sportech plc annual report and accounts 2013
a leader in pools 
and tote betting
b r a n d g u i d e l i n e s
june 2010  version 12
sportech plc annual report and accounts 2013 sportech plc annual report and accounts 2013
b r a n d g u i d e l i n e s
june 2010  version 12
sportech plc is a sports gaming and 
entertainment company and one 
of the worlds leading pool betting 
organisations focusing on highly 
regulated markets worldwide
business overview
01 highlights of the year
02 what we do
04  why we are unique
06 where we operate
08  chairman’s statement
strategic report
10   chief executives review
12 our business model and strategy
 1 4  principal risks
 16 financial review
19 operational review
22  corporate social responsibility
corporate governance
24  board of directors and 
company secretary
26  sen i o r m a n a g em en t
27  shareholder and corporate information
28 corporate governance
36  report of the remuneration committee
54  d i re c t o r s  re p o r t
57   independent auditors’ report
financial statements
61   consolidated income statement
62   consolidated statement 
of comprehensive income
63   statements of changes in equity
64  balance sheets
65  statements of cash flows
66 accounting policies
75  notes to the financial statements
we have a presence in 25 countries and process over 13bn of bets annually our potent 
combination of heritage responsibility technology and geographical reach places sportech 
in a unique position in the gaming sector
find out more 
wwwsportechplccom annual report and accounts 2013 sportech plc
 business overview corpor a te governance str a teg ic r e p ort financial st a tements
01
highlights of the year
progress against strategic objectives 
with good us momentum
strategic and operational highlights
sportech racing and digital
→  new contracts signed with major gaming businesses 
in the us denmark and uk
→  launched innovative mobile and online products
→  strengthened european operations through the 
acquisition of data tote 
→  integration of ebet complete with synergies realised 
→  formed joint ventures with nyx and picklive to 
supply online gaming and fantasy sports games 
sportech venues
→  opened flagship sports bar restaurant and betting 
venue in bradley connecticut
→  launched exclusive online horserace betting platform 
for connecticut customers
→  signed development agreement to rollout an estate 
of branded sports bars and betting venues in california
football pools
→  increase in spend per head has partially offset 
forecast player number decline
→  successful new player recruitment through direct 
marketing offset by overall player decline
new divisional structure 
→  disposal of the lossmaking uk egaming business
→  established three focused divisions
126
83
53
2013 2011 2012
capex £m
£126m
see also
→ financial review p16–18
260
252
249
2013 2011 2012
ebitda £m 
from continuing operations
£260m sportech plc annual report and accounts 2013
 business overview
focused on
pools betting
sportech plc is one of the largest suppliers and operators of parimutuel pools 
betting in the world with a strong network of systems services and venues
02
what we do
see also
→ our business model and strategy p12–13
clear bet track play quantum bet fund bet jet
j ust f o r w i n ne r z
racing
racing
we are the largest international 
provider of parimutuel systems and 
services building on a rich history 
by investing in new technologies 
and wagering entertainment venues
football
at the core of our business 
is the world’s oldest football 
gaming business embracing 
technological solutions to deliver 
a new customer experience  business overview corpor a te governance str a teg ic r e p ort financial st a tements
football
the football pools was founded in 1923 and we 
are very proud that our operational centre is still 
based in liverpool in the northwest of england
over the last 90 years the football pools has 
been famous for creating winners having paid 
out over £3bn in prize money to its customers 
the football pools has 360000 players 
every week
→ operational review p21
racing
sportech racing processes over 13bn of bets 
across 30 countries and is recognised within the 
industry as the global market leader
we provide a wide range of wagering technology 
solutions to racetracks offtrack betting networks 
otbs internet wagering operators and casinos 
our customers are some of the biggest racing 
organisations in north america europe latin 
america the caribbean and asia we have betting 
and entertainment venues in connecticut california 
and the netherlands
→ operational review p19 and p20
1923
the  football pools 
was founded
13bn
worth of bets 
processed
£3bn
paid out to customers 
over the last 90 years
50
of north american 
tote racing bets 
processed
03 sportech plc annual report and accounts 2013
 business overview
why we are unique
a unique
combination of heritage responsibility 
geographical reach and technology
geographical 
reach
sportech has a presence 
in 25 countries and is 
licensed by 36 agencies 
worldwide
heritage and 
responsibility
we work with governments 
and regulators to provide 
sustainable and socially 
responsible gaming
technology
our data centres are 
staffed by computing 
industry practitioners as 
well as wagering 
specialists
sportech is uniquely positioned 
in the gaming sector offering 
customers a broad range of 
products some of the most 
trusted and established brands 
in gaming and a heritage that is 
second to none
pools gaming is the most 
prevalent form of sports betting 
in the world and is worth an 
estimated 80bn every year
we are the operator of 
the world’s oldest football 
gaming business  annual report and accounts 2013 sportech plc
 business overview corpor a te governance str a teg ic r e p ort financial st a tements
05
technology
→  we continue to significantly modernise our 
technology and product offering to stay at 
the forefront of the dynamic gaming industry
→  technology is fundamental to our business 
and forms the core of our offering for all 
of our customers
→  we continue to invest in and adopt new 
technology and improve our offering through 
product innovation to ensure we have the 
best performing and most relevant solutions 
for our customers and business partners
£38m
spent in 2013 
on technology 
enhancements 
geographical reach
→  sportech has operational presence in 
25 countries worldwide and customers in 
all the major tote betting markets globally
→  our racing business is operational in 34 
states in north america placing the group 
in a strategically important position to take 
advantage of regulatory change
→  we have 15 betting venues in connecticut 
us varying in size from sports bar concession 
models of 1000 sq ft to stand alone venues 
of 4000 sq ft to owned flagship venues of 
50000 sq ft
→  we also have satellite locations in california 
and we are building sports bar concept 
venues the first to be opened in summer 2014
25
countries in 
which sportech 
has a presence
982
employees based 
in nine countries
heritage and responsibility
→  the football pools celebrated its 90th year in 
2013 and is the worlds oldest gaming company 
with unrivalled integrity and heritage
→   pools gaming is the most prevalent form of 
sports betting in the world and is worth an 
estimated 80bn every year in some markets 
it is also the only legal way to bet on sports
→  pools gaming also makes a positive impact 
on the uk economy contributing millions of 
pounds every year through gaming duty vat 
and corporation tax as well as creating direct 
and indirect employment
90
years of the 
football pools
£13bn
donated to sports 
arts and good causes
30
betting websites 
maintained and 
operated in the us sportech plc annual report and accounts 2013
 business overview
06
where we operate
a presence
in 25 countries and 34 north american states 
and licensed by 36 agencies worldwide
tote services and 
equipment sales
argentina
australia 
austria
canada
chile
cyprus
denmark
dominican republic
finland
germany
ireland
korea
panama
peru
puerto rico
spain
sweden
the netherlands
turkey
united kingdom
usa
football pools 
customers
bermuda
france
gibraltar
ireland
mauritius
united kingdom
germany
spain
uk
ireland
the netherlands liverpool
berlin
united states
canada
connecticut
california
new jersey
dominican republic
gibraltar
mauritius
bermuda
puerto rico
panama
peru
chile
argentina
venues
california
connecticut
the netherlands
data centres
berlin
liverpool
new jersey
france
austria
australia annual report and accounts 2013 sportech plc
 business overview corpor a te governance str a teg ic r e p ort financial st a tements
07
racing
football
we provide a wide range 
of betting technology solutions 
to racetracks offtrack betting 
networks internet wagering 
operators and casinos 
the football pools is the 
world’s oldest football gaming 
business with unrivalled integrity 
and heritage 
sportech racing and digital 
our tote services division has over 300 customers across 
north america south america canada the caribbean asia 
and europe we sell our systems and hardware to customers 
in europe as well as south america asia and australasia 
our digital division offers services to customers located 
in north america and across the world as licences permit
connecticut venues
we have the exclusive and in perpetuity licence to operate 
venues in the north american state of connecticut where 
we currently have 15 venues open our licence allows us 
to have 18 venues and also gives us the right to exclusively 
offer betting on horseracing and greyhounds online to 
connecticut residents
our position in california
we currently have seven locations in california where 
we offer betting on horseracing and greyhounds these are 
typically small areas within larger facilities such as bowling 
alleys and card rooms the locations are across the state 
of california and we plan to open further venues of a similar 
size in the near future in addition our plan is to open sports 
bars with betting facilities across the state over time the 
first of which is due to open in mid2014 we have secured 
approval to open ten such facilities in total subject to 
local town approvals being obtained
strong core business
the business continues to be proudly based out of liverpool 
uk and has customers across the globe playing the football 
pools regularly
technology investment
our modernisation programme for the football pools 
which began two years ago will be completed in 2014 
and will provide customers with single wallet functionality 
and the ability to play a range of games on mobile and 
tablet devices
charitable donations
since the mid1970s the football pools has contributed 
£13bn at today’s value to football and other sports the arts 
and charitable causes today £05m is generated annually 
for charitable causes through the management and operation 
of society lottery products 
34 states
in which sportech is operational 
within north america
71
of usa population and gdp in states 
which sportech is licensed
180
employees located in our 
liverpool headquarters
360000
customers playing the football pools 
every week sportech plc annual report and accounts 2013
 business overview
08
chairman’s statement
performance and dividend
it has been a year of strategic progress for the group our 
highly regulated gaming businesses in the us which now 
represent 60 of the group’s revenues continue to grow 
and take advantage of our unique regulatory and licensing 
position the football pools had a solid year taking 
important steps to arrest the decline in customers and 
generating strong cash flows
during the year the group acquired data tote in order 
to strengthen our european operations established joint 
ventures with nyx gaming and picklive us to focus on the 
emerging igaming and fantasy sports markets in the us 
and disposed of our lossmaking uk focused egaming 
business these strategic transactions leave the group 
increasingly focused on our key growth markets and 
the opportunities they present 
basic earnings per share from continuing operations 
amounted to 17p 2012 03p adjusted profit before tax 
from continuing operations was £145m 2012 £149m 
with adjusted basic earnings per share of 53p 2012 54p 
primarily as a result of an increased depreciation charge
your board is focused on growing the business and using its 
cash flows to develop the opportunities presented primarily 
in the us to facilitate this and as in previous years no 
dividend is proposed for the year ended 31 december 2013 
the board continues to assess the appropriate time to 
commence dividend payments
summary
→  a year of strategic progress 
for the group
→  earnings per share from continuing 
operations amounted to 17p 
2012 03p
→  we have the right strategy 
in place to capitalise on 
unique opportunities
“ y our board is focused on growing 
the business and using its cash 
flows to develop the opportunities 
presented primarily in the us” annual report and accounts 2013 sportech plc
 business overview corpor a te governance str a teg ic r e p ort financial st a tements
09
to support delivery of these opportunities we have 
combined the tote services and interactive products 
divisions into one larger organisation sportech racing 
and digital together with sportech venues and the 
football pools this focused divisional structure will 
drive the groups future performance
board effectiveness
as chairman i am responsible for ensuring your 
board remains effective i work closely with ian penrose 
sportech’s chief executive to ensure your board provides 
the appropriate support and guidance to the executive 
team the board carries out an annual performance review 
in december of each year analysing the effectiveness 
and efficiency of the board the board members and the 
individual committees as a byproduct of this the board 
has decided to extend the duration of each board meeting 
and hold three board meetings a year at its us operating 
businesses this will ensure that the quality and depth of 
discussion is increased and as a consequence we have 
reduced the number of scheduled board meetings a year 
from nine to seven
→ corporate governance p2835
last year we endeavoured to implement changes to 
our directors remuneration report this year we have 
implemented the department of business innovation 
and skills requirements in full and you can read the 
report on pages 37 to 53 our objective is to ensure 
that remuneration arrangements clearly reflect our 
strategic objectives and that the interests of management 
and shareholders are properly aligned
board and employees
there have been a number of changes to the board during 
the financial year cliff baty was appointed chief financial 
officer on 14 may 2013 cliff brings with him considerable 
industry experience having previously worked in senior 
financial roles at ladbrokes plc rich roberts was appointed 
to the board as a nonexecutive director on 3 december 2013 
rich lives in new jersey us and has many years experience 
developing businesses in the digital mobile social and 
igaming markets in the us i am pleased to welcome them 
both to the sportech board
→ board of directors and company secretary p2425
john barnes resigned from the board on 3 december 2013 
following seven years as a nonexecutive director and 
mor weizer resigned from the board on 20 june 2013 i would 
like to thank both john and mor for their contributions and in 
particular john for his longstanding commitment to the group
sportech’s international reach and large customer base 
places large demands on our executives and employees 
and the board would like to thank them for their dedication 
and commitment to the group
outlook
looking ahead i believe we have the right strategy in place 
to capitalise on the significant opportunities that exist for 
sportech across its divisions and i look forward to working 
with the board and executive team to build on the 
successes to date
roger withers
chairman
5 march 2014  str a teg ic r e p ort
sportech plc annual report and accounts 2013
chief executive’s review
overview 
sportech is one of the worlds leading operators and suppliers 
of pools betting services occupying a unique position in the 
highly regulated and emerging gaming markets worldwide
in 2010 sportech established itself as one of the largest 
european based gaming businesses with significant operations 
in the united states since that time the group has continued 
to invest in its businesses such that over 60 of group 
revenues are now generated from our usbased operations 
where we are licensed by gaming regulators in 24 states 
employing 700 people across field operations and four 
corporate offices 
the group’s focus continues to be to build a multiplatform 
retail telephone and online dynamic gaming business in the 
us initially focusing on the legal and highly regulated gaming 
operations of horseracing and greyhounds we will seek to take 
advantage of organic business development opportunities 
subsequently we plan to use this strong and expanding 
platform to position the group for broaderbased gaming 
opportunities as regulation evolves over the coming years
summary
→  the group has delivered a good set 
of results in a transformational year
→  we have strengthened the 
management team and board
→  we remain well positioned for future 
growth in the us market and have 
entered 2014 with confidence
“ the group has continued to 
invest in its businesses so that 
over 60 of the group revenues 
are now generated from our 
us‑based operations”
10  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 11
during 2013 the group made good progress in line with its 
strategy we continued to invest in our operations to leverage 
our unique exclusive licensing position in connecticut us and 
last month launched both the only legal website in connecticut 
for betting on horseracing and opened a flagship sports bar 
restaurant and betting facility in bradley the investment is 
aimed at increasing the distribution of racing and widening the 
exposure and thrill of betting on horseracing to a sportbased 
audience in another major step forward we were able to 
develop our extensive operations in california where we 
process all betting on horseracing around 18bn per annum 
by obtaining a licence to develop a chain of branded betting 
venues restaurants and sports bars the first venue will open in 
norco near los angeles in the summer of 2014 furthermore 
we have invested in our core tote betting technology and in 
december launched a suite of marketleading online and 
mobile betting products for our customers
corporately and in line with our strategy of enhancing our 
product range in the us we established joint ventures with 
nyx gaming and picklive us to focus on the emerging igaming 
and significant fantasy sports markets furthermore we 
acquired data t ote for an initial consideration of £31m in order 
to strengthen our european tote betting operations whilst our 
lossmaking ukfocused egaming business was sold towards 
the end of the year for £30m these strategic transactions 
leave the group increasingly focused on the attractive 
opportunities in our key growth markets
the group has also made a number of organisational changes 
establishing three key divisions we have created sportech 
racing and digital which combined the former sportech 
racing sportech interactive products and services and also 
ebet in order to create one cohesive larger division to provide 
all terrestrial online and mobile betting technology products to 
our customers this division is managed by andrew gaughan 
our sportech venues business operating connecticuts 
exclusive betting operations in retail venues on the telephone 
and now online at mywinnerscom is led by t ed t aylor and our 
uk football pools business is led by conleth byrne as a 
consequence of the increase in the groups activities overseas 
and the reduction of activity in the uk following the sale of the 
lossmaking egaming activity ian hogg has decided to leave 
the group at or before the end of the year for personal reasons 
as he does not wish to increase his duties overseas
the group is pleased to have increased its ebitda from 
continuing operations in 2013 by £08m to £260m with ebitda 
from usbased activities increasing by over 20 the football 
pools business delivered a strong performance with ebitda 
of £174m representing 58 of group ebitda before central 
costs the football pools division is making good progress 
towards stabilisation of its direct revenues and generates strong 
cash flows
outlook
we have launched a number of growth initiatives in february 
this year notably the exclusive online betting website and the 
innovative sports bar restaurant and betting facility both in 
connecticut we continue to make progress in california and 
our new technology developments are being well received by 
customers however the severe snow storms and extreme cold 
weather across the east coast of the us have resulted in the 
closure of our retail venues on several days this year and there 
have been 170 race cancellations to date in 2014 compared to 
54 in 2013 whilst this has impacted on the performance of our 
us operations the board remains confident in the groups 
prospects for the full year ahead
ian penrose
chief executive
5 march 2014  str a teg ic r e p ort
sportech plc annual report and accounts 2013 12
our business model and strategy
our business model
the group is well positioned to capitalise on future growth 
opportunities across its key markets
leaders in responsible gaming
regulatory and licensing leadership
extensive licensing across the uk 
netherlands and usa
core business strength
use of steady income streams from our existing assets 
allows us to invest in other areas
usa expansion
 investment in the 
us business is 
driving growth
acquisitions
acquisitions strengthen 
our european and 
us operations
focus on 
poolstote betting
shareholder 
value
committed to communities and good causes
your board is committed to increasing 
shareholder value in a sustainable way in order 
to deliver long term returns to shareholders
supported by strategic positioning and 
capitalising on our heritage geographical reach 
and infrastructure we believe our business model 
will enhance shareholder value  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 13
→  stabilise our football pools 
offline revenues from 2015
→  maintain our significant share of 
the usa racing pools market
→  increase our group’s digital 
earning capabilities
→  drive value from our exclusive and 
in perpetuity licence for betting 
on horseracing in connecticut
→  evaluate opportunities arising 
in california
→  invest in innovation and new 
technologies to remain at the 
forefront of the industry
→  be first to market and capitalise 
on regulatory change 
→  growth through strategic acquisition
→  continuous leadership in technology 
enhancement
→	 modernisation of the football 
pools has advanced at pace and 
will be complete in 2014
→	 new customer wins in 2013 include 
penn national gaming and our 
market share has been maintained
→	 ebet has been integrated achieving 
the expected synergies and 
contribution to group earnings
→	 venue in bradley connecticut has 
undergone 4m investment 
to create highend sports bar
→	 licensing and location secured for 
first new sports bar in california
→ 	 new technologies launched to the 
market in tucson in december 2013 
with significant interest generated
→	 significant lobbying 
programmes pursued
→	 acquisition of data tote to 
strengthen offering in europe
→	 patents secured for various 
technological investments
→	 complete detailed process of 
operational modernisation
→	 focus on product enhancement 
and wider distribution
→	 expand our suite of products 
online to complement developing 
our venues and telephone 
betting business
→	 develop further venue 
opportunities in connecticut 
to capitalise on our licence 
→	 open sports bar in california to 
launch new concept to the market
→	 drive value from the group’s 
patented new technologies
→	 lobbying in key us states to 
encourage regulatory change
→	 use footprint in the us to 
develop nyx joint venture 
opportunities in igaming markets
→	 build a branded sports bar and 
restaurant business in california
strategic priorities
2013 achievements
focus for 2014
our strategy
the group’s strategy is to develop sportech’s position 
as one of the world’s leading sports gaming companies
modernising core businesses 
to secure cash generation
industry leaders in highly 
regulated markets
capitalise on opportunities 
as markets regulate
our core 
business
investment 
for growth
future 
plans 1 2 3  str a teg ic r e p ort
sportech plc annual report and accounts 2013 14
principal risks
the group operates under a number of 
licences across worldwide jurisdictions 
including the uk and us the loss or 
inadvertent breach of any such licence 
could have a significant impact on the 
group’s ability to continue to trade 
within that and other jurisdictions 
and therefore on the group’s trading 
and results in addition such loss or 
inadvertent breach would potentially 
lead to the imposition of fines and 
penalties on the group and could lead 
to substantial legal costs in certain 
jurisdictions personal liability rules 
could lead to imprisonment of group 
personnel there would also be the 
threat of reputation damage hindering 
the expansion of the business into 
other jurisdictions
a significant proportion of the 
group’s annual income is derived from 
consumer facing activities and is thus 
subject to the impact of economic 
downturns any significant downturn in 
the economy could lead to a negative 
impact on the results of the group and 
its cash flows
the importance of measuring risk
our risk management approach is to look at risks arising from all areas of the business both 
through a topdown and bottomup approach the executive boards of the three main business 
units assess on an ongoing basis and formally update their businessspecific risk registers 
quarterly the board regularly reviews the risks associated with the group’s activities and strategy 
and formally reviews a group risk register annually in reviewing such risks the board ensures that 
appropriate systems and controls are in place to mitigate the occurrence and impact of such risks
risk registers identify the most significant risks to the business and rate each risk on an unmitigated 
basis first and then a mitigated basis following assessment of controls and processes in place 
to reduce the impact of the risk
the table shows the most significant risks to sportech plc as a group the potential impact of 
such risks and the mitigating activities the group carries out to reduce the likelihood and impact 
of such risks the movement in the level of the risk in the board’s opinion is also indicated
the group considers that its licences to operate around the world are 
a key asset to the business and as such looks to mitigate the inherent 
risk within this area as follows
→ 	 the group employs a director of corporate affairs one of whose 
primary roles is to ensure compliance with the requirements of our 
licences worldwide
→ 	 a key aspect of this is monitoring the territories from which 
business is accepted to ensure that the threat of legal action 
against the group is minimised and that territories presenting 
criminalterrorist money laundering risk are avoided
→ 	 the group employs a group general counsel in the uk to aid 
compliance issues and also employs a general counsel within 
its key us subsidiary sportech inc
→ 	 the group employs thirdparty specialist legal counsel as 
appropriate to ensure relationships with regulatory bodies 
are maintained at the highest level
→ 	 regular updates and training are provided to those employees 
involved in areas of the business that have inherent regulatory risk 
policies and procedures are in place to which staff adhere and
→ 	 where commercially realistic insurance policies are available they 
are purchased
management has taken and continues to take mitigating actions 
to protect the group from current and potential operational and 
commercial risks in respect of economic and currency downturn
→ 	 operating cost bases within the key operational divisions are 
structured to offset potential declines in revenue
→ 	 revenue channels have been and continue to be expanded in terms 
of both product and territory by the acquisition of a broader base 
of revenue streams for the group
→ 	 where possible fixed income contracts in respect of sportech 
racing have been entered into with our customers limiting 
downside risk and
→ 	 management reviews performance against budget on a regular 
basis which would highlight the need to implement change
level
the group continues 
to operate in the 
same jurisdictions 
and monitors the 
changing gaming 
environment there 
have been no 
detrimental changes 
during the period 
of note
reducing
world economies 
in which the group 
operates continue to 
steadily recover from 
the recent economic 
downturns
risk description mitigating activities change
−
↓
appropriate risk 
management aids 
effective decision 
making and helps to 
ensure the risks the 
business takes are 
adequately assessed 
and challenged
regulatory – licences
operational – economy  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 15
the group has historically been 
relatively highly leveraged and 
dependent on the provision of debt 
financing to enable it to continue its 
operations the change in the credit 
markets that occurred over the last 
few years increased the cost of bank 
debt and reduced the availability 
of alternate sources of finance the 
group refinanced its debt in july 2012 
extending its term to august 2015
credit markets are tightening providing 
the opportunity for the group to reduce 
its cost of debt going forward
the group runs a number of venues 
offering parimutuel wagering 
principally in the state of connecticut 
usa and the netherlands these 
operations involve the handling of 
significant sums of cash in addition 
the venues are used by a high number 
of customers on a daily basis the 
group therefore has a significant health 
and safety risk in respect of both its 
employees and its customers
the group 
→ 	 refinanced in the summer of 2012 and now has three principal 
lenders bank of scotland plc barclays bank plc and royal bank 
of scotland plc we maintain very close relationships with each 
finance lender
→ 	 continues to be focused on cash generation to improve its 
financial position
→ 	 maintains relationships with potential future finance partners and 
keeps abreast of changing credit market conditions and
→ 	 monitors its performance against covenants on a regular basis
the group takes the following actions to ensure the health and safety 
of its employees and customers
→ 	 suitably qualified health and safety managers are employed by the 
group to ensure compliance with group policies
→ 	 security processes and procedures are in place to ensure excess 
cash is stored in timedelay safes and then removed from venues 
as soon as possible
→ 	 appropriate insurance cover is maintained and
→ 	 there is a continual investment programme to refresh and update 
venues health and safety requirements are addressed accordingly
level
the group’s facilities 
are in place for 
another 18 months 
with a one year 
extension option
level
there has been no 
change in the group’s 
operations and thus 
no change in the 
level of the risk
risk description mitigating activities change
a significant proportion of the group’s 
annual income is dependent on 
technologyled products
management ensures that the risk posed by technology is mitigated 
where possible as follows
→ 	 the group has two worldclass data centres established in its key 
trading jurisdictions which host the group’s key technology solutions
→ 	 the group continues to invest heavily in upgrading its technology 
solutions to ensure compliance with best practice
→ 	 group systems principally in the usa and in the netherlands are 
subject to annual thirdparty audit to provide assurances to our 
customers that our systems are robust and complete 
→ 	 where thirdparty software is utilised leading technology 
providers are chosen as suppliers of choice and
→ 	 comprehensive disaster recovery procedures and infrastructure 
are in place and are regularly reviewed and tested insurance cover 
is obtained to mitigate the cost of business interruption
reducing
the group has 
invested significantly 
during the period in 
upgrading technology 
thus continuing to 
reduce this risk
↓
−
−
financial
health and safety
operational – technology  str a teg ic r e p ort
sportech plc annual report and accounts 2013
financial review
overview
group revenue from continuing operations was slightly 
ahead of prior year at £1103m 2012 £1077m ebitda 
from continuing operations increased by 3 to £260m 
2012 £252m driven by growth in sportech racing and 
digital which offset the decline in football pools adjusted 
profit before tax was £145m 2012 £149m impacted by an 
increased depreciation charge following capital investment 
profit after tax was £34m 2012 £13m with basic earnings 
per share from continuing operations of 17p 2012 03p 
and adjusted earnings per share of 53p 2012 54p net 
debt at 31 december 2013 was £634m 2012 £571m
an analysis of group revenue ebitda and operating profit 
by division is shown on page 18
corporate costs
corporate costs of £39m 2012 £38m have been managed 
carefully and remain in line with the prior year in addition 
we also have a noncash share option expense under ifrs 2 
of £15m 2012 £14m
depreciation and amortisation
the group’s normal depreciation and amortisation charge 
increased in the period to £57m 2012 £48m principally 
due to the ongoing capital expenditure in our businesses in 
north america in addition the group incurred a noncash 
summary
→  revenue increased by 2 to £1103m 
2012 £1077m
→  ebitda increased by 3 to £260m 
2012 £252m
→  adjusted profit before tax 
decreased by £04m to £145m 
2012 £149m
→  statutory profit before tax increased 
to £52m 2012 £13m
→   adjusted earnings per share 
“eps” fell 2 to 53p 2012 54p
→   year end net debt of £634m 
2012 £571m
“ the £95m v a t claim was determined 
in the groups favour in march 2013 
although an appeal will be held on 
29 and 30 april 2014”
  ebitda is from continuing operations and is stated before 
exceptional costs and share option expense 
   adjusted numbers are from continuing operations and are 
stated before amortisation of acquired intangibles 
exceptional costs share of loss after tax of joint ventures 
and other finance incomecharges
16
capex spend analysis chart £m
28   technology enhancement  
in sportech racing and digital
23  bradley sports bar
17    tote services 
contract renewals 
15   football pools 
modernisation  
programme
10   existing venue 
investment
10   data centre upgrades
05    discontinued operations
18  other  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 17
amortisation charge of £72m 2012 £59m on the intangible 
assets acquired with vernons in 2007 ebet in 2012 and data 
tote in 2013 the vernons charge continues at an annualised 
£59m until june 2014
exceptional costs
the group has incurred exceptional costs of £27m 
2012 £28m in the twelve month period these costs 
include restructuring and other costs of £13m 2012 £13m 
compensation for loss of office of £03m 2012 £03m 
costs in relation to the new jersey licence of £03m 
2012 £04m transaction costs in relation to acquisitions 
of £03m 2012 £06m and legal costs of £05m in 
connection with the “spot the ball” vat claim 2012 £02m
net finance costs
the group has incurred net interest costs in the period 
of £43m 2012 £41m in addition other finance income 
amounted to £08m 2012 charges of £47m primarily 
being the fair value movement on interest rate swaps 
net bank debt 
the group has a £75m revolving credit facility until 
august 2015 which is enabling the board to invest in strategic 
opportunities particularly in the usa net bank debt has 
increased by £63m in the twelve month period to £634m 
31 december 2012 £571m reflecting capital spend of £126m 
as well as £94m investment in acquisitions the group’s bank 
leverage ratio for covenant testing purposes net bank debt
adjusted ebitda was 241x as at 31 december 2013 
31 december 2012 212x at 31 december 2013 this leverage 
covenant was 30x net bank debtadjusted ebitda
total shareholders’ equity and the group’s net assets have 
increased to £1397m 31 december 2012 £1354m
acquisitions and disposals
during the year the group acquired data tote for £31m 
in cash consideration with a potential further deferred 
consideration payment of £10m in the event that the 
business meets certain growth performance targets for 
the period to 30 june 2016 of this deferred consideration 
£01m was accrued at the acquisition date with £09m 
accrued over the performance period subject to ongoing 
assessment of expectations cash on balance sheet at the 
acquisition date was £07m
total fair value of assets recognised was £32m with resultant 
goodwill of £nil acquisition costs totalled £02m
on 30 september 2013 £65m was paid to scientific games 
corporation inc representing deferred consideration 
in relation to the 2010 acquisition of sportech racing 
performance targets for the contingent element of 
consideration were not met by 31 december 2013 and no 
further payments under the acquisition agreement are due 
in addition £03m was paid in december 2013 in deferred 
consideration for the 2012 acquisition of ebet online inc 
a further £07m is due to be paid in december 2014 with 
additional maximum potential consideration due of £09m 
based on future performance
the group disposed of its egaming business to netplay tv 
group limited on 31 october 2013 for total cash consideration 
of £30m this generated a net profit after tax from 
discontinued operations of £01m including trading losses 
and costs of disposal this disposal followed a strategic 
review that concluded the business was not of sufficient 
scale ahead of the implementation of uk point of consumption 
tax which would impact the business significantly
1103
1077
1147
2013 2011 2012
revenue 
£m
£1103m
145
149
151
2013 2011 2012
adjusted profit 
before tax £m
£145m
244
266
257
2013 2011 2012
cash generated from 
operations £m
£244m
key performance indicators  str a teg ic r e p ort
sportech plc annual report and accounts 2013 18
ebitda bridge
financial review continued
vat claim
the vat repayment claim in respect of the “spot the ball” 
game was successfully determined in the group’s favour 
by the firsttier tax tribunal “ftt” in march 2013 hmrc 
has been given leave to appeal this decision to the upper 
tribunal and the appeal hearing will be held on 29 and 
30 april 2014 the claim is for approximately £95m 
including simple interest
we are pleased with our success to date and remain confident 
in our arguments and a successful outcome of the appeal 
the claim has not been recognised in the group’s 
financial statements
dividend
no dividend is proposed the board will continue to assess 
when to commence the payment of a maiden dividend in 
consideration of the group’s financial position business 
performance and future growth opportunities 
taxation 
a tax charge for the period of £19m 2012 £08m has been 
provided at the weighted average applicable tax rate for the 
group of 268 2012 365 the group has a net deferred 
tax asset of £07m 31 december 2012 £13m representing 
primarily foreign taxes withheld which can be utilised against 
future profits and deferred tax provided on unvested share 
options and on interest rate swap liabilities tax payments 
of £17m were made during the period 2012 £20m 
principally representing final payments for prior year tax 
liabilities and overseas tax deducted at source
share capital
during the year 60m shares were issued to settle employee 
share options under the 2010 performance share plan 
award increasing issued share capital to 204851114
cliff baty
chief financial officer
5 march 2014
revenue
2013
£m
2012
£m
change
£m
sportech racing 
and digital
359 317 42
sportech venues 341 337 04
football pools 413 429 16
intersegment 
elimination
10 06 04
total 1103 1077 26
operating profit 
2013 
£m
2012
£m
change
£m
sportech racing 
and digital
48 33 15
sportech venues 34 33 01
football pools 160 175 15
corporate costs 53 51 02
intersegment 
elimination
01 — 01
total 188 190 02
ebitda
2013
£m
2012
£m
change
£m
sportech racing 
and digital
77 55 22
sportech venues 48 47 01
football pools 174 188 14
corporate costs 38 37 01
intersegment 
elimination
01 01 —
total 260 252 08
  operating profit before amortisation of acquired intangibles 
and exceptional costs
net debt bridge
2012  
net debt
cash from 
operations
working 
capital
interest 
paid
tax  
paid
exceptional  
costs
acquisition 
and jv
capex
2013  
net debt
2012 
ebitda
football 
pools
sportech 
racing and 
digital
sportech 
venues
corporate
costs
2013 
ebitda
634
571
252
265
22
01
01
260
14
21
43
17
27
94
126  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 19
operational review
overview
sportech racing and digital has a leading position worldwide 
in the provision of tote software both through land based 
terminals and online solutions including mobile and tablet 
devices the business processes 13bn of bets annually and 
is licensed in 24 states in the us with offices and operational 
centres in atlanta new jersey ireland germany and the uk 
the business has invested heavily in technology including 
its suite of mobile applications known as digital link which 
delivers an array of wagering and account management 
services through the racing consumer’s own smart phone in 
conjunction with the ontrack wagering devices in addition 
the division has developed a new online betting platform 
g4 to improve consumers’ online betting experience 
these investments will support the business’s future success 
ensuring its competitiveness and generating opportunities 
for increased efficiency through technological developments
during the year the business secured several major new 
contracts including a six year agreement with penn national 
gaming “png” a five year agreement with danske spil the 
stateowned danish gaming operator and terminal sales to 
the uk tote
in september the business purchased data tote a leading 
provider of ontrack and online greyhound and horserace 
betting services in europe this acquisition further strengthens 
our european operations through an increased customer base 
and complementary product suite 
tote services
within tote services we have seen continued strong 
operational performance from our customer within the 
dominican republic following the investment made in new 
terminals last year 
during h2 2013 we wound down our us west coast data centre 
and transferred our operations to a single site in new jersey 
this will deliver improved customer service and cost efficiencies 
in 2014 and beyond revenues of £320m 2012 £301m 
included equipment sales of £41m 2012 £43m and ebitda 
of £70m 2012 £57m was generated
digital
within digital the integration of the ebet business acquired in 
december 2012 has been successfully achieved and expected 
synergies of £02m were delivered in 2013 following callcentre 
rationalisation and transfer of bet processing to our own t ote 
system revenues for 2013 were £39m 2012 £16m with 
ebitda of £07m 2012 loss of £02m in line with 
management expectations 
the digital business has entered into a joint venture with nyx 
gaming group an awardwinning supplier of online gaming 
platforms and content to provide online gaming products 
in addition the business has entered into a separate joint 
venture with picklive limited to develop new fantasy sports 
games targeting the rapidly growing us market both these 
initiatives together with the technological investments in the 
g4 online betting platform and digital link mobile applications 
will help drive future performance
sportech racing 
and digital
key financials
an analysis of revenue and ebitda from our 
sportech racing and digital business is set out 
as follows
2013 
£m
2012
£m
tote services 279 258
equipment sales 41 43
digital 39 16
total revenue 359 317
payroll 150 148
other costs 132 114 
ebitda 77 55
 £359m
revenue
 £7  7m
ebitda  str a teg ic r e p ort
sportech plc annual report and accounts 2013 20
operational review continued
connecticut venues
in the state of connecticut sportech venues operates all 
betting on horseracing under an exclusive and in perpetuity 
licence for retail telephone and internet 
during the year we have invested in our venues and online 
opportunities to support future growth february 2014 saw 
the official opening of the “bobby v’s” sports bar in bradley a 
partnership with baseball legend and experienced restaurateur 
bobby valentine this new 4m facility allows customers to bet 
on horse and greyhound racing while enjoying the amenities of 
a highend sports bar and restaurant also during the year we 
have upgraded the facilities at sports haven our 50000 sq ft 
venue to create sports and games zones together with a 
redesigned bar area we are also progressing the development 
of a potential new site in stamford a city close to the new y ork 
state border with a population of 125000 which currently has 
no gambling venue
february 2014 also saw the full launch of connecticut’s 
only legal online horserace betting platform mywinnerscom 
this launch will be supported by marketing campaigns and 
the issuance of formal cease and desist letters by the 
connecticut authorities
2013 operating performance saw overall revenues £05m 
ahead of prior year with ebitda at £44m 2012 £44m 
with increased content costs being offset by other 
overhead reductions 
other venues
revenue for other venues was £59m 2012 £60m with 
ebitda of £04m 2012 £03m
during 2013 the group provided betting technology and 
services to customers of five thirdparty venues in southern 
and central california a further two outlets have opened in 
early 2014 these outlets are performing well with a strong 
return on invested capital however overall returns are restricted 
due to the limited number of potential venues and the relative 
sportech share of the venues’ profits 
in december we signed an agreement with southern 
california off track wagering inc “scotwinc” for a licence 
to allow sportech to operate up to ten innovative retail venues 
offering customers the ability to bet on horseracing in a 
highend sports bar and restaurant facility the group will 
open the first venue a 10000 sq ft purposebuilt facility in the 
city of norco in the summer of 2014 this location is a joint 
venture between sportech and the silky sullivan group llc 
a food and beverage operator based in southern california 
this agreement will allow the business to benefit from an 
enhanced share of horserace wagering margin together with 
the food and beverage profits from the restaurant facility 
in the netherlands we operate a number of otbs point 
of sale terminals and online betting on horseracing all on 
an exclusive basis under a licence from the ministry of justice 
this licence has been extended until december 2014 when 
the government’s new laws regarding gambling are due to 
come into effect we continue to communicate closely with 
the government regarding these plans
sportech venues
 £34 1m
revenue
key financials
a detailed analysis of our connecticut venues 
financials is set out below
connecticut venues
2013
£m
2012
£m
revenue 282 277
tax 41 42
tracktoteinterface fees 79 71
margin 162 164
payroll 47 44
facility costs 37 40
other costs 34 36
connecticut ebitda 44 44
other ebitda 04 03
total venues ebitda 48 47
 £48m
ebitda  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 21
overview
the strategy of the pools business is to stabilise then grow 
revenues through improved customer retention increase 
spend per head from core customers and recruitment of new 
players to direct debit and online channels modernisation of 
the business continues with investment in technology driving 
efficiencies including consolidation of customers into a single 
database enabling greater crosssell opportunities and a 
lower and more agile operating cost base
revenues for the period were £413m 2012 £429m 
the reduction driven primarily by a £16m decrease in 
the collector and overseas channels ebitda fell by £14m 
to £174m 2012 £188m with cost efficiencies offset by 
increased marketing spend to drive recruitment that will add 
value into 2014 and beyond classic pools average weekly 
customer spend has increased to £267 2012 £258 driven 
by an increase in games to two games per week every week 
as at december 2013 total customer numbers were 360000 
compared to 397000 in prior year in the direct channel 
customer numbers fell by 6 to 248000 importantly we 
also recruited 15000 new customers to this channel through 
our telemarketing investment and will increase this activity 
together with online marketing to drive new player 
acquisition throughout 2014
we continue to broaden our product offering outside our 
core classic pools product and in november our jackpot 12 
pool grew to greater than £600000 with one customer 
winning £440000
to progress our digital offering we have entered into an 
agreement with nyx to develop a new footballpoolscom site 
with greater content flexibility and functionality the full site 
is planned to launch in mid 2014 with mobile and tablet 
applications of classic pools premier 10 jackpot 12 and 
lucky clover being launched during the first half of 2014
football pools
 £4 13m
revenue
key financials
the key performance indicators of our football 
pools division are set out below
2013 
£m
2012
£m
revenue £m 413 429
ebitda £m 174 188
customer numbers 000 360 397
weekly revenue per customer – 
classic pools £
267 258
 £17 4m
ebitda  str a teg ic r e p ort
sportech plc annual report and accounts 2013
 corporate social responsibility
responsibility to our
customers
licences to permit the provision of businesstobusiness 
services for parimutuel betting on horse and greyhound 
racing are held by group companies in over 30 jurisdictions 
in the americas and europe licences for businessto
consumer activity for the same products are held in 
connecticut and holland and for a wider range of gambling 
products in the uk and alderney to ensure that the 
obligations placed on the group under these licences are 
adhered to the group employs a director of corporate 
affairs who is responsible for ensuring that the terms of all 
applicable regulations are met he works closely with the 
group general counsel and local legal counsel to ensure 
the group meets its policy of maintaining the highest 
standards of compliance and integrity the group also 
employs security and compliance staff whose primary role 
is to ensure that our customers are treated fairly that our 
advertising is compliant with advertising standards and 
codes that the young and vulnerable are prevented from 
accessing our products and that abuse and illegal behaviour 
are identified and stopped all gaming products are subject 
to age restrictions and age verification software is used by 
the group where appropriate 
the group actively promotes gamcare the charity 
providing support to those suffering through a gambling 
problem to its customers and nearly £05m has been 
contributed to the responsible gambling trust gamcare’s 
major funder and its predecessor bodies over recent years 
the venues business in connecticut contributes over £01m 
annually to promote responsible gambling in the state
responsibility to
society
the group’s support for communities across the uk is 
virtually unparalleled since the mid1970s the football 
pools has contributed £13bn at today’s value to football 
sport the arts and charitable causes today the group helps 
to generate £05m annually for charitable use through its 
management and operation of society lotteries within its 
football pools business activities
the group was for many years the sole funder of the 
foundation for sport and the arts wwwthefsanet which 
awarded grants amounting to several million pounds each 
year many communities organisations and individuals have 
benefited from modest but critical training bursaries through 
to significant funding for major capital projects the foundation 
finally ceased its activities in 2013 after 22 years of supporting 
communities across the uk with donations worth £630m
further support in recent years has focused on football and 
included donations of over £60m to schemes developed 
with the english and scottish football leagues notably the 
spl’s football fans in training programme promoting fitness 
and weight loss continues to attract international acclaim
in 2013 to celebrate the 90th anniversary of the football 
pools the group has been eager to continue its support 
of grass roots football where we believe the impact is 
the greatest the football pools announced that it would 
partner with charity streetgames in a twoyear funding 
arrangement worth £17m to create a new football programme 
streetgames football pools fives as part of its commitment 
to leave a lasting legacy by donating to sport the arts and 
other good causes the football pools is working closely 
with streetgames to enhance the lives of young people in 
disadvantaged areas and thereby promote change for good in 
their local communities across the uk former england player 
gareth southgate became an ambassador for the programme 
in 2013 and together with his involvement we are looking 
forward to supporting young people through this cause and 
continuing to raise awareness of the scheme in 2014
below young people from all over the uk compete at 
the streetgames football pools fives festival
opposite carers trust receiving a donation of £20000 
as part of an initiative with preston north end fc
22  business overview corpor a te governance str a teg ic r e p ort financial st a tements
responsibility towards the
environment
the group recognises its responsibility to achieve good 
environmental practice and continues to strive for improvement 
in its environmental impact 
the nature of its business results in the principal impact 
arising from energy and paper consumption 
wherever possible waste consumable materials are recycled 
or disposed of in a manner most suitable to reduce any 
impact on the natural environment the group’s business 
practices also encourage environmental good practice and 
the increasing use of technology to facilitate information 
and data collection and dissemination has led to reduced 
demand for paper resources 
all employees are encouraged to participate in the 
implementation of this policy and suppliers of consumable 
products are encouraged to be environmentally friendly 
wherever practical
in compliance with the companies act 2006 strategic 
report and directors’ reports regulations 2013 
requirements the group is reporting on greenhouse gas 
emissions for the first time the group believes that the 
approach it has taken incorporating the use of relevant 
audited costs and data sourced from highly regarded public 
bodies is robust but it will undoubtedly be refined in future 
years it is currently using 2012 as its base year for emissions 
reporting as well as providing a summary of the scope 1 and 
scope 2 co
2
 emissions produced an intensity ratio using 
group revenue is also included showing a reduction in 
intensity of 44 in 2013 over the base year performance 
2013 2012
co2 metric tonnes 6521 6655
group revenues £m 1103 1077
intensity ratio 591 618
reduction 44 —
responsibility towards
employees
the board is acutely aware of the vital contribution 
of employees to the future success of the business 
it recognises the importance of providing employees 
with information on matters of concern to them enabling 
employees to improve their performance and make an 
active contribution to the achievement of the group’s 
business objectives this is accomplished through formal 
and informal briefings meetings and will shortly be 
extended to online communication via a group intranet 
employee representatives are consulted regularly on a wide 
range of matters affecting their current and future interests 
the group’s investor in people accreditation reflects the 
progressive training and development programmes that 
are in place within the business
the group is committed to equality of opportunity and 
dignity at work for all irrespective of race colour creed 
ethnic or national origins gender marital status sexuality 
disability class or age it ensures that recruitment and 
promotion decisions are made solely on the basis of 
suitability for the job
in the uk it is the policy of the group to comply with 
the requirements of the disability and equality act 2010 
in offering equality of opportunity to disabled persons 
applying for employment selection being made on the 
basis of the most suitable person for the job in respect of 
experience and qualifications training career development 
and promotion are offered to all employees on the basis of 
their merit and ability
every effort is made to continue to employ in the same 
or alternative employment and where necessary to retrain 
employees who become disabled during their employment 
with the group 
the group proactively addresses health and safety 
management and we have a programme of risk 
identification management and improvement in place 
the board receives a report in respect of health and safety 
across all of its businesses at each board meeting
23  corpor a te governance
sportech plc annual report and accounts 2013 24
board of directors and company secretary
cliff baty 43
chief financial officer 
date of appointment may 2013
cliff was appointed to the board in 
may 2013 joining from ladbrokes plc 
where he held a number of senior finance 
roles including finance director of its 
egaming and international businesses 
cliff was also a director of ladbrokes’ 
spanish retail betting joint venture since 
its inception in 2007 as well as ladbrokes’ 
businesses in italy south africa and 
asia cliff worked for ladbrokes for 
seven years and prior to that was group 
financial controller of hilton group plc 
he qualified as a chartered accountant 
with ernst  young where he worked 
for ten years
ian hogg 50
chief operating officer 
consumer f acing business
date of appointment october 2010
ian was appointed to the board in 
october 2010 from 2005 to 2009 ian 
was a founding shareholder and managing 
director of better the uk betting shop 
business which he built up to an estate 
of 44 shops and then merged with the 
jennings betting shop chain from 1998 
to 2004 he was the director of online at 
arena leisure plc and was seconded for 
18 months as managing director of at the 
races previously ian has been a consultant 
to bskyb and tote tasmania ian was also 
chairman of fox poker club until its sale 
to genting plc
ian penrose 48
chief executive 
date of appointment october 2005
ian was appointed chief executive in 
october 2005 and has led the turnaround 
of sportech from a declining and ukcentric 
business with very high levels of debt into 
one of the world’s leading pools and tote 
gaming companies he was previously chief 
executive of arena leisure plc which he 
joined in 1998 shortly after the formation of 
the company and left in september 2005 
having built the uk’s largest horseracing 
and media group ian is also a trustee of 
the national football museum
roger withers 71
nonexecutive chairman 
date of appointment february 2011
board committees 
roger was appointed chairman in 
february 2011 roger has over 40 years’ 
experience in the leisure and gaming 
industries roger has held a number of 
nonexecutive directorships including 
chairman of playtech limited chairman 
of arena leisure plc and executive 
chairman of bass leisure south africa 
roger has also held senior management 
positions in marketleading companies 
including ladbrokes bass blms and 
coral racing as well as directorships 
with a number of substantial privately held 
companies in the property technology 
publishing and exhibitions sectors
n
remuneration committee
audit committee
nomination committee
independent directors committee
introduction
your board composition has 
changed in the year cliff baty 
joined as chief financial officer and 
rich roberts joined as independent 
nonexecutive director john barnes 
and mor weizer stepped down 
during the year
the board has a balance of 
executive directors independent 
nonexecutive directors and 
nonexecutive directors with 
wide industry connections 
knowledge and experience
the board met nine times in the 
year seven times in the uk and 
twice in north america
id
n
a
r
note red icon indicates 
chairman of committee  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 25
peter williams 60
senior independent 
nonexecutive director
date of appointment february 2011
board committees r
 
a
 
n
 
id
peter was appointed senior independent 
nonexecutive director in february 2011 
peter is a nonexecutive director of 
rightmove plc and cineworld group plc 
chairman of both officeteam an office 
supplies business and mister spex an 
online retailer based in berlin and a trustee 
of the design council in the past he has 
also served on the boards of asos plc 
the emi group silverstone holdings 
limited blacks leisure group plc 
jjb sports plc gcap media plc and 
capital radio group plc in his executive 
career he was chief executive at alpha 
group plc and prior to that chief executive 
of selfridges plc where he also acted as 
chief financial officer for over ten years
lorne weil 68
nonexecutive director 
date of appointment october 2010
lorne was appointed nonexecutive 
director in october 2010 and brings more 
than 20 years of wideranging gaming 
industry experience to the board lorne 
was chairman of the board of scientific 
games corporation inc from 1991 to 2013 
and was chief executive officer for all but 
24 months of that time during his tenure 
lorne built a global leader in providing 
customised endtoend gaming solutions to 
lottery and gaming organisations worldwide 
he is also a member of the board of 
overseers of columbia business school 
where he is also chairman of the advisory 
board of the entrepreneurship center
david mckeith 62
independent nonexecutive director 
date of appointment august 2011
board committees r
 
a
 
n
 
id
david was appointed to the board as 
an independent nonexecutive director 
in august 2011 and chairs the audit 
committee he has around 30 years’ 
experience as a chartered accountant 
and tax adviser in large professional 
firms latterly as office senior partner 
for pricewaterhousecoopers llp in 
manchester since 2008 he has developed 
a portfolio of nonexecutive roles he is 
chairman of the halle orchestra and of 
greater manchester chamber of commerce 
in july 2013 he was appointed as a 
nonexecutive director of norcros plc 
where he is senior independent director 
and audit committee chairman
rich roberts 49
independent nonexecutive director 
date of appointment december 2013
board committees r
 
a
 
n
 
rich was appointed nonexecutive director 
in december 2013 he has over 20 years of 
game and gaming experience across senior 
business development and clevel positions 
as chief executive officer “ceo” of 
slingo inc from 2010 to 2013 rich led the 
threeyear turnaround of the company 
to profitability and acquisition by real 
networks at real networks he is currently 
responsible for the slingo studio and global 
storefront businesses during his tenure as 
ceo rich built slingo into a global game 
brand with the top played facebook game 
and ios casino game with over 100m 
total players on all game platforms prior 
to that rich was vp chief revenue 
officer of playfirst inc and previously 
led hasbro interactiveatari into the 
digital game industry
luisa wright 36
group general counsel 
and company secretary
date of appointment february 2011
luisa was appointed group general counsel 
and company secretary in february 2011 
she joined the company from olswang llp 
where she specialised for over ten years in 
advising clients in the gambling sport and 
media sectors as group general counsel of 
sportech plc luisa provides legal advice to 
the board and senior management and 
coordinates legal and regulatory advice 
across the group  corpor a te governance
sportech plc annual report and accounts 2013 26
senior management
the football pools sportech plc sportech racing 
and digital
sportech venues
conleth byrne
managing director 
mickey kalifa
corporate development  
director 
andrew gaughan
president – sportech racing 
and digital 
ted taylor
managing director – 
connecticut venues 
and online 
bob mercer
corporate development 
executive and acting 
finance director 
– sportech racing and digital
nick mounteer
director of online 
richard boardley
director of corporate affairs 
 
mark gregory
managing director – 
sportech digital
phil balderamos
managing director – 
california venues 
kevan woodcock
director of technology 
 
louis skelton
vice president 
of technical services 
paul klomp
managing director – 
netherlands 
venues and online 
 
 
frank j chesky iii 
vice president and 
general counsel 
carl lynn
finance director 
 
nicola mccabe
group financial controller 
 
james d birney
vice president of finance  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 27
head office
sportech plc
101 wigmore street 
london w1u 1qu
company registration number 
sc69140
company secretary
luisa wright 
bob mercer alternate
uk operational centre
football pools
walton house  
charnock road 
liverpool l67 1aa
usa operational centres
sportech inc and 
sportech venues
555 long wharf drive 
new haven ct 06511
sportech racing and digital
1095 windward ridge parkway 
building 300 suite 170 
alpharetta ga 30005
registered office
sportech plc
collins house 
rutland square 
edinburgh 
midlothian 
eh1 2aa
financial advisers 
and joint stockbroker
investec bank uk ltd
2 gresham street 
london ec2v 7qp
joint stockbroker 
panmure gordon  co
one new change 
london ec4m 9af
principal bankers
bank of scotland plc
10 gresham street 
london ec2v 7ae
royal bank of scotland plc
280 bishopsgate 
london ec4y 1hs
barclays bank plc
3 hardman street 
spinningfields 
manchester m3 3hf
solicitors
freshfields bruckhaus 
deringer llp
65 fleet street 
london ec4y 1hs
olswang llp
90 high holborn 
london wc1v 6xx
statutory auditors
pricewaterhousecoopers llp
chartered accountants and statutory 
auditors 
8 princes parade 
st nicholas place  
liverpool l3 1qj
registrars
capita asset services
the registry 
34 beckenham road 
beckenham  
kent br3 4tu
internet
the group’s website  
wwwsportechplccom is regularly 
updated to provide information about 
the group including all of the group’s 
press releases and announcements
registrar
any enquiries concerning your 
shareholding should be addressed 
to the company’s registrar the 
registrar should be notified promptly 
of any change in a shareholder’s 
address or other details 
tel 0871 664 0300
email ssdcapitaregistrarscom
shareholder portal 
wwwcapitashareportalcom
investor relations
requests for further copies of the 
annual report and accounts or other 
investor relations enquiries should be 
addressed to the group at
email irsportechplccom
tel 0207 268 2400
shareholder and corporate information  corpor a te governance
sportech plc annual report and accounts 2013 28
corporate governance
chairman’s overview
dear shareholder
sportech is committed to sound 
corporate governance and 
believes it to be essential for 
business integrity and for 
shareholders’ trust in their board 
the responsibility for good 
governance lies with the board 
chaired by me and i take a 
strong interest in ensuring the 
principles are disseminated 
throughout the organisation
our report to you on corporate governance explains 
how we approach and implement the principles of good 
governance across sportech and the level of importance 
we give to each area
the effectiveness of our board is a key priority as we 
believe this to be fundamental in order to deliver on business 
objectives and ultimately to deliver shareholder value whilst 
operating in an ethical way during the year john barnes 
has retired from the board after contributing immensely 
to the group over the seven years of his nonexecutive 
directorship we were delighted to announce the 
appointment of rich roberts who following an indepth 
search process has been selected for his experience in 
multiplatform entertainment industries and networks 
across the usa
our committees are structured to ensure the responsibilities 
of the board are carried out effectively and in line with best 
practice procedure detail on each committee and its 
responsibilities and duties carried out during the year under 
review can be found within this report
we will continue to strive for best practice governance and 
use our time together as a board and within communication 
between directors outside of formal meetings to address 
the core responsibilities of strategy review of financial and 
operational performance review of risk management and 
internal controls and ensuring the composition of the board 
delivers an effective governing body for sportech
roger withers
chairman
5 march 2014  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 29
compliance with the uk corporate 
governance code
sportech is committed to a high standard of corporate 
governance the financial reporting council published 
in 2012 a revised version of the uk corporate governance 
code the “code” which took effect for financial years 
beginning on or after 1 october 2012 as such sportech 
has complied throughout the financial year ended 
31 december 2013 with the provisions of the revised code 
a copy of the code is publicly available from wwwfrcorg 
it is the policy of the board to manage the affairs of the 
company in accordance with the principles of the code so 
far as the board believes it is practical this report together 
with the remuneration report on pages 37 to 53 describes 
how the company has applied the main principles of 
corporate governance as set out in the code 
board of directors 
the board currently comprises the nonexecutive 
chairman three executive directors three independent 
nonexecutive directors and one nonexecutive director 
as follows 
roger withers  nonexecutive chairman 
ian penrose  chief executive 
cliff baty  chief financial officer
ian hogg   chief operating officer 
consumer facing business
peter williams  senior independent nonexecutive director 
david mckeith  independent nonexecutive director 
rich roberts  independent nonexecutive director 
lorne weil  nonexecutive director 
on 6 march 2013 20 june 2013 and 3 december 2013 
steve cunliffe mor weizer and john barnes respectively 
resigned from the board cliff baty was appointed 
to the board on 14 may 2013 as chief financial officer 
rich roberts was appointed to the board on 3 december 2013 
as an independent nonexecutive director
biographies of the board members appear on pages 24 
and 25 these illustrate the wideranging business experience 
of board members which is essential to manage effectively 
a business of the size and complexity of sportech 
the board considers peter williams david mckeith and 
rich roberts to be independent directors in light of his 
previous roles as chairman of playtech limited from which 
he resigned on 10 october 2013 although he is retained 
as an industry adviser through to september 2014 and 
retained adviser to scientific games corporation inc “sgc” 
a position that came to an end on 30 september 2013 which 
were held upon his appointment as chairman of the board 
roger withers cannot be deemed to be independent 
similarly whilst lorne weil sits on the board in his own 
personal capacity and not as a representative of sgc due 
to the fact that lorne weil was chairman and chief 
executive of sgc until november 2013 coupled with sgc’s 
1999 shareholding in sportech plc up to 7 january 2014 
the board deems lorne weil not to be independent 
conflicts of interest 
the board has a procedure in place to deal with a situation 
where a director has a conflict of interest as required by 
the companies act 2006 as part of this process the 
members of the board prepare a list of other positions held 
and all other conflict situations that may need authorising 
either in relation to the director concerned or hisher 
connected persons the board considers each director’s 
situation and decides whether to approve any conflict 
situations taking into consideration what is in the best 
interests of the company and whether the director’s ability 
to act in accordance with his or her wider duties is affected 
each director is required to notify the company secretary 
of any potential or actual conflict situations that will need to 
be authorised by the board authorisations given by the 
board are reviewed annually 
the independent directors committee of the board has 
powers to deal with matters concerning the company and 
its major shareholders including in relation to areas where 
conflicts of interest might otherwise arise 
board composition
12  chairman
38  executive directors
38    independent 
nonexecutive directors
12  nonexecutive directors
length of service
at 31 december 2013
2  up to two years
3  two to three years
2  three to six years
1    more than six years  corpor a te governance
sportech plc annual report and accounts 2013 30
corporate governance continued
board effectiveness
division of responsibilities information 
and professional development 
the board of directors is responsible for the management 
of the business of the company and its long term success 
it may exercise all the powers of the company subject to 
the provisions of relevant statutes and the company’s 
articles the articles for instance contain specific provisions 
and restrictions regarding the company’s power to borrow 
money a copy of the articles is available to view by request 
from the company secretary or from the company’s website 
wwwsportechplccominvestorcentreshareholder
informationmemorandumandarticlesofassociation 
the board is also responsible for setting the company’s 
strategic objectives and managing the company’s resources 
to enable those objectives to be met 
the division of responsibility between the chairman and 
the chief executive is clearly defined and has been agreed 
by the board the chairman is primarily responsible for 
the workings of the board and ensuring its effectiveness 
the chief executive is responsible for running the group’s 
business for implementing board strategy and policy 
and for shareholder communication the chairman also 
ensures that directors maintain the appropriate skills 
and knowledge to fulfil their responsibilities and that the 
company provides the necessary resources to directors 
to enable this to be achieved both by way of induction 
upon joining the board and thereafter by way of updates 
luisa wright the company’s group general counsel and 
company secretary provides inhouse legal advice to the 
board and management during luisa’s maternity leave 
period in 2013 the board engaged and retained various 
advisers in order to continue to receive counsel where and 
when necessary in addition the company takes external 
legal advice where appropriate to ensure compliance with 
best practice as company secretary luisa wright also 
advises the chairman and the board on all governance 
matters bob mercer was appointed company secretary 
alternate until luisa returned from maternity leave 
the board has in place a number of key processes designed 
to ensure that management responsibilities are clear 
executive directors distribute relevant information and 
key financial reports to board members in advance of each 
meeting together with other materials required to facilitate 
proper consideration of business issues a schedule of 
reserved matters for the board has been established and 
communicated to the senior management teams 
an executive board chaired by the chief executive 
oversees the detailed operations of the business the 
executive board meets formally on a regular basis to 
update the group on ongoing corporate matters and to 
review the performance of each business segment and 
progress against key operational targets 
the company maintains insurance cover in respect of legal 
action against its directors and independent professional 
advice may be taken by the directors as required at the 
company’s cost 
board performance evaluation 
the board is satisfied that each director continues to show 
the necessary commitment allocates sufficient time to 
discharge their duties and continues to be an effective 
member of the board due to their skills expertise and 
business acumen 
in 2012 a fullscale board and committee review process 
was implemented which is and will be performed annually 
towards the end of each financial year all board members 
are invited to complete an online selfassessment and 
evaluation of the effectiveness of the board amongst other 
things directors are asked for their views on company 
strategy key challenges for the business the mix of skills 
experience independence knowledge and diversity on the 
board including gender effectiveness of the board’s 
engagement with shareholders and how well the board 
operates the output of the confidential questionnaires 
completed in december 2013 was discussed with the board 
at the february 2014 board meeting the board found the 
performance of each director to be effective and concluded 
that the board provides the effective leadership and control 
required for a listed company the evaluation found the 
board committees were working well the board will 
continue to review its procedures its effectiveness and 
development in the financial year ahead
board responsibility
board of directors
chairman
divisional operating 
boards
corporate business 
functions  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 31
board meetings
the board meets at least seven times a year certain matters are considered at all board meetings including the chief 
executive’s report the latest available group consolidated accounts and chief financial officer’s report divisional reports 
and the strategic developments report directors unable to attend a board meeting receive all materials to be presented 
and can discuss any issue which may arise with the chairman or any executive director
attendance at scheduled meetings of the board and its committees in 2013
independent
main audit remuneration nomination directors
board committee committee committee committee
number of meetings held in year 9 4 6 2 2
executive directors
ian penrose 9 — — — —
cliff baty appointed 14 may 2013 6 6
ian hogg 9 — — — —
steve cunliffe resigned 6 march 2013 — 2 — — — —
nonexecutive directors
roger withers 8 9 — — — —
peter williams 8 9 4 6 2 2
rich roberts appointed 3 december 2013 — — — — — — — — — —
john barnes resigned 3 december 2013 8 9 3 3 5 5 2 2
david mckeith 8 9 4 5 6 2 2
lorne weil 1 9 — — — —
mor weizer resigned 20 june 2013 1 4 — — — —
the figures in brackets indicate the number of meetings held in the period in which the individual was a board member 
there are seven scheduled board meetings for 2014 
in relation to lorne weil the board considers that notwithstanding the number of main board meetings attended 
lorne weil’s vast experience and relationships within the gaming sector are valuable to the group going forwards 
particularly in the strategically important north american market furthermore he receives all materials to be presented 
at such meetings and undertakes regular meetings with the chairman and chief executive to ensure that he is able to 
contribute to the group 
committees 
the committees of the board are the audit committee remuneration committee the nomination committee and the 
independent directors committee the terms of reference of the audit remuneration and nomination committees are 
available on request from the company secretary and are available on the corporate website wwwsportechplccom
investorcentrecorporategovernance management ensures that the committees are provided with all the necessary 
resources to enable them to undertake their duties in an effective and efficient manner the company secretary or her 
delegate acts as secretary to the committees
board committees
board of directors
audit 
committee
david mckeith 
chairman
peter williams 
chairman
roger withers 
chairman
peter williams 
chairman
peter williams david mckeith david mckeith david mckeith
rich roberts rich roberts peter williams
independent 
directors committee
remuneration 
committee
nomination 
committee
rich roberts  corpor a te governance
sportech plc annual report and accounts 2013 32
corporate governance continued
committees continued
the audit committee 
chairman and financial expert 
david mckeith
members 
peter williams john barnes until his resignation 
on 3 december 2013 rich roberts from 
27 january 2014 
the audit committee of the board comprises the 
independent nonexecutive directors and is currently 
chaired by david mckeith who is considered to have 
recent relevant financial experience biographies of the 
members of the audit committee appear on page 25 the 
committee is scheduled to meet at least three times a 
year the committee’s main responsibilities include 
reviewing the annual report and accounts and interim 
report including considering significant financial 
reporting issues and judgements that they contain 
the committee reviews and challenges where necessary 
the consistency and changes to accounting policies 
methods used to account for significant and unusual 
transactions whether the company has followed 
appropriate accounting standards and the clarity of 
disclosure in the company’s financial statements 
further to this the committee is delegated from the 
board the responsibility for review of the effectiveness 
of internal controls the company’s whistleblowing 
procedures and the need for an internal audit function 
as well as the scope extent and effectiveness of such 
a function the chief financial officer and other senior 
management are invited to attend the committee 
as appropriate 
financial reporting
the primary role of the committee in relation to financial 
reporting is the review with both management and the 
external auditor of the appropriateness of the halfyear 
and annual financial statements concentrating on 
amongst other matters
  consistency of the annual report as a whole and 
ensuring it presents a fair balanced and understandable 
picture of the company as well as providing shareholders 
with the information necessary to assess the company’s 
performance business model and strategy
  the quality and acceptability of accounting policies 
and practices
  the clarity of the disclosures and compliance with 
financial reporting standards and relevant financial 
and governance reporting requirements
  material areas in which significant judgements have 
been applied or there has been discussion with the 
external auditors and
  any correspondence from regulators in relation to our 
financial reporting
to aid its review the committee considered internal 
reports from the chief financial officer the finance 
director – the football pools the group financial 
controller and the external auditors on the outcomes 
of their halfyear review and annual audit 
the primary areas of judgement considered by 
the committee in relation to the 2013 financial 
statements were
  the assumptions underlying impairment testing of the 
group’s goodwill and intangible assets particularly in 
relation to the football pools
  the assessment and disclosure of the going concern 
concept and
  in relation to taxation both the provisioning for 
potential current tax liabilities and the appropriateness 
of deferred tax asset recognition
in order to be comfortable with the consistency fairness 
and accuracy of these financial statements the following 
was undertaken in relation to these key areas of judgement
  detailed review and discussion of models used 
for impairment testing and forecasts for going 
concern reviews
  stressing of assumptions to understand impacts and 
  scenario analysis
the judgements in relation to asset impairment largely 
relate to the assumptions principally discount and 
growth rates underlying the calculation of the value in 
use of the business being tested for impairment primarily   business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 33
committees continued
the audit committee continued
the achievement of the long term business plan 
underlying the valuation process the committee 
addresses this matter through receiving regular updates 
on the business plans and measurement against targets 
in addition the committee considers findings of the work 
of the auditors in this area
external audit
the committee is responsible for the relationship with 
the external auditors the committee considers the nature 
and extent of nonaudit services provided by the auditors 
in order to seek to balance the maintenance of objectivity 
access to applicable technical expertise and value for money 
to help avoid the objectivity and independence of the 
external auditors becoming compromised the committee 
has a formal policy governing the engagement of the 
external auditor to provide nonaudit services this policy 
precludes pricewaterhousecoopers llp from providing 
certain services such as internal audit work or accounting 
services for all other services the chief financial officer 
must approve spend on discrete projects in excess of 
£10000 and secondary approval is required from the 
chairman of the audit committee for spend on projects 
that are estimated will exceed £50000 in fees the 
committee is regularly updated on the spend to date with 
the external auditors and also with other financial advisers
the auditors are also subject to professional standards 
that safeguard the integrity of their auditing role the 
committee remains confident that the objectivity and 
independence of the external auditors are not in any way 
impaired by reason of the audit and nonaudit services 
which they provide to the group moreover the committee 
is satisfied that such work is best handled by them either 
because of their knowledge of the group or because they 
have been awarded it through a competitive tendering 
process in addition the independence of the auditors 
is safeguarded by the use of separate teams for individual 
assignments such as acquisition due diligence and the 
audit being subject to internal pricewaterhousecoopers llp 
quality control procedures a breakdown of nonaudit 
fees charged by the auditors is disclosed in note 5 in the 
notes to the financial statements a significant proportion 
of the nonaudit fees charged by the auditors in 2013 relates 
to work undertaken in respect of ongoing issues in relation 
to indirect taxes and in relation to advice on accounting and 
tax treatment of the spot the ball vat claim it was 
concluded by the committee that it was in the interest 
of the company to purchase these services on a single 
tender basis from pricewaterhousecoopers llp due to 
the cumulative historical knowledge already gained the 
timing of the work the tiein to the financial statements 
and confidentiality
effectiveness
the effectiveness of the external audit process is dependent 
on appropriate audit risk identification and at the start of 
the audit cycle we receive from pricewaterhousecoopers llp 
a detailed audit plan “audit strategy memorandum” 
identifying their assessment of these key risks for 2013 
the significant risks identified were in relation to asset 
impairment management override of controls and revenue 
recognition due to the inherent management judgement 
required in these areas 
the committee holds private meetings with the external 
auditors at each meeting to provide additional opportunity 
for open dialogue and feedback from the committee and 
the auditors without management being present matters 
typically discussed include the auditors’ assessment 
of business risks and management activity thereon 
the transparency and openness of interactions with 
management confirmation that there has been no restriction 
in scope placed on them by management independence 
of their audit and how they have exercised professional 
scepticism the chairman of the audit committee also 
has regular discussions with the external audit partner 
outside the formal committee process
appointment and reappointment
the committee considers the reappointment of the 
external auditors including the rotation of the audit partner 
each year and also assesses their independence on an 
ongoing basis the external auditors are required to rotate 
the audit partner responsible for the group audit every five 
years the current lead audit partner has been in place now 
for three financial year ends pricewaterhousecoopers llp 
have been the company’s external auditors since 2000 
although a competitive tender process was conducted 
in 2006 as part of the committee’s review of the objectivity 
and effectiveness of the audit process an assessment was 
made not to put the audit engagement out to tender in 2013 
the committee will continue to assess the appropriate time 
at which an audit tender process should be conducted 
and continues to assess the effectiveness independence 
and value for money of pricewaterhousecoopers llp 
the audit committee provided the board with its 
recommendation to the shareholders on the reappointment 
of pricewaterhousecoopers llp as external auditors 
for the year ending 31 december 2014 and as a result 
in accordance with section 489 of the companies act 
2006 a resolution proposing the reappointment of 
pricewaterhousecoopers llp as our auditors will be 
put to the shareholders at the 2014 agm there are no 
contractual obligations restricting the committee’s choice 
of external auditors and we do not indemnify our external 
auditors the committee will keep the appointment of 
the external auditors under annual review  corpor a te governance
sportech plc annual report and accounts 2013 34
corporate governance continued
internal control and internal audit
the board is responsible for the group’s system of 
internal control and for reviewing its effectiveness this 
responsibility has been delegated to the audit committee 
on this basis there is an ongoing process for identifying 
evaluating and managing significant risks faced by the 
group such a system is designed to manage rather than 
eliminate the risk of failure to achieve business objectives 
and can only provide reasonable and not absolute assurance 
against material misstatement or loss controls are 
monitored by management review data consolidated 
into the group’s financial statements is reconciled to the 
underlying financial systems a review of the consolidated 
data is undertaken by management to ensure that the true 
position and results of the group are reflected through 
compliance with approved accounting policies and the 
appropriate accounting for nonroutine transactions 
the group performs an annual strategy and budgeting 
process and the board approves the annual group 
budget as part of its normal responsibilities the group 
results are reported monthly to the board a quarterly 
forecasting regime is adhered to and revised forecasts 
are produced for the board whenever significant financial 
trends are identified in the periods between the 
quarterly assessments 
the audit committee reviews the effectiveness of the 
internal control environment of the group excluding that 
of the group’s joint ventures it receives reports from the 
external auditors which include recommendations for 
improvement the audit committee’s role in this area 
is confined to a highlevel review of the arrangements 
for internal control significant risk issues are referred to 
the board for consideration risk registers are produced 
and maintained at a divisional level and the significant 
key risks relevant at a group level selected from these 
registers are presented to the board the principal risks 
facing the group and the mitigating actions taken by the 
board and management are included on pages 14 and 15 
of the strategic report the group separately employs 
an indiabased accountant as a consultant who is 
responsible for ensuring the integrity of results and 
robustness of internal controls and procedures in the 
group’s joint venture similarly as and when the 
operations of the group’s newly formed joint ventures 
become material resources will be deployed to ensure 
integrity of results and that the group’s high standard of 
internal control is replicated
t o manage lowerlevel risks a risk management programme 
is in place supported by a business control and risk 
selfassessment process and a business continuity plan 
the risk management programme places responsibility 
on managers to identify risks facing each business unit 
and for implementing procedures to mitigate these risks 
the risk appraisal process has been reviewed by the 
board and accords with the turnbull guidance the audit 
committee and board have reviewed the effectiveness 
of the internal controls of the group for the year ended 
31 december 2013 and up to the date of approval of the 
annual report and accounts this review covered financial 
operational risk management and compliance controls 
the group does not have an internal audit function the 
audit committee has considered the use of an internal 
audit function during the year but considers that due to 
the size and nature of the group there is not a requirement 
for such an internal function the central group finance 
function continues to undertake certain work of an 
internal audit nature and reports findings to the audit 
committee during the year the audit committee 
determined that external internal auditors should 
be engaged to perform a review over key business 
cycles and controls the firm engaged was deloitte llp 
who undertook the scope of work agreed and reported 
their findings to the committee the committee will 
review the effectiveness and value of the work undertaken 
and agree an ongoing internal audit strategy during the 
coming months 
whistleblowing policy 
the company is committed to providing a safe and 
confidential avenue for all employees within the group to 
raise concerns about serious wrongdoings the company 
also acknowledges the requirements of the uk corporate 
governance code in this regard which states that the 
audit committee should review arrangements by which 
staff of the group may in confidence raise concerns 
about possible improprieties in matters of financial 
reporting or other matters further to this an appropriate 
policy so as to encourage and enable staff to raise any such 
concerns is in place and has been throughout the year 
david mckeith
chairman of the audit committee
5 march 2014
committees continued
the audit committee continued  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 35
committees continued
the remuneration committee 
the remuneration committee of the board comprised 
the three independent nonexecutive directors until 
the resignation of john barnes on 3 december 2013 
and is chaired by peter williams rich roberts joined 
the committee from 27 january 2014 biographies of 
the members of the remuneration committee appear on 
page 25 the purpose of the committee is to ensure that the 
remuneration of executive directors and senior executives 
together with their terms and conditions of employment 
is sufficient to recruit and retain individuals of the calibre 
required to ensure profitable growth of the business the 
remuneration report is set out on pages 37 to 53 
the nomination committee 
the nomination committee comprised the three independent 
nonexecutive directors until the resignation of john barnes 
on 3 december 2013 it now comprises the three current 
independent nonexecutive directors and the chairman of 
the board who also now chairs this committee biographies 
of the members of the nomination committee appear on 
pages 24 and 25
the committee’s main objectives are to lead the process 
for any new appointments to the board whether executive 
or nonexecutive and make recommendations to the board 
in relation to the same evaluate the balance of skills 
knowledge and experience on the board consider any 
matters relating to the continuation in office of any director 
at any time review committee memberships and formulate 
plans for succession the nomination committee’s activities 
are underpinned by the principle that all appointments 
should be made on merit against objective criteria and 
with due regard to the benefits of diversity on the board 
accordingly the committee prepares a description of the 
role and capabilities required for a particular appointment 
the committee in its recommendations to the 
board acknowledges that diversity extends beyond the 
boardroom and supports management in their efforts to 
build a diverse organisation throughout the group out of a 
workforce of approximately 1000 employees 41 are female 
and out of 15 members of senior management 14 are female 
the committee endorses the company’s policy to attract 
and develop a highly qualified and diverse workforce to 
ensure that all selection decisions are based on merit and 
that all recruitment activities are fair and nondiscriminatory 
although at present there are no female board members 
the committee acknowledges the importance of diversity 
including gender to the effective functioning of the board 
furthermore the board acknowledges the recommendations 
of the davies report and supports the principle of improving 
in particular gender imbalance both at a board level and 
throughout its businesses subject to securing suitable 
candidates when recruiting additional directors andor filling 
vacancies that arise when directors do not seek reelection 
we will seek to appoint new directors who fit the skills criteria 
and gender balance that is in line with the company’s policy 
we continue to focus on encouraging diversity of business 
skills and experience recognising that directors with diverse 
skill sets capabilities and experience gained from different 
geographic and cultural backgrounds enhance the board
on 14 may 2013 cliff baty was appointed as chief financial 
officer and joined the board on 3 december 2013 
rich roberts joined the board as independent nonexecutive 
director during the recruitment process for both cliff and 
rich the board utilised an executive search consultancy 
odgers berndtson to ensure the board appointed directors 
that have the skills criteria and industry experience that the 
board requires to meet the future growth of the group 
odgers berndtson is a uk executive search firm helping 
private and public sector organisations find the highest calibre 
people for permanent and interim management appointments 
in the uk and internationally odgers berndtson is considered 
independent of the group
the independent directors committee 
the independent directors committee comprised the three 
independent nonexecutive directors until john barnes’ 
resignation and is chaired by peter williams the committee 
now comprises peter williams and david mckeith only and is 
responsible for dealing with matters where conflicts of interest 
might arise due to the board’s previous composition and 
shareholder representation the committee met on two 
occasions during the year 
investor relations 
there is regular dialogue with shareholders through a planned 
programme of investor relations which includes formal 
presentations of the group’s results by the chief executive 
and chief financial officer meetings also take place with 
institutional investors and analysts on a regular basis and there 
is regular communication with shareholders through the annual 
and interim reports and sportech’s corporate website www
sportechplccom they are also available at other times outside 
close periods to enter into dialogue with these shareholders all 
shareholders have the opportunity to question the board at the 
agm both formally and informally the nonexecutive directors 
have taken steps to develop an understanding of the views 
of the major shareholders about the company through 
facetoface contact and analyst and broker briefings 
all resolutions at the 2013 agm were voted by way of a 
manual poll this follows best practice and allows the 
company to count all votes rather than just those of 
shareholders attending the meeting as recommended by 
the code all resolutions were voted separately and the 
voting results which included all votes cast for against and 
those withheld together with all proxies lodged prior to the 
meeting were indicated at the meeting and the final results 
were released to the london stock exchange as soon as 
practicable after the meeting the announcement was also 
made available on the company’s corporate website as in 
previous years the proxy form and the announcement of 
the voting results made it clear that a ‘vote withheld’ is not 
a vote in law and will not be counted in the calculation of 
the proportion of the votes for or against the resolution 
by order of the board 
luisa wright 
company secretary
5 march 2014  corpor a te governance
sportech plc annual report and accounts 2013 36
report of the remuneration committee
letter from the remuneration committee chairman
dear shareholder 
i am pleased to present the remuneration report 
the “report” for the year ended 31 december 2013
this report sets out the remuneration paid to directors 
over the year under review and details the remuneration 
policy for the forthcoming year the committee has now 
adopted the finalised reporting regulation guidance and 
has sought to achieve transparency and clarity for 
shareholders in this report
the directors on the remuneration committee the 
“committee” are mindful of balancing the increased 
focus and guidance from stakeholders on remuneration 
issues with the need of the company to attract and 
retain the best available talent the committee is 
comfortable that in 2013 it achieved an appropriate 
balance in this regard more generally the committee 
believes that the policy outlined in this report achieves 
its overriding objectives of establishing a stable 
remuneration policy going forward enabling the 
recruitment retention and motivation of a talented 
executive management team that is fully incentivised 
to maximise shareholder value and capable of taking 
the business forward through its next phase of 
strategic development 
in addition given that the package has a substantial 
weighting towards long term performance the committee 
is comfortable that the current arrangements do not 
inadvertently encourage undue risk taking and that its 
policy motivates behaviours that are in the long term 
interests of the company and its shareholders
in determining remuneration levels the committee has 
taken account of market conditions the performance of 
the company responsibility to shareholders and good 
corporate governance accordingly basic salaries of 
executive directors for 2014 have increased by 2 with 
no increases taking place in the other elements of 
remuneration visàvis 2013
performance and reward in relation to 2013
the bonus payments for 2013 based on the group and 
operating divisions achieving an ebitda result in line 
with the target level of performance set which took into 
account market forecasts as reported at the start of 
2013 and individually tailored strategically important 
objectives were 40 of the entitlement for the chief 
executive 35 of the entitlement for the chief financial 
officer and 21 of the entitlement for the chief 
operating officer consumer facing business
twothirds of the performance share plan “psp” 
awards granted in 2010 vested in the year under review 
the elements vesting were subject to absolute and 
relative tsr performance with the performance period 
ending in october 2013 with these elements vesting in 
full this was the result of a threeyear growth in tsr 
of 127 which exceeded the absolute growth targets 
and ranked the company above the upper quartile in 
relative terms onethird of these awards vested based 
on eps growth over the threeyear period ending 
31 december 2012 with this element of the awards 
vesting at 620 of the maximum based on eps 
growth of 1135 pa over three financial years
onethird of the psp awards granted in 2011 will vest 
subject to an earnings per share “eps” performance 
measure ending 31 december 2013 this part of the 
awards is expected to vest at 475 subject to the 
committee’s approval based on eps growth of 945 
pa over three financial years the remaining twothirds 
of the 2011 awards vests based on relative and absolute 
tsr performance which will be measured over 
a threeyear period ending november 2014
the committee has reviewed the variable incentive 
payouts based on the financial period ended 
31 december 2013 and is satisfied that the reward 
reflects the performance delivered 
policy for 2014
the committee has reviewed the remuneration policy in 
line with the current business strategy and considers it to 
remain fit for purpose as such no material changes have 
been proposed for 2014 and beyond save that the fees 
for the chairman and nonexecutive directors have 
been increased 
shareholder feedback
the committee has not proposed any significant 
changes to the remuneration policy for 2013 or 2014 
that necessitated any direct consultations with 
shareholders during the year however the committee 
welcomes any feedback on this report and the 
remuneration policy in general and hopes for your 
continued support at the agm 
peter williams
senior independent nonexecutive 
director and chairman of the 
remuneration committee
5 march 2014  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 37
remuneration report
for the year ended 31 december 2013
this report has been prepared in accordance with 
the large and mediumsized companies and groups 
accounts  reports amendment regulations 2013 
the “regulations” 
the directors’ remuneration policy report will be subject 
to a binding shareholder vote at the agm with an effective 
date of 13 may 2014 and will apply for the threeyear period 
thereafter in practice the policy detailed in the report will 
operate for the entire current financial year the annual 
report on remuneration will be subject to an advisory 
shareholder vote at the agm this report is intended to be 
in full compliance with the requirements of the regulations 
and the uk corporate governance code 2012 issued by 
the financial reporting council the “code” 
pricewaterhousecoopers llp has audited the contents of 
the report to the extent required by the regulations
directors’ remuneration policy
the committee’s key objectives are to i establish a 
competitive remuneration policy for the executive 
directors and ii align senior executives’ remuneration 
with the interests of shareholders and other stakeholders 
including customers and employees 
in connection with this the committee aims to ensure that 
the remuneration packages offered to executive directors 
and senior executives
  are competitive and attract retain and motivate 
executives of the right calibre
  reflect their responsibility and experience within 
the business 
  incorporate a significant element of performance related 
pay linked to the achievement of challenging performance 
criteria that are aligned with the group’s strategy and 
increased shareholder value but remain appropriate given 
the group’s risk profile
  provide a total remuneration offering at ‘target’ levels of 
performance that is competitive in the relevant market
  incentivise performance beyond ‘target’ levels to be 
achieved by offering a significant proportion of remuneration 
to be delivered through incentive related pay 
  create a strong alignment between the interests of senior 
management and the sustained delivery of shareholder value
  take due accountfull consideration of the principles set 
out in the code
  take due account of pay and employment conditions 
elsewhere in the group
  provide the foundation for overall reward and remuneration 
structures at senior management levels and
  provide an appropriate balance between 
nonperformance related and performance related pay
the committee reviews the remuneration policy and 
in particular performance related pay scheme structures 
on an annual basis to ensure that they continue to operate 
within the agreed risk framework of the group the 
committee also ensures that an effective system of 
control and risk management is in place with regards 
to remuneration which includes access to the audit 
committee to discuss matters of operational and financial 
risk the committee is satisfied that the current policy 
does not encourage or reward for undue risk taking 
the committee ensures that performance related 
pay structures will not raise environmental social or 
governance “esg” risks by inadvertently motivating 
irresponsible behaviour more generally with regard to 
the overall remuneration structure there is no restriction 
on the committee which prevents it from taking into 
account corporate governance on esg matters
the policy in relation to subsequent years will be kept under 
review to ensure that it reflects any changing circumstances
remuneration for executive directors
the main component parts of the remuneration packages 
for executive directors are detailed in the table on pages 
38 to 41 which should be read in conjunction with the 
recruitmentpromotion policy on page 44 and the 
‘detailed remuneration policy for 2014’ section of the 
annual report on remuneration which starts on page 45  corpor a te governance
sportech plc annual report and accounts 2013 38
remuneration report continued
for the year ended 31 december 2013
directors’ remuneration policy continued
remuneration for executive directors continued
poilcy table
remuneration element  and purpose o p e r at i o n op p o r tu n i t y   performance metrics
base salary
to attract and retain key individuals 
reflects the relevant skills and experience in role
  salaries are set on 1 january each year and reviewed 
annually against performance experience 
responsibilities relevant market information and the 
level of workforce pay increases
the salaries set for 1 january 2014 are
  ceo – £385000
  coo consumer facing business – £256000
  cfo – £245000
annual increases will usually be commensurate with those 
of the wider workforce
if there are significant changes in responsibility or a 
change in scope increases may exceed this level
new joiners where pay is initially set below market levels 
may experience larger increases as their salary is 
progressed towards the market rate based on their 
development in the role
a broadbased assessment of individual and company 
performance is considered as part of any salary review 
pension
to provide costeffective yet market competitive 
retirement benefits
  contribution to a personal pension arrangement or 
cash in lieu of pension by way of a salary supplement
  8 of salary for executive directors only basic annual 
salary is pensionable
not applicable
benefits
to provide costeffective yet market competitive benefits
  a car allowance for certain executive directors private 
health insurance and life insurance cover
  the committee may offer executive directors other 
employee benefits on broadly similar terms to those 
of the wider workforce
  car allowance of £16000 for the chief executive and 
£12300 for the chief operating officer consumer 
facing business 
  family cover private health insurance
  life insurance cover of four times salary
  the value of insured benefits may vary from year to year 
based on the thirdparty costs of supplying the benefits 
  where executive directors are recruited from overseas 
benefits more tailored to their geographical location may 
be provided
not applicable
annual bonus plan
to motivate executive directors and incentivise the 
achievement of key financial and strategic goals and 
targets over the financial year
  bonus is paid wholly in cash 
  based on the achievement of performance metrics 
with a sliding scale from a threshold to maximum level 
of performance
  clawback may be applied in the event of material 
misconduct andor an error in the calculation of the 
bonus payable
  maximum bonus potential is 100 of salary for the 
chief executive and 75 of salary for other directors
  the committee in its discretion acting fairly and 
reasonably may alter the bonus outcome upwards or 
downwards if it feels that the payout is inconsistent with 
the company’s overall performance and events taking 
place during the year along with any other factors it 
considers relevant the committee will consult with the 
company’s major shareholders before any exercise of its 
discretion to increase the bonus outcome and will explain 
the use of any such discretion in the relevant annual 
report on remuneration 
the majority of the bonus will be based on financial 
measures such as ebitda targeted performance of the 
group and operating divisions as appropriate which 
takes into account market forecasts and a minority of 
the bonus will be based on group strategic objectives 
andor personal objectives tailored to the achievement 
of the group strategic goals
the proportion of the maximum bonus that may 
become payable at the threshold performance level 
where financial targets are set will be 0 of that part 
of the bonus bonuses above this level are earned on 
a graduated basis to the maximum performance level 
where strategic targets are set it is not always 
practicable to operate targets that can be assessed 
using a graduated scale
the performance measures used for the 2013 annual 
bonus and those proposed for 2014 are described in the 
annual report on remuneration starting on page 45  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 39
directors’ remuneration policy continued
remuneration for executive directors continued
poilcy table
remuneration element  and purpose o p e r at i o n op p o r tu n i t y   performance metrics
base salary
to attract and retain key individuals 
reflects the relevant skills and experience in role
  salaries are set on 1 january each year and reviewed 
annually against performance experience 
responsibilities relevant market information and the 
level of workforce pay increases
the salaries set for 1 january 2014 are
  ceo – £385000
  coo consumer facing business – £256000
  cfo – £245000
annual increases will usually be commensurate with those 
of the wider workforce
if there are significant changes in responsibility or a 
change in scope increases may exceed this level
new joiners where pay is initially set below market levels 
may experience larger increases as their salary is 
progressed towards the market rate based on their 
development in the role
a broadbased assessment of individual and company 
performance is considered as part of any salary review 
pension
to provide costeffective yet market competitive 
retirement benefits
  contribution to a personal pension arrangement or 
cash in lieu of pension by way of a salary supplement
  8 of salary for executive directors only basic annual 
salary is pensionable
not applicable
benefits
to provide costeffective yet market competitive benefits
  a car allowance for certain executive directors private 
health insurance and life insurance cover
  the committee may offer executive directors other 
employee benefits on broadly similar terms to those 
of the wider workforce
  car allowance of £16000 for the chief executive and 
£12300 for the chief operating officer consumer 
facing business 
  family cover private health insurance
  life insurance cover of four times salary
  the value of insured benefits may vary from year to year 
based on the thirdparty costs of supplying the benefits 
  where executive directors are recruited from overseas 
benefits more tailored to their geographical location may 
be provided
not applicable
annual bonus plan
to motivate executive directors and incentivise the 
achievement of key financial and strategic goals and 
targets over the financial year
  bonus is paid wholly in cash 
  based on the achievement of performance metrics 
with a sliding scale from a threshold to maximum level 
of performance
  clawback may be applied in the event of material 
misconduct andor an error in the calculation of the 
bonus payable
  maximum bonus potential is 100 of salary for the 
chief executive and 75 of salary for other directors
  the committee in its discretion acting fairly and 
reasonably may alter the bonus outcome upwards or 
downwards if it feels that the payout is inconsistent with 
the company’s overall performance and events taking 
place during the year along with any other factors it 
considers relevant the committee will consult with the 
company’s major shareholders before any exercise of its 
discretion to increase the bonus outcome and will explain 
the use of any such discretion in the relevant annual 
report on remuneration 
the majority of the bonus will be based on financial 
measures such as ebitda targeted performance of the 
group and operating divisions as appropriate which 
takes into account market forecasts and a minority of 
the bonus will be based on group strategic objectives 
andor personal objectives tailored to the achievement 
of the group strategic goals
the proportion of the maximum bonus that may 
become payable at the threshold performance level 
where financial targets are set will be 0 of that part 
of the bonus bonuses above this level are earned on 
a graduated basis to the maximum performance level 
where strategic targets are set it is not always 
practicable to operate targets that can be assessed 
using a graduated scale
the performance measures used for the 2013 annual 
bonus and those proposed for 2014 are described in the 
annual report on remuneration starting on page 45  corpor a te governance
sportech plc annual report and accounts 2013 40
remuneration report continued
for the year ended 31 december 2013
directors’ remuneration policy continued
remuneration for executive directors continued
poilcy table continued
remuneration element  and purpose o p e r at i o n op p o r tu n i t y   performance metrics
long term incentive plan
to motivate executive directors and incentivise delivery 
of performance over the long term
to encourage greater shareholder alignment by rewarding 
tsr outperformance
to facilitate share ownership
  annual awards of performance share awards which 
vest subject to performance after three years
  directors may be entitled to dividends which accrue 
on vested awards 
  performance share awards of up to 100 of salary can be 
granted for a normal annual grant with up to 200 of 
salary used in exceptional circumstances
  the policy is to grant awards of up to 100 of salary 
for directors
awards will be granted subject to a combination 
of relative tsr and financial measures such as eps 
over a threeyear period 
the committee will review the appropriateness of the 
performance conditions on an annual basis and may make 
changes to the weightings or introduce new measures 
which are aligned to the company strategy at that time 
a minority 25 of the award will vest for threshold 
levels of performance rising on a straightline basis 
to full vesting for outperformance 
the performance measures used for the 2013 psp 
award and those proposed for the 2014 psp award 
are described in the annual report on remuneration
all employee share plans
to promote wider employee share ownership
  all employees including executive directors may be 
invited periodically to participate in a company 
sharesave plan 
  participants would have the right to commit to a 
savings contract whereby the proceeds can be used 
towards the exercise of an option granted at the time 
they participate the exercise price can be discounted 
by up to 20 of the share price on grant
  monthly savings limits are based on hmrc rules which 
currently limit monthly savings towards share purchases 
under threeyear savings contracts to £250 per calendar 
month increasing to £500 from tax year 20142015
not applicable
executive share ownership
to align executive directors’ and shareholders’ interests
  all executive directors are expected to hold an 
investment of at least 100 of base salary in the 
company using 50 of net awards under the 
company’s ltips to achieve the shareholdings 
if required
  100 of salary for all executive directors not applicable
nonexecutive fees
to attract and retain highcalibre nonexecutive directors 
to set remuneration by reference to the responsibilities 
and time commitment undertaken by each 
nonexecutive director
  fee levels are reviewed on a regular basis and are set 
based on expected time commitments responsibilities 
and in context of the fee levels in companies of a 
comparable size and complexity and reflecting the 
onerous obligations of international racing regimes
  the nonexecutive chairman’s fee is £120000 per annum
  ukbased nonexecutive fees are set at £47500 with an 
additional £5000 for each committee sat on maximum 
of two a set fee of 100000 per annum is paid as a 
usbased nonexecutive fee
  any increase in fees may be above those of the wider 
workforce in percentage terms in any particular year 
reflecting the periodic nature of any review and changes 
to time commitments andor responsibilities
not applicable  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 41
directors’ remuneration policy continued
remuneration for executive directors continued
poilcy table continued
remuneration element  and purpose o p e r at i o n op p o r tu n i t y   performance metrics
long term incentive plan
to motivate executive directors and incentivise delivery 
of performance over the long term
to encourage greater shareholder alignment by rewarding 
tsr outperformance
to facilitate share ownership
  annual awards of performance share awards which 
vest subject to performance after three years
  directors may be entitled to dividends which accrue 
on vested awards 
  performance share awards of up to 100 of salary can be 
granted for a normal annual grant with up to 200 of 
salary used in exceptional circumstances
  the policy is to grant awards of up to 100 of salary 
for directors
awards will be granted subject to a combination 
of relative tsr and financial measures such as eps 
over a threeyear period 
the committee will review the appropriateness of the 
performance conditions on an annual basis and may make 
changes to the weightings or introduce new measures 
which are aligned to the company strategy at that time 
a minority 25 of the award will vest for threshold 
levels of performance rising on a straightline basis 
to full vesting for outperformance 
the performance measures used for the 2013 psp 
award and those proposed for the 2014 psp award 
are described in the annual report on remuneration
all employee share plans
to promote wider employee share ownership
  all employees including executive directors may be 
invited periodically to participate in a company 
sharesave plan 
  participants would have the right to commit to a 
savings contract whereby the proceeds can be used 
towards the exercise of an option granted at the time 
they participate the exercise price can be discounted 
by up to 20 of the share price on grant
  monthly savings limits are based on hmrc rules which 
currently limit monthly savings towards share purchases 
under threeyear savings contracts to £250 per calendar 
month increasing to £500 from tax year 20142015
not applicable
executive share ownership
to align executive directors’ and shareholders’ interests
  all executive directors are expected to hold an 
investment of at least 100 of base salary in the 
company using 50 of net awards under the 
company’s ltips to achieve the shareholdings 
if required
  100 of salary for all executive directors not applicable
nonexecutive fees
to attract and retain highcalibre nonexecutive directors 
to set remuneration by reference to the responsibilities 
and time commitment undertaken by each 
nonexecutive director
  fee levels are reviewed on a regular basis and are set 
based on expected time commitments responsibilities 
and in context of the fee levels in companies of a 
comparable size and complexity and reflecting the 
onerous obligations of international racing regimes
  the nonexecutive chairman’s fee is £120000 per annum
  ukbased nonexecutive fees are set at £47500 with an 
additional £5000 for each committee sat on maximum 
of two a set fee of 100000 per annum is paid as a 
usbased nonexecutive fee
  any increase in fees may be above those of the wider 
workforce in percentage terms in any particular year 
reflecting the periodic nature of any review and changes 
to time commitments andor responsibilities
not applicable  corpor a te governance
sportech plc annual report and accounts 2013 42
remuneration report continued
for the year ended 31 december 2013
directors’ remuneration policy continued
remuneration for executive directors continued
the committee operates the annual bonus plan and long 
term incentive plans according to their respective rules 
and consistent with normal market practice the listing 
rules and hmrc rules where relevant including flexibility 
in a number of regards these include
  timing of awards and payments
  the size of an award within the limits noted in the 
table above and when and how much should vest
  who receives an award or payment
  dealing with a change of control or restructuring 
of the group
  determining whether a participant is a goodbad leaver 
for incentive plan purposes and whether and what 
proportion of awards vest 
  any adjustments required to awards in certain 
circumstances eg rights issues corporate restructuring 
events and special dividends and
  the weightings measures and targets for the annual 
bonus plan and ltip from year to year
the committee retains the discretion to adjust the targets 
andor set different measures and alter weightings for the 
annual bonus plan and to adjust targets for the ltip if 
events occur eg a major acquisition or disposal which 
cause it to determine that the conditions are unable to 
fulfil their original intended purpose and the change would 
not be materially less difficult to satisfy 
the relative proportions of fixed and performance related remuneration for the executive directors based on the 
remuneration policy is shown below based on three performance scenarios minimum target and maximum
1 minimum  fixed pay only base salary benefits and pension
2 target  50 of annual bonus and 25 vesting of the psp awards and
3 maximum  100 of annual bonus payable and 100 vesting of the psp awards
salary levels are based on those applying on 1 january 2014
the value of taxable benefits is the estimated cost of supplying those benefits using the cost for the year ended 
31 december 2013 as a proxy 
the pension value is based on an 8 of salary contributionsupplement 
amounts have been rounded to the nearest £1000 share price growth has been ignored
illustration of policy application
£000s
0
minimum target maximum minimum target maximum minimum target maximum
1200
1000
800
600
400
200
£722k
£433k
13
36
32
32
£1203k
100 67
22
11
£433k
43
29
28
£673k
£289k
100 67
22
11
£415k
43
29
28
£645k
£278k
27
60 100
ian penrose ian hogg cliff baty
long term share awards
annual bonus cash
total fixed pay  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 43
directors’ remuneration policy continued
existing awards
the committee intends to honour any commitments 
including outstanding psp awards on the terms applicable 
at the time each such commitment was made the relevant 
outstanding awards are described in more detail on page 49 
policy on contracts of service
all directors have rolling contracts with notice periods 
of no more than twelve months
date of
appointment notice period
roger withers 070211 3 months
ian penrose 011005 12 months
cliff baty 140513 12 months
ian hogg 051010 12 months
peter williams 070211 3 months
john barnes  111105 3 months
david mckeith 250811 3 months
rich roberts 031213 3 months
lorne weil 051010 3 months
mor weizer  230311 3 months
   john barnes resigned on 3 december 2013 
  mor weizer resigned on 20 june 2013
copies are available for inspection on request to the 
company secretary 
it is the committee’s policy for the notice periods of 
executive directors to be twelve months or less 
in the event of termination the committee’s policy is 
that payments on termination should reflect the specific 
circumstances prevailing in general it would be the 
committee’s policy to make a payment in lieu of notice 
where necessary limited to base salary and benefits to the 
extent that an individual might otherwise seek to bring a 
claim against the company in relation to the termination 
of their employment eg for breach of contract or unfair 
dismissal the committee retains the right to make an 
appropriate payment in settlement of such potential or 
actual claims payments in connection with any statutory 
entitlements eg in relation to redundancy may be made as 
required in connection with the foregoing the committee 
reserves the right to award to an executive director a bonus 
in respect of the period of the year in which notice of 
termination had not been served and in certain exceptional 
circumstances in respect of any period following receipt of 
notice of resignation that the individual remained in 
employment subject to the appropriate performance 
measures being achieved the determination of any share 
incentive vesting would be subject to the rules of the 
relevant plan but in general where an individual is a good 
leaver death injury or disability retirement redundancy 
transfer of business outside of the group and any other 
reason the committee decides their awards would vest on 
the cessation date unless the committee decides the award 
should continue to the original vesting date and remain 
subject to the appropriate performance measures being 
achieved and time pro rating unless the committee decides 
it is inappropriate to apply time pro rating 
the committee would intend to apply the above policy 
for any new appointment which may include the ability 
to make phased payments with mitigation 
the nonexecutive directors have letters of appointment 
which provide for notice by either party giving to the other 
not less than three months’ notice in writing the company 
may also terminate by making a payment in lieu of notice
none of the employment contracts of the directors 
contain special contractual termination provisions
policy on external appointments
sportech plc recognises that its directors are likely 
to be invited to become nonexecutive directors of 
other companies and that such exposure can broaden 
experience and knowledge which will benefit the 
company executive directors are therefore allowed to 
accept nonexecutive appointments and retain any fees 
earned with the board’s prior permission as long as these 
are not likely to lead to conflicts of interest in this regard 
ian penrose is a trustee of the national football museum 
a registered charity and he receives no remuneration in 
respect of this appointment
other employees’ pay
the committee did not consult with employees directly 
on matters of executive remuneration however the 
committee is aware of the disconnect which can be 
created if executive director remuneration is set in 
isolation and therefore is updated during the year with 
details of the pay and employment conditions in the wider 
workforce in particular the committee is made aware of 
general salary increases general benefit provision and the 
proposed level of annual bonuses the committee is also 
responsible for reviewing the participants of the ltips 
and participation levels in the allemployee plans 
base salary increases across the group were in the range 
of 0 to 20 for 2014 reflecting the rpi prevailing in the 
country in which the individual is employed the executive 
directors are employed in the uk and therefore their 
increase of 20 is consistent with the general pay award 
for ukbased employees 
remuneration policy across the group
the remuneration policy described in this report is 
broadly consistent with the policy used for other senior 
executives of the company a significant proportion of 
remuneration remains performance related although 
lower quantums will operate 
the majority of employees will participate in annual bonus 
schemes although the limits and performance metrics will 
vary according to the seniority and location of the role
participation in the ltips is targeted at senior 
management and key staff to align employees’ interests 
with those of shareholders 
the majority of new employees are eligible to join a 
defined contribution pension plan  corpor a te governance
sportech plc annual report and accounts 2013 44
remuneration report continued
for the year ended 31 december 2013
directors’ remuneration policy continued
policy on executive director recruitmentspromotions 
in relation to an external executive recruitment or an internal promotion the committee will follow the principles 
outlined in the table below
element of remuneration policy
base salary salary levels will be set based on
  the particular experience knowledge and skill of the individual 
  market rates for comparable positions in companies of a similar size and complexity and 
  internal company relativities 
where considered appropriate the committee may wish to set the initial salary below 
the perceived market rate eg to reflect an individual’s limited experience at a plc 
board level but with the view to make phased increases potentially above those of 
the wider workforce as a percentage of salary to achieve the desired market 
positioning over time any increases would be subject to the individual’s continued 
development and performance in the role 
benefits a new appointment would be offered the same benefits package or equivalent in line 
with local market practice as that provided to current executive directors 
where considered necessary the committee may be required to pay certain 
relocation expenses legal fees and other costs incurred by the individual in relation 
to their appointment
pension a defined contribution or cash supplement or equivalent in line with local market 
practice at the level provided to current executive directors may be provided
annual bonus the committee would envisage the annual bonus for any new appointment operating 
as set out in the policy table for current executive directors the annual bonus 
maximum would be limited to that of the current chief executive 
however the committee may consider it necessary depending on timing and the 
nature of the appointment to set different tailored performance measures for the 
initial bonus year
long term incentives ongoing ltip awards will be made on the same terms as current executives 
albeit possibly with different performance periods depending on the timing of the 
appointment the maximum ongoing award will be no higher than that of the current 
chief executive an award may be made shortly after an appointment
for internal promotions existing awards will continue over their original vesting period 
and remain subject to their terms as at the date of grant
a new appointment would be eligible to participate in the sharesave plan under the 
same terms as all other employees 
buyout awards to facilitate an external recruitment it may be necessary to buy out remuneration 
which would be forfeited on the appointee leaving their previous employer when 
determining the quantum and structure of any buyout awards the committee will 
where possible use a consistent basis taking into account the form of remuneration 
cash or shares timing horizons and the application of any performance criteria 
buyout awards if used will be granted using the company’s existing share plans 
to the extent possible although awards may also be granted outside of these schemes 
if necessary and as permitted under the listing rules   business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 45
directors’ remuneration policy continued
shareholder engagement
the committee considers an open and constructive 
dialogue with investors to be vitally important to 
establishing a successful remuneration policy which is 
considered fair by both executives and shareholders 
therefore the committee will consult with major investors 
whenever material changes to the policy are proposed 
the committee also welcomes investor feedback and will 
consider views raised at the agm and regular meetings 
throughout the year when establishing the overall policy 
annual report on remuneration
the committee’s terms of reference are available from 
the company secretary and can be found on the 
company’s website at wwwsportechplccominvestor
centrecorporategovernanceremunerationcommittee
termsofreference
the committee met six times during the year and the 
following key activities have been undertaken
  review of best practice
  approval and grant of annual awards under the psp in the 
year under review
  review of the psp performance conditions and approval 
to retain both challenging financial growth conditions 
and total shareholder return “tsr” conditions for 
2013 the weighting on each performance metric was 
changed so that vesting will take place based on relative 
tsr performance and eps growth ie absolute tsr 
performance is no longer to be retained as a long term 
performance metric as described on pages 50 and 51 
this basis is to be kept for the 2014 issue
  in february 2014 approval of bonus awards paid out in 
line with the 2013 bonus policy and approval of bonus 
policy for 2014
  review of the chairman’s remuneration
  review of base salaries for the executive team and
  review and approval of terms of employment for cliff baty
the committee’s recommendations in 2013 and early 2014 
were all accepted and implemented by the board
compliance with best practice 
during 2013 the committee has with the assistance of its 
independent remuneration consultants new bridge street 
“nbs” a trading name of aon plc reviewed its practices 
and policies to ensure they are in line with what it perceives 
to be best practice and the company’s strategic objectives 
the committee continues to be committed to the principles 
of good governance as set out in the code
composition of the remuneration committee
the committee currently consists of peter williams 
chairman david mckeith and rich roberts who are 
all independent nonexecutive directors john barnes 
was a member of the committee until his resignation 
on 3 december 2013 rich roberts was appointed as 
a member of the committee on 27 january 2014 none 
of the committee has any personal financial interest 
other than as a shareholder conflicts of interest from 
crossdirectorships or daytoday involvement in the 
running of the business 
peter williams became chairman of the committee in 
april 2011 taking over from john barnes the chief 
executive and chairman are invited to attend meetings 
although neither is present when matters affecting his own 
remuneration are discussed the company secretary acts 
as secretary to the committee 
the committee retains independent remuneration 
consultants nbs to advise on all aspects of executive 
remuneration nbs is a member of the remuneration 
consultants group and has signed up to its code of 
conduct nbs has no connection with sportech other 
than in the provision of advice on executive remuneration 
the terms of engagement with nbs are available from 
the company secretary on request the fees of the 
independent remuneration consultants in relation to the 
services provided by them to the company during the 
financial year were £64415 of which £33000 related 
to advice to the company on the implementation and 
administration of share incentive schemes
the committee reviews its relationships with external 
advisers on a regular basis and believes that no conflicts 
of interest exist
detailed remuneration policy for 2014 
basic annual salary
each executive director’s basic salary is reviewed 
and determined by the committee annually taking into 
account the individual’s performance and experience 
the committee also makes use of independent benchmark 
data provided by external remuneration consultants 
takes due account of market median data in separate 
comparator groups based on sector size and complexity 
and is aware of the level of salary increases awarded to 
other employees within the group 
  ian penrose chief executive was awarded a salary 
increase of 2 which is consistent with the general pay 
award for all ukbased employees he is paid a salary of 
£385000 per annum with effect from 1 january 2014
  cliff baty chief financial officer is paid a salary of 
£245000 per annum with effect from 1 january 2014 an 
increase of 2 which is consistent with the general pay 
award for all ukbased employees
  ian hogg chief operating officer consumer facing 
business is paid a salary of £256000 per annum with effect 
from 1 january 2014 an increase of 2 which is consistent 
with the general pay award for all ukbased employees
performance related bonus
the maximum bonus potential for the chief executive for 
2014 is 100 of basic salary and for the chief operating 
officer consumer facing business and chief financial 
officer is 75 of basic salary 
for each executive director their performance related 
bonus is based on the ebitda performance of the group 
and operating divisions as appropriate delivering on   corpor a te governance
sportech plc annual report and accounts 2013 46
remuneration report continued
for the year ended 31 december 2013
annual report on remuneration continued
detailed remuneration policy for 2014 continued
performance related bonus continued
group strategic objectives and meeting personal targets 
the ebitdabased proportion of the bonus which 
represents 70 of each director’s bonus entitlement is 
operated with a range set around a budgeted ebitda figure 
taking into account city forecasts strategic and personal 
objectives include continuing to develop our multiple 
business interests in connecticut and california rolling out 
our racing and digital footprint and developing the sportech 
team to take advantage of these new and innovative 
business opportunities further detail about such strategic 
and personal objectives is considered commercially sensitive 
and will therefore not be disclosed prospectively the 
committee will consider whether retrospective disclosure 
is appropriate this bonus is wholly payable in cash
pension arrangements
the company will contribute into a defined contribution 
scheme for the executive directors at a rate of 8 only 
basic annual salary is pensionable
other benefits
executive directors are entitled to the following other 
main benefits
  chief executive – 29 working days’ holiday per annum 
in addition to normal bank and public holidays other 
executive directors – 25 working days’ holiday per annum 
in addition to normal bank and public holidays
  a car allowance of £16000 for the chief executive 
and £12300 for the coo consumer facing business
  private health insurance for themselves their spouse 
and children and
  life insurance of four times salary
long term incentive plan “ltip”
the committee believes that share ownership and the 
granting of sharebased incentives strengthens the link 
between executives’ personal interests and those of the 
shareholders the company has two long term share plans 
in place being a share option scheme and a performance 
share plan “psp” the company’s policy has been to only 
grant awards under the psp since its adoption in 2007
it is the committee’s intention to grant awards in 2014 at 100 
of salary to the chief executive and 75 of salary to the other 
directors the targets to apply to the 2014 awards will be the 
same as those applied to the 2013 awards being 50 based 
on the company’s relative tsr performance part a and 50 
based on performance against a challenging range of eps 
growth targets part b 
the vesting of part a of each such award will be dependent 
on sportech’s tsr over a fixed threeyear period relative 
to the tsr of the constituents of the ftse small cap 
index excluding investment trusts over the same period 
the comparator group set as at the date of grant 
no portion of part a will vest unless sportech’s tsr 
performance at least matches the median of the tsr 
performance within the comparator group thereafter the 
following vesting schedule will apply
the company’s tsr rank against the tsr 
of the comparator companies extent of vesting of part a 
median 25
between median and upper quartile pro rata between
25 and 100
upper quartile or better 100
the vesting of part b of each such award will be 
dependent on sportech’s eps performance over a fixed 
threeyear period no portion of part b will vest unless 
sportech’s eps growth is at least equal to the retail prices 
index “rpi” plus 4 per annum thereafter the following 
vesting schedule will apply
the company’s eps growth extent of vesting of part b 
at least rpi  4 pa 25
between a minimum of rpi  4 pa 
and 10 pa
pro rata between 
25 and 100
at least rpi  10 pa 100
eps performance will be tested from a base year 
ended 31 december 2013 with eps being calculated 
on such adjusted basis as the remuneration committee 
determines appropriate adjusted eps for such purposes 
will be disclosed in due course at the time of vesting in the 
remuneration report 
policy on executive share ownership
the board has adopted a formal policy in respect of 
executive share ownership pursuant to which all executives 
are expected to invest in the company to a level of at least 
100 of annual salary over time save that under such 
policy executives may build to this level using 50 of net 
awards under the company’s long term incentive plans 
current share ownerships are set out on page 52
nonexecutive directors’ fees and incentives 
the fees of the nonexecutive directors are set by the 
board following a review against fee levels operated in 
companies of a comparable size and after taking into 
account the anticipated time commitment of each role 
the nonexecutive directors do not participate in any 
incentive pension or benefit schemes of the company 
other than in the case of lorne weil who was issued an 
incentive award in october 2010 see page 51 
the fees set for 1 january 2014 are £120000 for the chairman 
and a set fee of £47500 with a further £5000 for each 
committee they sit on for ukbased nonexecutives and 
a set fee of 100000 for usbased nonexecutives the 
fees set for nonexecutives are at the top end of the upper 
quartile for comparable companies reflecting the onerous 
international regulatory environment for sportech and the 
fact that board meetings will be held in both the us and the 
uk necessitating additional travel and time commitments
details of each director’s remuneration for the year ended 
31 december 2013 are given in the table opposite  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 47
annual report on remuneration continued
directors’ remuneration for the year ended 
31 december 2013
basic annual salary
  ian penrose chief executive £377000 per annum 
with effect from 1 january 2013
  cliff baty chief financial officer £240000 per annum 
with effect from 14 may 2013
  ian hogg chief operating officer consumer facing 
business £251000 per annum with effect from 
1 january 2013
  steve cunliffe finance director £205000 per annum 
with effect from 1 january 2013 and until date of 
termination being 6 march 2013
directors’ remuneration for 2013 audited
year of
appointment
fees
salary
£000
taxable
benefits
2
£000
pension
£000
bonuses
£000
long term
incentives
£000
compensation for
loss of office
£000
2013
total
£000
executive directors
ian penrose 2005 377 17 30 151 816 — 1391
cliff baty
appointed 14 may 2013
2013 154 — 10 63 — — 227
ian hogg 2010 251 14 20 40 482 — 807
steve cunliffe
resigned 6 march 2013
2006 38 — — — 527 141 706
nonexecutive directors
roger withers 2011 65 — — — — — 65
peter williams 2011 45 — — — — — 45
john barnes
resigned 3 december 2013 
2005 45 — — — — — 45
david mckeith 2011 45 — — — — — 45
lorne weil 2010 35 — — — 627 — 662
rich roberts appointed 
3 december 2013
2013 5 — — — — — 5
mor weizer 
1
 
resigned 20 june 2013
2011 — — — — — — —
aggregate emoluments 1060 31 60 254 2452 141 3998
1 mor weizer did not receive any remuneration in his role as nonexecutive director as he sat on the board as a representative of playtech limited
2 taxable benefits comprise various medical insurance policies and car allowances 
directors’ remuneration for 2012 audited
year of
appointment
fees
salary
£000
taxable
benefits
2
£000
pension
£000
bonuses
£000
long term
incentives
£000
compensation for
loss of office
£000
2012
total
£000
executive directors
ian penrose 2005 370 49 30 93 233 — 775
ian hogg 2010 246 13 20 92 140 — 511
steve cunliffe 
resigned 6 march 2013
2006 205 13 16 33 156 — 423 
brooks pierce 
resigned 10 may 2012
2010 92 3 2 17 69 254 437
nonexecutive directors
roger withers 2011 65 — — — — — 65
peter williams 2011 45 — — — — — 45
john barnes 
resigned 4 december 2013 
2005 45 — — — — — 45
david mckeith 2011 45 — — — — — 45
lorne weil 2010 35 — — — 195 — 230
mor weizer 
1 
resigned 20 june 2013
2011 — — — — — — —
aggregate emoluments 1148 78 68 235 793 254 2576
1 mor weizer did not receive any remuneration in his role as nonexecutive director as he sat on the board as a representative of playtech limited
2 taxable benefits comprise various medical insurance policies and car allowances   corpor a te governance
sportech plc annual report and accounts 2013 48
remuneration report continued
for the year ended 31 december 2013
annual report on remuneration continued
directors’ remuneration for the year ended 
31 december 2013 continued
performance related bonus
the maximum bonus potential for the chief executive 
in the year under review was 100 of basic salary and for 
each of the chief financial officer and the chief operating 
officer consumer facing business was 75 of basic salary 
for each executive director their performance related 
bonus was based on i the ebitda performance of the 
group with ebitda of individual operating divisions 
included within the targets set for the chief operating 
officer consumer facing business and ii strategic 
objectives aligned with group strategic goals
ebitda performance
the committee considered the group’s ebitda performance 
for these purposes excluding the egaming business and 
exercised its discretion to scale back the bonuses based on 
this performance test to take account of the losses made 
during the year in the egaming business prior to achieving 
what was considered a successful sale out of the group with 
this in mind in respect of both the chief executive and the 
chief financial officer achievement was determined to 
be 10 out of a maximum target of 70 of potential bonus 
and for the chief operating officer consumer facing 
business achievement was deemed to be 6 out of a 
maximum target of 85 of potential bonus it being noted 
that his target had a split of group and operating divisional 
ebitda being up to 30 and 55 respectively of this part 
of his bonus and no bonus was payable with regards to 
the ebitda performance of the relevant individual 
operating division
the actual targets set eg the numbers included in 
the group’s financial plans are considered to remain 
commercially sensitive and consideration will be given 
to disclosing these in future years 
strategic objectives
with regards to the chief executive his strategic targets 
related to delivering against a number of growth focused 
initiatives primarily in relation to the group’s activities in the 
usa these included the development of the bradley sports 
bar restaurant and betting venue achieving a successful 
outcome in relation to exclusive online opportunities in 
connecticut establishing business opportunities in california 
and developing the group’s operational team and structure 
these were assessed to have been achieved in full resulting in 
an award of 30 out of a maximum target of 30 of potential 
bonus the strategic targets relating to the chief financial 
officer included improving the operational capability and 
reporting of the finance function within the group and 
undertaking a detailed evaluation and assessment of 
opportunities in the egaming market these targets were 
considered to have been largely met resulting in an award of 
25 out of a maximum target of 30 of potential bonus the 
strategic targets for the chief operating officer consumer 
facing business related to the ongoing development of 
the uk football pools business and its move to stabilising 
profitability and cash flows and the targets relating to this 
objective were met in full resulting in an award of 15 
out of a maximum target of 15 of potential bonus
the bonus payable to the chief financial officer was in 
respect of the full year under review ie based on his full 
year salary notwithstanding that he joined the company 
in may 2013 this was agreed as part of the terms of his 
recruitment to offset the forfeiture of the bonus he would 
have earned but forfeited when he agreed to join sportech 
and resigned from his then employment the remuneration 
committee was comfortable taking this approach ie offering 
performance related compensation based on performance 
at sportech as opposed to estimating the cash value of 
a bonus forfeited on leaving his former employer
the table below summarises the overall bonus result 
individual total bonus  maximum  salary payable
chief executive 40 of maximum 40 of salary payable
chief financial officer 35 of maximum 2625 of salary payable
chief operating officer consumer facing business 21 of maximum 1575 of salary payable  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 49
performance share plan – 2013 vesting
measure condition threshold maximum actual vesting
relative tsr 2010 tsr measured against the constituents 
of the ftse small cap index excluding 
investment trusts over the three years 
from date of grant
median
rank 163 
upper
quartile
rank
4125 
tsr 1181
rank 38
100
absolute tsr 2010 average annual growth in tsr 6 pa 15 pa 522 pa 100
eps 2011 annualised adjusted eps growth 
measured against rpi over three 
financial years
rpi  4 pa rpi  10 pa 945 475
executive award number of awards granted vesting number of shares vesting value of awards 
ian penrose 2010 part a and b 941177 100 941177 £752941
2011 part c 155136 475 73690 £62873
ian hogg 2010 part a and b 564706 100 564706 £451764
2011 part c 75472 475 35849 £30587
  for 2010 awards this is based on the share price on the date of vesting of 8000p for 2011 awards which have yet to vest the value 
is based on a threemonth average share price to december 2013 of 8532p 
performance share plan – 2013 award
executive type of award
number of awards 
granted basis of award
share price 
on grant
pence face value 
percentage which 
vests at threshold
ian penrose performance share 377400 100 of salary 100 £377400 25
cliff baty performance share 276000 115 of salary 90 £248400 25
ian hogg performance share 188190 75 of salary 100 £188190 25
  this is based on the closing share price on the day before the date of grant in respect of ian penrose and ian hogg the date of grant 
was 21 march 2013 and in respect of cliff baty the date of grant was 24 may 2013
annual report on remuneration continued
directors’ remuneration for the year ended 
31 december 2013 continued
performance related bonus continued
strategic objectives continued
the committee is comfortable that the level of bonuses 
paid to executive directors reflects both the company and 
individual performance during the year 
pension arrangements
the company contributed into a defined contribution scheme 
for the executive directors at a rate of 8 only basic annual 
salary was pensionable four directors 2012 three directors 
were members of defined contribution schemes during the 
year contributions paid by the company in respect of these 
directors are as shown in the table on page 47 
long term incentive plans “ltips”
awards vested in relation to performance 
ending 2013
part of the awards granted in 2010 and 2011 reached the 
end of their performance periods in the year under review 
this includes the twothirds of the 2010 award subject to 
relative tsr and absolute tsr performance period ended 
5 october 2013 and onethird of the 2011 award subject 
to eps performance period ended 31 december 2013 
summary details of the full conditions applying to the 2010 
and 2011 awards are included as a footnote to the psp table 
on page 51
in terms of the 2010 award the assessment of the tsr 
measures was made independently by nbs who advised 
that sportech’s tsr achieved a threeyear tsr which 
ranked above the upper quartile and greater than the 15 pa 
maximum absolute target thereby triggering full vesting for 
each element of this award
in terms of the 2011 award the eps growth over the threeyear 
period to 31 december 2013 was 945 pa thereby triggering 
475 vesting of this element of the award subject to 
committee approval
in summary the total number of awards for each executive 
is shown in the table below  corpor a te governance
sportech plc annual report and accounts 2013 50
remuneration report continued
for the year ended 31 december 2013
annual report on remuneration continued
ltip awards granted during 2013
share option scheme
a share option scheme is in place the details of which are 
described in note 26 the last award under such a scheme 
was made in 2005
performance share plan “psp” 
the psp was introduced in 2007 under the rules of the 
psp awards may normally be granted up to 100 of 
salary other than in exceptional circumstances when they 
may be granted up to 200 of salary 
the committee had previously approved the introduction 
of an annual award policy from 2012 at up to 100 of salary 
to executive directors an award was made to cliff baty 
shortly after appointment at 115 of salary as an exceptional 
award to reflect remuneration forfeited on leaving his 
previous employment
the award was set after the committee had considered 
the awards that lapsed on leaving his former employer 
and the company’s normal ltip policy it was not 
considered appropriate to provide any nonperformance 
related compensation for potential value lost on leaving 
his former employer
2013 awards – targets
in connection with the awards to the executive directors 
two distinct performance conditions apply each in relation 
to onehalf of each award 
for ease of reference such halves are referred to below as 
part a and part b respectively 
the vesting of part a of each such award will be dependent 
on sportech’s tsr over a fixed threeyear period relative 
to the tsr of the constituents of the ftse small cap 
index excluding investment trusts over the same period 
the comparator group set as at the date of grant
no portion of part a will vest unless sportech’s tsr 
performance at least matches the median of the tsr 
performance within the comparator group thereafter the 
following vesting schedule will apply
the company’s tsr rank against the tsr 
of the comparator companies extent of vesting of part a 
median 25
between median and upper quartile pro rata between
25 and 100
upper quartile or better 100
the vesting of part b of each such award will be 
dependent on sportech’s eps performance over a fixed 
threeyear period no portion of part b will vest unless 
sportech’s eps growth is at least equal to the retail prices 
index “rpi” plus 4 per annum thereafter the following 
vesting schedule will apply 
the company’s eps growth extent of vesting of part b 
at least rpi  4 pa 25
between a minimum of rpi  4 pa 
and 10 pa
pro rata between 
25 and 100
at least rpi  10 pa 100
eps performance will be tested from a base year 
ended 31 december 2012 with eps being calculated 
on such adjusted basis as the remuneration committee 
determines appropriate adjusted eps for such purposes 
will be disclosed in due course at the time of vesting in 
the remuneration report 
directors’ sharebased incentives
aggregate emoluments disclosed on page 47 do not 
include any amounts for the value of sharebased 
incentives to acquire ordinary shares in the company 
granted to or held by the directors the sharebased 
incentives held by the directors are as follows
sportech share option scheme
as at
1 january and
31 december
2013
number
ian penrose 505050
details of the option are as follows
ian penrose
exercise
price
date
from which
exercisable expiry date granted on
505050 £0817 270908 260915 270905
exercise of the option is subject to the share price 
reaching the following closing prices
shares closing price
151515 £1237
151515 £1732
101010 £2227
101010 £2722
505050 
the market price of the ordinary shares at 31 december 2013 
was £0815 and the range during the year was £1080 
to £0710
the options were granted at no cost to the director once 
awarded the exercise of the share options is unconditional   business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 51
annual report on remuneration continued
ltip awards granted during 2013 continued
directors’ sharebased incentives continued
psp
the following table shows awards outstanding at the start of the year awarded vested and lapsed during the year and 
remaining outstanding at the end of the year
date
of grant
as at
1 january
2013
number
awarded
during
the year
number
vested
during
the year
number
lapsed
during
the year
number
as at 31 
december 
2013 
number
vested
but not 
exercised
number
market
price on
date of
grant
pence
date from
which
exercisable
award
expiry
date
ian penrose 061010 
1
 1411765 — 1232941 178824 — 1232941 4250 061013 061014
021211 
1
465408 — — — 465408 — 3975 021214 021215
080312 
1
751269 — — — 751269 — 5152 080315 080316
210313 
2
— 377400 — — 377400 — 10000 210316 210317
total 2628442 377400 1232941 178824 1594077 1232941 
cliff baty 210313 
2
— 276000 — — 276000 — 9000 210316 210317
ian hogg 061010 
1
847059 — 739765 107294 — 739765 4250 061013 061014
021211 
1
 226415 — — — 226415 — 3975 021214 021215
080312 
1
374619 — — — 374619 — 5152 080315 080316
210313 
2
— 188190 — — 188190 — 10000 210316 210317
total 1448093 188190 739765 107294 789224 739765
steve cunliffe 
3
061010 
1
941176 — 821960 119216 — — 4250 061013 061014
021211 
1
62893 — — — 62893 — 3975 021214 021215
080312 
1
104061 — — — 104061 — 5152 080315 080316
total 1108130 — 821960 119216 166954 — 
lorne weil 
4
061010 
1
1176470 — — 149020 1027450 — 4250 061013 na
total psp 
awards 6361135 841590 2794666 554354 3853705 1972706
1  2010 2011 and 2012 awards were subject to relative tsr 
absolute tsr and eps growth performance targets each 
applying to onethird of the awards the performance targets 
for the 2010 2011 and 2012 awards operated under the same 
structure with the specific details outlined on pages 34 and 35 
of the 2012 annual report
2  2013 awards were subject to relative tsr and eps growth 
performance targets each applying to onehalf of the 
awards the structure for which is outlined on page 
50 of this report 
3   steve cunliffe’s psp awards will vest on their original vesting 
date subject to satisfaction of applicable performance criteria 
with the full amount of his 2010 award under the psp onethird 
of his 2011 award under the psp and onethird of his 2012 award 
under the psp being transferred 
4   lorne weil’s award was a oneoff shareholder approved award 
made subject to the same performance conditions as set out 
in note 1 but also conditional on lorne weil investing in and 
retaining 2000000 ordinary shares in the company summary 
details were included in the directors’ remuneration report for 
the year ended 31 december 2010
the number of ordinary shares that may be issued under 
the psp and any other share plan may not exceed 10 
in any tenyear period as at 31 december 2013 the 
company’s potential dilution was 67 
details of the performance conditions for the psp awards 
are on pages 49 and 50 of this report  corpor a te governance
sportech plc annual report and accounts 2013 52
remuneration report continued
for the year ended 31 december 2013
annual report on remuneration continued
payment for loss of office
as explained in last year’s report pursuant to an 
agreement in relation to his departure from the board 
steve cunliffe whose employment with the company 
terminated on 6 march 2013 received i payment of eight 
months’ salary and benefits in lieu of notice and ii 
subject to satisfaction of the relevant performance criteria 
a bonus in respect of the year under review pro rated 
to 14 november 2012 the date notice was served steve 
cunliffe was treated as a good leaver under the rules of the 
psp following a restructuring of the board which resulted 
in his individual role effectively being made redundant 
ie different skill sets were required for the future of the 
group as such he retained the full amount of his 2010 
award under the psp onethird of his 2011 award under 
the psp and onethird of his 2012 award under the psp 
subject to satisfaction of applicable performance criteria 
payment of salary and benefits in lieu of notice was made 
on a monthly basis the bonus was paid in march 2013 the 
psp awards will vest on their normal vesting date subject 
to the relevant performance conditions being achieved 
payments to former directors
details of payments received by steve cunliffe in 2013 are 
as set out above such payments being included in the 
single total figure
brooks pierce was treated as a good leaver under the rules 
of the psp following a restructuring of the board which 
resulted in his individual role effectively being made 
redundant as such subject to satisfaction of applicable 
performance criteria he retained each of his 2010 2011 and 
2012 awards under the psp pro rated according to his 
termination date of 10 may 2012 further to this in 2013 he 
received a total payment under the 2010 award of £333000 
plus the amount set out in the single total figure for 2012 
on page 47 of this report which was also received in 2013
in addition in march 2013 he received his bonus in relation 
to the year ended 31 december 2012 as set out in the 
previous financial year’s remuneration report 
director interests and shareholding guidelines
the following table shows director interests in the company
director
total 
shareholding at
31 december 
2012
total 
shareholding at
31 december 
2013
share
option
scheme
vested
share
option
scheme 
unvested
psp
award held 
unvested
psp award 
vested but not 
exercised
share 
ownership 
guideline 
expected to
be achieved
by third 
anniversary of 
employment
 of guideline 
met by
31 december 
2013
ian penrose 500000 500000 151515 353535 1594077 1232941 100 100
cliff baty — — — — 276000 — 100 0
ian hogg 197140 197140 — — 789224 739765 100 6403
roger withers 112079 112079 — — — — na na
peter williams 100000 100000 — — — — na na
john barnes 110000 110000 — — — — na na
david mckeith — 30000 — — — — na na
lorne weil 2000000 2000000 — — 1027450 — na na
all executive directors are expected to hold an investment 
of at least 100 of base salary in company shares this 
requirement can be achieved over a period of time using 
50 of net awards which vest under the company’s ltips 
the table above shows shareholdings as at 31 december 2013 
and the percentage of the guideline currently met
total shareholding which counts towards the 
measurement of the guideline is calculated on the basis 
of legally owned shares plus vested psp awards 
the percentage of guideline met is based on the annual 
base salary and the higher of the acquisition cost of the 
total shareholding or the current market value of the total 
shareholding once an executive director meets the 
required holding the executive director is only required to 
purchase additional shares equivalent to the value of any 
increase in base salary  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 53
percentage increase in the remuneration of the 
chief executive unaudited
2013 2012  change
chief executive £000
– salary 377 370 20
– bonus and benefits 198 172 151
average of group
fulltime employee £000
– salary 63 61 33
– bonus and benefits 8 7 143
the table above shows the percentage movement in the 
salary benefits and annual bonus for the chief executive 
between the current and previous financial year compared 
to that for the average fulltime salaried employee 
relative importance of spend on pay unaudited
2013 2012  change
staff costs £m 330 324 19
distributions to 
shareholders
nil nil —
approval
this report was approved by the remuneration 
committee and signed on its behalf by
peter williams
senior independent nonexecutive director 
and chairman of the remuneration committee
5 march 2014
annual report on remuneration continued
performance graph and chief executive 
fiveyear pay chart
the following graph demonstrates the value of £100 
invested in sportech plc as at 31 december 2008 
compared with the same investment in a fund mirroring 
the makeup of the ftse small cap index
 
300
250
200
150
100
50
0
31 dec 08 31 dec 09 31 dec 10 31 dec 11 31 dec 12 31 dec 13
sportech plc
ftse small cap index
value £
this graph shows the value by 31 december 2013 of £100 
invested in sportech plc on 31 december 2008 compared with 
the value of £100 invested in the ftse small cap index the other 
points plotted are the values at intervening financial year ends
the ftse small cap index has been chosen as it is the 
index most closely aligned to sportech plc
the following table sets out the chief executive’s total 
remuneration for the current financial year and the 
preceding four years
2009 2010 2011 2012 2013
remuneration 
before ltips 
£000
416 542 502 542 575
ltips £000 — — — 233 816
total 
remuneration 
£000
416 542 502 775 1391
annual bonus  33 74 50 25 40
ltip vesting  — — — 620  827  corpor a te governance
sportech plc annual report and accounts 2013 54
directors’ report
for the year ended 31 december 2013
the directors present their report and the audited consolidated financial statements for the year ended 31 december 2013 
general information of the company can be found in the accounting policies on page 66 
the strategic report and corporate governance report are set out on pages 10 to 53 this directors’ report does not 
include information on trading in the year or principal risks as this information is included in the strategic report instead 
under section 414c11 of the companies act 2003 on pages 14 and 15
directors and their interests in the shares of the company
the directors who held office during the year and up to the date of signing these financial statements unless otherwise 
stated had beneficial interests in the share capital of the company as shown below
details of share options and performance share plan “psp” awards granted during the year ended 31 december 2013 
are set out in the remuneration report on pages 49 to 51
at 5 march 2014
 and
31 december
 2013
number
31 december
2012
number
roger withers 112079 112079
ian penrose 500000 500000
ian hogg 197140 197140
cliff baty appointed 14 may 2013 — —
steve cunliffe resigned 6 march 2013 na 85000
peter williams 100000 100000
john barnes resigned 3 december 2013 na 110000
david mckeith 30000 —
richard roberts appointed 3 december 2013 — —
lorne weil 2000000 2000000
mor weizer resigned 20 june 2013 na —
directors’ thirdparty indemnity provisions
during the year qualifying indemnity insurance was provided to the directors such insurance remained in force 
throughout the year up to the date of signing the financial statements no claim was made under these provisions
employees
details of the company’s policy on equal opportunities for disabled employees and on employee involvement are set out 
in the ‘responsibilities towards employees’ section of the corporate social responsibility report on page 23
substantial shareholdings 
5 march 2014 31 december 2013
holder
ordinary
shares
of 50p
 
of issued
share capital
ordinary 
shares 
of 50p
 
of issued
share capital
henderson global investments limited 43921290 2144 5 na
scientific games corporation inc — — 39742179 1940
newby manor limited 35593010 1738 35593010 1738
axa sa 11150306 544 11150306 544
aberforth partners llp 11100885 542 9998085 488
schroder investment management limited 11095332 542 5 na
black rock investment management uk limited 10363537 506 10046295 490
aviva plc 6864718 335 6864718 335
total of substantial shareholdings 130089078 6351 113394593 5535  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 55
substantial shareholdings continued 
on 5 march 2014 interests representing 3 or more of 
the issued share capital of the company had been notified 
to the company as shown on page 54
the company and scientific games corporation inc “sgc” 
had entered into a lockup agreement pursuant to which 
sgc agreed not to dispose of any of the shares it acquired 
as part of the sportech racing acquisition “consideration 
shares” for a period commencing on completion of the 
acquisition of sportech racing 5 october 2010 up to 
and including the third anniversary of completion which 
has now passed the lockup agreement did not prohibit 
sgc from transferring the consideration shares inter alia 
to its connected persons or from accepting a takeover 
offer in respect of the consideration shares made under 
the city code the lockup agreement could have been 
terminated if inter alia the company or its connected 
persons enters into certain types of lottery business the 
company or certain of its affiliated persons are in violation 
of the law or the company breaches certain obligations to 
provide information pursuant to the purchase agreement
as at 31 december 2013 there are no restrictions on the 
transfer of securities in the company or on voting rights 
dividend
no dividend is proposed 2012 £nil and no dividend 
has been paid during the year 2012 £nil
environmental matters
the corporate social responsibility report provides 
information with respect to the group’s impact on 
the environment and can be found on page 23
corporate governance
the group’s statement on corporate governance is set out 
on pages 28 to 35 and forms part of this directors’ report
significant agreements
there are a number of agreements that take effect alter or 
potentially terminate upon a change of control of the company 
following a takeover bid such as commercial contracts and 
employees’ share plans none of these are deemed to be 
individually significant in terms of their potential impact 
on the daytoday running of the business of the group 
as a whole other than as noted below
  the main banking facilities with the three principal lenders 
bank of scotland plc barclays bank plc and royal bank 
of scotland plc have mandatory prepayment provisions 
in respect of a change of control or trade sale with the 
facilities cancelled and all outstanding debt becoming 
immediately due and payable if a lender so requires and
  the group operates under a number of licences in various 
territories awarded to it by regulatory bodies in the event 
of a change of control certain regulatory bodies retain 
the right to preapprove the acquirer in order for a 
change of control to be permitted
there are no clauses in any of the directors’ contracts 
that are triggered by a change of control of the company 
takeover directive
the company has only one class of ordinary shares and 
these shares have equal voting rights the nature of individual 
director’s holdings and individually significant shareholders are 
disclosed on page 52 there are no restrictions on the transfer 
of shares following the end of the lockup agreement with 
scientific games corporation inc on 5 october 2010 as 
described earlier 
as part of the resolutions approved at the 2013 agm 
shareholders’ authority was given to the company’s directors 
for the allotment of up to 66270100 ordinary shares of 50p 
each if the authority is not utilised in connection with a rights 
issue representing 333 of the issued share capital of the 
company as at the date of the 2013 agm during the year 
the directors did not exercise the authorities given to them 
to allot shares as at 31 december 2013 the directors have 
the power to allot up to 132540201 ordinary shares of 50p 
each representing 667 of the issued share capital as at 
the date of the 2013 agm in connection with a rights issue 
subject to a reduction of any amount of shares issued 
in accordance with the preceding reference 
certain of the company’s share incentive schemes contain 
provisions that permit awards or options to vest or become 
exercisable on a change of control in accordance with the 
rules of the schemes
going concern
the group has committed revolving credit banking 
facilities totalling £75m in place with bank of scotland plc 
barclays bank plc and royal bank of scotland plc until 
august 2015 the group meets its daytoday working 
capital requirements through working capital facilities 
at 31 december 2013 a £25m overdraft facility was carved 
out of the overall £75m revolving credit facility in the uk 
with bank of scotland plc this facility is due for renewal in 
july 2014 the group’s forecasts and projections which have 
been prepared for the period to 30 june 2015 and take into 
account reasonably possible changes in performance show 
that the group will be able to operate within the level of its 
current facilities and comply with its banking covenants
after making reasonable enquiries the directors have 
a reasonable expectation that the company and the 
group have adequate resources to continue in operational 
existence for the foreseeable future accordingly they 
continue to adopt the going concern basis in preparing 
the financial statements  corpor a te governance
sportech plc annual report and accounts 2013 56
directors’ report continued
for the year ended 31 december 2013
disclosure of information to auditors 
so far as each director is aware at the date of the approval of 
the financial statements there is no relevant audit information 
of which the company’s auditors are unaware each director 
has taken all the steps that they ought to have taken as a 
director in order to make themselves aware of any relevant 
audit information and to establish that the company’s 
auditors are aware of that information
the auditors pricewaterhousecoopers llp have indicated 
their willingness to continue in office and a resolution 
that they be reappointed will be proposed at the 
annual general meeting
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 prepared the group and parent company 
the “company” financial statements in accordance with 
international financial reporting standards “ifrss” as 
adopted by the european union under company law the 
directors must not approve the financial statements unless 
they are satisfied that they give a true and fair view of the 
state of affairs of the group and the company and of the 
profit or loss of the group for that period in preparing 
these financial statements the directors are required to
  select suitable accounting policies and then apply 
them consistently
  make judgements and accounting estimates that 
are reasonable and prudent
  state whether applicable ifrss as adopted by the 
european union 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 group 
and the company will continue in business
the directors are responsible for keeping adequate 
accounting records that are sufficient to show and explain 
the company’s transactions and disclose with reasonable 
accuracy at any time the financial position of the company 
and the group and enable them to ensure that the financial 
statements and the remuneration report comply with the 
companies act 2006 and as regards the group financial 
statements article 4 of the ias regulation 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
having taken advice from the audit committee the directors 
consider that the annual report taken as a whole is fair 
balanced and understandable and provides the information 
necessary for shareholders to assess the company’s 
performance business model and strategy
directors’ statement pursuant to the 
disclosure and transparency rules
each of the directors whose names and functions are listed in 
the board of directors section on pages 24 and 25 confirm 
that to the best of each person’s knowledge and belief
  the financial statements prepared in accordance with 
ifrss as adopted by the european union give a true 
and fair view of the assets liabilities financial position 
and profit of the group and
  the strategic report and other reports contained in the 
annual report include a fair review of the development 
and performance of the business and the position of the 
group and company together with a description of the 
principal risks and uncertainties that they face
annual general meeting “agm”
the notice convening the agm of the company on 13 may 2014 
is being sent to shareholders with this report
in accordance with the articles of association of the company 
roger withers and peter williams retire by rotation and offer 
themselves for reappointment at the agm cliff baty and 
rich roberts will retire and offer themselves for reappointment 
as they were appointed to the board since the last agm 
profiles of these directors appear on pages 24 and 25
resolutions will also be proposed at the agm to receive 
the accounts and the directors’ and independent auditors’ 
reports to approve the remuneration report set out on 
pages 37 to 53 to reappoint the auditors and to authorise 
the directors to fix their remuneration 
by order of the board
luisa wright 
company secretary
5 march 2014   business overview corpor a te governance strategic report financial st a tements
annual report and accounts 2013 sportech plc 57
independent auditors’ report
to the members of sportech plc
report on the financial statements
our opinion 
in our opinion
  the financial statements defined below give a true and fair view of the state of the group’s and parent company’s affairs as 
at 31 december 2013 and of the group’s profit and of the group’s and parent company’s cash flows for the year then ended
  the group financial statements have been properly prepared in accordance with international financial reporting 
standards ifrss as adopted by the european union
  the parent company financial statements have been properly prepared in accordance with ifrss as adopted by the 
european union and as applied in accordance with the provisions of the companies act 2006 and
  the financial statements have been prepared in accordance with the requirements of the companies act 2006 and 
as regards the group financial statements article 4 of the ias regulation
this opinion is to be read in the context of what we say in the remainder of this report
what we have audited
the group financial statements and parent company financial statements the ‘financial statements’ which are prepared 
by sportech plc the ‘parent company’ comprise
  the consolidated income statement and consolidated statement of comprehensive income for the year then ended
  the group and parent company balance sheets as at 31 december 2013
  the group and parent company statements of changes in equity and statements of cash flows for the year then ended and
  the accounting policies and the notes to the financial statements which include other explanatory information
the financial reporting framework that has been applied in their preparation comprises applicable law and ifrss as 
adopted by the european union and as regards the parent company as applied in accordance with the provisions of the 
companies act 2006
what an audit of financial statements involves 
we conducted our audit in accordance with international standards on auditing uk and ireland ‘isas uk  ireland’ 
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give 
reasonable assurance that the financial statements are free from material misstatement whether caused by fraud or error 
this includes an assessment of
  whether the accounting policies are appropriate to the group’s and parent company’s circumstances and have been 
consistently applied and adequately disclosed
  the reasonableness of significant accounting estimates made by the directors and 
  the overall presentation of the financial statements 
in addition we read all the financial and nonfinancial information in the annual report and accounts  the ‘annual report’ to 
identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially 
incorrect based on or materially inconsistent with the knowledge acquired by us in the course of performing the audit if we 
become aware of any apparent material misstatements or inconsistencies we consider the implications for our report
overview of our audit approach
materiality
we set certain thresholds for materiality these helped us to determine the nature timing and extent of our audit 
procedures and to evaluate the effect of misstatements both individually and on the financial statements as a whole 
based on our professional judgement we determined materiality for the group financial statements as a whole to be 
£650000 this approximates to 25 of adjusted ebitda which we consider to be the most appropriate benchmark 
because it is reflective of the underlying profitability of the business
we agreed with the audit committee that we would report to them misstatements identified during our audit above 
£30000 as well as misstatements below that amount that in our view warranted reporting for qualitative reasons
overview of the scope of our audit
the group is structured along two principal geographical business lines being the uk and us the uk operations and the 
uk and group accounting functions are based in liverpool with the us operations being based in connecticut and atlanta 
the group financial statements are a consolidation of their reporting units comprising the group’s operating businesses 
and centralised functions 
in establishing the overall approach to the group audit we determined the type of work that needed to be performed 
by us as the group engagement team at the reporting units to be able to conclude whether sufficient appropriate audit 
evidence had been obtained as a basis for our opinion on the group financial statements as a whole   corpor a te governance
sportech plc annual report and accounts 2013 58
report on the financial statements continued
overview of our audit approach continued
overview of the scope of our audit continued
accordingly of the groups 27 reporting units we identified 14 which in our view required an audit of their complete financial 
information either due to their size or their risk characteristics this together with additional procedures performed at the 
group level gave us the evidence we needed for our opinion on the group financial statements as a whole
areas of particular audit focus
in preparing the financial statements the directors made a number of subjective judgements for example in respect of 
significant accounting estimates that involved making assumptions and considering future events that are inherently 
uncertain we primarily focused our work in these areas by assessing the directors’ judgements against available evidence 
forming our own judgements and evaluating the disclosures in the financial statements
in our audit we tested and examined information using sampling and other auditing techniques to the extent we 
considered necessary to provide a reasonable basis for us to draw conclusions we obtained audit evidence through 
testing the effectiveness of controls substantive procedures or a combination of both 
we considered the following areas to be those that required particular focus in the current year this is not a complete list of 
all risks or areas of focus identified by our audit we discussed these areas of focus with the audit committee their report on 
those matters that they considered to be significant issues in relation to the financial statements is set out on pages 32 to 34 
area of focus how the scope of our audit addressed the area of focus
goodwill impairment assessment
we focused on this area because the directors’ 
assessment of the carrying value of goodwill and 
intangible assets and the annual impairment review the 
directors are required to perform involves complex and 
subjective judgments about the future results of the 
business 
refer to note 12 to the financial statements
we evaluated the directors’ future cash flow forecasts 
including comparing them to the latest board approved 
budgets and challenged the assumptions therein we 
challenged the directors’ key assumptions for discount 
and long term growth rates we also performed sensitivity 
analysis around the key drivers being forecast growth 
rates and cost savings of the cash flow forecasts having 
ascertained the extent of change in those assumptions that 
either individually or collectively would be required for the 
asset to be impaired we considered the likelihood of such 
movement in those key assumptions arising
t axation
the tax affairs of the group are complicated by the 
diversity of its geography and type of operations
refer to note 8 to the financial statements
we assessed the directors’ current and deferred tax 
calculations and the assumptions on which they are based 
utilising our knowledge and experience of tax matters in 
both the uk and us
we also assessed the level of provisioning in respect of 
potential current tax liabilities as well as considering the 
recoverability of recognised deferred tax assets
fraud in revenue recognition 
isas uk  ireland presume there is a risk of fraud 
in revenue recognition because of the pressure 
management may feel to achieve the planned results 
we focused on the timing of revenue recognition and 
its presentation in the income statement because of the 
inherent complexities 
as the foundation of the evidence we obtained regarding 
the revenue recognised during the year we evaluated the 
relevant it systems and tested the internal controls over the 
completeness accuracy and timing of revenue recognised in 
the financial statements we also tested journal entries posted 
to revenue accounts to identify unusual or irregular items 
we tested the timing of revenue recognition taking into 
account contractual obligations and in particular considered 
whether the group appropriately recorded revenue we also 
tested the reconciliations between the revenue systems used 
by the group and its financial ledgers
risk of management override of internal controls 
isas uk  ireland require that we consider this 
we assessed the overall control environment of the group 
including the arrangements for staff to “whistleblow” 
inappropriate actions and interviewed senior management 
and the group’s internal audit function we examined the 
significant accounting estimates and judgements relevant to 
the financial statements for evidence of bias by the directors 
that may represent a risk of material misstatement due to 
fraud we also tested journal entries and transactions which 
we identified as being unusual 
the audit committee’s consideration of the judgments referred to above is set out on pages 32 to 34
independent auditors’ report continued
to the members of sportech plc  business overview corpor a te governance strategic report financial st a tements
annual report and accounts 2013 sportech plc 59
report on the financial statements continued
going concern
under the listing rules we are required to review the directors’ statement set out on page 55 in relation to going concern 
we have nothing to report having performed our review
as noted in the directors’ statement the directors have concluded that it is appropriate to prepare the group’s and parent 
company’s financial statements using the going concern basis of accounting the going concern basis presumes that the 
group and parent company have adequate resources to remain in operation and that the directors intend them to do so 
for at least one year from the date the financial statements were signed as part of our audit we have concluded that the 
directors’ use of the going concern basis is appropriate
however because not all future events or conditions can be predicted these statements are not a guarantee as to the 
group’s and the parent company’s ability to continue as a going concern
opinions on matters prescribed by the companies act 2006
in our opinion
  the information given in the strategic report and the directors’ report for the financial year for which the financial 
statements are prepared is consistent with the financial statements and
  the part of the remuneration report to be audited has been properly prepared in accordance with the companies act 2006
other matters on which we are required to report by exception
adequacy of accounting records and information and explanations received
under the companies act 2006 we are required to report to you if in our opinion
  we have not received all the information and explanations we require for our audit or
  adequate accounting records have not been kept by the parent company or returns adequate for our audit have not 
been received from branches not visited by us or
  the parent company financial statements and the part of the remuneration report to be audited are not in agreement 
with the accounting records and returns
we have no exceptions to report arising from this responsibility
directors’ remuneration
under the companies act 2006 we are required to report to you if in our opinion certain disclosures of directors’ 
remuneration specified by law have not been made we have no exceptions to report arising from this responsibility
corporate governance statement
under the listing rules we are required to review the part of the corporate governance statement relating to the parent 
company’s compliance with nine provisions of the uk corporate governance code ‘the code’ we have no exceptions to 
report arising from our review
on page 56 of the annual report as required by the code provision c11 the directors state that they consider the annual 
report taken as a whole to be fair balanced and understandable and provides the information necessary for members 
to assess the group’s performance business model and strategy on page 32 as required by c38 of the code the audit 
committee has set out the significant issues that it considered in relation to the financial statements and how they were 
addressed under isas uk  ireland we are required to report to you if in our opinion
  the statement given by the directors is materially inconsistent with our knowledge of the group acquired in the course 
of performing our audit or
  the section of the annual report describing the work of the audit committee does not appropriately address matters 
communicated by us to the audit committee
we have no exceptions to report arising from this responsibility  corpor a te governance
sportech plc annual report and accounts 2013 60
other matters on which we are required to report by exception continued
other information in the annual report
under isas uk  ireland we are required to report to you if in our opinion information in the annual report is
  materially inconsistent with the information in the audited financial statements or
  apparently materially incorrect based on or materially inconsistent with our knowledge of the group and parent 
company acquired in the course of performing our audit or
  is otherwise misleading
we have no exceptions to report arising from this responsibility
responsibilities for the financial statements and the audit
our responsibilities and those of the directors 
as explained more fully in the statement of directors’ responsibilities set out on page 56 the directors are responsible for 
the preparation of the group and parent company financial statements and for being satisfied that they give a true and 
fair view 
our responsibility is to audit and express an opinion on the group and parent company financial statements in accordance 
with applicable law and isas uk  ireland those standards require us to comply with the auditing practices board’s 
ethical standards for auditors 
this report including the opinions has been prepared for and only for the company’s members as a body in accordance 
with chapter 3 of part 16 of the companies act 2006 and for no other purpose we do not in giving these opinions 
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
martin heath senior statutory auditor
for and on behalf of pricewaterhousecoopers llp
chartered accountants and statutory auditors
liverpool
5 march 2014
notes
a  the maintenance and integrity of the sportech plc website is the responsibility of the directors the work carried out by the auditors 
does not involve consideration of these matters and accordingly the auditors accept no responsibility for any changes that may have 
occurred to the financial statements since they were initially presented on the website
b  legislation in the united kingdom governing the preparation and dissemination of financial statements may differ from legislation in 
other jurisdictions
independent auditors’ report continued
to the members of sportech plc  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 61
consolidated income statement
for the year ended 31 december 2013
group
note
2013
£m
restated
2012
£m
continuing operations
revenue 1103 1077
cost of sales 612 600
gross profit 491 477
distribution costs 11 11
administrative expenses 391 363
ebitda before exceptional costs and share option expense 260 252
share option expense 15 14
depreciation and amortisation excluding amortisation  
of acquired intangibles 57 48
amortisation of acquired intangibles 72 59
exceptional costs 2 27 28
operating profit 89 103
finance costs 4 43 41
other finance incomecharges 4 08 47
net finance costs 4 35 88
share of loss after tax of joint ventures 17 02 02
profit before taxation 5 52 13
adjusted profit before taxation  145 149
taxation 8 19 08
profit for the year from continuing operations 33 05
profit for the year from discontinued operations 15 01 08
profit for the year 34 13
earnings per share attributable to owners of the parent during the year
basic earnings per share
from continuing operations 10 17p 03p
from discontinued operations 10 — 04p
from profit for the year 10 17p 07p
diluted earnings per share
from continuing operations 10 16p 02p
from discontinued operations 10 — 04p
from profit for the year 10 16p 06p
adjusted earnings from continuing operations per share attributable 
to owners of the parent during the year
basic 10 53p 54p
diluted 10 49p 50p
  adjusted profit before taxation is profit from continuing operations before taxation amortisation of acquired intangibles exceptional 
costs share of loss after tax of joint ventures and other finance incomecharges
comparatives have been restated to exclude the results of discontinued operations  financial st a tements
sportech plc annual report and accounts 2013 62
consolidated statement of comprehensive income
for the year ended 31 december 2013
group
note
2013
£m
2012
£m
profit for the year 34 13
other comprehensive income
items that will not be reclassified to profit and loss
actuarial gainloss on retirement benefit obligations 32 03 03
deferred tax on movement on retirement benefit obligations 20 01 01
movement on derivative financial instruments — 04
deferred tax on movement on derivative financial instruments 20 — 01
cumulative movement on derivative financial instruments – 
reclassification adjustment to the income statement — 33
deferred tax on cumulative movement on derivative financial instruments – 
reclassification adjustment to the income statement 20 — 08
02 26
items that may be subsequently reclassified to profit and loss
currency translation differences 07 11
other comprehensive expenseincome for the year net of tax 05 15
total comprehensive income for the year 29 28
attributable to the owners of the parent arises from
– continuing operations 28 20
– discontinued operations 01 08
29 28  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 63
statements of changes in equity
for the year ended 31 december 2013
other reserves
group
ordinary
shares
£m
share
option
reserve
£m
pension
reserve
£m
currency
translation
reserve
£m
financial
instrument
reserve
£m
retained
earnings
£m
total
£m
at 1 january 2012 994 24 03 03 28 322 1312
comprehensive income
profit for the year — — — — — 13 13
other comprehensive income
financial instrument reserve movement  note 25 — — — — 28 — 28
actuarial loss on retirement benefit obligations  
note 32 — — 02 — — — 02
currency translation differences — — — 11 — — 11
total other comprehensive expenseincome — — 02 11 28 — 15
total comprehensive expenseincome — — 02 11 28 13 28
transactions with owners 
share option credit note 26 — 14 — — — — 14
at 31 december 2012 994 38 05 08 — 335 1354
comprehensive income
profit for the year — — — — — 34 34
other comprehensive income
actuarial gain on retirement benefit obligations  
note 32 — — 02 — — — 02
currency translation differences — — — 07 — — 07
total other comprehensive incomeexpense — — 02 07 — — 05
total comprehensive incomeexpense — — 02 07 — 34 29
transactions with owners
share option credit note 26 — 15 — — — — 15
employment taxes paid on vestings in the year — 01 — — — — 01
shares issued in relation to psp 30 30 — — — — —
at 31 december 2013 1024 22 03 15 — 369 1397
 net of deferred tax 
company
ordinary
shares
£m
other reserve –
 share option reserve
£m
financial instrument
reserve
£m
retained
earnings
£m
total
£m
at 1 january 2012 994 24 28 312 1302
comprehensive income
loss for the year — — — 39 39
other comprehensive income
financial instrument reserve movement  note 25 — — 28 — 28
total other comprehensive income — — 28 — 28
total comprehensive incomeexpense — — 28 39 11
transactions with owners
share option credit note 26 — 14 — — 14
at 31 december 2012 994 38 — 273 1305
comprehensive expense
loss for the year — — — 109 109
total comprehensive expense — — — 109 109
transactions with owners
share option credit note 26 — 15 — — 15
employment taxes paid on vestings in the year — 01 — — 01
shares issued in relation to psp and reserve transfer 30 30 — 30 30
at 31 december 2013 1024 22 — 194 1240
  net of deferred tax  financial st a tements
sportech plc annual report and accounts 2013 64
group company
note
2013
£m
restated
2012
£m
2013
£m
2012
£m
assets
noncurrent assets
goodwill 11 1531 1531 — —
intangible fixed assets 12 427 474 131 139
property plant and equipment 13 216 161 01 01
investments in subsidiaries 14 — — 2037 2012
net investment in joint ventures 17 05 05 — —
trade and other receivables 18 03 — — —
deferred tax assets 20 18 13 10 13
2200 2184 2179 2165
current assets
trade and other receivables 18 90 80 153 96
inventories 19 15 16 — —
cash and cash equivalents 21 26 29 02 —
131 125 155 96
total assets 2331 2309 2334 2261
liabilities
current liabilities
overdraft 21 — — — 52
derivative financial instruments 25 13 27 13 27
financial liabilities 24 07 63 — 61
trade and other payables 22 211 223 421 216
provisions 23 02 03 — —
current tax liabilities 07 06 — —
240 322 434 356
net current liabilities 109 197 279 260
noncurrent liabilities
financial liabilities 24 666 612 660 600
retirement benefit liability 32 13 16 — —
provisions 23 04 05 — —
deferred tax liabilities 20 11 — — —
694 633 660 600
total liabilities 934 955 1094 956
net assets 1397 1354 1240 1305
equity
ordinary shares 26 1024 994 1024 994
other reserves 04 25 22 38
retained earnings 369 335 194 273
total equity 1397 1354 1240 1305
comparatives have been restated for the revision of the estimated contingent consideration payable for ebet online inc
the financial statements on pages 61 to 108 were approved and authorised for issue by the board of directors on 5 march 2014 
and were signed on its behalf by
ian penrose   cliff baty
chief executive  chief financial officer  
company registration number sc69140
balance sheets
at 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 65
statements of cash flows
for the year ended 31 december 2013
group company
note
2013
£m
2012
£m
2013
£m
2012
£m
cash flows from operating activities
cash generated from operations 27 244 266 145 95
interest paid 43 41 43 41
tax paid 17 20 02 —
net cash generated from operating activities 
before cash exceptional costs 184 205 100 54
cash exceptional costs 27 20 14 05
net cash generated from operating activities 157 185 86 49
cash flows from investing activities
investment in joint venture 17 02 03 — —
capital contribution 14 — — 25 57
acquisition of ebet online inc net  
of cash acquired 16 — 57 — —
acquisition of datatote england limited  
net of cash acquired 16 24 — — —
payment of deferred consideration  
for sportech racing 65 — 65 —
payment of deferred consideration for 
ebet online inc 03 — — —
purchase of intangible fixed assets 12 38 32 02 01
purchase of property plant and equipment 13 88 51 — —
net cash used in investing activities 220 143 92 58
cash flows from financing activities
refinancing fee paid – exceptional cost 4 — 21 — 21
net cash inflowoutflow from  
drawdownrepayment  
of borrowings 24 60 25 60 25
net cash fromused in financing activities 60 46 60 46
net decreaseincrease in cash and cash 
equivalents 03 04 54 55
cash and cash equivalents at the beginning 
of the year 29 33 52 03
cash and cash equivalents at the end  
of the year 21 26 29 02 52
reconciliation of net bank debt
decrease in cash in the year 03 04
net cash inflowoutflow from drawdown 
repayment of borrowings 60 25
movement in net bank debt for the year 63 21
at 1 january 571 592
at 31 december 634 571
net bank debt comprises
cash and cash equivalents 21 26 29
loans repayable after one year 24 660 600
at 31 december 634 571
 
   financial st a tements
sportech plc annual report and accounts 2013 66
general information
sportech plc the “company” is a company domiciled and incorporated in the uk and listed on the london stock 
exchange the company’s registered office is collins house rutland square edinburgh midlothian scotland eh1 2aa 
the consolidated financial statements of the company as at and for the year ended 31 december 2013 comprise the 
company its subsidiaries and joint ventures together referred to as the “group” the principal activities of the group 
are sports betting entertainment and provision of wagering technology solutions
going concern
the group has committed revolving credit banking facilities totalling £75m in place with bank of scotland plc 
barclays bank plc and royal bank of scotland plc until august 2015 the group’s forecasts and projections which have 
been prepared for the period to 30 june 2015 and taking into account reasonably possible changes in performance show 
that the group will be able to operate within the level of its current facilities and comply with its banking covenants 
after making reasonable enquiries the directors have a reasonable expectation that the company and the group have 
adequate resources to continue in operational existence for the foreseeable future accordingly they continue to adopt 
the going concern basis in preparing the financial statements
basis of accounting
these financial statements have been prepared in accordance with international financial reporting standards “ifrss” 
and international financial reporting interpretation committee “ifric” interpretations as adopted by the european 
union “ifrss as adopted by the european union” and with those parts of the companies act 2006 applicable to 
companies reporting under ifrss the financial statements have been prepared under the historical cost convention 
as modified by the revaluation of certain financial assets and financial liabilities including derivative instruments at fair 
value through profit or loss
comparatives have been restated to exclude the results of discontinued operations and also for the revision of the estimated 
contingent consideration payable for ebet online inc and the resultant decrease in goodwill recognised
the group’s accounting policies have been set by management approved by the audit committee and consistently 
applied the preparation of financial statements in conformity with ifrss requires the use of estimates and assumptions 
that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts 
of revenues and expenses during the reporting period although these estimates are based on management’s best 
knowledge of the amount event or actions actual results ultimately may differ from those estimates 
a critical judgements
critical judgements have been made in the following areas
carrying value of goodwill and acquired intangible fixed assets
for the purposes of determining whether an impairment of goodwill and intangibles from the littlewoods vernons 
and ebet online inc acquisitions has occurred and the extent of any impairment or its reversal the key assumptions the 
group uses in estimating future cash flows for valueinuse measures are spend per player impact of the introduction of 
new distribution routes and extra pool games revenue from customer contracts and cost reductions from ongoing cost 
reviews these assumptions and the judgements of management that are based on them are subject to change as new 
information becomes available changes in economic conditions and government policy can also affect the rate used to 
discount future cash flow estimates the discount rate applied is reviewed annually changes in assumptions could affect 
the carrying amounts of assets and impairment charges and reversals will affect income further details are disclosed 
within notes 11 and 12
value of other intangible fixed assets
intangible assets recognised on the group’s balance sheet include software assets and licences management is required 
to assess the carrying value of assets with an indefinite life at least annually and other assets when an indication of 
impairment arises the key assumptions used in estimating the future cash flows for valueinuse measures include 
estimating capital expenditure and projected revenue levels for fair value measures external market information of resale 
valuations is used to estimate recoverable amount management uses its judgement and industry knowledge as well as 
external indicators in the assessments of carrying value of intangible fixed assets changes in assumptions could affect 
the carrying amounts of assets further details are disclosed within note 12
f air value of assets acquired and liabilities assumed on acquisition of subsidiaries
the group is required to recognise assets acquired and liabilities assumed at fair value at the date of acquisition under 
ifrs 3 ‘business combinations’ revised management takes into account where required independent valuation of 
assets or where market valuations are not available the future discounted cash flows expected to be generated by the 
assets acquired where further information arises in the twelve months post acquisition relevant to the fair value of assets 
acquired and liabilities assumed those valuations are revised and restated in the prior year comparative amounts
during the year the group acquired datatote england limited “data tote” further details of the fair value of assets 
acquired and liabilities assumed together with the judgements made are disclosed within note 16
accounting policies
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 67
basis of accounting continued
a critical judgements continued
share options
the fair value of employee options awarded under the sportech share option scheme is calculated using the blackscholes 
model the fair value of employee psp awards is valued using a stochastic monte carlo valuation model in accordance 
with ifrs 2 the resulting cost is charged to the income statement over the vesting period of the optionsawards at each 
balance sheet date management uses its judgement to revise its estimates of the number of options that are expected 
to vest it recognises the impact of the revision to original estimates in the income statement with a corresponding 
adjustment to equity
taxation
tax provisions are recognised when it is considered probable more likely than not that there will be a future outflow 
of funds to a taxing authority in such cases provision is made for the amount that is expected to be settled where this 
can be reasonably estimated this requires the application of judgement as to the ultimate outcome which can change 
over time depending on facts and circumstances a change in estimate of the likelihood of a future outflow andor in 
the expected amount to be settled would be recognised in income in the period in which the change occurs deferred 
tax assets are recognised only to the extent it is considered probable that those assets will be recoverable this involves 
an assessment of when those deferred tax assets are likely to reverse and a judgement as to whether or not there will 
be sufficient taxable profits available to offset the tax assets when they do reverse this requires assumptions regarding 
future profitability and is therefore inherently uncertain to the extent assumptions regarding future profitability change 
there can be an increase or decrease in the amounts recognised in respect of deferred tax assets as well as the amounts 
recognised in income in the period in which the change occurs tax provisions are based on enacted or substantively 
enacted laws changes in those laws could affect amounts recognised in income both in the period of change which 
would include any impact on cumulative provisions and in future periods note 20 contains information on tax charges 
on the deferred tax assets that are recognised including periodic movements and on the losses on which deferred tax 
is not currently recognised
a summary of the more important group accounting policies is set out on pages 66 to 74 these policies have been 
applied consistently to all the years presented
b basis of consolidation
the consolidated financial statements include the accounts of the company and its subsidiaries together with a 
share of the results assets and liabilities of its joint ventures using the equity method of accounting all of which have 
consistent reporting dates with the company the company’s accounting reference date is 31 december consistent with the 
normal monthly reporting process the actual date to which the balance sheet has been drawn up is to 5 january 2014 
2012 30 december 2012 for ease of reference in these financial statements all references to the results for the year 
are for the year ended 31 december 2013 2012 31 december 2012 and the financial position at 31 december 2013 
2012 31 december 2012
c subsidiaries
subsidiaries are all entities over which the group has the power to govern the financial and operating policies generally 
accompanying a shareholding of more than onehalf of the voting rights the existence and effect of potential voting rights 
that are currently exercisable or convertible are considered when assessing whether the group controls another entity 
subsidiaries are fully consolidated from the date on which control is transferred to the group they are deconsolidated from 
the date that control ceases
the purchase method of accounting is used to account for the acquisition of subsidiaries by the group the consideration 
transferred for the acquisition of a subsidiary is the fair value of the assets given equity instruments issued and liabilities 
incurred or assumed at the date of exchange the consideration transferred includes the fair value of any asset or liability 
resulting from a contingent consideration arrangement contingent consideration is recognised at fair value at the acquisition 
date and remeasured at each balance sheet date until settlement the revaluation amount is debitedcredited to the income 
statement in the period in which the estimated fair value is increaseddecreased acquisition related costs are expensed as 
incurred identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured 
initially at their fair values at the acquisition date the excess of the cost of acquisition over the fair value of the group’s share 
of the identifiable net assets acquired is recorded as goodwill if the cost of acquisition is less than the fair value of the net 
assets of the subsidiary acquired the difference is recognised directly in the income statement
intercompany transactions balances and unrealised gains on transactions between group companies are eliminated 
unrealised losses are also eliminated but considered an impairment indicator of the asset transferred accounting policies 
of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group  financial st a tements
sportech plc annual report and accounts 2013 68
basis of accounting continued
d joint ventures
a joint venture is an entity in which the group holds an interest on a long term basis and which is jointly controlled 
by the group and one or more venturers under a contractual agreement the group’s share of its joint ventures’ post 
acquisition profits and losses is recognised in the income statement and its share of post acquisition movements in other 
comprehensive income is recognised in other comprehensive income the cumulative post acquisition movements are 
adjusted against the carrying amount of the investment when the group’s share of losses in a joint venture equals or 
exceeds its interest in the joint venture including any other unsecured receivables the group does not recognise further 
losses unless it has incurred obligations or made payments on behalf of the joint venture
unrealised gains on transactions between the group and its joint venture are eliminated to the extent of the group’s 
interest in the joint venture unrealised losses are also eliminated unless the transaction provides evidence of an 
impairment of the asset transferred the accounting policies of the joint venture have been changed where necessary 
to ensure consistency with the policies adopted by the group
e revenue
revenue from external customers net of vat excise duties returns rebates and discounts and after eliminating sales 
within the group represents
  the value of entry fees net of winnings paid receivable in respect of football pools recognised on the date of the event
  egaming revenues being the net amount receivable from various contracted third parties after certain deductions 
for outsourced egaming activities and gains and losses from wagering activity in the period where the group is the bet 
taker and gaming licence holder as well as gains and losses from positions that have closed revenue from online poker 
reflects the net income “rake” earned from poker games and various poker tournament fees completed by the period end
  the value of bets net of winnings paid received in relation to fixedodds betting activities recognised on the date 
of the event 
  the value of goods and services sold to external customers including management fees to registered charities for 
the management of charity lotteries is recognised when the goods and services are consumed
  sale of terminals and systems recognised when significant risks and rewards of ownership have been transferred 
which is when title passes to the customer generally being at the point of customer acceptance and
  the value of services delivered under service contracts generally based on either a percentage of amounts wagered 
or on a predetermined fixed amount depending on contract terms
although the value of entry fees net of winnings paid and the value of bets net of winnings paid is reported as revenue 
both meet the definition of a gain under ias 39 ‘financial instruments recognition and measurement’ under multiple 
element arrangements revenue is allocated to the various elements based on fair value determined by the price charged 
when the same element is sold separately
f accruals and deferred income
accruals and deferred income includes the value of stakes placed prior to the end of the financial period in respect 
of competitions and sporting events held subsequent to the end of the financial period and income received in advance 
of a service or product being delivered
g segmental reporting
operating segments are reported in a manner consistent with the internal reporting provided to the chief operating 
decisionmaker the chief operating decisionmaker who is responsible for allocating resources and assessing performance 
of the operating segments has been identified as the executive committee which makes strategic and operational decisions
the group has identified its business segments as outlined below
  football pools – football pools and associated games through traditional channels such as mail telephone agentbased 
collection retail outlets thirdparty licensed betting offices and through online and digital channels
  sportech racing and digital – provision of parimutuel wagering services and systems worldwide principally to the 
horseracing industry 
  sportech venues – offtrack betting venue management and
  corporate costs – central costs relating to the company in its capacity as the plc holding company of the group 
accounting policies continued
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 69
basis of accounting continued
h taxation
the current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance 
sheet date in the countries where the company and its subsidiaries operate and generate taxable income management 
periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject 
to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the 
tax authorities
t ax is recognised in the income statement except to the extent that it relates to items recognised in other comprehensive income 
or directly in equity in this case the tax is also recognised in other comprehensive income or directly in equity respectively
deferred income tax is provided in full using the liability method on temporary differences arising between the tax bases 
of assets and liabilities and their carrying amounts in the consolidated financial statements however the deferred income 
tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business 
combination that at the time of the transaction affects neither accounting nor taxable profit or loss deferred income tax 
is determined using tax rates and laws that have been enacted or substantially enacted by the balance sheet date and 
are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled
deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available 
against which the temporary differences can be utilised
deferred income tax is provided on temporary differences arising on investments in subsidiaries except where the timing 
of the reversal of the temporary difference is controlled by the group and it is probable that the temporary difference will 
not reverse in the foreseeable future 
deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets 
against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the 
same taxation authority on either the same or different taxable entities where there is an intention to settle the balances 
on a net basis
i foreign currencies
functional and presentation currency
items included in the financial statements of each of the group’s entities are measured using the currency of the primary 
economic environment in which the entity operates the “functional currency” the consolidated financial statements are 
presented in sterling £ which is the company’s functional currency and the group’s presentation currency
transactions and balances
transactions in foreign currencies are translated into the functional currency at the rate of exchange ruling at the date of 
the transaction monetary assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the 
balance sheet date foreign exchange gains and losses resulting from the settlement of such transactions and from the 
translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised 
in the income statement except where deferred in other comprehensive income as qualifying cash flow hedges
foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the income 
statement within finance income or costs all other foreign exchange gains and losses are presented in the income 
statement within operating profit
group companies
the results and financial position of all the group entities none of which has the currency of a hyperinflationary economy 
that have a functional currency different from the presentation currency are translated into the presentation currency as follows
  assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet
  income and expenses for each income statement are translated at average exchange rates unless this average is not a 
reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates in which case income 
and expenses are translated at the rate on the dates of the transactions and
  all resulting exchange differences are recognised in other comprehensive income
goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the 
foreign entity and translated at the closing rate  financial st a tements
sportech plc annual report and accounts 2013 70
basis of accounting continued
j property plant and equipment
property plant and equipment are carried at historical cost less accumulated depreciation and any impairment cost 
includes the original purchase price of the asset and the costs attributable in bringing the asset to its working condition 
for its intended use and any associated borrowing costs assets in the course of construction are not depreciated until 
the asset is completed subsequent costs are included in the asset’s carrying amount or recognised as a separate asset 
as appropriate only when it is probable that future economic benefits associated with the item will flow to the group and 
the cost of the item can be measured reliably the carrying amount of the replaced part is derecognised all other repairs 
and maintenance are charged to the income statement during the financial period in which they are incurred
gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised 
within administrative expenses in the income statement
assets in the course of construction are capitalised when first brought into use and depreciated from this date
k depreciation
depreciation is provided on a straightline basis to write off the cost of property plant and equipment down to residual 
value over their anticipated useful lives at the following annual rates
long leasehold and owned land   not depreciated
long leasehold and owned buildings  40–50
short leasehold land and buildings   over the period of the lease
plant equipment and other fixtures and fittings 100–333
the assets’ residual values and useful lives are reviewed and adjusted if appropriate at each balance sheet date
l goodwill
goodwill arising on consolidation represents the excess of the fair value of consideration given over the fair value of 
the separately identifiable net assets acquired goodwill arising on acquisitions before the date of transition to ifrss 
4 january 2005 has been frozen at the previous uk gaap net book value at the date of transition subject to being 
tested for impairment annually at the year end date
goodwill is allocated to cashgenerating units “cgu” for the purpose of impairment testing the allocation is made 
to the cgu that is expected to benefit from the business combination in which the goodwill arose
goodwill is carried at cost less accumulated impairment losses 
m intangible fixed assets
intangible fixed assets are held at cost less accumulated amortisation and impairment amortisation is charged on a 
straightline basis over the estimated useful life of the intangible fixed asset
customer contracts and relationships
intangible customer contracts and relationship assets relate to the acquisition of vernons ebet online inc and datatote 
england limited customer contracts and relationships are capitalised in accordance with ifrs 3 ‘business combinations’ 
revised and on the basis of a valueinuse calculation using an incomebased approach amortisation is calculated using 
the straightline method over their estimated useful lives as follows
  vernons    five years from 1 july 2009
  ebet online inc   four years from 19 december 2012
  datatote england limited four years from 27 september 2013
accounting policies continued
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 71
basis of accounting continued
m intangible fixed assets continued
software
externally acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to 
use the specific software these costs are amortised over their estimated useful lives or contractual period if shorter six to 
ten years 
development costs that are directly attributable to the design and testing of identifiable and unique software products 
controlled by the group are recognised as intangible assets when the following criteria are met
  it is technically feasible to complete the software product so that it will be available for use
  management intends to complete the software product
  it can be demonstrated how the software product will generate probable future economic benefits
  adequate technical financial and other resources to complete the development and to use or sell the software product 
are available and
  the expenditure attributable to the software product during its development can be reliably measured
directly attributable costs that are capitalised as part of the software product include the software development employee 
costs and an appropriate proportion of relevant overhead other development expenditure that does not meet these 
criteria are recognised as an expense as incurred development costs previously recognised as an expense are not 
recognised as an asset in a subsequent period
software development costs are amortised over their estimated useful lives which do not exceed 15 years
other intangibles
other intangible assets include intangible assets acquired as part of the vernons acquisition which include distribution 
agreement assets these assets are amortised over their contractual period five years also included within other 
intangibles are separately acquired licences recognised at historical cost licences acquired in a business combination are 
recognised at fair value at the acquisition date licences that have a finite useful life are carried at cost less accumulated 
amortisation amortisation is calculated using the straightline method to allocate cost of licences over their estimated 
useful lives of 15 to 20 years licences with an infinite life licences granted in perpetuity are held at cost or fair value at 
acquisition date and tested annually for impairment
during 2012 the group acquired ebet online inc giving rise to the recognition of licences trade names and a noncompete 
agreement the trade name fair value has been determined through a relief from royalty method and is amortised over two 
years from 19 december 2012 the noncompete agreement fair value was derived from a comparative income differential 
method and is amortised over the life of the agreement being three years
n investments in subsidiaries
investments in subsidiaries are carried at historic cost less any impairment annual impairment reviews are performed
o impairment reviews
assets that are subject to amortisation or depreciation are reviewed for impairment whenever events or changes in 
circumstances indicate that the carrying amount may not be recoverable goodwill and intangible assets with indefinite 
lives are subject to an annual review for impairment in accordance with ias 36 ‘impairment of assets’ the recoverable 
amount is the higher of an asset’s fair value less costs to sell and value in use for the purpose of assessing impairments 
assets are grouped at the lowest levels at which there are separately identifiable cash flows any impairment losses are 
recognised in the income statement in the year in which they occur any impairment loss recognised on goodwill is 
not reversed
all other individual assets are tested for impairment whenever events or changes in circumstances indicate that the 
carrying amount may not be recoverable with the exception of goodwill all assets are subsequently reassessed for 
indications that an impairment loss previously recognised may no longer exist at each reporting date
p pension obligation
the group operates various pension schemes the schemes are generally funded through payments to insurance 
companies or trustee administered funds determined by periodic actuarial calculations the group has both defined 
benefit and defined contribution plans a defined contribution plan is a pension plan under which the group pays fixed 
contributions into a separate entity the group has no legal or constructive obligations to pay further contributions if 
the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and 
prior periods a defined benefit plan is a pension plan that is not a defined contribution plan typically defined benefit 
plans define an amount of pension benefit that an employee will receive on retirement usually dependent on one or more 
factors such as age years of service and compensation  financial st a tements
sportech plc annual report and accounts 2013 72
basis of accounting continued
p pension obligation continued
the asset or liability recognised in the balance sheet in respect of the defined benefit pension plan is the fair value of plan 
assets less the present value of the defined benefit obligation at the balance sheet date the defined benefit obligation 
is calculated annually by independent actuaries using the projected unit credit method the present value of the defined 
benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high quality 
corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity 
approximating to the terms of the related pension liability
actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or 
credited to equity in other comprehensive income in the period in which they arise
past service costs are recognised immediately in income
for defined contribution plans the group pays contributions to privately administered pension insurance plans on a 
mandatory contractual or voluntary basis the group has no further payment obligations once the contributions have 
been paid the contributions are recognised as an employee benefit expense when they are due prepaid contributions 
are recognised as an asset to the extent that a cash refund or a reduction in future payments is available
q financial instruments
the group uses derivative financial instruments to reduce exposure to interest rate and exchange rate movements the 
group does not hold or issue derivative financial instruments for speculative purposes financial assets and liabilities are 
recognised on the group’s balance sheet initially at fair value when the group becomes party to the contractual provisions 
of the instrument subsequent measurement depends on the designation of the instrument in accordance with ias 39 
‘financial instruments recognition and measurement’ 
derivative financial instruments and hedging activities
derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently 
remeasured at their fair value the method of recognising the resulting gain or loss depends on whether the derivative 
is designated as a hedging instrument and if so the nature of the item being hedged the group designates certain 
derivatives as hedges of the variability of cash flows cash flow hedge
the group documents at the inception of the transaction the relationship between hedging instruments and hedged 
items as well as its risk management objective and strategy for undertaking various hedge transactions the group also 
documents its assessment both at hedge inception and on an ongoing basis of whether the derivatives that are used in 
hedging transactions are highly effective in offsetting changes in the cash flows of the hedged items
cash flow hedges
the effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is 
recognised in other comprehensive income the gain or loss relating to the ineffective portion is recognised immediately 
in the income statement
amounts accumulated in equity are recycled in the income statement in the periods when the hedged item will affect 
profit or loss for example when the forecast transaction that is hedged takes place however when the forecast 
transaction that is hedged results in the recognition of a nonfinancial asset or a liability the gains and losses previously 
deferred in equity are transferred from equity and included in the initial measurement of the cost of the asset or liability
when a hedging instrument expires or is sold or when a hedge no longer meets the criteria for hedge accounting any 
cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is 
ultimately recognised in the income statement when a forecast transaction is no longer expected to occur the cumulative 
gain or loss that was reported in equity is immediately transferred to the income statement
r sharebased payments
the fair value of employee options awarded under the sportech share option scheme is calculated using the blackscholes 
model the fair value of employee psp awards is valued using a stochastic monte carlo valuation model in accordance 
with ifrs 2 the resulting cost is charged to the income statement over the vesting period of the optionsawards the total 
amount to be expensed is determined by reference to the fair value of the optionsawards granted including any market 
performance conditions which are those that are based on sportech plc’s share price and excluding the impact of any 
service and nonmarket performance vesting conditions being profitability and remaining an employee over a specified 
time period at each balance sheet date the company revises its estimates of the number of options that are expected to 
vest it recognises the impact of the revision to original estimates if any in the income statement with a corresponding 
adjustment to equity
the charge in relation to employees who provide services to subsidiary companies is recharged to those subsidiaries 
where the charge is not required to be settled in cash the company’s investment in that subsidiary is increased by the 
value of the charge and a corresponding increase in equity is recognised in the subsidiary
accounting policies continued
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 73
basis of accounting continued 
s cash and cash equivalents
for the purposes of the cash flow statement cash and cash equivalents represent cash in hand operational cash held at 
trading venues and cash held in current accounts with banks including overdrafts cash and cash equivalents shown on 
the balance sheet represent cash in hand cash in vaults and cash held in current accounts bank overdrafts are shown 
within current liabilities
t borrowings
borrowings are recognised initially at fair value net of transaction costs incurred borrowings are subsequently stated at 
amortised cost any difference between the proceeds net of transaction costs and the redemption value is recognised in 
the income statement over the period of the borrowings using the effective interest method borrowings are classified as 
current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months 
after the balance sheet date 
u exceptional items
the group defines exceptional items as those items which by their nature or size would distort the comparability of the 
group’s results from year to year
v trade receivables
trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective 
interest method less provision for impairment being the difference between the assets’ carrying amounts and the 
present value of the estimated future cash flows discounted at the original effective interest rate individually significant 
receivables are considered for impairment when they are past due or when other objective evidence is received that a 
specific customer will default or delinquency in payment will arise any subsequent recovery of amounts written off is 
credited to the income statement
w trade payables
trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective 
interest method
x inventories
inventories are stated at the lower of cost and net realisable value cost is determined using the first in first out method 
net realisable value is the estimated selling price in the ordinary course of business
y provisions
provisions for onerous contracts onerous leases restructuring costs legal claims and dilapidations are recognised 
when the group has a present legal or constructive obligation as a result of past events it is probable that an outflow 
of resources will be required to settle the obligation and the amount has been reliably estimated provisions are not 
recognised for future operating losses where the group has no contractual obligation to deliver the service or product
z leases
leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as 
operating leases payments made under operating leases net of any incentives received from the lessor are charged to 
the income statement on a straightline basis over the period of the lease
aa share capital
ordinary shares are classed as equity incremental costs directly attributable to the value of new shares or options are 
shown in equity as a deduction from the proceeds in the share premium account where the shares were issued at a 
premium or where issued at par or where the issue costs exceed the premium on the issue to retained earnings
ab discontinued operations
cash flows and operations that relate to a major component of the business that has been sold or is classified as held for 
sale are shown separately from continuing operations finance income or costs are included in discontinued operations 
only in respect of financial assets or liabilities classified as held for sale or derecognised on sale  financial st a tements
sportech plc annual report and accounts 2013 74
basis of accounting continued
ac new standards amendments and interpretations adopted by the group
the following new standards and amendments to standards or interpretations are mandatory for the first time for the 
financial year beginning 1 january 2013 and have been adopted by the group
standard or interpretation content 
applicable for  
financial years  
beginning  
on or after
ias 19r revised 2011 employee benefits 1 january 2013
amendments to ifrs 1 firsttime adoption on government loans fixed dates 
and hyperinflation
1 january 2013
amendment to ifrs 7 financial instruments assets and liabilities offsetting 1 january 2013
ifrs 10 11 and 12 consolidation for investment entities 1 january 2013
ifrs 13 fair value measurement 1 january 2013
amendment to ias 1 financial statement presentation 1 july 2012
amendment to ias 12 income taxes 1 january 2013
annual improvements to ifrss 2011 various 1 january 2013
under ias 19r the interest cost on the defined benefit obligation and the expected rate of return on plan assets has 
been replaced with a net interest charge that is calculated by applying the discount rate to the net defined benefit liability 
in addition administration expenses must be charged to the income statement
the prior period income statement and statement of comprehensive income for the year ended 31 december 2012 have 
not been restated as the impacts to profit and other comprehensive income are not material to the group
the group has adopted ifrs 13 ‘fair value measurement’ it establishes a single source of guidance for fair value 
measurements the standard defines fair value establishes a framework for measuring fair value and requires disclosures 
about fair value measurements in general the disclosure requirements in ifrs 13 are more extensive than those required in 
the current standards the adoption of this standard did not have a significant impact on the results or financial position of 
the group however additional disclosures to reflect the requirements of the standard have been included in these financial 
statements for the year ended 31 december 2013
ad new standards amendments and interpretations not yet effective and not adopted by  
the group
the following standards amendments and interpretations are not yet effective and have not been adopted early by the group 
standard or interpretation content 
applicable for  
financial years  
beginning  
on or after
amendments to ifrs 9 financial instruments 1 january 2015
amendments to ias 27 separate financial statements 1 january 2014
amendments to ifrs 10 consolidated financial statements 1 january 2014
amendments to ias 32 financial instruments – presentation 1 january 2014
amendments to ifrs 12 disclosure of interests in other entities 1 january 2014
amendments to ias 36 impairment of assets 1 january 2014
ias 27r revised 2011 separate financial statements 1 january 2014
ias 28r revised 2011 associates and joint ventures 1 january 2014
amendments to ias 39 financial instruments recognition and measurement 1 january 2014
ifric 21 levies 1 january 2014
annual improvements 2012 and 2013 various 1 january 2014
none of the above are expected to have a material impact on the financial statements of the group or parent company
accounting policies continued
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 75
notes to the financial statements
for the year ended 31 december 2013
1 segmental reporting
the executive committee assesses the performance of the operating segments based on a measure of adjusted ebitda 
which excludes the effects of nonrecurring expenditure such as restructuring costs and impairments of assets the share 
option expense is also excluded interest is not allocated to segments as the group’s cash position is controlled by the 
central finance team sales between segments are at arm’s length
2013
football
pools 
£m
sportech
racing 
and
digital 
£m
 sportech
venues 
£m
 corporate 
costs 
£m
 inter
segment
elimination
£m
 group 
£m
revenue from sale of goods 413 41 — — 01 453
revenue from rendering of services — 318 341 — 09 650
total revenue 413 359 341 — 10 1103
ebitda before exceptional costs and share 
option expense 174 77 48 38 01 260
share option expense — — — 15 — 15
depreciation and amortisation excluding amortisation  
of acquired intangibles 14 29 14 — — 57
segment result before amortisation of acquired  
intangibles and exceptional costs 160 48 34 53 01 188
amortisation of acquired intangibles 59 13 — — — 72
exceptional costs 04 06 03 14 — 27
operating profitloss 97 29 31 67 01 89
net finance costs 35
share of loss after tax of joint ventures 02
profit before taxation 52
taxation 19
profit for the year from continuing operations 33
profit for the year from discontinued operations 01
profit for the year 34
segment assets 1934 390 292 229 514 2331
segment liabilities 134 97 190 1024 511 934
other segment items
capital expenditure intangible fixed assets  
and property plant and equipment 24 64 36 02 — 126
depreciation 03 17 12 — — 32
amortisation of intangible assets including  
acquired intangibles 70 25 02 — — 97
discontinued activities
loss on disposal of tangible and intangible assets 04 — — — — 04  financial st a tements
sportech plc annual report and accounts 2013 76
1 segmental reporting continued
2012 restated
football
pools 
£m
sportech
racing 
and
digital 
£m
 sportech
venues 
£m
 corporate 
costs 
£m
 inter
segment
elimination
£m
 group 
£m
revenue from sale of goods 429 43 — — 02 470
revenue from rendering of services — 274 337 — 04 607
total revenue 429 317 337 — 06 1077
ebitda before exceptional costs and share 
option expense 188 55 47 37 01 252
share option expense — — — 14 — 14
depreciation and amortisation excluding amortisation  
of acquired intangibles 13 22 14 — 01 48
segment result before amortisation of acquired  
intangibles and exceptional costs 175 33 33 51 — 190
amortisation of acquired intangibles 59 — — — — 59
exceptional costs 07 13 01 07 — 28
operating profitloss 109 20 32 58 — 103
net finance costs 88
share of loss after tax of joint venture 02
profit before taxation 13
taxation 08
profit for the year from continuing operations 05
profit for the year from discontinued operations 08
profit for the year 13
segment assets 1864 290 289 146 280 2309
segment liabilities 95 144 94 900 278 955
other segment items
capital expenditure intangible fixed assets  
and property plant and equipment 27 44 11 01 — 83
depreciation 04 09 14 — 01 26
amortisation of intangible assets including  
acquired intangibles 68 13 — — — 81
discontinued activities
amortisation of intangible assets 04 — — — — 04
information by geographical area
revenues from external customers noncurrent assets
2013
£m
restated
2012
£m
2013
£m
2012
£m
united kingdom 436 430 1737 1789
north america 540 509 436 378
europe 118 111 27 17
other 09 27 — —
total 1103 1077 2200 2184
revenue is allocated to the country in which the customer is located and the service is performed or product is delivered
comparatives have been restated to exclude the results of discontinued operations and also for the revision of the estimated 
contingent consideration payable for ebet online inc and the resultant decrease in goodwill recognised see note 16b
notes to the financial statements continued
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 77
2 exceptional costs
exceptional charges of £27m 2012 £28m are included within administrative expenses and exceptional income of £14m 
2012 charge of £49m is included within net finance costs in the income statement exceptional costs by type are as follows
2013
£m
2012
£m
included in administrative expenses
redundancy and restructuring costs in respect of the rationalisation  
and modernisation of the business 10 09
compensation for loss of office 03 03
costs and fees in relation to spot the ball vat claim 05 02
transaction costs in respect of the acquisition of subsidiaries 02 06
licensing costs in new jersey in respect of the acquisition of sportech racing 03 04
ifrs 3 employment costs in relation to ebet online inc and datatote england limited 01 —
other exceptional costs 03 04
27 28
included in net finance costs
refinancing fee — 21
fair value of derivative financial instruments reclassified to the income statement — 33
movement on derivative financial instruments post designation as ineffective 14 05
14 49
total exceptional costs 13 77
3 expenses by nature
2013
£m
restated
2012
£m
continuing operations
selling commissions 32 36
betting and gaming duties 69 71
track and tote fees 157 153
marketing printing and postage costs 64 60
employment costs note 6 315 310
share option expense note 6 15 14
depreciation and amortisation notes 12 and 13 129 107
distribution costs 11 11
it and telecommunications costs 37 37
cost of inventories recognised as an expense note 19 27 34
exceptional costs excluding redundancy and restructuring costs and compensation 
for loss of office note 2 14 16
property related costs 53 52
other costs 91 73
total expenses of continuing operations 1014 974
expenses of discontinued operations note 15 53 35
total expenses 1067 1009
included in the above table are exceptional costs of £27m 2012 £28m
   financial st a tements
sportech plc annual report and accounts 2013 78
4 net finance costs
2013
£m
2012
£m
interest payable on bank loans derivative financial instruments and overdrafts 43 41
refinancing fee — 21
fair value of derivative financial instruments reclassified to the income statement — 33
movement on derivative financial instruments post designation as ineffective 14 05
noncash finance chargesincome  04 01
foreign exchange lossgain on financial assets and liabilities denominated in foreign currency 02 01
net finance costs 35 88
  noncash finance chargesincome are in respect of the deferred consideration payable on the acquisition of sportech racing in 
october 2010
the refinancing fee the fair value movements on derivative financial instruments the foreign exchange lossgain 
on financial assets and liabilities denominated in foreign currency and the noncash finance chargesincome are all 
together shown as other finance incomecharges in the income statement included in the above table is exceptional 
income of £14m 2012 costs of £49m
5 profit before taxation
profit before taxation is stated after charging
note
2013
£m
2012
£m
employment costs 6 330 324
depreciation of property plant and equipment 13 32 26
amortisation of acquired intangibles 12 72 59
amortisation of other intangibles 12 25 22
the fees of the auditors in relation to their audit of the company and consolidated accounts are £38000 2012 £38000
fees paid to auditors for other services comprise
2013
£m
2012
£m
audit of the group’s subsidiaries 02 02
taxation compliance and advisory services 05 02
corporate advisory costs — 01
total fees 07 05
notes to the financial statements continued
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 79
6 employment costs
average number of monthly employees including executive directors comprised
2013
number
2012
number
sales and marketing 105 112
operations and distribution 567 595
administration 123 91
total employees 795 798
their aggregate remuneration comprised
2013
£m
restated
2012
£m
wages and salaries 286 269
social security costs 20 32
pension costs – defined contribution scheme note 32 07 07
pension costs – defined benefit scheme note 32 02 02
share option expense note 26 15 14
total remuneration 330 324
7 directors and key management remuneration
directors
2013
£000
2012
£000
short term employee benefits 1345 1461
sharebased payments 1505 1381
termination benefits 141 254
post employment benefits 60 68
total remuneration 3051 3164
details of individual directors’ remuneration and sharebased incentives granted are given in the remuneration report on 
pages 37 to 53 this information forms part of the financial statements no director exercised share options in the year 
2012 none 
key management compensation
2013
£000
2012
£000
short term employee benefits 1780 1813
termination benefits 141 254
post employment benefits 66 74
sharebased payments 831 942
total 2818 3083
key management is considered to be the directors of the company executive and nonexecutive and senior executives   financial st a tements
sportech plc annual report and accounts 2013 80
8 taxation
2013
£m
2012
£m
current tax 
current tax on profit for the year 18 11
adjustments in respect of prior years — 01
total current tax 18 10
deferred tax
origination and reversal of temporary differences 01 04
effect of changes in tax rates 02 02
total deferred tax 01 02
total taxation charge 19 08
the taxation on the group’s profit before taxation differs from the theoretical amount that would arise using the weighted 
average tax rate applicable to profits and losses of the consolidated entities as follows
2013
£m
2012
£m
profit before taxation 52 13
add share of loss after tax of joint ventures 02 02
profit before taxation and share of loss after tax of joint ventures 54 15
tax calculated at domestic tax rates applicable to profitslosses 
in the respective countries 15 08
tax effects of
– permanent differences 03 01
– deferred tax not previously provided 01 —
– effect of changes in tax rates 02 02
– adjustments in respect of prior years — 01
total taxation charge 19 08
the weighted average applicable tax rate was 268 2012 365 the decrease is as a result of a change in mix of profits 
in jurisdictions with varying tax rates
for uk taxation as the group’s year end is after the substantive enactment date 2 july 2013 of the finance act 2013 and 
after the substantive enactment date of the march 2013 uk budget statement changes these financial statements account 
for the change in uk corporation tax rate from 24 to 23 with effect from 1 april 2013 the change in tax rate from 23 
to 21 with effect from 1 april 2014 and the change in tax rate from 21 to 20 with effect from 1 april 2015 and therefore 
the rate at which deferred tax is calculated has changed deferred tax in the uk is provided at 21 a blended rate of 215 
or at 20 depending on when the deferred tax is expected to unwind 
9 loss of holding company
of the profit for the year a loss of £109m 2012 £39m is dealt with in the accounts of sportech plc and the statement 
of changes in equity the directors have taken advantage of the exemption available under section 408 of the companies 
act 2006 and have not presented an income statement and statement of comprehensive income for the company alone
the individual income statement of sportech plc was approved by the board on 5 march 2014
notes to the financial statements continued
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 81
10 earnings per share
a basic
basic earnings per share is calculated by dividing the profit attributable to equity holders of the company by the weighted 
average number of ordinary shares in issue during the year
2013
£m
2012
£m
profit from continuing operations attributable to the owners of the parent 33 05
profit from discontinued operations attributable to the owners of the parent 01 08
total 34 13
weighted average number of ordinary shares in issue ‘000 200227 198810
b diluted
diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding 
to assume conversion of all dilutive potential ordinary shares certain employee options 707070 in number 2012 707070 
have been excluded from the calculated diluted eps as their exercise price is greater than the weighted average share 
price during the year and therefore would not be dilutive the weighted average number of shares that have a dilutive 
effect on adjusted eps is 13161000 2012 13742000 diluted basic eps is 16p 2012 06p and diluted adjusted eps 
is 49p 2012 50p
c basic adjusted 
the calculations of adjusted eps are based on the following profits attributable to ordinary shareholders the weighted 
average number of shares and an estimated adjusted tax charge of 277 2012 282
2013
restated 
2012
profit 
£m
weighted
average
number 
of shares 
000
per 
share
amount
pence
profit 
£m
weighted
average
number 
of shares 
000
per 
share
amount
pence
operating profit before amortisation of acquired 
intangibles and exceptional costs 188 200227 94 190 198810 96
net finance costs excluding other finance incomecharges 43 200227 21 41 198810 21
adjusted profit before taxation 145 200227 73 149 198810 75
tax at 277 2012 282 40 200227 20 42 198810 21
adjusted basic eps 105 200227 53 107 198810 54
11 goodwill
group
2013
£m
restated
2012
£m
cost
at 1 january 2013 1710 1655
business combination note 16 — 55
at 31 december 2013 1710 1710
accumulated impairment charges
at 1 january 2013 and 31 december 2013 179 179
opening net book amount 1531 1476
closing net book amount 1531 1531
the goodwill brought forward in the accounts relates to the acquisition of littlewoods leisure including the littlewoods 
football pools business in september 2000 amounting to £1452m the goodwill arising on the acquisition of vernons 
football pools in december 2007 amounting to £203m and the goodwill arising on the acquisition of ebet online inc 
goodwill has been restated by £03m as a result of changes to fair value assumptions as detailed within note 16 during 
the year the group carried out its annual impairment review of the carrying value of its goodwill the goodwill from the 
littlewoods leisure and vernons acquisitions is attributed to the football pools segment the goodwill from the ebet 
online inc acquisition is attributed to the sportech racing and digital segment  financial st a tements
sportech plc annual report and accounts 2013 82
11 goodwill continued
for the purpose of the annual impairment review of the football pools goodwill the recoverable amounts are measured based 
on value in use calculated using discounted future cash flows the key assumptions in the valueinuse calculations were
  the cash flow forecasts used are based upon the budget approved by the board for 2014 and on cash flow projections 
for 2015 to 2018 also approved by the board with a terminal value at 2018 calculated in accordance with ias 36
  revenue forecasts for the core football pools business reflect the improvement in spend per player from core customer 
numbers within the last four years the introduction of new customers and acquisition activities and additional 
distribution routes the improvement in technology following the continued investment through 2013 additional 
investment in the football pools online presence and the increase to 104 pool games the impact all of which the board 
believes will lead to a stabilisation of revenues within the core football pools business
  the terminal value is based on a nil growth rate given the expected stabilisation of profit streams
  cash flows have been discounted at 83 2012 83 reflecting the weighted average cost of capital for the group and
  there are no material adverse changes in legislation
for the purpose of the annual impairment review of the ebet online inc goodwill the recoverable amounts are measured based 
on value in use calculated using discounted future cash flows the key assumptions in the valueinuse calculations were
  the cash flow forecasts used are based upon the budget approved by the board for 2014 and on cash flow projections 
for 2015 to 2018 also approved by the board with a terminal value at 2018 calculated in accordance with ias 36
  the terminal value is based on a nil growth rate given the expected maturity of the business by 2018
  cash flows have been discounted at 83 2012 83 reflecting the weighted average cost of capital for the group and
  there are no material adverse changes in legislation
following the impairment review an impairment of £nil was charged to the income statement 2012 £nil various 
sensitivity tests were performed on the calculation of value in use these indicated that changes to the revenue forecasts 
generated the greatest sensitivity and in certain scenarios an impairment may arise the football pools goodwill impairment 
test cash flows are taken from the groups strategic plans and rely on the objectives being achieved if these do not come 
to fruition then an impairment may also arise if the wacc were to increase to above 93 an impairment in the football 
pools goodwill would result however a reasonably possible combination of changes in assumptions did not result in an 
impairment for either the football pools or ebet online inc goodwill
12 intangible fixed assets
group
customer 
contracts and
relationships 
£m
software 
£m
other 
£m
total 
£m
cost
at 1 january 2013 345 334 218 897
business combination note 16 19 — — 19
disposals — 03 — 03
reclassification — 08 08 —
additions — 36 02 38
at 31 december 2013 364 375 212 951
accumulated amortisation
at 1 january 2013 242 150 28 420
charged during the year 69 25 03 97
at 31 december 2013 311 175 31 517
exchange differences — — 07 07
net book amount at 31 december 2013 53 200 174 427
customer contracts and relationships
customer contracts and relationships as at 1 january 2013 are in relation to the acquisition of vernons which have a useful 
life of five years from 1 july 2009 and to ebet online inc which have a useful life of four years from 19 december 2012
during the year the group acquired datatote england limited giving rise to the further recognition of customer 
contracts and relationships the useful life is four years and eight months from 27 september 2013
notes to the financial statements continued
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 83
12 intangible fixed assets continued
software
included in software are assets under construction with a cost of £10m 2012 £19m accordingly these assets are not 
currently amortised
other intangibles
the group holds a licence in perpetuity to offer parimutuel offtrack betting in the state of connecticut in the usa given 
this licence is in perpetuity the book value of the asset amounting to £152m 2012 £155m is not amortised and the useful 
economic life allocated to the asset is indefinite the movement in net book value is as a result of movement in exchange 
rates given the asset is denominated in us dollars as required by ias 36 ‘impairment of assets’ an impairment test has 
been carried out as at 31 december 2013 
the recoverable amount of the asset has been determined based on a valueinuse calculation and is allocated to the 
sportech racing cgu the calculation used post tax cash flow projections based on financial budgets and forecasts 
approved by management covering a fiveyear period the following assumptions were made in determining the 
recoverable amount
  the cgu was determined to be the assets which require the licence in order to provide offtrack betting to the public 
only the cash flows expected to be generated from these assets were included in the calculation
  ebitda forecasts are in line with the approved 2014 budget and 2015 to 2018 strategic plans
  capital expenditure was included in the cash flows at management’s best estimate of industry norm for reinvestment 
in retail outlets of the kind under review
  cash flows beyond the fifth year were extrapolated using a nil growth rate given the expected stabilisation of cash flows 
over time and
  a post tax discount rate of 83 was used representing the weighted average cost of capital of the group the cgu 
operates in a highly regulated market equivalent to the majority of the group’s activities and therefore the use of the 
group’s weighted average cost of capital “wacc” in the valueinuse calculation is considered to be appropriate
the impairment test showed significant headroom over the book value of the asset and various sensitivity tests were 
performed showing that no reasonably possible change to a key assumption would cause the cgu’s carrying amount 
to exceed the recoverable amount
company
software
£m
other
£m
total
£m
cost
at 1 january 2013 157 06 163
additions — 02 02
at 31 december 2013 157 08 165
accumulated amortisation 
at 1 january 2013 24 — 24
charged during the year 10 — 10
at 31 december 2013 34 — 34
net book amount at 31 december 2013 123 08 131
the software provides parimutuel services to customers in north america management has estimated the useful economic 
life of the asset to be 15 years the net book amount at 31 december 2013 was £123m and the remaining life was eleven 
years and nine months 2012 net book amount of £133m and the remaining life was twelve years and nine months  financial st a tements
sportech plc annual report and accounts 2013 84
12 intangible fixed assets continued
other intangibles continued
group
customer
contracts and
relationships
£m
software
£m
other
£m
total
£m
cost
at 1 january 2012 327 316 192 835
business combination note 16 18 03 09 30
additions — 15 17 32
at 31 december 2012 345 334 218 897
accumulated amortisation
at 1 january 2012 183 125 27 335
charged during the year 59 25 01 85
at 31 december 2012 242 150 28 420
exchange differences — — 03 03
net book amount at 31 december 2012 103 184 187 474
 
company
software
£m
other
£m
total
£m
cost
at 1 january 2012 157 05 162
additions — 01 01
at 31 december 2012 157 06 163
accumulated amortisation
at 1 january 2012 13 — 13
charged during the year 11 — 11
at 31 december 2012 24 — 24
net book amount at 31 december 2012 133 06 139
amortisation has been included within administrative expenses
notes to the financial statements continued
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 85
13 property plant and equipment
group
short 
leasehold 
land and
 buildings 
£m
long 
leasehold 
and owned
 land and 
buildings 
£m
plant and 
machinery 
£m
fixtures 
and 
fittings 
£m
assets 
in the 
course of 
construction 
£m
total 
£m
cost
at 1 january 2013 01 90 104 08 49 252
additions — 01 05 01 81 88
acquired with subsidiary — 01 03 — — 04
disposals — — 11 — — 11
transfer — 03 26 01 30 —
at 31 december 2013 01 95 127 10 100 333
accumulated depreciation
at 1 january 2013 01 28 56 01 — 86
disposals — — 10 — — 10
charged during the year — 07 23 02 — 32
at 31 december 2013 01 35 69 03 — 108
exchange differences — 04 01 01 03 09
net book amount at 31 december 2013 — 56 57 06 97 216
  
company
short 
leasehold 
land and 
buildings 
£m
 plant and 
machinery 
£m
total 
£m
cost
at 1 january and 31 december 2013 01 02 03
accumulated depreciation
at 1 january and 31 december 2013 01 01 02
net book amount at 31 december 2013 — 01 01
 
group
short 
leasehold 
land and
 buildings 
£m
long 
leasehold 
and owned
 land and 
buildings 
£m
plant and 
machinery 
£m
fixtures 
and 
fittings 
£m
assets 
in the 
course of 
construction 
£m
total 
£m
cost
at 1 january 2012 01 89 81 06 37 214
additions — 02 07 01 41 51
disposals — 02 10 01 — 13
transfer — 01 26 02 29 —
at 31 december 2012 01 90 104 08 49 252
accumulated depreciation
at 1 january 2012 01 23 48 01 — 73
disposals — 02 10 01 — 13
charged during the year — 07 18 01 — 26
at 31 december 2012 01 28 56 01 — 86
exchange differences — 02 01 01 01 05
net book amount at 31 december 2012 — 60 47 06 48 161  financial st a tements
sportech plc annual report and accounts 2013 86
13 property plant and equipment continued
company
short 
leasehold 
land and 
buildings 
£m
 plant and 
machinery 
£m
total 
£m
cost
at 1 january and 31 december 2012 01 02 03
accumulated depreciation
at 1 january and 31 december 2012 01 01 02
net book amount at 31 december 2012 — 01 01
14 investments in subsidiaries
group company
investments in group companies
2013
£m
2012
£m
2013
£m
2012
£m
at 1 january — — 2012 1955
capital contribution — — 25 57
at 31 december — — 2037 2012
investments in group companies are stated at cost which is the fair value of the consideration paid 
notes to the financial statements continued
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 87
14 investments in subsidiaries continued
the company is the holding company of the group the following table shows details of the company’s principal 
subsidiaries and joint venture investments
name of company holding
proportion 
of voting 
rights country of incorporation nature of business
sportech gaming limited  ordinary shares 100 england and wales holding company
the football pools limited ordinary shares 100 england and wales pools betting and gaming
uk lottery management limited ordinary shares 100 england and wales management of charity lotteries
football pools 1923 limited ordinary shares 100 england and wales asset hiring
football pools games limited 
previously vernons games limited ordinary shares 100 england and wales gaming
tfpl financial services limited 
previously vernons financial 
services limited
ordinary shares 100 england and wales database income
sportech alderney limited ordinary shares 100 alderney  
channel islands
gaming
datatote england limited ordinary shares 100 england and wales betting systems provision
sportshub private limited ordinary shares 50 india sport entertainment
sportech racing gmbh ordinary shares 100 germany parimutuel systems provision
sportech racing gmbh ordinary shares 100 austria parimutuel systems provision
sportech france sas ordinary shares 100 france parimutuel systems provision
sportech racing bv ordinary shares 100 netherlands offtrack betting and venues 
management
racing technology ireland limited ordinary shares 100 ireland parimutuel systems provision
sportech racing limited ordinary shares 100 turkey parimutuel systems provision
sportech inc ordinary shares 100 usa holding company
sportech racing panama inc ordinary shares 100 panama parimutuel systems provision
sportech racing llc ordinary shares 100 usa parimutuel systems provision
trackplay llc ordinary shares 100 usa parimutuel systems provision
sportech – nyx gaming llc ordinary shares 50 usa gaming software and services
sportech racing canada inc ordinary shares 100 canada parimutuel systems provision
sportech venues inc ordinary shares 100 usa offtrack betting and venues 
management
ss venues california llc ordinary shares 50 usa sports bar owner and operator
ebet technologies inc ordinary shares 100 usa online parimutuel systems and 
services provision
picklive usa llc ordinary shares 51 usa social gaming
 ownership is directly held by the company sportech plc
all of these companies have been included in the consolidated financial statements a full list of group subsidiaries can 
be found in the company’s annual return available from companies house
the directors believe that the carrying value of investments is supported by their underlying net assets an impairment 
test has been carried out in relation to the investment held by sportech plc in sportech gaming limited carrying value 
of £1671m which specifically related to the onward investment in the football pools limited following an indication of 
a potential impairment the recoverable amount was determined based on valueinuse calculations the calculations used 
post tax cash flow projections based on financial budgets approved by management covering a fiveyear period cash flows 
beyond the fiveyear period are extrapolated using an estimated growth rate of nil the headroom in the impairment 
calculation is tight relatively small changes in the discount rate or cash flows would lead to an impairment while the 
directors are confident that there is no impairment they continue to monitor the position closely  financial st a tements
sportech plc annual report and accounts 2013 88
15 discontinued activities and disposal
on 31 october 2013 the group disposed of the trade and assets of its ukfacing egaming division to netplay tv group 
limited for total cash consideration of £30m
group
2013
£m
2012
£m
operating cash flows 05 05
investing cash flows 03 —
total cash flows 08 05
analysis of the results of the discontinued operation is as follows
2013
£m
2012
£m
revenue 39 43
expenses 53 35
lossprofit after tax of discontinued operations 14 08
the table below analyses the net gain on disposal of the egaming division 
group £m
proceeds from sale 30
impairment of assets 04
redundancy and other closure costs 03
other costs of disposal 08
loss after tax for the year from discontinued activities 14
net profit after tax on disposal 01
notes to the financial statements continued
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 89
16 business combinations
a datatote england limited
on 27 september 2013 the group acquired 100 of the issued share capital of datatote england limited data tote 
a leading uk betting operator and technology and services provider focused on the european greyhound and horseracing 
betting market 
the acquisition of data tote further reinforces sportechs position as one of the largest operators and providers of betting 
technologies and services in the world data tote brings an incremental customer base with strong yearonyear revenue 
growth that will broaden sportechs share of the european betting market
goodwill arising on the acquisition amounted to £nil
the following table summarises the fair value of consideration paid for data tote and the amounts of the assets acquired 
and liabilities assumed recognised at acquisition date
provisional fair value of consideration at 27 september 2013 £m
cash 31
deferred contingent consideration 01
total fair value of consideration transferred 32
recognised provisional fair value amounts of identifiable assets acquired and liabilities assumed £m
cash 07 
intangible assets – customer contracts and relationships note 12 19
property plant and equipment note 13 04
trade and other receivables 06
inventories 01
trade and other payables 01
deferred tax liability note 20 04
total identifiable net assets 32
goodwill —
total fair value of consideration transferred 32
deferred contingent consideration
there is potential for contingent consideration of up to £10m to be payable if the data tote business’ ebitda for the 
period from 1 july 2013 to 30 june 2016 reaches the following
  less than £20m – the contingent consideration payable will equal £nil and
  equal or greater than £20m – the contingent consideration payable will equal £05m plus £100 for every £100 that the 
data tote business exceeds £20m by up to a maximum amount payable of £10m
the amount payable is due five business days after the date on which the calculation of the earn out ebitda becomes 
final and binding 
the directors have reviewed the potential consideration payable based on the above performance requirements and 
accordingly recognised a fair value of £01m representing the present value of the group’s estimate of the probability 
weighted cash outflow discounted at 83 an additional £09m of potential consideration payable has been treated as 
employment costs under ifrs 3 ‘business combinations’ revised and will accordingly be accrued on a time apportioned 
basis to 30 june 2016 this expectation will be reviewed annually in accordance with ifrs 3 ‘business combinations’ revised
acquisition costs
acquisition related costs amounting to £02m have been recognised as an expense in the consolidated income statement 
as an exceptional item
provisional fair value amounts of identifiable assets acquired and liabilities assumed
the fair values of the identifiable assets acquired and liabilities assumed are considered provisional in nature due to the 
business combination occurring close to the year end management will continue to monitor the provisional values during 
the year ended 31 december 2014 to ensure any fair value amendments are identified as a hindsight adjustment
the fair value of trade and other receivables is £06m the gross contractual amount for trade receivables due is £06m 
of which £nil is expected to be uncollectable 
no contingent liabilities have been recognised as at the acquisition date  financial st a tements
sportech plc annual report and accounts 2013 90
16 business combinations continued
a datatote england limited continued
data tote contribution to the group results
data tote has contributed £03m and £nil to the group’s revenues and profit respectively from the acquisition date to 
31 december 2013 had the acquisition occurred on 1 january 2013 the group’s revenue for the period ended 31 december 2013 
would have been £1125m and the group’s profit for the year would have been £37m these amounts have been determined by 
applying the group’s accounting policies and adjusting the results of data t ote to reflect additional depreciation and amortisation 
that would have been charged assuming the fair value adjustments to property plant and equipment and intangible assets had 
been applied from 1 january 2013 together with their consequential tax effects
b ebet online inc
on 19 december 2012 the group acquired 100 of the issued share capital of ebet online inc ebet there were no 
changes to the fair value assumptions applied by management at acquisition during the hindsight period in relation to net 
assets acquired and consideration paid other than in relation to the contingent deferred consideration expected to be paid 
in early 2016 ebitda estimates for the combined interactive products and services business have been revised down and 
as a result the estimate of deferred contingent consideration expected to be paid have been revised down from £08m 
13m to £05m 09m given the reassessment was within the hindsight period the prior year accounting for the 
acquisition has been restated as follows
fair value of consideration at 19 december 2012
final
£m
provisional
£m
cash 58 58
deferred consideration 09 09
deferred contingent consideration 05 08
total fair value of consideration transferred 72 75
recognised provisional fair value amounts of identifiable assets acquired and liabilities assumed
cash 01 01 
intangible assets – customer contracts and relationships 18 18
intangible assets – software 03 03
intangible assets – other 09 09
trade and other receivables 03 03
trade and other payables 05 05
income tax liability 01 01
deferred tax liability note 20 11 11
total identifiable net assets 17 17
goodwill 55 58
total fair value of consideration transferred 72 75
c sportech racing
on 5 october 2010 the group acquired 100 of the issued share capital of the racing businesses and venues management 
business of scientific games corporation inc
the performance period for the contingent consideration targets ended on 31 december 2013 and it has been confirmed 
that no contingent consideration is payable due to failure to meet minimum ebitda targets no liability was recognised 
in the consolidated financial statements in relation to this potential liability and as a result there has been no effect on the 
2013 income statement
notes to the financial statements continued
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 91
17 investment in joint ventures
the group has the following investments in joint ventures 
group description
country of
incorporation
year of 
investment  holding
sportshub private limited provides a suite of prediction and fantasy games 
centred on cricket football and formula one
india 2008 50
picklive usa llc distribution of picklive’s live fantasy sports game 
across the us
usa 2013 51
sportech – nyx gaming llc provides online products and services in the us 
for social and paytoplay gaming
usa 2013 50
ss venues california llc sports bars with wagering facilities in  
california usa
usa 2013 50
group
2013
£m
2012
£m
at 1 january 05 03
additions 02 03
direct investment in joint ventures — 01
share of loss after tax 02 02
at 31 december 05 05
the group’s share of the results in its joint ventures which are unlisted and its share of the aggregated assets and 
liabilities are as follows
2013
£m
2012
£m
noncurrent assets 01 01
current assets 01 —
total assets 02 01
current liabilities — 03
net assetsliabilities 02 02
total revenue — —
expenses 02 02
the group’s share of capital commitments amounted to £nil 2012 £nil
18 trade and other receivables
group company
2013
£m
2012
£m
2013
£m
2012
£m
trade receivables 52 55 — —
less provision for impairment of receivables 03 03 — —
trade receivables – net 49 52 — —
amounts owed by group companies — — 146 90
other receivables 11 11 02 03
accrued income 10 — — —
prepayments 20 17 05 03
total 90 80 153 96
other classes of trade and other receivables are not impaired noncurrent trade receivables of £03m 2012 £nil relate 
to accrued income due after more than twelve months
the fair value of trade and other receivables is not considered to be different from the carrying value recorded above for 
either the group or the company 
trade receivables that are less than three months past due are not considered impaired as management considers the 
amounts to be fully recoverable as at 31 december 2013 £01m 2012 £02m of trade receivables were past due and not 
impaired management also considers that these receivables are recoverable in full due to good credit quality
as at 31 december 2013 trade receivables of £03m 2012 £03m were impaired and fully provided for  financial st a tements
sportech plc annual report and accounts 2013 92
18 trade and other receivables continued 
movements on the group provision for impairment of trade receivables were as follows
group
2013
£m
2012
£m
at 1 january 03 02
provided for during the year — 01
at 31 december 03 03
the carrying amounts of trade and other receivables current and noncurrent are denominated in the following currencies
group company
2013
£m
2012
£m
2013
£m
2012
£m
sterling 15 19 63 57
us dollar 53 45 82 38
euro 12 11 08 01
other 13 05 — —
total 93 80 153 96
19 inventories
group
2013
£m
2012
£m
work in progress 01 02
spare parts 12 12
finished goods 02 02
total 15 16
the cost of inventories recognised as an expense and included in cost of sales amounted to £27m 2012 £34m
provisions for obsolescence held against inventories at 31 december 2013 amounted to £nil 2012 £nil
20 deferred tax 
the movement on the deferred tax account is as follows
group company
2013
£m
2012
£m
2013
£m
2012
£m
net deferred tax asset at 1 january 13 30 13 08
income statement chargecredit 01 02 03 14
business combination note 16 04 11 — —
tax charged directly to equity 01 08 — 09
net deferred tax asset at 31 december 07 13 10 13
the tax charged directly to equity is the deferred tax on the retirement benefit obligations in the prior year it also related to the 
derivative financial instruments
notes to the financial statements continued
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 93
20 deferred tax continued 
deferred tax assets have been recognised in respect of trading losses and all other temporary differences where it is 
probable that these assets will be recovered deferred tax assets and liabilities are only offset where there is a legally 
enforceable right of offset and there is an intention to settle the liabilities net the movements in deferred tax assets and 
liabilities during the year are shown below
deferred tax assets
group
pension
£m
capital
 allowances
£m
losses
£m
temporary
differences
£m
total
£m
at 1 january 2012 06 03 13 08 30
income statement chargecredit 02 15 02 21 02
business combination note 16 — — — 11 11
tax creditedcharged directly to equity 01 — — 09 08
at 31 december 2012 05 12 11 09 13
income statement chargecredit — 10 06 10 06
tax charged directly to equity 01 — — — 01
at 31 december 2013 04 22 17 19 18
deferred tax of £nil is expected to be recovered within twelve months 2012 £nil with £18m expected to be recovered 
after more than twelve months 2012 £13m
the deferred tax asset in the company consists of temporary differences of £08m and capital allowances of £02m 
2012 timing differences of £13m
the losses in the company have been fully surrendered as group relief in addition to the deferred tax asset which has 
been recognised the group has not recognised further deferred tax assets of £31m 2012 £28m arising from unutilised 
trading losses the directors do not consider there will be sufficient future profits against which these losses can be offset 
due to the low level of trading in these particular business units
expiry of these losses is as follows
2013 2012
gross losses
provided
£m
unprovided
£m
provided
£m
unprovided
£m
in more than four years 10 140 31 111
deferred tax assets are recognised on losses carried forward when it is probable that future taxable profits will be 
generated against which the losses can be utilised
deferred tax liabilities
group
temporary
differences
£m
at 1 january 2011 2012 and 2013 —
business combination note 16 04
income statement charge 07
at 31 december 2013 11
21 cash and cash equivalents
group company
2013
£m
2012
£m
2013
£m
2012
£m
cash balances 26 29 02 —
overdrafts — — — 52
total 26 29 02 52
the fair value of cash and cash equivalents is not considered to be different from the carrying value recorded above for 
either the group or the company 
cash balances of £21m 2012 £08m are held on behalf of customers in respect of certain egaming online and telephone 
betting activities and on behalf of registered charities relating to the sale of charity scratchcards and lotto products these 
balances are excluded from group cash and are netted against a corresponding payable within accruals and deferred 
income note 22  financial st a tements
sportech plc annual report and accounts 2013 94
22 trade and other payables
group company
2013
£m
2012
£m
2013
£m
2012
£m
trade payables 76 61 05 05
amounts owed to group companies — — 404 198
other taxes and social security costs 08 08 — —
accruals and deferred income 127 154 12 13
total 211 223 421 216
there is no difference between book values and fair values of trade and other payables all amounts are due within one year
23 provisions 
group
onerous 
contracts 
£m
other 
provisions 
£m
total 
£m
at 1 january 2012 06 04 10
utilised during the year 02 — 02
at 31 december 2012 04 04 08
utilised during the year 01 01 02
at 31 december 2013 03 03 06
provisions have been recognised where the group has contractual obligations to provide services where the estimated 
unavoidable costs to carry out the obligation exceed the expected future economic benefits to be received other provisions 
include provisions for obligations to reinstate property to its original condition at the start of the lease term of the provisions 
included in the above table £02m is expected to be utilised within twelve months 2012 £03m and £04m is expected 
to be utilised after twelve months 2012 £05m
24 financial liabilities 
group company
2013
£m
2012
£m
2013
£m
2012
£m
current
deferred consideration due within one year 07 63 — 61
total current financial liabilities 07 63 — 61
group company
2013
£m
restated
2012
£m
2013
£m
2012
£m
noncurrent
drawn revolving credit facility due after one year 660 600 660 600
deferred consideration due after one year 06 12 — —
total noncurrent financial liabilities 666 612 660 600
notes to the financial statements continued
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 95
24 financial liabilities continued
bank loans and revolving credit facility
on 18 july 2012 the group entered a senior facility agreement which made available a multicurrency revolving credit 
facility of £750m including up to £50m of ancillary facilities bearing interest of libor plus a bank margin dependent on 
leverage levels initially 35 to 31 december 2012 the borrowings are secured by a composite debenture incorporating 
fixed and floating charges over all assets excluding monies standing to credit of trust accounts and undertakings 
of sportech plc all uk trading companies uk holding companies of overseas entities sportech mauritius limited 
and racing technology ireland limited in addition share charges have been entered into in respect of shares in 
racing technology ireland limited sportech racing bv a netherlands company sportech inc sportech venues inc 
sportech venues ca holdco llc sportech venues california llc sportech games holdco llc sportech racing llc 
trackplay llc all seven are us companies and sportech mauritius limited furthermore a guernsey law security 
interest agreement has been entered into by sportech alderney limited
during the year ended 31 december 2013 the group obtained proceeds from borrowings of £60m 
covenants on the group’s borrowings include a leverage covenant being the ratio of ebitda to net bank debt and an interest 
cover covenant being the ratio of ebitda to senior finance charges none of the covenants were breached during the period
deferred and deferred contingent consideration
deferred consideration of £65m in relation to the acquisition of sportech racing in october 2010 was paid on 
30 september 2013 interest was charged at the average daily bank of england base rate plus 1 for the period 
5 october 2010 inclusive to 30 september 2013 inclusive
deferred and deferred contingent consideration of £18m and £10m in relation to the acquisitions of ebet online inc 
and datatote england limited respectively is payable or potentially payable as outlined in note 16
25 financial instruments 
financial risk management policies and objectives
the group’s activities expose it to a variety of financial risks fair value and cash flow interest rate risk liquidity risk 
credit risk and foreign exchange risk where appropriate the group uses derivative financial instruments to hedge 
certain risk exposures
the policy for each of the above risks is described in more detail below
f air value and cash flow interest rate risk
as the group has no significant interestbearing assets the group’s income and operating cash flows are substantially 
independent of changes in market interest rates
the group’s interest rate risk arises from its long term bank borrowings borrowings issued at variable interest rates expose the 
group to cash flow interest rate risk borrowings issued at fixed rates expose the group to fair value interest rate risk the group’s 
bank borrowings are a multicurrency revolving credit facility with bank of scotland plc barclays bank plc and royal bank of 
scotland plc until august 2015 and at variable interest rates a debt margin payable of between 250 and 375 basis points per 
annum dependent on leverage ratio the group’s policy is to hedge interest rate risk where appropriate using interest rate swaps 
at contract lengths consistent with the expected levels of the long term bank borrowings this policy is a cash flow hedge and is 
approved by the board and the board receives updates on a regular basis in respect of the hedging position 
the group has entered into a number of swap agreements with terms remaining of between one month and two years on 
a total of £300m at an average swap rate before any lending margin of 480 the hedges comprise three £100m hedges 
with expiry dates ranging from 2014 to 2016 the contracts are not designated effective hedges and as a result gains 
and losses are recognised in the income statement within finance costs 
as at 31 december 2013 the fair value of these interest rate swaps was a liability of £13m 2012 £26m 
at 31 december 2013 if interest rates on borrowings had been 50 basis points higherlower with all variables held constant post 
tax profit for the year would have been £02m 2012 £01m higherlower as a result of higherlower interest expense on unhedged 
variable rate borrowings this sensitivity is considered a reasonable assumption based on current economic conditions
liquidity risk
cash flow forecasting is performed on a regular basis in the operating entities of the group and is aggregated by group 
finance group finance monitors rolling forecasts of the group’s liquidity requirements to ensure each operating entity 
has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing 
facilities at all times so that the group does not breach borrowing limits or covenants on any of its borrowing facilities 
the group’s borrowing facilities are with bank of scotland plc barclays bank plc and royal bank of scotland plc group 
finance monitors the level of excess cash over and above that required for working capital management and ensures the 
excess is loaned to the uk to minimise the facility required to be drawn bank facilities have been agreed at appropriate 
levels having regard to the group’s operating cash flows and future development plans   financial st a tements
sportech plc annual report and accounts 2013 96
25 financial instruments continued
financial risk management policies and objectives continued
credit risk
the group’s uk operation has limited exposure to credit risk transactions within the football pools segment are 
predominantly either weekly cash receipts in advance or multiple weeks in advance by credit card debit card or direct 
debit credit exposure is limited to overseas collection agencies on short credit terms managed centrally by the uk 
finance function the group’s main exposure to credit risk is in accounts receivable in the sportech racing and digital 
segment credit risk in these entities is managed locally by assessing the creditworthiness of each new customer before 
agreeing payment and delivery terms the group does not hold significant amounts of deposits with banks and financial 
institutions amounts held in cash for the sportech venue division are held in highly secure environments
foreign exchange risk
the group operates internationally and is exposed to foreign exchange risk arising from various currency exposures 
primarily with respect to the euro and us dollar foreign exchange risk arises from transactions undertaken in foreign 
currencies the translation of foreign currency monetary assets and liabilities and from the translation into sterling of 
the results and net assets of overseas operations
the group continually monitors the foreign currency risk and takes steps where practical to ensure that the net exposure 
is kept to an acceptable level inter alia by using foreign exchange forward contracts designed to fix the economic impact 
of forecasted profitability at 31 december 2013 the notional principal amounts of foreign exchange forward contracts 
outstanding were 20m 2012 105m the contracts are not designated effective hedges and as a result gains and 
losses are recognised in the income statement within finance costs at 31 december 2013 the fair value of these forward 
contracts was £nil 2012 £01m no charge or credit has thus been recognised in profit and loss arising from fair value 
movement 2012 debit from fair value movement of £01m
the average rate of the us dollar during the year was 156 and the euro was 118 if the usd had averaged at 165 and the 
euro at 125 profit after tax would have been £32m and net assets would have been £1397m at 31 december 2013
group company
current liabilities
2013
£m
2012
£m
2013
£m
2012
£m
interest rate swaps – cash flows hedges 13 26 13 26
forward foreign exchange contracts – cash flow hedges — 01 — 01
total 13 27 13 27
the above financial instruments are carried at fair value the level 2 valuation method is used the valuation methods are 
summarised as follows
  level 1 – quoted prices adjusted in active markets for identical assets or liabilities
  level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly 
that is as prices or indirectly that is derived from prices and
  level 3 – inputs for the assets or liabilities that are not based on observable market data that is unobservable inputs
the fair value of financial instruments that are not traded in an active market for example overthecounter derivatives 
is determined by using valuation techniques these valuation techniques maximise the use of observable market data 
where it is available and rely as little as possible on entity specific estimates if all significant inputs required to fair value 
an instrument are observable the instrument is included in level 2 if one or more of the significant inputs is not based 
on observable market data the instrument is included in level 3
the fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on 
observable yield curves note that all of the resulting fair value estimates are included in level 2
notes to the financial statements continued
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 97
25 financial instruments continued
financial risk management policies and objectives continued
capital risk management
the group’s objectives when managing capital are to safeguard the group’s ability to continue as a going concern in order 
to provide returns for shareholders benefits for other stakeholders and to achieve an efficient capital structure to minimise 
the cost of capital
in order to maintain or adjust the capital structure the group may adjust the amount of dividends paid to shareholders 
return capital to shareholders issue new shares or sell assets to reduce debt
the group monitors capital on the basis of the gearing ratio this ratio is calculated as net debt divided by total capital 
net debt is calculated as total financial liabilities including current and noncurrent as shown in the consolidated balance 
sheet less cash and cash equivalents total capital is calculated as equity as shown in the consolidated balance sheet 
plus net debt
the group’s strategy has been to target a reasonable level of gearing for a group of sportechs size and industry presence 
the board considers gearing of between 20 and 40 to be appropriate during 2013 net debt including deferred 
consideration was increased by £01m 02 2012 reduced by £04m 06 gearing has remained static principally 
due to the cash generated by the group from operations during the year offset by cash used to purchase tangible and 
intangible assets and to acquire data tote the total net debt and gearing ratios at 31 december 2013 and 2012 were 
as follows
note
2013
£m
restated
2012
£m
total financial liabilities 24 673 675
less cash and cash equivalents 21 26 29
net debt 647 646
total equity 1397 1354
total capital 2044 2000
gearing ratio 32 32
f air value of noncurrent borrowings
group company
as at 31 december 2013
book 
value
£m
fair
value
£m
book 
value
£m
fair
value
£m
bank borrowings due after one year 660 657 660 657
group company
as at 31 december 2012
book 
value
£m
fair
value
£m
book 
value
£m
fair
value
£m
bank borrowings due after one year 600 538 600 538
the fair values are based on cash flows discounted at a rate of 83 2012 83 and are within level 2 of the fair value 
hierarchy future interest payments are £30m payable within one year 2012 £27m £20m payable between one and two 
years 2012 £27m and £nil payable between two and five years 2012 £18m
maturity of bank borrowings
bank borrowings are repayable as follows
group company
contractual undiscounted amount
2013
£m
2012
£m
2013
£m
2012
£m
between one and two years 660 — 660 —
between two and five years — 600 — 600
total 660 600 660 600  financial st a tements
sportech plc annual report and accounts 2013 98
25 financial instruments continued
financial risk management policies and objectives continued 
maturity of bank borrowings continued
the maturity analysis of derivative financial liabilities is as follows
group company
contractual undiscounted amount
2013
£m
2012
£m
2013
£m
2012
£m
within one year 30 92 30 92
between one and two years 05 18 05 18
between two and five years — 04 — 04
total 35 114 35 114
the maturity analysis of nonderivative financial liabilities is as follows
group company
contractual undiscounted amount
2013
£m
2012
£m
2013
£m
2012
£m
within one year 231 295 421 329
between one and two years 04 12 — —
between two and five years 681 621 660 600
total 916 928 1081 929
borrowing facilities
the group had the following undrawn committed borrowing facilities available as follows
2013
£m
2012
£m
floating rate
– expiring within one year — —
– expiring beyond one year 90 150
total 90 150
financial asset and liabilities
the group had the following categories
2013
£m
restated
2012
£m
loans and receivables 70 63
financial liabilities at fair value through profit or loss
– designated post refinancing 13 26
– designated upon initial recognition — 01
financial liabilities measured at amortised cost 673 675
notes to the financial statements continued
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 99
26 ordinary shares
authorised issued and fully paid
2013 2012
ordinary shares of 50p each 2012 50p 000 £m 000 £m
at 1 january 198810 994 198810 994
new shares issued to satisfy psp vesting 6041 30 — —
at 31 december 204851 1024 198810 994
potential issue of ordinary shares
sportech share option schemes
certain directors and senior executives hold options to subscribe for shares in the company at prices ranging from £0817 
to £1064 2012 £0817 to £1064 under sportech share option schemes approved by the shareholders share options at 
the end of the period had a weighted average exercise price of £0888 2012 £0888 the number of shares subject to 
options the periods in which they were granted and the periods in which they may be exercised are given below there 
were no movements in the year
year of grant exercise price exercise period
outstanding at 
31 december 
2013 and
2012
number
2005 september £0817 2008–2015 505050
2006 march £1064 2009–2016 202020
total 707070
the options are exercisable at any time during the sevenyear period commencing three years from the date of the grant 
the company has no legal or constructive obligation to settle the options in cash the weighted average remaining 
contractual life of outstanding share options under the sportech share option scheme at 31 december 2013 was one year 
and eleven months 31 december 2012 two years and eleven months
exercise of the 2005 options is subject to the share price reaching the following closing prices at any time during the 
exercise period
shares
closing 
price
151515 £1237
151515 £1732
101010 £2227
101010 £2722
505050 
exercise of the 2006 options is subject to the share price reaching the following closing prices at any time during the 
exercise period
shares
closing 
price
50505 £1732
75757 £2227
75758 £2722
202020 
the market price of the ordinary shares at 31 december 2013 was £0815 2012 £0705 and the range during the year was 
£1080 to £0690 2012 £0428 to £0710  financial st a tements
sportech plc annual report and accounts 2013 100
26 ordinary shares continued
potential issue of ordinary shares continued
sportech share option schemes continued
options are granted with a fixed exercise price equal to the market price of the shares under option at the date of the 
grant options were valued using the blackscholes option pricing model no performance conditions are included in the 
fair value calculation the fair value per option granted and the assumptions used in the calculations are as follows
2005 2006
riskfree interest rate 418 440
vesting period 3 years 3 years
option life 10 years 10 years
expected life of options 5 years 5 years
expected share price volatility 6629 4861
dividend growth — —
fair value of option £0556 £0601
the expected volatility is based on historical volatility over the last three years the expected life is the average expected 
period to exercise the riskfree rate is based on bank of england bonds of a term consistent with the assumed option life 
dividend growth is based on historical dividends over the last three years
the performance share plan “psp”
certain executive directors and senior executives have been awarded grants to acquire shares in the company under 
the psp subject to performance conditions during the year ended 31 december 2013 2406000 shares have been awarded 
2012 4123000 1649000 awards lapsed due to failure to meet the performance conditions 2012 nil 674000 awards 
lapsed due to employees ceasing to be employed by the group 2012 1662000 and no awards were cancelled during the 
year 2012 nil 6041000 shares vested during the period of which 4072000 remain unexercised as at 31 december 2013 
8608000 2012 13563000 share awards remained outstanding unvested at 31 december 2013
performance conditions
the remuneration committee can set different performance conditions from those described below for future awards 
provided that in the reasonable opinion of the remuneration committee the new targets are not materially less 
challenging in the circumstances than those described below the remuneration committee determines the comparator 
group for each award
the remuneration committee may also vary the performance conditions applying to existing awards if an event has 
occurred that causes the remuneration committee to consider that it would be appropriate to amend the performance 
conditions provided that the remuneration committee considers the varied conditions are fair and reasonable and not 
materially less challenging than the original conditions would have been but for the event in question
the awards are at nil cost to the employee awards will normally vest on the third anniversary of the date of grant subject 
to the participants’ continued employment within the group and the satisfaction of the performance conditions noted below
2013 grants
the vesting of onehalf of the award “part a” will be dependent on the company’s total shareholder return “tsr” over 
a fixed threeyear period beginning on the date of grant relative to that of the ftse small cap index excluding investment 
trusts for the purpose of calculating tsr the base figure is averaged over the six weeks preceding the start of the 
performance period and the end figure is averaged over the last six weeks of the performance period
no portion of part a will vest unless the company’s tsr performance at least matches that of the index thereafter a 
vesting schedule no less demanding than the following will apply
the company’s tsr performance over the performance period relative to comparator index extent of vesting of part a
equal to the index 25
between equal to the index and upper quartile pro rata between 25 and 100
upper quartile or better 100
notes to the financial statements continued
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 101
26 ordinary shares continued
potential issue of ordinary shares continued
the performance share plan “psp” continued
2013 grants continued
the vesting of the second half of the award is dependent on an eps performance criterion “part b” the average annual 
percentage growth in the company’s eps in excess of the uk retail prices index “rpi” over the eps performance period 
must at least equal 4 vesting is determined by the following schedule
the company’s average annual growth in eps in excess of rpi during the performance period extent of vesting of part b
less than 4 per annum 0
4 per annum 25
between 4 and 10 per annum pro rata between 25 and 100
10 or better 100
2012 2011 and 2010 grants
the vesting of onethird of the award “part a” will be dependent on the company’s total shareholder return “tsr” over 
a fixed threeyear period beginning on the date of grant relative to that of the ftse small cap index excluding investment 
trusts for the purpose of calculating tsr the base figure is averaged over the six weeks preceding the start of the 
performance period and the end figure is averaged over the last six weeks of the performance period
no portion of part a will vest unless the company’s tsr performance at least matches that of the index thereafter 
a vesting schedule no less demanding than the following will apply
the company’s tsr performance over the performance period relative to comparator index extent of vesting of part a
equal to the index 25
between equal to the index and upper quartile pro rata between 25 and 100
upper quartile or better 100
the vesting of the second onethird of the award “part b” will be dependent on the company’s absolute tsr over the 
same performance period as for part a the tsr calculation is the same as that for part a with the exception that the final 
figure for the purpose of calculating tsr is the highest sixweek average over the final year of the performance period 
vesting is determined by the following schedule
the company’s compound annual tsr during the performance period extent of vesting of part b
at least 6 25
between 6 and 15 pro rata between 25 and 100
15 or better 100
the vesting of the final third of the award is dependent on an eps performance criterion “part c” the average annual 
percentage growth in the company’s eps in excess of the uk retail prices index “rpi” over the eps performance period 
must at least equal 4 vesting is determined by the following schedule
the company’s average annual growth in eps in excess of rpi during the performance period extent of vesting of part c
less than 4 per annum 0
4 per annum 25
between 4 and 10 per annum pro rata between 25 and 100
10 or better 100
for employees who are responsible for the management of sportech racing the above performance criteria are applicable 
in the following fractions 
part a – twoninths
part b – twoninths
part c – twoninths
   financial st a tements
sportech plc annual report and accounts 2013 102
26 ordinary shares continued
potential issue of ordinary shares continued
the performance share plan “psp” continued
2012 2011 and 2010 grants continued 
a further performance criteria is applicable for the final third of the award “part d” being the average annual percentage 
growth in sportech racing’s ebitda over the performance period must equal at least 10 vesting is determined by the 
following schedule
sportech racing’s average annual growth in ebitda during the performance period extent of vesting of part d
less than 10 per annum 0
10 per annum 25
between 10 and 20 per annum pro rata between 25 and 100
20 or better 100
all psp grants
awards are valued using a stochastic monte carlo valuation model the fair value per award granted and the assumptions 
used in the calculations are as follows
grant date
may
2013
march
2013
march
2012
december
2011
february
2011
october
2010
exercise price £nil £nil £nil £nil £nil £nil
number of employees issued awards 1 70 47 22 3 51
share price at award date £0900 £1000 £0513 £0399 £0425 £0425
expected term fixed 3 years 3 years 3 years 3 years 3 years 3 years
expected volatility 296 296 331 339 395 395
dividend yield 0 0 0 0 0 0
fair value of award £0844 £0844 £0407 £0301 £0346 £0346
the weighted average remaining contractual life of outstanding awards under the psp at 31 december 2013 was one year 
and five months 2012 one year and four months the weighted average exercise price of awards granted during the 
period was £nil 2012 £nil 
psp awards are not affected by the riskfree rate input since no payment is required by the recipient and therefore no 
interest could be earned elsewhere
the expected volatility is based on movements in the historical return index share price with dividends reinvested for 
the three years prior to the award date the dividend yield does not affect the fair value of the award as the rules of the 
psp entitle a participant to receive cash equal in value to the dividends that would have been paid on the vested shares 
in respect of dividends paid during the vesting period and is therefore assumed to be 0
see note 6 and note 7 for the total expense recognised in the income statement for share options granted and psp awards 
made to directors and employees respectively
notes to the financial statements continued
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 103
27 cash flow from operating activities
reconciliation of profitloss before taxation to cash flows from operating activities
group company
note
2013
£m
2012
£m
2013
£m
2012
£m
profitloss before taxation including profit 
from discontinued operations 53 21 119 76
adjustments for
exceptional costs 2 27 28 14 07
share of loss after tax of joint ventures 17 02 02 — —
depreciation 13 32 26 — —
amortisation of acquired intangibles 12 72 59 — —
amortisation of other intangibles 12 25 26 10 11
net finance costs 4 43 41 49 40
other finance incomecharges 4 08 47 08 47
share option expense 6 15 14 15 14
movement in retirement benefit obligation 32 02 — — —
movement in provisions 23 02 02 — —
loss on disposal of property plant and equipment 13 01 — — —
loss on disposal of intangible assets 12 03 — — —
gift of shares to ebt — — 30 —
changes in working capital
increasedecrease in trade and other 
receivables 04 10 57 121
decrease in inventories 02 10 — —
decreaseincrease in trade and other payables 19 16 211 69
cash flows from operating activities 244 266 145 95
noncash transactions
there were no significant noncash transactions during the year 2012 nil
28 contingent assets and liabilities
contingent assets
the board has previously announced that the group had submitted a claim for in excess of £400m to hmrc for the repayment 
of vat overpaid in respect of the “spot the ball” game from 1979 to 1996 interest may also be added to the principal sum 
claimed which if successful given the timeframe of the claim could increase the sum claimed to approximately £950m the 
group was informed on 7 march 2013 that the firsttier tax tribunal had found in favour of the group hmrc has been given 
leave to appeal and the case will be heard at the upper tribunal on 29 and 30 april 2014 accordingly the claim has not been 
recognised in the group’s financial statements
contingent liabilities
the group has contingent liabilities in respect of legal claims in the ordinary course of business it is not considered that 
any material liabilities will arise from these
in respect of the acquisition of ebet online inc on 19 december 2012 additional consideration is payable under certain 
circumstances as outlined in note 16
in addition additional consideration is payable under certain circumstances as outlined in note 16 in respect of the 
acquisition of datatote england limited on 27 september 2013  financial st a tements
sportech plc annual report and accounts 2013 104
29 commitments
capital commitments
the group had no contracts placed for capital expenditure that were not provided for in the financial statements in the 
current or prior year
operating lease commitments
the group leases various otb venues and other operating sites under noncancellable operating lease arrangements 
the lease terms are generally between three and five years and are renewable at the end of the lease period at market 
rates the expenditure charged to the income statement was £20m 2012 £23m
the future aggregate minimum lease payments under noncancellable operating leases are as follows
group company
2013
£m
2012
£m
2013
£m
2012
£m
no later than one year 19 15 01 01
later than one year and no later than five years 41 31 07 03
later than five years 02 19 01 —
total 62 65 09 04
30 other financial commitments
in december 1996 an incentive scheme to reward football pools collectors was established by a subsidiary company 
under the terms of the scheme the collectors earn points on the basis of their sales these points can be converted into 
vouchers to purchase items from high street shops on the basis of similar schemes a redemption rate attributable to 
these points has been established and an appropriate charge made in these accounts the potential liability in respect 
of these points not provided for in these financial statements is £04m 2012 £04m this liability has not been provided 
for as it is the judgement of management that it will never crystallise
the group was required to enter into a performance guarantee bond in october 2010 which is reviewed annually for 15 
of the contract value being 190000 at 31 december 2013 in relation to a contract to provide and maintain parimutuel 
betting terminals to a customer in turkey
31 related party transactions
the extent of transactions with related parties of sportech plc and the nature of the relationships with them are 
summarised below
a key management compensation is disclosed in note 7
b the company had the following transactions with subsidiaries during the year
2013
£m
2012
£m
management charges received 13 13
royalty income received 16 16
management charges paid 01 01
interest received on intercompany loan balances 02 03
interest paid on intercompany loan balances 10 01
the amount outstanding in relation to management charges at the balance sheet date was £01m 2012 £01m and the net 
amount outstanding for interest receivable on intercompany loan balances was £02m 2012 £20m all intercompany 
transactions are on an arms length basis 
c  the company had no transactions with the joint ventures during the year 2012 no transactions the group invested £02m 
cash into its indian joint venture and contributed £nil to capital expenditure 2012 invested £03m and contributed £01m
d  scientific games corporation “sgc” was a 1999 shareholder in sportech plc throughout the period and until the 
disposal of 100 of its holding on 9 january 2014 sgc is therefore considered to be a related party for the whole of the 
period and as at 31 december 2013 lorne weil nonexecutive director and shareholder see directors’ report on pages 
54 to 56 was chairman and chief executive officer of sgc until his resignation in december 2013
notes to the financial statements continued
for the year ended 31 december 2013  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 105
31 related party transactions continued
during the year there have been a number of transactions and at the year end there remain outstanding balances 
between the company and sgc as detailed below
  deferred consideration of nil £nil discounted is due to sgc 2012 100m £61m discounted paid in september 2013
  £02m 2012 £03m is due to the company from sgc for the settlement of an underfunded pension liability as 
at 5 october 2010 payable in five equal annual instalments which commenced september 2011
  sportech racing llc has ongoing service agreements with a subsidiary of sgc global draw to provide global draw 
with employees to operate and supervise gaming systems in puerto rico during the year £05m 2012 £04m was 
charged to sgc for these services
  sportech racing llc purchases ticket paper from sgc under the terms of the supply agreement entered into upon 
acquisition of sportech racing llc by sportech plc from sgc total purchases of ticket paper during the year ended 
31 december 2013 amounted to £12m 2012 £12m sportech racing llc also purchased spare parts for terminals from 
sgc amounting to £01m during the year ended 31 december 2013 2012 £01m
  racing technology ireland limited purchased spare parts for terminals from sgc amounting to £01m during the year 
ended 31 december 2013 2012 £03m and incurred commission on sales of £02m 2012 £nil and
  at 31 december 2013 the following amounts were due tofrom sgc from sportech plc group companies
2013 2012
sportech group company
due 
to sgc
£m
due 
from sgc
£m
due 
to sgc
£m
due 
from sgc
£m
sportech plc — 02 64 03
sportech racing llc 09 06 02 01
racing technology ireland limited 01 — — —
total 10 08 66 04
the amount owed by sportech plc in 2012 being deferred consideration and the amount owed from sgc to sportech plc 
being for deferred pension settlement are both as referred to above
e  playtech limited was a 10 shareholder in sportech plc until the disposal of 100 of its holding in june 2013 roger withers 
chairman was also chairman of playtech limited and mor weizer former nonexecutive director until his resignation 
in june 2013 is chief executive of playtech limited see directors’ report on pages 54 to 56 playtech limited is therefore 
considered to be a related party up until the resignation of roger withers as chairman of playtech in october 2013
playtech limited provided egaming services to the group comprising the platform including the gaming software for 
casino poker bingo and side game offerings these services commenced in early august 2011 when playtech became the 
group’s principal egaming provider and ceased in the disposal of the egaming division by the group in september 2013 
  during the year ended 31 december 2013 the group had all security deposits with playtech limited returned 
  operating expenses for customer relationship management services and royalties paid to playtech limited during the 
year amounted to £13m 2012 £10m
  at 31 december 2013 the group owed playtech limited £nil 2012 £03m in relation to services rendered and royalties due
  the company did not have any other transactions with playtech limited during the year 2012 no transactions  financial st a tements
sportech plc annual report and accounts 2013 106
notes to the financial statements continued
for the year ended 31 december 2013
32 pension schemes
the group operates two pension schemes in the uk one is a defined contribution scheme and the other is a funded 
defined benefit scheme the group operates a further funded defined benefit scheme in the usa two defined contribution 
schemes in the usa a defined contribution scheme in the netherlands and a defined contribution scheme in ireland 
summary of pension contributions paid
2013
£m
2012
£m
defined contribution scheme contributions 07 07
defined benefit scheme contributions 02 02
total pension contributions 09 09
defined contribution schemes
those employees who joined the group consequent to the acquisition of littlewoods gaming formerly littlewoods leisure 
and who were aged under 50 on 4 september 2000 and all other uk employees of sportech can join either a stakeholder 
pension scheme established on 6 april 2001 or alternate defined contribution arrangements the contributions are made 
at a maximum rate of 8 of pensionable salaries
a defined contribution scheme for nonunionised employees is operated in the usa into which the group contributes 
375 of the first 6 of participant contributions a further defined contribution scheme is available for unionised employees 
the group does not make contributions into this scheme the pension scheme in the netherlands provides benefits 
to employees on a percentage of salary basis the group contributes 75 of salary less state pension allowance which 
is currently €12000 2012 €12000 per annum into a defined contribution scheme for employees in ireland
defined benefit schemes
pursuant to the sale agreement between littlewoods plc and sportech plc a defined benefit scheme was set up for those 
employees who joined the group consequent to the acquisition of littlewoods gaming formerly littlewoods leisure and 
who were aged 50 or over on 4 september 2000 the date of the acquisition the scheme was formed on 6 april 2001 
and is governed by a definitive trust deed and rules it is a registered pension scheme under chapter 2 of part 4 of the 
finance act 2004 the scheme is contracted out of the state second pension scheme the scheme is currently not open 
to new members
the us defined benefit scheme is administered by an insurance company in the usa and provides retirement benefits to 
employees who are members of a collective bargaining unit represented by the international brotherhood of electrical 
workers benefits are based on value times credited service
the amounts recognised in the balance sheet were as follows
at
31 december
2013
£m
at
31 december
2012
£m
fair value of plan assets
– uk 18 17
– usa 25 26
total fair value of assets 43 43
present value of the schemes’ liabilities 56 59
deficit in the schemes 13 16
included in
– noncurrent liabilities 13 16  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 107
32 pension schemes continued
defined benefit schemes continued
the figures below have been determined by qualified actuaries at the balance sheet date using the following assumptions
usa 
at 31 december 
 2013
uk 
at 31 december 
2013
usa
at 31 december 
2012
uk 
at 31 december 
2012
discount rate 45 44 35 41
rate of increase in salaries na 50 na 43
rate of increase in pensions in payment
– 5 lpi na 35 na 28
– rate of inflation na 35 na 28
– mortality table 2013 irs
static 
mortality
table
s1nxa 
cmi 2012 
projections
15 per
annum long
term rate of
improvement
2012 irs 
static 
mortality 
table
s1nxa 
cmi 2009 
projections
15 per
annum long
term rate of
improvement
for the uk under the adopted mortality tables if the future life expectancy were to be plusminus one year the liabilities 
would increasedecrease by £60000
for the usa scheme under the adopted mortality tables if the future life expectancy were to be plusminus one year the 
liabilities would increasedecrease by £6000
for the uk if the discount rate were 465 the liabilities would decrease by £70000 for the us if the discount rate were 
5 the liabilities would decrease by £154000
the movement in the defined benefit obligation over the year is as follows
present value
of obligation
£m
fair value
of plan asset
£m
total
£m
at 1 january 2012 56 43 13
current service cost 02 — 02
interest expenseincome 02 02 —
income statement expenseincome 04 02 02
remeasurements
– loss from change in actuarial assumptions 03 — 03
03 — 03
contributions
– employers — 02 02
payments from plans
– benefit payments 04 04 —
at 31 december 2012 59 43 16  financial st a tements
sportech plc annual report and accounts 2013 108
notes to the financial statements continued
for the year ended 31 december 2013
32 pension schemes continued
defined benefit schemes continued
present value
of obligation
£m
fair value
of plan asset
£m
total
£m
at 1 january 2013 59 43 16
current service cost 02 — 02
interest expenseincome 02 02 —
income statement expenseincome 04 02 02
remeasurements
currency exchange movements 01 — 01
– gain from change in actuarial assumptions 03 — 03
04 — 04
contributions
– employers — 01 01
payments from plans
– benefit payments 03 03 —
at 31 december 2013 56 43 13
effect of change of assumptions on liability values
changes in the financial assumptions used would have the following approximate effect on the schemes’ liabilities and 
hence the deficit at the end of the year
change
2013
increases
decreases 
liability
by £m
2012
increases
decreases
liability
by £m
increase inflation and salary growth assumption by 025 2012 05 01 01
increase salary growth assumption by 05 2012 01 — —
the assets of the uk scheme are held in an independent trustee administered fund the trustee of the scheme is sportech 
trustees limited the directors of sportech trustees limited include carl lynn a sportech employee who also acts 
as chair of the trustee company the assets of the us scheme are held by an insurance company
the actuarial method for calculating the liabilities of the scheme is the projected unit method
the expected employer annual contributions to the schemes for the financial year ending 31 december 2014 amounted 
to £04m year ended 31 december 2013 £02m
estimated future benefit payments for the next ten fiscal years for the us scheme are
at 31 december 2013
less than
a year
£m
between
1 and 2 years
 £m
between
2 and 5 years
 £m
over
5 years
 £m
total
£m
pension benefits 02 02 07 69 80
the uk company is required to agree a schedule of contributions with the trustee of the scheme following an actuarial 
valuation which must be carried out at least once every three years a valuation of the scheme is currently in progress with 
an effective date of 31 december 2012 but is yet to be completed this valuation must be finalised by 31 march 2014 based 
on current discussions the company expects to pay contributions of around £118000 into the scheme in the year ending 
31 december 2014 but this is subject to change 
the weighted average duration of the uk scheme obligation is approximately twelve years sportech plc annual report and accounts 2013
printed by park communications on fsc® certified paper
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june 2010  version 12
sportech plc
101 wigmore street 
london w1u 1qu
wwwsportechplccom
our iconic brands
the football pools  •  sportech racing and digital  
sportech venues  •  mywinnerscom  •  datatote  •  runnerz
our offices and operational centres
london  •  liverpool  •  connecticut  •  atlanta  •  california  
new jersey  •  bristol  •  dublin  •  the hague  •  essen
sportech plc annual report and accounts 2013 sportech plc annual report and accounts 2013


Summary:
  str a teg ic r e p ort
sportech plc annual report and accounts 2013
chief executive’s review
overview 
sportech is one of the worlds leading operators and suppliers 
of pools betting services occupying a unique position in the 
highly regulated and emerging gaming markets worldwide
in 2010 sportech established itself as one of the largest 
european based gaming businesses with significant operations 
in the united states since that time the group has continued 
to invest in its businesses such that over 60 of group 
revenues are now generated from our usbased operations 
where we are licensed by gaming regulators in 24 states 
employing 700 people across field operations and four 
corporate offices 
the group’s focus continues to be to build a multiplatform 
retail telephone and online dynamic gaming business in the 
us initially focusing on the legal and highly regulated gaming 
operations of horseracing and greyhounds we will seek to take 
advantage of organic business development opportunities 
subsequently we plan to use this strong and expanding 
platform to position the group for broaderbased gaming 
opportunities as regulation evolves over the coming years
summary
→  the group has delivered a good set 
of results in a transformational year
→  we have strengthened the 
management team and board
→  we remain well positioned for future 
growth in the us market and have 
entered 2014 with confidence
“ the group has continued to 
invest in its businesses so that 
over 60 of the group revenues 
are now generated from our 
us‑based operations”
10  business overview corpor a te governance str a teg ic r e p ort financial st a tements
annual report and accounts 2013 sportech plc 11
during 2013 the group made good progress in line with its 
strategy we continued to invest in our operations to leverage 
our unique exclusive licensing position in connecticut us and 
last month launched both the only legal website in connecticut 
for betting on horseracing and opened a flagship sports bar 
restaurant and betting facility in bradley the investment is 
aimed at increasing the distribution of racing and widening the 
exposure and thrill of betting on horseracing to a sportbased 
audience in another major step forward we were able to 
develop our extensive operations in california where we 
process all betting on horseracing around 18bn per annum 
by obtaining a licence to develop a chain of branded betting 
venues restaurants and sports bars the first venue will open in 
norco near los angeles in the summer of 2014 furthermore 
we have invested in our core tote betting technology and in 
december launched a suite of marketleading online and 
mobile betting products for our customers
corporately and in line with our strategy of enhancing our 
product range in the us we established joint ventures with 
nyx gaming and picklive us to focus on the emerging igaming 
and significant fantasy sports markets furthermore we 
acquired data t ote for an initial consideration of £31m in order 
to strengthen our european tote betting operations whilst our 
lossmaking ukfocused egaming business was sold towards 
the end of the year for £30m these strategic transactions 
leave the group increasingly focused on the attractive 
opportunities in our key growth markets
the group has also made a number of organisational changes 
establishing three key divisions we have created sportech 
racing and digital which combined the former sportech 
racing sportech interactive products and services and also 
ebet in order to create one cohesive larger division to provide 
all terrestrial online and mobile betting technology products to 
our customers this division is managed by andrew gaughan 
our sportech venues business operating connecticuts 
exclusive betting operations in retail venues on the telephone 
and now online at mywinnerscom is led by t ed t aylor and our 
uk football pools business is led by conleth byrne as a 
consequence of the increase in the groups activities overseas 
and the reduction of activity in the uk following the sale of the 
lossmaking egaming activity ian hogg has decided to leave 
the group at or before the end of the year for personal reasons 
as he does not wish to increase his duties overseas
the group is pleased to have increased its ebitda from 
continuing operations in 2013 by £08m to £260m with ebitda 
from usbased activities increasing by over 20 the football 
pools business delivered a strong performance with ebitda 
of £174m representing 58 of group ebitda before central 
costs the football pools division is making good progress 
towards stabilisation of its direct revenues and generates strong 
cash flows
outlook
we have launched a number of growth initiatives in february 
this year notably the exclusive online betting website and the 
innovative sports bar restaurant and betting facility both in 
connecticut we continue to make progress in california and 
our new technology developments are being well received by 
customers however the severe snow storms and extreme cold 
weather across the east coast of the us have resulted in the 
closure of our retail venues on several days this year and there 
have been 170 race cancellations to date in 2014 compared to 
54 in 2013 whilst this has impacted on the performance of our 
us operations the board remains confident in the groups 
prospects for the full year ahead
ian penrose
chief executive
5 march 2014