,027,000 profit (2006: £2,854,000 loss) for the period in the respect of the Company. 
 
Services Provided by the Group’s Auditor
During the period the Group (including its overseas subsidiaries) obtained the following services from the Group’s auditors at costs included in other 
operating charges, as detailed below: 
 
       52 weeks  21 weeks 
       ended  ended 
       29 September  30 September 
       2007 2006 
Audit services       £’000 £’000
Fees payable to the Company auditor for the audit of the parent company and the consolidated financial statements   58 86
Non-audit services 
Fees payable to the Company’s auditor and its associates for other services:
The audit of the Company’s subsidiaries pursuant to legislation      134 70
Other services pursuant to legislation       312 225
Tax services        114 57
In addition to the above services, the Group’s auditor acted as group auditor to the pension scheme and the fee paid in respect of this audit is agreed 
by the trustees of the scheme who act independently from the management of the Group. 
Notes to the Financial Statements continued
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41
3 Operating Profit continued
The aggregate fees paid to the Group’s auditor for audit services to the pension scheme during the period was £15,000 (2006: £11,000). 
Exceptional Items
Exceptional items represent the following:
       52 weeks ended  21 weeks ended 
       29 September  30 September 
       2007 2006 
       Group Group 
Administration costs       £’000 £’000
Restructuring – Overseas       949 –
Restructuring – UK       (67) 2,069
IPO Transaction       – 1,099
       882 3,168
(Profit)/loss on disposal of fixed asset investments
Profit on disposal of fixed asset investment       (227) –
Provision for diminution in value of fixed asset investment       383 –
       156 –
Interest payable and similar charges
Amortisation of issue cost of bank loans (note 5)       – 381
       1,038 3,549
Restructuring – Overseas
This principally relates to the costs incurred in closing Inspired Leisure Link Italia S.p.A., the Group’s Italian subsidiary, comprising primarily employee 
settlement costs.
Restructuring – UK
In June 2006 the Group acquired the minority interest in Inspired Broadcast Networks Limited. This acquisition enabled the Group to fundamentally 
restructure its operations in order to fully integrate its SBG expertise across all functions of the Group. The exceptional credit of £67,000 represents 
the balance of the provision no longer required to complete the restructure of the business.
(Profit)/Loss on Disposal of Fixed Asset Investments
During the period the Group disposed of its 18.9% interest in The Cloud Networks Limited carried at a cost of £53,000, for consideration 
of £300,000. Costs incurred on disposal were £20,000, giving rise to a profit on disposal of £227,000.
The Group has recently entered into a call option with a view to disposing of its investment in G.Matica S.r.l. The latest offer the Group has 
received from the call option holder is €1,000,000 (£734,000). For this reason the Group has decided to write down the current carrying 
value of its investment in G.Matica S.r.l. of £1,117,000 by £383,000 to its realisable value of £734,000. 
IPO Transaction and Amortisation of Issue Costs of Bank Loans
The IPO Transaction exceptional item in 2006 of £1,099,000 represents fees and costs in respect of the refinancing and accelerated IPO, which 
resulted in the Company being admitted to the AIM market of the London Stock Exchange in June 2006. The amortisation and issue costs of 
bank loans recognised in 2006 of £381,000 represents the proportion of issue costs in relation to the revolving credit facility that were undrawn 
as at 30 September 2006, and were written-off to the profit and loss account as an exceptional interest cost (see note 5).
The tax charge in respect of exceptional items is £20,000 (2006: credit of £990,000). Net cash inflow from operating activities includes a cash outflow 
of £263,000 (2006: £1,659,000) in respect of the current year exceptional items set out above, and a cash outflow of £1,639,000 (2006: £nil) relating 
to the comparative year exceptional items.
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4 Staff Costs
       52 weeks ended  21 weeks ended 
       29 September  30 September 
       2007 2006 
       Group Group 
Costs       £’000 £’000
Wages and salaries       47,931 17,787
Social security costs       4,431 1,808
Share-based payment charge       5,039 3,233
Pension costs (note 25)       2,234 737
       59,635 23,565
Within wages and salaries are £383,000 (2006: £2,355,000) of costs which relate to exceptional items. 
       52 weeks ended  21 weeks ended 
       29 September  30 September 
       2007 2006 
Average number of employees (including executive Directors)       Group Group
Field staff       1,720 2,042
Design and development       321 164
Digital manufacture       45 36
Management and administration       338 344
Average number of employees       2,424 2,586
The Company employs seven people (2006: seven) including four executive directors (2006: five). 
Directors’ Emoluments
       52 weeks ended  21 weeks ended 
       29 September  30 September 
       2007 2006 
       Group Group 
Directors’ emolument in respect of the Directors of the Group are as follows:      £’000 £’000
Non-Executive Directors’ fees and charges in relation to share-based payments     118 30
Executive Directors’ salaries, benefits and charges in relation to share-based payments     5,876 3,915
Aggregate value of contributions in respect of defined contribution pension schemes     106 53
       6,100 3,998
Of the four Executive Directors in office at the year end, none are members of the Leisure Link Defined Benefit – Executive Pension Scheme 
and all four are members of the Leisure Link Defined Contribution Executive Pension Scheme. 
 52 weeks ended 29 September 2007 
        21 weeks ended 
    Salary/fees Share-based Gain on  30 September 
    benefits payment exercise of  2006 
    in kind charge share options Total Total  
    £’000 £’000 £’000 £’000 £’000
R B Hoyle    158 1,230 – 1,388 915
L L Alvarez    228 1,230 – 1,458 915
N V Crowley    225 1,230 – 1,455 939
J W O’Halleran    212 642 – 854 514
D Page (resigned 22 January 2007)    253 – 468 721 632
J B Paul    40 4 – 44 15
D C Mace    35 4 – 39 15
C H B Mills    35 – – 35 –
Total    1,186 4,340 468 5,994 3,945
Salary and benefits in kind received by D Page includes £107,000 in respect of compensation for loss of office.
The highest paid director is a member of the Defined Contribution Executive Pension Scheme. Contributions of £40,000 (2006: £13,000) were made 
into the scheme on his behalf in this period.
Notes to the Financial Statements continued
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43
5 Interest Payable and Similar Charges
       52 weeks ended  21 weeks ended 
       29 September  30 September 
       2007 2006 
       Group Group 
       £’000 £’000
Interest payable on bank loans and overdrafts       6,753 2,196
Interest payable on other loans and finance leases       813 92
       7,566 2,288
Non-cash items:
Deferred consideration discount unwind       758 –
Amortisation of issue costs on bank loans       338 477
Interest payable and similar charges       8,662 2,765
The deferred consideration discount unwind is in respect of the acquisition of Red Vision Ltd and its subsidairies in June 2006. This deferred 
consideration has been discounted and the difference between this present value and the mandatory purchase amount has been accrued through a 
charge to interest.
Included within amortisation of issue costs on bank loans in 2006 is £381,000 of costs incurred as a result of the Group’s refinancing on 2 June 2006 
which has been included as an operating exceptional item (note 3).
6 Interest Receivable and Other Finance Income
       52 weeks ended  21 weeks ended 
       29 September  30 September 
       2007 2006 
       Group Group 
       £’000 £’000
Bank interest receivable       1,035 131
Other finance income (note 25)       231 56
Interest receivable and other finance income       1,266 187
 
7 Tax on Profit/(Loss) on Ordinary Activities
Analysis of Charge in Year
       52 weeks ended  21 weeks ended 
       29 September  30 September 
       2007 2006 
       Group Group 
       £’000 £’000
United Kingdom
Corporation tax at 30% 
– current period       1,923 –
– under provided in respect of prior years       47 –
       1,970 –
Foreign tax
Corporation taxes       – 11
Total corporate tax       1,970 11
Deferred taxation 
Origination and reversal of timing differences:
– current period        523 2
– under provided in previous years       17 –
– effect of decreased tax rate on opening asset       1,034 –
Total deferred tax (note 14)       1,574 2
Total taxation charge       3,544 13
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7 Tax on Profit/(Loss) on Ordinary Activities continued
Factors Affecting the Tax Charge for the Period
The tax rate for the period is different to the standard rate of corporation tax in the UK of 30%. The differences are explained below:
 
       52 weeks ended  21 weeks ended 
       29 September  30 September 
       2007 2006 
       Group Group 
       £’000 £’000
Profit/(loss) on ordinary activities before tax       3,800 (2,046)
Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax of 30%    1,140 (614)
Effects of:
Expenses not deductible for tax purposes, including goodwill amortisation     1,892 616
Accelerated capital allowances and other timing differences       (1,109) (2)
Under provided in respect of prior years       47 –
Foreign tax       – 11
Current tax charge for the period       1,970 11
Factors that may affect future tax charges
In the future, goodwill amortisation will continue to represent a disallowable item. The future tax charge will also be impacted by the recognition and 
utilisation of the Group’s deferred tax asset (note 14).
On 21 March 2007, the Chancellor announced that the full rate of corporation tax will be reduced from 30% to 28% from April 2008. A number 
of other changes to the UK Corporation tax system were announced by the Chancellor in the March 2007 Budget Statement that are expected 
to be enacted in the 2008 Finance Act, including the phasing out of industrial building allowances from 2008 and the reduction in the rate of capital 
allowances. These changes had not been substantially enacted at the balance sheet date and, therefore are not included in these financial statements. 
The effect of the changes to be enacted in the Finance Act 2008 are not expected to have any significant effect on the Group’s future tax charge.
8 Dividends
       52 weeks ended  21 weeks ended 
       29 September  30 September 
       2007 2006 
Group and Company       £’000 £’000
Amounts paid and recognised in equity   
Interim dividend of 1.7p per Ordinary share (2006: nil)       1,196 –
         1,196 –
The Board of Directors recommended on 25 January 2008 a proposed final dividend of 6.7p per Ordinary share (2006: nil) for the 52 weeks 
ended 29 September 2007. This did not qualify for recognition in the financial statements at 29 September 2007 as it had not been approved 
by the shareholders at that date.
 
9 Earnings/Loss per Share
Basic earnings per share is calculated by dividing the profit attributable to ordinary shareholders of £256,000 (2006: loss of £2,059,000) by 67,562,019 
(2006: 63,938,888) Ordinary shares, being the weighted average number of Ordinary shares in issue during the period.
Underlying earnings per share which excludes exceptional items, goodwill amortisation, share-based payment charge, the profit or loss on disposal 
of fixed asset investments, and the related tax effect on these items, is disclosed to provide what the Directors consider to be a more appropriate 
measure of the underlying business.
Notes to the Financial Statements continued
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45
9 Earnings/Loss per Share continued
 52 weeks ended  21 weeks ended 
 29 September 2007  30 September 2006
Group     Pence £’000 Pence £’000
Profit/(loss) attributable to Ordinary shareholders     0.4 256 (3.2) (2,059)
Excluding:
Exceptional items     1.3 882 5.5 3,549
Goodwill amortisation     7.1 4,781 2.6 1,632
Share-based payment charge     7.5 5,039 5.1 3,233
Deferred consideration discount unwind     1.1 758 – –
Loss on disposal of fixed asset investment     0.2 156 – –
Related tax effect     (2.2) (1,498) (3.1) (1,960)
Underlying earnings per share     15.4 10,374 6.9 4,395
Diluted
The diluted earnings per share is calculated by dividing the profit attributable to Ordinary shareholders of £256,000 (2006: loss of £2,059,000) 
by 82,056,975 (2006: 76,099,750) Ordinary shares, calculated as follows:
       52 weeks ended  21 weeks ended 
       29 September 30 September 
       2007 2006
Basic weighted average number of Ordinary shares       67,562,019 63,938,888
Dilutive potential Ordinary shares – employee share options      14,494,956 12,160,862
       82,056,975 76,099,750
10 Intangible Fixed Assets
       Development  
       costs and  
      Goodwill licenses Total 
Group      £’000 £’000 £’000
Cost
At 1 October 2006       106,096 5,039 111,135
Additions      – 6,796 6,796
Completion and hindsight adjustment (note 12)      (6,646) – (6,646)
At 29 September 2007      99,450 11,835 111,285
Amortisation
At 1 October 2006      1,632 598 2,230
Charge for the period      4,781 2,181 6,962
At 29 September 2007      6,413 2,779 9,192
Net book amount
At 29 September 2007      93,037 9,056 102,093
At 1 October 2006      104,464 4,441 108,905
The goodwill arising on the acquisition of Ever 2533 Limited, Inspired Broadcast Networks Limited and Red Vision Limited and its subsidiaries, 
is being amortised on a straight-line basis over 20 years, being the period over which the Directors estimate that the values of the underlying 
businesses acquired are expected to exceed the values of the underlying assets.
Details of own work capitalised within development costs and licenses are detailed below:
       52 weeks ended  21 weeks ended 
       29 September  30 September 
       2007 2006 
       Group Group 
       £’000 £’000
Amounts capitalised in the period       4,793 471
Net book value of amounts capitalised at the end of the period      5,042 458
There are no intangible fixed assets held by the Company.
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11 Tangible Fixed Assets
       Motor 
       vehicles, Plant 
        and machinery,  
       fixtures and 
       fittings 
     Land and Amusement  (including 
     buildings machines IT equipment) Total 
Group     £’000 £’000 £’000 £’000
Cost
At 1 October 2006     405 105,191 8,892 114,488
Additions     4 47,543 3,530 51,077
Disposals     – (34,619) (19) (34,638)
At 29 September 2007     409 118,115 12,403 130,927
Accumulated depreciation
At 1 October 2006     10 16,363 871 17,244
Charge for the period     33 44,840 2,537 47,410
Disposals     – (28,318) 10 (28,308)
At 29 September 2007     43 32,885 3,418 36,346
Net book amount
At 29 September 2007     366 85,230 8,985 94,581
At 1 October 2006     395 88,828 8,021 97,244
Included in land and buildings are £366,000 (2006: £395,000) of properties improvements held under short leasehold arrangements, on which 
£33,000 (2006: £10,000) of depreciation has been charged during the period. 
Details of own work capitalised are as below:
       52 weeks ended  21 weeks ended 
       29 September  30 September 
       2007 2006 
       Group Group 
       £’000 £’000
Amounts capitalised in the period       8,704 3,833
Net book value of amounts capitalised at the end of the period      11,192 3,767
There are no tangible fixed assets held by the Company.
Capital Commitments
Amounts contracted for but not provided in the financial statements amounted to £nil (2006: £nil).
12 Investments
        Group 
        investments 
Group        £’000
Non-current assets 
Cost and net book value
At 1 October 2006        766
Additions        404
Disposals        (53) 
Provision for diminution in value        (383) 
Reclassified to current asset        (734)
At 29 September 2007        –
Current assets 
Cost and net book value
At 1 October 2006        –
Reclassified from non-current asset        734
At 29 September 2007        734
Notes to the Financial Statements continued
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47
12 Investments continued
The Group holds a 20% interest in G.Matica S.r.l. This investment has not been equity accounted for as, due to the governance structure of this 
company, the directors do not consider the Group to have significant influence over its operations.
On 3 January 2007, the Group participated in a capitalisation round in G.Matica S.r.l. of £97,000. This was funded by the net-off of trade debtors
owed by G.Matica S.r.l. to the Group.
In January 2007, the board of G.Matica S.r.l resolved to ask its shareholders to recapitalise the company. The cost to the Group was £307,000.
This was satisfied by a cash injection from the Group to G.Matica S.r.l.
On 13 September 2007 the Group entered into a call option agreement with a third party. Under this agreement the third party shall pay the Group 
€2,050,000 (£1,390,000) in two equal tranches for the Group’s entire holding in G.Matica S.r.l. The first tranche is payable on the option completion 
date. The second tranche payable within 90 days of this date. The Group has recently received a revised offer from the call option holder for 
€1,000,000 (£734,000). For this reason the Group have decided to write-down the current carrying value of its investment in G.Matica S.r.l 
of £1,117,000 by £383,000 to a realisable value of £734,000, and reclassify the investment from non-current assets to current assets.
During the period the Group disposed of its 18.9% interest in The Cloud Networks Limited carried at cost of £53,000, for a consideration
of £300,000. Costs incurred on disposal were £20,000, giving rise to a profit on disposal of £227,000. 
        Investment in  
        subsidiary 
        undertakings 
Company        £’000
Cost and net book value
At 1 October 2006 and 29 September 2007        57,362
The investment of the Company relates to its holding of the entire share capital of Ever 2533 Limited purchased on 2 June 2006.
Details of the principal investments in which the Group holds 20% or more of the nominal value of any class of share capital at the period
end (all of which are incorporated in the United Kingdom, unless otherwise noted) are as follows: 
   Proportion of  
   voting rights Nature of 
Name of company  Holding and shares held business
Subsidiary undertakings:
Inspired Gaming (Holdings) Limited (formerly Ever 2533 Limited) Ordinary shares 100% Holding company
Inspired Gaming (UK) Limited (formerly Leisure Link Group Limited) Ordinary shares 100% Management of electronic entertainment
     and amusement machines
Inspired Gaming (International) Limited   Ordinary shares 100% Broadcasting pay-to-play entertainment 
 (formerly Inspired Broadcast Networks Limited)       content to network devices  
Revolution Entertainment Systems Holdings Limited  Ordinary shares 100% Holding company
Revolution Entertainment Systems Limited   Ordinary shares 100% Manufacture and supply of electronic  
     entertainment 
Revolution Entertainment Systems (2) Limited   Ordinary shares 100% Supply of electronic entertainment
Inspired Leisure Link Italia S.p.A (incorporated in Italy)  Ordinary shares 100% Network provider for pay-to-play 
     network devices
Ever 2532 Limited  Ordinary shares 100% Holding company
115CR(150) Limited  Ordinary shares 100% Holding company
Inspired Technology Limited (incorporated in Ireland)  Ordinary shares 100% Holding company
Inspired Technology UK Limited  Ordinary shares 100% Non-trading
Willowmont Limited (incorporated in Ireland)  Ordinary shares 100% Non-trading
MAM Services Limited  Ordinary shares 100% Leasing company
Howmore Limited  Ordinary shares 100% Holding company
Leisure Link Electronic Entertainment Limited  Ordinary shares 100% Agent for Inspired Gaming (UK) Limited
Red Vision Limited   Ordinary shares 100% Production of television and film graphics 
Red Vision Bristol Limited  Ordinary shares 100% Production of animation for  
    television industries
Virtual Racing Systems Limited  Ordinary shares 100% Production of virtual events for  
    network devices
Other:
G.Matica S.r.l (incorporated in Italy)  Ordinary shares 20.0% Concession to manage Italian  
     digital network
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12 Investments continued
Acquisition of Ever 2533 Limited and Inspired Broadcast Networks Limited
On 2 June 2006 the Group acquired Ever 2533 Limited, Inspired Broadcast Networks Limited (subsequently renamed Inspired Gaming (Holdings) 
Limited and Inspired Gaming (International) Limited respectively) for a total consideration of £89,346,433, satisfied by the issue of 3,888,888 Ordinary 
shares of 1p at £1.80 each, £42,219,641 cash consideration, and the assumption of £40,126,792 of debt.
The investments in Ever 2533 Limited, and Inspired Broadcast Networks Limited have been included in the Company’s balance sheet at their fair value 
at the date of acquisition.
       Completion  
      Provisional and hindsight Final fair 
     Revaluation fair value to period value to  
    Book value at adjustment at the Group adjustments the Group  
    30 September 30 September 30 September 29 September 29 September  
    2006 2006 2006 2007 2007 
Net liabilities at the date of acquisition were as follows:    £’000 £’000 £’000 £’000 £’000
Intangible fixed assets    3,780 – 3,780 – 3,780
Tangible fixed assets    103,993 – 103,993 – 103,993
Investments    567 – 567 – 567
Stocks    5,968 – 5,968 – 5,968
Debtors    68,261 13,176 81,437 – 81,437
Cash     31,815 (19,504) 12,311 – 12,311
Creditors due within one year    (80,188) – (80,188) (1,358) (81,546)
Creditors due in greater than one year    (139,524) – (139,524) – (139,524)
Provisions     (201) (494) (695) – (695)
Pensions    (6,409) – (6,409) – (6,409)
Net liabilities    (11,938) (6,822) (18,760) (1,358) (20,118)
Purchase consideration    89,346 (19,504) 69,842 – 69,842
Costs associated with the acquisition    20 – 20 – 20
Goodwill arising on acquisition      88,622 (1,358) 89,980
The adjustment to the fair value in the hindsight period relates to an additional liability in respect of PAYE due to Her Majesty’s Revenue and Customs, 
and related costs.
Acquisition of Red Vision Limited and its subsidiaries
On 8 June 2006 the Group acquired Red Vision Limited and its subsidiaries, for an initial consideration of £3,300,000 satisfied by the issue of £419,100 
loan notes and £2,880,900 cash consideration, and a deferred consideration of up to £16,700,000.
       Completion 
      Provisional and hindsight Final fair 
      fair value to period value to  
      the Group adjustments the Group  
      30 September 29 September 29 September  
      2006 2007 2007 
Net assets at the date of acquisition were as follows:      £’000 £’000 £’000
Tangible fixed assets      191 – 191
Stocks      37 – 37
Debtors      315 – 315
Cash       145 – 145
Creditors due within one year      (341) – (341)
Creditors due in greater than one year      (26) – (26)
Net assets      321 – 321
Goodwill arising on acquisition      17,474 (8,004) 9,470
      17,795 (8,004) 9,791
Discharged by:
Cash consideration      2,881 – 2,881
Loan notes      419 – 419
Deferred consideration      16,700 (9,433) 7,267
Discounting of deferred consideration      (2,636) 1,429 (1,207)
Costs associated with the acquisition      431 – 431
      17,795 (8,004) 9,791
Notes to the Financial Statements continued
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49
12 Investments continued
During the period the estimate of deferred consideration has been revised and the amount payable is now expected to be £7,267,000. 
This has led to a reduction in goodwill of £8,004,000 to £9,470,000 and an adjustment to the corresponding amortisation charge of £524,000.
Deferred consideration has been discounted over the earn-out period based upon the Group’s weighted average cost of capital.
13 Stocks
       At  At 
       29 September  30 September 
       2007 2006 
       Group Group 
       £’000 £’000
Raw materials, consumables and trial machines       8,229 4,591
Work in progress       164 154
Finished goods       966 360
       9,359 5,105
The replacement cost of stocks is not materially different to the value at which they are stated in the financial statements. The Company has no stocks 
as at 29 September 2007 or 30 September 2006. 
14 Debtors
 At 29 September 2007  At 30 September 2006
     Group Company Group Company 
     £’000 £’000 £’000 £’000
Trade debtors     28,115 – 28,215 –
Amounts owed by Group undertakings     – 198,887 – 181,956
Corporate tax     – 403 – 237
Other debtors     4,595 276 2,732 101
Deferred tax     12,916 1,141 14,490 970
Prepayments and accrued income     1,467 132 2,941 238
     47,093 200,839 48,378 183,502
All Group debtors, other than the deferred tax asset, represent amounts recoverable within one year.
Amounts owed by Group undertakings carry interest at the Group’s weighted average cost of capital and are repayable on demand.
Deferred Tax
Provided 
The movement in deferred tax during the period is as follows:
        £’000
At 1 October 2006        14,490
Debited to profit and loss account in the period (note 7)        (1,574)
At 29 September 2007        12,916
The deferred tax asset comprises:
     Provided Unprovided Provided Unprovided 
     Group Group Company Company 
     £’000 £’000 £’000 £’000
Excess of capital allowances over depreciation     9,909 – – –
Short-term timing differences     2,316 – 1,141 –
Losses     691 – – –
Deferred tax asset included within current assets     12,916 – 1,141 –
Deferred tax asset included within the net pension liability (note 25)    – 276 – –
Total deferred tax asset     12,916 276 1,141 –
 
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15 Cash
 At 29 September 2007  At 30 September 2006
     Group Company Group Company 
     £’000 £’000 £’000 £’000
Cash at bank and in hand     29,178 15,431 11,490 296
Cash in escrow     1,815 – 1,797 –
Cash in machines     2,091 – 1,867 –
     33,084 15,431 15,154 296
Cash in escrow includes guarantees given in respect of G.Matica S.r.l of £1,396,000 (2006: £1,378,000), and £419,100 (2006: £419,100) in respect 
of cash to be paid to settle 2011 loan notes issued in respect of the aquisition of Red Vision Limited and its subsidiaries in June 2006 (note 12). 
16 Creditors: Amounts Falling Due Within One Year
 At 29 September 2007  At 30 September 2006
     Group Company Group Company 
     £’000 £’000 £’000 £’000
Bank loans      3,125 3,125 2,000 2,000
Trade creditors     23,867 – 22,850 –
Corporate tax     989 – 11 –
Other taxation and social security     3,508 – 6,297 –
Accrued charges and deferred income     17,806 421 18,865 399
Finance leases     34 – 77 –
Other creditors      7,215 – 7,228 15
2011 loan notes     419 – – –
Deferred consideration     2,844 – – –
     59,807 3,546 57,328 2,414
Bank loans above include £363,000 (2006: £325,000) of FRS 4 debt issue costs capitalised.
The 2011 loan notes and deferred consideration creditor arose as a result of the acquisition of Red Vision Limited and its subsidiaries in June 2006 
(note 12). The 2011 loan notes were repaid on 1 December 2007.
17 Creditors: Amounts Falling Due After More Than One Year
 At 29 September 2007  At 30 September 2006
     Group Company Group Company 
     £’000 £’000 £’000 £’000
Bank loans      88,700 88,700 84,812 84,812
Amounts owed to Group undertakings     – 50,245 – 44,755
Finance leases     39 – 73 –
Accrued charges and deferred income     – – 18 –
2011 loan notes     – – 419 –
Deferred consideration     3,975 – 14,064 –
     92,714 138,945 99,386 129,567
Bank loans above include £1,687,000 (2006: £2,063,000) of FRS 4 debt issue costs capitalised.
Notes to the Financial Statements continued
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51
18 Loans 
Amounts are repayable as follows:
 At 29 September 2007  At 30 September 2006
     Group Company Group Company 
     £’000 £’000 £’000 £’000
Amounts payable:
Within one year     3,488 3,488 2,325 2,325
Between one and two years     5,538 5,538 3,487 3,487
Between two and five years     25,862 25,862 18,275 18,275
After five years     58,987 58,987 65,113 65,113
     93,875 93,875 89,200 89,200
The bank loans are secured by fixed and floating charges over all the property and assets of the Company and its subsidiary undertakings.
On 2 June 2006 and immediately following the Company’s IPO a refinancing of the Group was completed. In total, £2,865,000 of directly 
attributable issue and other finance costs were incurred, of which £2,484,000 were capitalised within the underlying loan balances, and 
£338,000 (2006: £96,000) has been amortised in the period. 
19 Financial Instruments
Treasury Risk Management
The objectives of the Treasury function are to protect the assets of the Group and to identify and then manage financial risk.
Medium and long-term borrowing requirements are met through syndicated Senior debt facilities. Short-term borrowing requirements are met 
through a revolving credit facility. 
The principal risk facing the Group is an exposure to interest rate fluctuations. The Group is not exposed to significant foreign exchange risk, 
as most purchases and sales receipts are invoiced in Sterling. These risks are described below:
Interest Rate Risk
The Group finances its operations through a mixture of retained profits and bank borrowings. The Group borrows at floating rates and its policy 
is to manage its exposure to interest rate fluctuations by fixed rate hedges on its borrowing facility. 
Currency Risk
The Group usually buys currency at spot rate however, the Group recognises that its currency exposure may increase in the future due to the growth 
in overseas sales, and as more production is outsourced from overseas suppliers. The Group will look to minimise any increased exposure to foreign 
exchange fluctuations through the use of currency instruments if appropriate. Currently the Group holds small amounts of foreign currency to settle 
monthly trading transactions.
Liquidity Risk
The Group policy is to ensure that it has committed borrowing facilities in place in excess of its peak gross borrowings. The Group refinanced  
its operations at the time of the flotation, which has ensured that the Group has sufficient borrowing facilities in place for at least the next  
12 months.
Short-Term Debtors and Creditors
Short-term debtors and creditors have been excluded from all the following disclosures, other than the currency risk disclosures.
Interest Rate Risk Profile of Financial Assets and Liabilities
The interest rate risk profile of the Group’s financial assets and liabilities at the period end were:
Financial Liabilities
        Financial 
      Floating rate Fixed rate liabilities on 
      financial financial which no  
     Total liabilities liabilities interest is paid  
Currency     £’000 £’000 £’000 £’000
Sterling at 29 September 2007     98,785 94,294 73 4,418
Sterling at 30 September 2006     106,442 89,619 150 16,673
At the 29 September 2007, the Group had entered into interest rate swaps which converted £64,000,000 of floating rate debt to fixed rate.
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19 Financial Instruments continued
Financial liabilities on which no interest is paid includes £3,975,000 (2006: £14,064,000) of deferred consideration arising as a result of the acquisition 
of Red Vision Limited and its subsidiaries in June 2006 (note 12), which is due after more than one year. In addition, deferred consideration of 
£2,844,000 (2006: £nil) is also payable as a result of the acquisition of Red Vision Limited and its subsidiaries but is not included in the above analysis 
of financial liabilities due in greater than one year as it is payable in less than one year (note 16).
       At  At 
       29 September  30 September 
       2007 2006 
       Group Group 
       £’000 £’000
Bank loans
Tranche A term loan was drawn down on 2 June 2006 and is repayable by instalments. The instalments vary over  
 the life of the loan but result in full repayment by June 2013. Interest is payable at 2.00% (plus mandatory costs)  
 over LIBOR.       28,675 31,000
Tranche B term loan was drawn down on 2 June 2006 and is repayable in June 2014. Interest is payable at 3.00%  
 (plus mandatory costs) over LIBOR.       27,500 27,500
Tranche C term loan was drawn down on 2 June 2006 and is repayable in June 2015. Interest is payable at 3.00%  
 (plus mandatory costs) over LIBOR.       27,500 27,500
Tranche D (acquisition facility) is drawn down as required and is repayable by instalments. The instalments vary over 
 the life of the loan but result in full repayment by June 2013. Interest is payable at 2.00% (plus mandatory costs) 
 over LIBOR       10,200 3,200
       93,875 89,200
Other loans
2011 loan notes. Interest is payable at the lower of 1.50% over LIBOR and the rate obtainable if an equivalent  
 value is invested at Barclays Bank.       419 419
       94,294 89,619
Less: directly attributable issue and other finance costs       (2,050) (2,388)
       92,244 87,231
 
Interest Rate Risk of Financial Assets
 Group
       Cash at bank  
      Investments and in hand Cash in escrow 
      £’000 £’000 £’000
At 29 September 2007
Sterling      – 30,750 419
Euro      734 519 1,396
Total      734 31,269 1,815
At 30 September 2006
Sterling      53 13,261 419
Euro      713 96 1,378
Total      766 13,357 1,797
The above cash balances attract floating rates of interest based on relevant national LIBOR equivalents and are placed with banks. 
Notes to the Financial Statements continued
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53
19 Financial Instruments continued
Maturity of Financial Liabilities and Borrowing Facilities
The maturity profile of the financial liabilities and borrowings, other than short-term trade creditors and accruals is shown below:
       Other 
      Finance financial 
      Loans leases liabilities Total 
     £’000 £’000 £’000 £’000
At 29 September 2007
Within one year, or on demand     3,907 73 443 4,423
Between one and two years     5,538 – 3,975 9,513
Between two and five years     25,862 – – 25,862
Over five years     58,987 – – 58,987
Total     94,294 73 4,418 98,785
At 30 September 2006
Within one year, or on demand     2,325 77 2,609 5,011
Between one and two years     3,487 34 – 3,521
Between two and five years     18,275 39 14,064 32,378
Over five years     65,532 – – 65,532
Total     89,619 150 16,673 106,442
 
Borrowing Facilities
The Group had the following undrawn borrowing facilities available at the period end in respect of which all conditions precedent had been 
met at that date:
       At  At 
       29 September 30 September 
       2007  2006 
       £’000 £’000
Expiring in greater than one year:
Acquisition facility       4,800 11,800
Revolving credit facility       15,000 15,000
Fair Values of Financial Assets and Financial Liabilities
The following table provides a comparison by category of the carrying value amounts and the fair value amounts of the Group’s financial assets and 
financial liabilities at the period end. Fair value is the amount at which a financial instrument could be exchanged in an arm’s-length transaction 
between informed and willing parties, other than a forced or liquidation sale and excludes accrued interest. Where available, market values have been 
used to determine fair values. Where market values are not available, fair values have been calculated by discounting expected cash flows at prevailing 
interest rates. The fair value of the interest rate swap is provided to the Company by a third party. Set out below the table is a summary of the 
methods and assumptions used for each category of financial instrument. 
 
 At 29 September 2007  At 30 September 2006
     Book value Fair value Book value Fair value 
Primary financial instruments held or issued to finance the Group’s operations    £’000 £’000 £’000 £’000
Bank loans     (93,875) (93,875) (89,200) (89,200)
Other loans     (419) (419) (419) (419)
Finance leases     (73) (73) (150) (150)
Accruals due in greater than one year     (3,975) (3,975) (14,082) (14,082)
Provisions     (443) (443) (2,591) (2,591)
Investments     734 734 766 766
Interest rate swap     – 412 – –
Cash at bank and in hand     29,178 29,178 11,490 11,490
Cash in escrow     1,815 1,815 1,797 1,797
Cash in machines     2,091 2,091 1,867 1,867
Total     (64,967) (64,555) (90,522) (90,522)
The fair value of the interest rate swap is as per the above table. All other gains and losses in respect of this instrument have been recognised through 
the profit and loss account during the period.
 
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19 Financial Instruments continued
Summary of Methods and Assumptions
Borrowings, Finance Leases and Cash
In the case of bank loans and finance leases, the fair value approximates to the carrying value reported in the consolidated balance sheet as all balances 
are at floating rate where payments are reset to market rates at intervals of less than one year.
Accruals Due in Greater than One Year
As accruals are discounted based upon the Group’s weighted average cost of capital, book values are considered to equate to fair values.
Provisions
Provisions are subject to ongoing reassessment and are as such deemed to be at fair value.
Investments
In the opinion of the Directors, the fair value of investments equates to the book value that the assets are carried at on the respective balance sheet dates.
Currency Exposures
The tables below show the extent to which Group companies have monetary assets and liabilities in currencies other than the Group’s 
functional currency. Foreign exchange differences on retranslation of these assets and liabilities are taken to the consolidated profit and 
loss account of the Group.
Net Foreign Currency Monetary Assets
 At 29 September 2007  At 30 September 2006
     Euro Total Euro Total 
     £’000 £’000 £’000 £’000
Functional currency of Group operation     
Sterling     1,899 1,899 1,408 1,408
Euro     16 16 66 66
Total      1,915 1,915 1,474 1,474
Hedges
The Group’s policy is to hedge interest rate risk exposures using interest rate swaps and options. During the period to 29 September 2007, the Group 
has entered into interest rate swaps which converted £64,000,000 (2006: £nil) of floating rate debt to fixed rate. 
At 29 September 2007 the fixed interest rate of the swap is 5.369% and the floating rate is 8.195% (LIBOR plus 2% plus mandatory costs) and 9.195% 
(LIBOR plus 3% plus mandatory costs).
Credit Risk
Credit risk arises on financial instruments such as trade receivables and short-term bank deposits. Policies and procedures exist to ensure that 
customers have an appropriate credit history. Short-term bank deposits are only with highly credit rated authorised counterparties.
 
20 Provisions for Liabilities and Charges
      Onerous lease  
      costs and Group  
      dilapidations restructuring Group 
      £’000 £’000 £’000
At 1 October 2006      701 1,890 2,591
Arising during the year      88 – 88
Utilised      (530) (1,639) (2,169)
Written back to profit and loss account      – (67) (67)
At 29 September 2007      259 184 443
The Group has a number of vacant and sub-let properties. Provisions represent costs expected to be borne in respect of lease rentals and dilapidation 
costs. The Directors anticipate that the provisions will be utilised over the years to 2012.
Provisions for Group restructuring are discussed in note 3 Exceptional items. The Directors anticipate the provision to be utilised within one year. 
Notes to the Financial Statements continued
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55
21 Share Capital 
Authorised Share Capital
The authorised share capital of the Company on incorporation was £1,000 of £1 Ordinary shares, this was increased to £50,000 on 16 May 2006 by 
the creation of 49,000 further Ordinary shares of £1 each. On 26 May 2006 this was sub-divided into 50,000 Ordinary shares of 1p each and 
4,950,000 convertible deferred shares of 1p each. Also on 24 May 2006 the authorised share capital of the Company was increased to £1,000,000 
divided into 95,050,000 Ordinary shares of 1p each and the 4,950,000 of convertible deferred shares of 1p each. 
Issued Share Capital 
        Total 
    Ordinary shares Nominal value Deferred shares Nominal value nominal value  
    of 1p each         £ of 1p each
1
 £ £
At 1 October 2006    63,938,888 639,389 4,950,000 49,500 688,889
Shares issued in period    6,371,677 63,717 – – 63,717
Share options exercised in period    159,847 1,598 – – 1,598
At 29 September 2007    70,470,412 704,704 4,950,000 49,500 754,204
1  Deferred shares have no voting or dividend rights. N V Crowley holds 4,949,901 deferred shares of 1p each. The conversion rights relating to N V Crowley’s deferred shares are set out in 
the Directors’ Report. Any unconverted deferred shares which are not, or are no longer, the subject of an option grant, are non-transferable and will be cancelled in due course.
Share-Based Payments
The expense recognised for share-based payments in the year is £5,039,000 (2006: £3,233,000) which comprises share option schemes and share 
awards. The Company had two share option schemes, both of which are equity-settled, in operation during the period.
The terms of these share option schemes are set out below:
Sweet Equity Award
Following its listing, the Company granted share options under the 2006 Share Option Plan to Executive Directors and senior employees. 
The award had a nil exercise price, and was split into six tranches.
During the period to 29 September 2007, the Company granted share options under the Share Option Plan to senior employees.  
The award had a nil exercise price, and was split into the remaining five tranches of the scheme on the terms set out below.
[ STYLE SHEETS FROM THIS FILE ARE NOT INTERCHANGEABLE WITH THE OTHER ARTWORK FILES FOR THIS JOB ] 56
Notes to the Financial Statements continued
21 Share Capital continued
 
  
 Exercise of conversion period Performance conditions
First Tranche Post announcement of Company’s results for the 
period ending September 2006 to the 10th 
anniversary of grant.
The pre-exceptional EBITA for the financial year ending September 
2006 is equal to or exceeds 90% of the target pre-exceptional 
EBITA set by the Remuneration Committee.
The employee must remain in continuous employment with the 
Company from the date of grant until exercise.
Second Tranche Post announcement of Company’s results for the 
period ending September 2007 to the 10th 
anniversary of grant.
The EPS for the financial year ending September 2007 is equal
to or exceeds 90% of the target EPS set by the Remuneration 
Committee.
The employee must remain in continuous employment with the 
Company from the date of grant until exercise.
Third Tranche Post announcement of Company’s results for the 
period ending September 2008 to the 10th 
anniversary of grant.
The EPS for the financial year ending September 2008 is equal
to or exceeds 90% of the target EPS set by the Remuneration 
Committee.
The employee must remain in continuous employment with the 
Company from the date of grant until exercise.
Fourth Tranche Post the date of Admission until 30 days post the 
publication of the Company’s results for the period 
ending September 2010.
The total return to shareholders from the date of grant (being the 
share price appreciation plus dividends and taking account of any 
share capital reorganisations, splits or buy backs) to equal or 
exceed 100% for a period of 30 consecutive days.
The employee must remain in continuous employment with the 
Company from the date of grant until exercise.
Fifth Tranche Post the date of Admission until 30 days post the 
publication of the Company’s results for the period 
ending September 2010.
The total return to shareholders from the date of grant (being the 
share price appreciation plus dividends and taking account of any 
share capital reorganisation, splits or buy-backs) to equal or exceed 
200% for a period of 30 consecutive days. 
The employee must remain in continuous employment with the 
Company from the date of grant until exercise.
Sixth Tranche Post the date of Admission until 30 days post the 
publication of the Company’s results for the period 
ending September 2010.
The total return to shareholders from the date of grant (being the 
share price appreciation plus dividends and taking account of any 
share capital reorganisations, splits or buy-backs) to equal or 
exceed 300% for a period of 30 consecutive days.
The employee must remain in continuous employment with the 
Company from the date of grant until exercise.
The documented performance criteria as set out in the Group’s AIM Admission Document in respect of tranches 4 to 6 of the Company Share 
Option Plan were misstated as 200%, 300% and 400% respectively compared to the intended performance criteria set out above. The period
charge is therefore based on the intended performance criteria.
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57
21 Share Capital continued
The table below reflects the movement in the sweet equity award and options outstanding during the period to 29 September 2007:
   First tranche Second tranche Third tranche Fouth tranche Fifth tranche Sixth tranche
Outstanding at 1 October 2006   1,598,472 1,464,200 3,062,673 1,464,200 3,062,673 1,464,200
Granted   – 134,271 134,271 134,271 134,271 134,271
Exercised   (159,847) – – – – –
Outstanding at 29 September 2007   1,438,625 1,598,471 3,196,944 1,598,471 3,196,944 1,598,471
Options exercisable:
At 29 September 2007   1,438,625 – – – – –
At 1 October 2006   – – – – – –
Fair value of options granted during the period   – 217.5 209.2 122.7 76.5 49.8
The following tables reflects the option pricing models and assumptions used in respect of the sweet equity award:
   First tranche Second tranche
2
 Third tranche Fouth tranche Fifth tranche Sixth tranche
Valuation model   Share price Share price Share price Monte Carlo Monte Carlo Monte Carlo 
   at grant less at grant less at grant less simulation simulation simulation 
   dividends dividends dividends    
   foregone foregone  foregone
Grant date   2/6/06 2/6/06 2/6/06 2/6/06 2/6/06 2/6/06
Share price at grant date – pence   180.0 180.0 180.0 180.0 180.0 180.0
Exercise price – pence   Nil Nil Nil Nil Nil Nil
Number of employees   5 4 4 4 4 4
Shares under option   1,438,625 1,464,200 3,062,673 1,464,200 3,062,673 1,464,200
Expected dividend yield   n/a n/a 1.9% 2.2% 1.7% 1.5%
Risk free interest rate   4.70% 5.40% 5.40% 5.40% 5.40% 5.40%
Vesting period – years   0.62 1.62 2.62 2.21 2.86 3.21
Volatility   40% 40% 40% 40% 40% 40%
Expected life – years   Vested 1.62 2.62 2.21 2.86 3.21
Fair value of option – pence   180.0 180.0 172.0 101.0 62.0 40.0
   First tranche
1
 Second tranche
2
 Third tranche Fourth tranche Fifth tranch Sixth tranche
Valuation model   Share price Share price Share price Monte Carlo Monte Carlo Monte Carlo 
   at grant less at grant less at grant less simulation simulation simulation 
   dividends dividends dividends    
   foregone foregone  foregone
Grant date   28/2/07 28/2/07 28/2/07 28/2/07 28/2/07 28/2/07
Share price at grant date – pence   n/a 243.5 243.5 243.5 243.5 243.5
Exercise price – pence   n/a Nil Nil Nil Nil Nil
Number of employees   n/a 12 12 12 12 12
Shares under option   – 134,271 134,271 134,271 134,271 134,271
Expected dividend yield   n/a n/a 1.9% 3.0% 1.9% 1.6%
Risk free interest rate   n/a 5.40% 5.40% 5.40% 5.40% 5.40%
Vesting period – years   n/a 0.91 1.91 1.21 1.86 2.21
Volatility   n/a 40% 40% 40% 40% 40%
Expected life – years   n/a 0.91 1.91 1.21 1.86 2.21
Fair value of options – pence   n/a 217.2 209.2 122.7 76.5 49.8
Expected volatility is based on the historical volatility for a basket of comparable listed companies plus a premium to reflect the higher volatility
of AIM listed stock.
1 No new options have been granted under the first tranche of the sweet equity award.
2 In calculating the share based payment charge for the period, tranche 2 of the sweet equity award has been deemed not expected to vest.
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21 Share Capital continued
Market Value Award
During the period to 29 September 2007, the Company granted share options under the 2007 Share Option Plan to Executive Directors and senior 
employees. These shares were awarded on four different dates throughout the period and all had an exercise price equal to the closing price of an 
Ordinary share for the dealing day prior to the day of grant by the Board on the terms set out below:
 
Exercise of conversion period  Performance conditions
Post three years from the date of grant to the tenth Over the period of three years commencing on the date of grant there has been an   
anniversary of grant.  average of at least 3% per annum increase in the Company’s EPS.
The table below shows the movement in the market value awards and options outstanding during the period to 29 September 2007:
     Grant dated Grant dated Grant dated Grant dated 
     24 January 2007 20 June 2007 2 July 2007 27 July 2007
Outstanding at 1 October 2006     – – – –
Granted      2,599,000 210,000 60,000 292,000
Exercised     – – – –
Lapsed     (120,000) – – –
Outstanding at 29 September 2007     2,479,000 210,000 60,000 292,000
Options exercisable: 
At 29 September 2007     – – – –
At 1 October 2006     – – – –
Fair value of options granted during the period     78.5 111.7 131.1 115.0
The following table reflects the option pricing models and assumptions used in respect of the market value award:
 
     Grant dated Grant dated Grant dated Grant dated 
     24 January 2007 20 June 2007 2 July 2007 27 July 2007
Valuation model     Binomial Binomial Binomial Binomial 
     model model model model
Share price at grant date – pence     217.5 301.3 299.5 311.0
Exercise price – pence     217.5 301.3 299.5 311.0
Number of employees     37 7 2 24
Expected dividend yield     1.6% 1.1% 1.1% 1.0%
Shares under option     2,479,000 210,000 60,000 292,000
Risk free interest rate     5.40% 5.70% 5.60% 5.40%
Vesting period – years     3 3 3 3
Volatility     40% 40% 40% 40%
Expected life – years     5.5 5.5 5.5 5.5
Fair value of option – pence     78.5 111.7 131.3 115.0
Expected volatility is based on the historical volatility for a basket of comparable listed companies plus a premium to reflect the higher volatility of an 
AIM listed stock.
Notes to the Financial Statements continued
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59
21 Share Capital continued
The Company established an employee trust in 2006 to facilitate the holding of shares for the employee share schemes. The Trust purchases shares 
from the Company from time to time, using funds provided by the Company based on expectations of future requirements. Dividends are waived by 
the Trust. At 29 September 2007 the Trustees, Ansbacher Trustees (Jersey) Limited held nil (2006: nil) shares in the Company.
 
22 Movements on Reserves
      Share  Total  
     Share premium Profit and shareholders’ 
     capital account loss account funds 
     £’000 £’000 £’000 £’000
Group
At 1 October 2006     689 108,111 878 109,678
Profit for the period     – – 256 256
Dividend     – – (1,196) (1,196)
Credit associated with issue of share options     – – 5,039 5,039
Actuarial gain on pension scheme     – – 4,125 4,125
Issue of shares     65 15,260 – 15,325
Costs associated with the issue of shares     – (233) – (233)
At 29 September 2007     754 123,138 9,102 132,994
Company
At 1 October 2006     689 108,111 379 109,179
Profit for the financial period     – – 3,027 3,027
Dividend     – – (1,196) (1,196)
Credit associated with issue of share options     – – 5,039 5,039
Issue of shares     65 15,260 – 15,325
Costs associated with the issue of shares     – (233) – (233)
At 29 September 2007     754 123,138 7,249 131,141
 
23 Contingent Liabilities and Financial Commitments
(a) Security
The Company has a term loan facility, and an undrawn revolving credit facility at the period end, which are secured by a composite guarantee and 
debenture in favour of GE Corporate Finance Branch SAS, London Branch. The facility is secured by fixed and floating charges over the Company 
and its subsidiary undertakings, property and assets.
(b) Operating Leases
The Group had annual commitments under non-cancellable operating leases as set out below:
 
 Land and buildings  Other
 At 29 September 2007  At 30 September 2006  At 29 September 2007  At 30 September 2006
 Group Company Group Company Group Company Group Company 
 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Operating leases which expire:
Within one year 81 – 200 – 568 – 606 –
In two to five years 513 – 681 – 2,268 – 2,775 –
In over five years 1,262 – 1,368 – – – – –
 1,856 – 2,249 – 2,836 – 3,381 –
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24 Notes to the Consolidated Statement of Cash Flows 
(a) Reconciliation of Operating Profit to Net Cash Inflow from Operating Activities
       52 weeks  21 weeks 
       ended  ended 
       29 September  30 September 
       2007  2006 
       Group Group 
       £’000 £’000
Operating profit       11,352 532
Depreciation charge       47,410 18,089
Amortisation of intangible assets       6,962 2,230
Difference between pension charge and cash contributions       (1,227) (80)
Non-cash share-based payment charge       5,039 3,233
Movement in stocks       (4,254) 900
Movement in debtors       (265) (6,511)
Movement in creditors and provisions       (4,111) (1,104)
Net cash inflow from operating activities       60,906 17,289
(b) Analysis of the Balances of Cash and Net Debt as Shown in the Balance Sheet
     At   At  
     1 October  Non-cash 29 September  
     2006 Cash flow movements 2007 
Group     £’000 £’000 £’000 £’000
Cash at bank and in hand     15,154 17,930 – 33,084
Debt due within one year     (2,079) 2,402 (3,901) (3,578)
Debt due after one year     (85,302) (7,000) 3,563 (88,739)
     (72,227) 13,332 (338) (59,233)
Non-cash movements relate to amortisation of debt fees (£338,000), and senior debt becoming due within one year. 
Notes to the Financial Statements continued
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24 Notes to the Consolidated Statement of Cash Flows continued
(c) Movement in Borrowings
       52 weeks  21 weeks 
       ended  ended 
       29 September  30 September 
       2007  2006 
       Group Group 
       £’000 £’000
Repayment of finance leases       77 73
Repayment of senior facility       2,325 73,363
Repayment of Mezzanine facility       – 87,379
Drawdown of facility       (7,000) (89,200)
Net cash (inflow)/outflow       (4,598) 71,615
(d) Cash Flow Relating to Exceptional Items
Operating cash flows include an outflow of £263,000 (2006: £1,659,000) which relates to the current year operating exceptional items discussed
in note 3, and £1,639,000 (2006: £nil) relating to the comparative year operating exceptional item.
(e) Reconciliation of Net Cash Flow to Movement in Net Debt
       52 weeks  21 weeks 
       ended  ended 
       29 September  30 September 
       2007  2006 
       Group Group 
       £’000 £’000
Increase in cash in the period       17,930 14,735
Increase in cash held in escrow       – 419
Total movement in cash in the period       17,930 15,154
Net debt acquired on acquisition       – (160,965)
Repayment of old facilities       2,325 160,742
Drawdown of new facilities       (7,000) (89,200)
Repayment of finance leases       77 73
Issue and other facility costs incurred on borrowings       – 2,703
Non-cash items: 
Issue of loan notes       – (419)
Accrual for issue and other costs incurred on borrowings       – 162
Amortisation of debt fees       (338) (477)
Movement in the period       12,994 (72,227)
Opening net debt       (72,227) –
Closing net debt       (59,233) (72,227)
 
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25 Pension Costs
The Group operates a combined scheme which comprises a Defined Benefit Section and a Defined Contribution Section. A full actuarial valuation 
was carried out as at 31 March 2006 and updated to 28 September 2007 by Punter Southall & Co, an independent qualified actuary. The disclosures 
provided in respect of the 28 September valuation of the Defined Benefit Section are detailed below.
As the Defined Benefit Section is closed, it should be noted that the current service cost will increase as the members of the Scheme 
approach retirement.
The main actuarial assumptions used are as follows:
       2007 2006 
Group       % %
Rate of increase in salaries – Non-Executives       3.4 3.0
           – Executives       3.4 3.0
Rate of increase in pensions payment       3.4 3.0
Discount rate       6.0 5.1
Inflation assumption       3.4 3.0
In respect of cash commutation the assumption applied is allowance for 75% of members expected to commute 25% of their pension for a cash lump 
sum on retirement to do so.
The assets in the scheme and the expected rate of return were:
     Long-term  Long-term 
     rate of return  rate of return 
     expected at Value at expected at Value at 
     29 September  29 September 30 September 30 September 
     2007 2007 2006 2006 
Group     % £’000 % £’000
Equities     7.50 35,205 6.95 30,836
Bonds     5.10 13,686 4.55 12,366
Cash     5.75 521 4.75 252
      49,412  43,454
Present value of scheme liabilities      (50,398)  (50,023)
Deficit in the scheme      (986)  (6,569)
Related deferred tax       –  –
Net pension deficit      (986)  (6,569)
 
The updated FRS 17 valuation carried out at 28 September 2007 showed a decrease in the pensions deficit from £6,569,000 to £986,000. In the 
52 weeks ended 29 September 2007 the Company contributed £2,432,000 to the Defined Benefit Section of the Scheme. It has been agreed with 
the Trustees that contributions will remain at this level for the foreseeable future.
Notes to the Financial Statements continued
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63
25 Pension Costs continued
A deferred tax asset in relation to the pension deficit will be recognised once the Directors consider recoverability of the asset to be more likely than 
not in the imminent future.
       2007 2006 
Group       £’000 £’000
Analysis of amount charged to operating profit in respect of the defined benefit scheme
Current service       1,167 511
Past service cost       38 –
Total operating charge       1,205 511
Movement in deficit during the period
Opening position       (6,569) –
Deficit acquired on acquisition (note 12)       – (6,409)
Current service cost       (1,167) (511)
Past service cost       (38) –
Contributions       2,432 591
Other finance income       231 56
Actuarial gain/(loss)       4,125 (296)
Deficit in the scheme at the end of the period       (986) (6,569)
Analysis of amount credited to other finance income in respect of the defined benefit scheme
Expected return on pension scheme assets       2,782 860
Interest on pension scheme liabilities       (2,551) (804)
Net return        231 56
Analysis of amount recognised in consolidated statement of total recognised gains and losses
Actual return less expected return on pension scheme       1,508 878
Experience gains and losses arising on the scheme liabilities       (922) (36)
Changes in the assumptions underlying the present value of the scheme liabilities     3,539 (1,138)
Actuarial gain/(loss)       4,125 (296)
History of Experience Gains and Losses
 
Group       2007 2006
Difference between the expected and actual return on scheme assets:
Amount (£’000)       1,508 878
Percentage of scheme assets        3.0% 2.0%
Experience gains and losses on scheme liabilities:
Amount (£’000)       (922) (36)
Percentage of scheme liabilities        (2.0%) (0.1%)
Total amount recognised in the consolidated statement of total recognised gains and losses:
Amount (£’000)       4,125 (296)
Percentage of scheme liabilities        8.0% (0.6%)
Defined Contribution Scheme
The pension charge for the period represents contribution paid by the Group to the scheme in respect of Group employees and amounted 
to £993,000 (2006: £226,000). An accrual existed in respect of pension costs at 29 September 2007 of £125,000 (2006: £113,000). 
 
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26 Related Party Transactions
The Group had the following transactions with other Group undertakings during the period:
 2007  2006
      Debtor/  Debtor/ 
     Sales (creditor) Sales (creditor) 
     £’000 £’000 £’000 £’000
The Cloud Networks Limited
Amount owed to The Cloud Networks Limited      – – – (3)
G.Matica S.r.l.
Amount owed by GMatica S.r.l.     1,317 997 182 283
The Group has taken advantage of the exemption under FRS 8 ‘Related Party Disclosures’ not to disclose related party transactions between 
companies which are 90% owned by the ultimate parent company. 
27 Post Balance Sheet Events
The Group received an indicative offer from FL Group hf, an international investment company, in the last quarter of the financial year. FL announced 
in December 2007 that they were not able to complete a formal bid approach capable of being put to the shareholders, as a result of the prevailing 
conditions in the financial markets. No net financial cost is anticipated to be incurred as a result of the offer.
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65
AIM
Alternative Investment Market
AWP  
Amusement With Prize
Category B – Category B3 – Category C   
Class of gaming machine as defined under the Gambling Act 2005
Combined Code  
Combined Code of Corporate Governance
Companies Act 
The Companies Act 1985 (as amended) 
Company  
Inspired Gaming Group plc
EBITDA
 Earnings before interest, tax, depreciation and amortisation
EBITdA
EBITDA less machine depreciation (unless otherwise defined)
Financial Year
The period 1 October 2006 to 29 September 2007
FOBT 
Fixed Odds Betting Terminal
GGP 
Gala Gaming Platform, Inspired Gaming Group’s Open Server Based 
Gaming Platform as licensed to Gala Coral Group for use in its bingo
and casino estate
Gmatica  
G.Matica S.r.l., an Italian gaming machine concessionary in which the 
Group has investment
Group 
The Company and its subsidiaries 
Leisure Link 
A trading name of Inspired Gaming (UK) Limited
MMT 
Multi Media Terminal
Ordinary Shares 
Ordinary shares of 1p each in the capital of the Company
SBG
Server Based Gaming
Section 21 Gaming Machine 
A category of gaming machine which was subject to special provisons 
regarding gaming for prizes under the Gaming Act 1968. This type of 
gaming machine was supplied to bingo operators by the Company until 
the Gambling Act 2005 became effective. Section 21 gaming machines 
cannot be operated under this new Act
Open SBG™
Open Server Based Gaming
SBGSS
SBG Software and Services
Statutory Period
The period 1 October 2006 to 29 September 2007
SWP 
Skill With Prize
SWOP 
Skill Without Prize
VLT 
Video Lottery Terminal
Definitions and Glossary of Terms
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Company Information and Professional Advisors
Directors
R B Hoyle Executive Chairman
L L Alvarez Group Co-Chief Executive
N V Crowley Group Co-Chief Executive
J W O’Halleran Chairman UK and Ireland
D Page Chief Financial Officer – to 22 January 2007
J B Paul Senior Non-Executive Director
D C Mace Non-Executive Director
C H B Mills Non-Executive Director
Company Secretary
S Albion
Registered Office Address
3 The Maltings
Wetmore Road
Burton-on-Trent
Staffordshire DE14 1SE
Company number
05804323
Auditors
PricewaterhouseCoopers LLP
Donington Court
Pegasus Business Park
Castle Donington
East Midlands DE74 2UZ
Solicitors
Travers Smith
10 Snow Hill
London EC1A 2AL
Reed Smith Richards Butler LLP
Minerva House
5 Montague Close
London SE1 9BB
Nominated Advisor and Broker
Evolution Securities Limited
100 Wood Street
London EC2V 7AN
Financial Advisor to the Company
Sphere Partners Limited
50 Albemarle Street
London W1S 4BD
Financial Public Relations
Fishburn Hedges
77 Kingsway
London WC2B 6SR
Bank
Royal Bank of Scotland
135 Bishopsgate
London EC2M 3UR
Registrars
Capita Registrars
The Registry
34 Beckenham Road
Kent BR3 4TU
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67
Notes
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Notes The UK’s leading
operator of
pay-to-play gaming,
betting and
entertainment terminals
The leading provider
of Open Server 
Based Gaming 
and Vending platforms 
in the UK
BAFTA winning
CGI and Effects
company
and creators of
INGG’s Virtual Racing
The leading provider
of Open
Server Based
Gaming systems
worldwide
The premier
content provider
for Open
Server Based
Gaming systems
ANNUAL REPORT AND ACCOUNTS 2007 INSPIRED GAMING GROUP PLC
Inspired Gaming Group plc
Inspired Gaming Group plc is a 
leading provider of Server Based 
Gaming systems and is the pioneer 
of Open Server Based Gaming 
(Open SBG™). Its Open SBG™ 
software platform supports an 
extensive range of content and 
hardware from third parties. This 
unprecedented flexiblity enables 
our customers to maximise the 
benefits of Server Based Gaming 
through the provision of greater 
choice to their player bases.
In the UK, the Group has built on its heritage as the largest operator of 
analogue gaming machines by transforming itself into a leading provider 
of SBG terminals. It currently operates 23,000 digital networked terminals 
including the largest estate of Fixed Odds Betting Terminals and skill with 
prize machines. Key customers include William Hill, Gala Coral Group, 
J D Wetherspoon and Mitchells & Butlers. The Group currently operates 
over 77,000 machines in the UK in total.
Inspired Gaming Group plc provides Open SBG™ software systems and 
digital networked terminals in 10 countries today. Significant customers 
include The Coca-Cola Company, Codere and Tabcorp.
The Group operates a number of highly regarded brands in the field 
of machine operation, software development, content development 
and machine design.
Business Highlights 1 
Our Markets 2
Our Products 3
Chairman’s Statement 4 
Group Co-Chief Executives’ Statement 8
Business and Financial Review 14
Board of Directors 18
Directors’ Report 20
Corporate Governance Report 22
Corporate and Social Responsibility 24
Statement of Directors’ Responsibilities 26
Independent Auditors’ Report 27
Consolidated Profit and Loss Account 28
Balance Sheets 29
Consolidated Cash Flow Statement 30
Consolidated Statement of 
Total Recognised Gains and Losses  31
Reconciliation of Movements in Equity 
Shareholders’ Funds  32
Notes to the Financial Statements 33
Definitions and Glossary of Terms  65
Company Information and Professional Advisors  66
Contents www.inspiredgaminggroup.com
Leader in Open  
Server Based Gaming
Inspired Gaming Group plc
Annual Report and Accounts 
For the period ended 29 September 2007
3 The Maltings 
Wetmore Road
Burton-on-Trent
Staffordshire
United Kingdom
DE14 1SE
Email: info@ingg.com
Tel: +44 (0)1283 512777
Fax: +44 (0)1283 519200
Inspired Gaming Group plc Annual Report and Accounts 2007