424B3 1 d387330d424b3.htm 424B3 424B3

Filed Pursuant to Rule 424(b)(3)

Registration No. 333-263800

PROSPECTUS SUPPLEMENT NO. 1

(to prospectus dated July 14, 2022)

Up to 481,074,588 Ordinary Shares

Up to 11,000,000 Warrants

 

LOGO

Super Group (SGHC) Limited

(a non-cellular company limited by shares incorporated and registered under the laws of the Island of Guernsey)

 

 

This prospectus supplement no. 1 (this “prospectus supplement”) amends and supplements the prospectus dated July 14, 2022 (as supplemented or amended from time to time, the “Prospectus”) which forms a part of our Registration Statement on Form F-1 (Registration Statement No. 333-263800). This prospectus supplement is being filed to update and supplement the information included or incorporated by reference in the Prospectus with the information contained in our Current Report on Form 6-K, filed with the Securities and Exchange Commission (the “SEC”) on August 11, 2022 (the “Form 6-K”). Accordingly, we have attached the Form 6-K to this prospectus supplement.

This prospectus supplement updates and supplements the information in the Prospectus and is not complete without, and may not be delivered or utilized except in combination with, the Prospectus, including any amendments or supplements thereto. This prospectus supplement should be read in conjunction with the Prospectus and if there is any inconsistency between the information in the Prospectus and this prospectus supplement, you should rely on the information in this prospectus supplement.

Our ordinary shares and public warrants are listed on the New York Stock Exchange under the symbols “SGHC” and “SGHC WS”, respectively. On August 10, 2022, the closing price of our ordinary shares was $5.66 per share.

 

 

Our business and an investment in our ordinary shares involves a high degree of risk. See “Risk Factors” beginning on page 30 of the Prospectus.

Neither the SEC nor any state securities commission has approved or disapproved of these securities or determined if the Prospectus or this prospectus supplement is truthful or complete. Any representation to the contrary is a criminal offense.

 

 

The date of this prospectus supplement is August 11, 2022.


 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

August 2022

Commission File Number: 001-41253

 

 

Super Group (SGHC) Limited

(Translation of registrant’s name into English)

 

 

Super Group (SGHC) Limited

Bordeaux Court, Les Echelons

St. Peter Port, Guernsey, GY1 1AR

Telephone: +44 (0) 14 8182-2939

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F   ☒             Form 40-F  

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):   ☐

 

 

 


Super Group (SGHC) Limited

On August 11, 2022, Super Group (SGHC) Limited (the “Company”) issued a press release announcing its financial results for the quarter and six months ended June 30, 2022. A copy of the press release, which includes an unaudited consolidated statement of financial position as of June 30, 2022 and an unaudited consolidated statement of profit or loss for the six months ended June 30, 2022, is attached hereto as Exhibit 99.1.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

   

SUPER GROUP (SGHC) LIMITED

Date: August 11, 2022

   

By:

 

/s/ Neal Menashe

   

Name:

 

Neal Menashe

   

Title:

 

Chief Executive Officer


EXHIBIT INDEX

 

Exhibit No.   

Description

99.1    Press Release, dated August 11, 2022.


Exhibit 99.1

 

LOGO

Super Group Reports Second Quarter 2022 Financial Results

 

   

Second Quarter 2022 Revenue of 320.8 million

 

   

Profit after tax of 298.6 million for the second quarter of 2022 includes 283.3 million of non-cash fair value gains associated with the mark to market of the warrant and earnout liabilities

 

   

Second Quarter 2022 Adjusted EBITDA of 63.6 million

 

   

Cash and cash equivalents was 220.0 million at June 30, 2022

 

   

Management to host conference call today at 8:30 a.m. ET

New York, NY – August 11, 2022 – Super Group (SGHC) Limited (NYSE: SGHC) (“SGHC” or “Super Group”), the parent company of Betway, a leading online sports betting and gaming business, and Spin, the multi-brand online casino, today announced second quarter 2022 financial results for its operating subsidiary, SGHC Limited.

Neal Menashe, CEO of Super Group, commented: “The current macro environment may provide near term headwinds but Super Group’s balance sheet remains strong and our business remains fundamentally sound.” Mr. Menashe continued, “By investing in our global business, we continue to focus on organic and strategic growth opportunities in pursuit of long-term sustainable profits.”

Alinda van Wyk, CFO of Super Group stated, “Super Group is a profitable and debt free company with a continuing track record of consistent cash generation. Despite some current challenges, we have increased monthly active users, while focusing on financial discipline to maintain profitability and we continue to invest in the future growth of Super Group.”

Financial Highlights

 

   

Revenue decreased by 10% to €320.8 million for second quarter of 2022 from €355.2 million over the same period in the prior year primarily as a result of a decline in online casino net gaming revenue and brand license fee income, partially offset by an increase in sports betting net gaming revenue. The decrease in casino net gaming revenue was driven by the impact of inflationary factors on disposable income. The prior year quarter casino net gaming revenue also included a positive impact from the global shutdowns during the COVID pandemic. Brand license fee income declined due to renegotiated contract terms. Sports betting net gaming revenue increased due to growth in Africa and Asia-Pacific regions.

 

   

Profit after tax for the second quarter of 2022 was €298.6 million compared to a profit of €63.9million in the same period of the prior year. Profit for the second quarter of 2022 was positively impacted by non-cash adjustments related to the business combination and the listing on January 27, 2022 as follows:

 

   

€219.3 million for fair value gains of earnout liabilities; and

 

   

€64.0 million of fair value gains of warrant liabilities.

 

   

EBITDA, a non-GAAP measure, increased to €319.3 million in the second quarter of 2022 compared to €91.4 million in the same period from the prior year.

 

   

Adjusted EBITDA, which excludes transaction costs, share listing expenses, changes in valuations of warrants and earnout liabilities and associated foreign exchange movements, gains on derivative contracts and bargain purchases, decreased 30% to €63.6 million compared to €90.8 million in the same period from the prior year.

 

1


   

Monthly Average Customers for the quarter increased 3% to 2.7 million during the second quarter of 2022 from 2.6 million in the second quarter of 2021.

 

   

Cash and cash equivalents was €220.0 million at June 30, 2022 and €293.8 million at December 31, 2021. The decrease was primarily the result of cash used to redeem shares in connection with closing the business combination, offset in part by cash released from SEAC’s trust account to Super Group upon the closing.

 

   

During the second quarter of 2022, approximately 6.7 million Restricted Stock Units were granted across the employee base and will vest in equal tranches over the next three years on December 31, 2022, 2023 and 2024.

Net Gaming Revenue by Geographical Region for the Three Months Ended June 30:

 

     2022      2022      2022  
     € ‘000s      € ‘000s      € ‘000s  
     Betway      Spin      Total  

Africa and Middle East

     62,914        660        63,574  

Asia-Pacific

     50,756        26,632        77,388  

Europe

     28,516        1,993        30,509  

North America

     32,616        109,513        142,129  

South/Latin America

     3,893        3,323        7,216  
  

 

 

    

 

 

    

 

 

 
     178,695        142,121        320,816  
  

 

 

    

 

 

    

 

 

 

 

                                      
     %     %     %  

Africa and Middle East

     35     0     20

Asia-Pacific

     28     19     24

Europe

     16     1     10

North America

     19     78     44

South/Latin America

     2     2     2

 

2


     2021      2021      2021  
     € ‘000s      € ‘000s      € ‘000s  
     Betway      Spin      Total  

Africa and Middle East

     52,940        1,350        54,290  

Asia-Pacific

     57,047        22,741        79,788  

Europe

     35,013        3,870        38,883  

North America

     36,692        136,346        173,038  

South/Latin America

     4,014        5,186        9,200  
  

 

 

    

 

 

    

 

 

 
     185,706        169,493        355,199  
  

 

 

    

 

 

    

 

 

 

 

                                      
     %     %     %  

Africa and Middle East

     29     1     15

Asia-Pacific

     31     13     22

Europe

     19     2     11

North America

     19     81     49

South/Latin America

     2     3     3

Net Gaming Revenue by Geographical Region for the Six Months Ended June 30:

 

     2022      2022      2022  
     € ‘000s      € ‘000s      € ‘000s  
     Betway      Spin      Total  

Africa and Middle East

     126,700        1,996        128,696  

Asia-Pacific

     105,410        50,620        156,030  

Europe

     58,708        4,520        63,228  

North America

     67,679        225,498        293,177  

South/Latin America

     7,178        6,986        14,164  
  

 

 

    

 

 

    

 

 

 
     365,675        289,620        655,295  
  

 

 

    

 

 

    

 

 

 

 

     %     %     %  

Africa and Middle East

     35     1     20

Asia-Pacific

     29     17     24

Europe

     16     2     10

North America

     18     78     44

South/Latin America

     2     2     2

 

3


     2021      2021      2021  
     € ‘000s      € ‘000s      € ‘000s  
     Betway      Spin      Total  

Africa and Middle East

     87,521        3,269        90,790  

Asia-Pacific

     111,469        45,436        156,905  

Europe

     70,014        12,018        82,032  

North America

     67,246        255,347        322,593  

South/Latin America

     6,250        8,440        14,690  
  

 

 

    

 

 

    

 

 

 
     342,500        324,510        667,010  
  

 

 

    

 

 

    

 

 

 

 

                                      
     %     %     %  

Africa and Middle East

     26     1     14

Asia-Pacific

     33     14     24

Europe

     20     4     12

North America

     19     78     48

South/Latin America

     2     3     2

Net Gaming Revenue by Product for the Three Months Ended June 30:

 

     Betway      Spin      Total  
     2022      2022      2022  
     € ‘000s      € ‘000s      € ‘000s  

Online casino1

     62,139        142,174        204,313  

Sports betting1

     110,740        (53      110,687  

Brand licensing2

     5,766        —          5,766  

Other3

     50        —          50  
  

 

 

    

 

 

    

 

 

 

Total Group revenue

     178,695        142,121        320,816  
  

 

 

    

 

 

    

 

 

 

 

     Betway      Spin      Total  
     2021      2021      2021  
     € ‘000s      € ‘000s      € ‘000s  

Online casino1

     63,202        168,921        232,123  

Sports betting1

     104,626        572        105,198  

Brand licensing2

     17,482        —          17,482  

Other3

     396        —          396  
  

 

 

    

 

 

    

 

 

 

Total Group revenue

     185,706        169,493        355,199  
  

 

 

    

 

 

    

 

 

 

 

4


Net Gaming Revenue by Product for the Six Months Ended June 30:

 

     Betway      Spin      Total  
     2022      2022      2022  
     € ‘000s      € ‘000s      € ‘000s  

Online casino1

     119,595        289,220        408,815  

Sports betting1

     219,777        400        220,177  

Brand licensing2

     25,656        —          25,656  

Other3

     647        —          647  
  

 

 

    

 

 

    

 

 

 

Total Group revenue

     365,675        289,620        655,295  
  

 

 

    

 

 

    

 

 

 

 

     Betway      Spin      Total  
     2021      2021      2021  
     € ‘000s      € ‘000s      € ‘000s  

Online casino1

     123,630        322,290        445,920  

Sports betting1

     184,235        939        185,174  

Brand licensing2

     34,635        136        34,771  

Other3

     —          1,145        1,145  
  

 

 

    

 

 

    

 

 

 

Total Group revenue

     342,500        324,510        667,010  
  

 

 

    

 

 

    

 

 

 

 

1 

Sports betting and online casino revenues are not within the scope of IFRS 15 ‘Revenue from Contracts with Customers’ and are treated as derivatives under IFRS 9 ‘Financial Instruments’.

2 

Brand licensing revenues are within the scope of IFRS 15 ‘Revenue from Contracts with Customers’.

3 

Other relates to rebates received from external processors.

Reorganization Timeline

Over the last three years, the business conducted a restructuring by combining existing, stand-alone companies into the newly formed Super Group.

SGHC Limited was formed on July 6, 2020.

The following transactions took place during 2021 and 2022 as part of the reorganization:

 

   

January 11, 2021 - Raging River Trading was deemed to have been acquired.

 

   

April 9, 2021 - Webhost, Partner Media and Buffalo Partners were acquired.

 

   

April 14, 2021 - DigiProc Consolidated was acquired.

 

   

April 16, 2021 – Digiprocessing (Mauritius) was acquired.

 

   

April 19, 2021 - Raichu Investments was acquired.

 

   

September 2, 2021 - SGHC purchased 100% of the outstanding shares of Smart Business Solutions S.A.

 

   

December 1, 2021 - SGHC purchased 100% of the outstanding shares in Haber Investments, and Red Interactive.

 

   

January 27, 2022 - Business combination with SEAC.

 

5


Non-GAAP Financial Information

This press release includes non-GAAP financial information not presented in accordance with the International Financial Reporting Standards (“IFRS”).

EBITDA and Adjusted EBITDA are non-GAAP company-specific performance measures that Super Group uses to supplement the Company’s results presented in accordance with IFRS. EBITDA is defined as profit before depreciation, amortization, financial income, financial expense and income tax expense/credit. Adjusted EBITDA is defined as EBITDA less gain on derivative contracts and gain on bargain purchase plus transaction costs, share listing expense, fair value adjustments on warrant liabilities and earnout liabilities and associated foreign exchange movements, and the expense for a once off award of Restricted Stock Units.

Super Group believes that these non-GAAP measures are useful in evaluating the Company’s operating performance as they are similar to measures reported by the Company’s public competitors and are regularly used by securities analysts, institutional investors and other interested parties in analyzing operating performance and prospects.

Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with IFRS. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses that are required by IFRS to be recorded in Super Group’s financial statements. In order to compensate for these limitations, management presents non-GAAP financial measures together with IFRS results. Non-GAAP measures should be considered in addition to results and guidance prepared in accordance with IFRS, but should not be considered a substitute for, or superior to, IFRS results.

Reconciliation tables of the most comparable IFRS financial measure to the non-GAAP financial measures used in this press release are included below. Super Group urges investors to review the reconciliation and not to rely on any single financial measure to evaluate its business. In addition, other companies, including companies in our industry, may calculate similarly named non-GAAP measures differently than we do, which limits their usefulness in comparing our financial results with theirs.

 

6


Reconciliation of Profit to Adjusted EBITDA for:

 

     Three Months Ended June 30,      Six Months Ended June 30,  
     2022      2021      2022      2021  
     € ‘000s      € ‘000s      € ‘000s      € ‘000s  

Profit for the period

     298,561        63,912        135,337        102,487  

Income tax expense

     5,623        3,091        14,582        6,011  

Finance income

     (352      (350      (665      (688

Finance expense

     314        2,876        663        5,755  

Depreciation and amortization expense

     15,175        21,873        31,169        41,981  

EBITDA

     319,321        91,402        181,086        155,546  

Transaction fees

     207        —          21,611        —    

Gain on derivative contracts

     —          —          (1,712      —    

Share based payment expense

     —          —          126,252        —    

Foreign exchange loss on revaluation of warrants and earnouts

     24,029        —          24,029        —    

Change in fair value of warrant liability

     (63,988      —          (34,614      —    

Change in fair value of earnout liability

     (219,321      —          (194,936      —    

RSU expense

     3,376        —          3,376        —    

Gain on bargain purchase

     —          (614      —          (10,661

Adjusted EBITDA

     63,624        90,788        125,092        144,885  

Webcast Details

The Company will host a webcast at 8:30 a.m. ET today to discuss the second quarter 2022 financial results. For ease of year-over-year comparison and analysis the Company may discuss pro-forma consolidated results, including Adjusted EBITDA, which pro-forma results are included in the Q2 2022 Earnings Review presentation posted on Investor Relations section of SGHC.com.

Participants may access the live webcast and supplemental earnings presentation on the events & presentations page of the Super Group Investor Relations website at: https://investors.sghc.com/events-and-presentations/default.aspx.

About Super Group (SGHC) Limited

Super Group (SGHC) Limited is the holding company for leading global online sports betting and gaming businesses: Betway, a premier online sports betting brand, and Spin, a multi-brand online casino offering. The group is licensed in multiple jurisdictions, with leading positions in key markets throughout Europe, the Americas and Africa. The group’s sports betting and online gaming offerings are underpinned by its scale and leading technology, enabling fast and effective entry into new markets. Its proprietary marketing and data analytics engine empowers it to responsibly provide a unique and personalized customer experience. For more information, visit www.sghc.com.

 

7


Contacts:

Investors:

investors@sghc.com

Media:

media@sghc.com

Forward-Looking Statements

Certain statements made in this press release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995.

These forward-looking statements include, but are not limited to, expectations and timing related to market entries and expansion, projections of market opportunity, growth and profitability expected growth of Super Group’s customer base, expansion into new markets.

These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “pipeline,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) the ability to implement business plans, forecasts and other expectations, and identify and realize additional opportunities; (ii) the ability to maintain the listing of Super Group’s securities on a national securities exchange; (iii) changes in the competitive and regulated industries in which Super Group operates; (iv) variations in operating performance across competitors; (v) changes in laws and regulations affecting Super Group’s business; (vi) Super Group’s inability to meet or exceed its financial projections; (vii) changes in general economic conditions, including as a result of the COVID-19 pandemic; (viii) changes in domestic and foreign business, market, financial, political and legal conditions; (ix) future global, regional or local economic and market conditions affecting the sports betting and gaming industry; (x) changes in existing laws and regulations, or their interpretation or enforcement, or the regulatory climate with respect to the sports betting and gaming industry; (xi) the ability of Super Group’s customers to deposit funds in order to participate in Super Group’s gaming products; (xii) compliance with regulatory requirements in a particular regulated jurisdiction, or Super Group’s ability to successfully obtain a license or permit applied for in a particular regulated jurisdiction, or maintain, renew or expand existing licenses; (xiii) the technological solutions Super Group has in place to block customers in certain jurisdictions, including jurisdictions where Super Group’s business is illegal, or which are sanctioned by countries in which Super Group operates from accessing its offerings; (xiv) Super Group’s ability to restrict and manage betting limits at the individual customer level based on individual customer profiles and risk level to the enterprise; (xv) the ability by Super Group’s key executives, certain employees or other individuals related to the business, including significant shareholders, to obtain the necessary licenses or comply with individual regulatory obligations in certain jurisdictions; (xvi) protection or enforcement of Super Group’s intellectual property rights, the confidentiality of its trade secrets and confidential information, or the costs involved in protecting or enforcing Super Group’s intellectual property rights and confidential information; (xvii) compliance with applicable data protection and privacy laws in Super Group’s collection, storage and use, including sharing and international transfers, of personal data; (xviii) failures, errors, defects or disruptions in Super Group’s information technology and other systems and platforms; (xix) Super Group’s ability to develop new products, services, and solutions, bring them to market in a timely manner, and make enhancements to its platform; (xx) Super Group’s ability to maintain and grow its market share, including its ability to enter new markets and acquire and retain paying customers; (xxi) the success, including win or hold rates, of existing and future online betting and gaming products; (xxii) competition within the broader entertainment industry; (xxiii) Super Group’s reliance on strategic

 

8


relationships with land based casinos, sports teams, event planners, local licensing partners and advertisers; (xxiv) events or media coverage relating to, or the popularity of, online betting and gaming industry; (xxv) trading, liability management and pricing risk related to Super Group’s participation in the sports betting and gaming industry; (xxvi) accessibility to the services of banks, credit card issuers and payment processing services providers due to the nature of Super Group’s business; (xxvii) the regulatory approvals related to proposed acquisitions and the integration of the acquired businesses; and (xxviii) other risks and uncertainties indicated from time to time for Super Group including those under the heading “Risk Factors” in our Annual Report on Form 20-F filed with the SEC on April 20, 2022, and in Super Group’s other filings with the SEC. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in other documents filed or that may be filed by Super Group from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Super Group assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Super Group does not give any assurance that it will achieve its expectations.

 

9


SGHC Limited

Consolidated Statements of Profit or Loss and Other Comprehensive Income

for the periods ended June 30, 2022 and June 30, 2021

 

 

 

     Three Months Ended June 30,     Six Months Ended June 30,  
     2022     2021     2022     2021  
     € ‘000s     € ‘000s     € ‘000s     € ‘000s  

Revenue

     320,816       355,199       655,295       667,010  

Direct and Marketing Expenses

     (225,700     (233,703     (466,417     (448,062

General and Administration Expenses

     (37,754     (35,442     (72,455     (79,060

Other Operating Income

     2,886       4,734       5,293       4,997  

Transaction fees

     (207     —         (21,611     —    

Depreciation and Amortization Expense

     (15,175     (21,873     (31,169     (41,981

Profit from Operations

     44,866       68,915       68,936       102,904  

Finance Income

     352       350       665       688  

Finance Expense

     (314     (2,876     (663     (5,755

Gain on derivative contracts

     —         —         1,712       —    

Fx on revaluation of warrants and earnouts

     (24,029     —         (24,029     —    

Share based payment expense

     —         —         (126,252     —    

Change in fair value of warrant liability

     63,988       —         34,614       —    

Change in fair value of earnout liability

     219,321       —         194,936       —    

Gain on bargain purchase

     —         614       —         10,661  

Profit Before Taxation

     304,184       67,003       149,919       108,498  

Income Tax Expense

     (5,623     (3,091     (14,582     (6,011

Profit for the period

     298,561       63,912       135,337       102,487  

Profit for the period attributable to owners of the parent Other comprehensive (loss)/income

     298,561       63,912       135,337       102,487  

Items that may be reclassified subsequently to profit or loss

        

Foreign currency translation

     (3,492     (697     (2,375     (171
  

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive (loss)/income for the period

     (3,492     (697     (2,375     (171
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive loss for the period attributable to owners of the parent

     295,069       63,215       132,962       102,316  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding, basic

     490,197,468       460,476,661       489,266,292       462,979,116  

Earnings per share, basic

     0.60       0.14       0.27       0.22  

 

10


SGHC Limited

Consolidated Statements of Financial Position

as at June 30, 2022 and December 31, 2021

 

 

 

     2022     2021  
     June     December  
     € ‘000s     € ‘000s  

ASSETS

    

Non-current assets

    

Goodwill

     24,982       25,023  

Intangible assets

     159,715       172,954  

Property, plant and equipment

     12,926       12,498  

Right-of-use assets

     13,142       14,541  

Deferred tax assets

     30,859       24,108  

Regulatory deposits

     9,132       8,594  

Loans receivable

     11,179       25,516  

Financial asset

     1,687       1,686  
  

 

 

   

 

 

 
     263,622       284,920  

Current assets

    

Trade and other receivables

     156,618       169,252  

Income tax receivables

     33,923       35,806  

Restricted cash

     109,365       60,296  

Cash and cash equivalents

     220,020       293,798  
  

 

 

   

 

 

 
     519,926       559,152  
  

 

 

   

 

 

 

TOTAL ASSETS

     783,548       844,072  
  

 

 

   

 

 

 

LIABILITIES

    

Non-current liabilities

    

Lease liabilities

     9,939       10,896  

Interest-bearing loans and borrowings

     —         764  

Deferred tax liability

     8,666       9,248  
  

 

 

   

 

 

 
     18,605       20,908  

Current liabilities

    

Warrant Liability

     17,418       —    

Earnout Liability

     73,798       —    

Lease liabilities

     4,918       5,353  

Deferred consideration

     —         13,200  

Interest-bearing loans and borrowings

     1,233       3,008  

Trade and other payables

     124,678       147,353  

Customer liabilities

     49,498       51,959  

Provisions

     48,162       47,715  

Income tax payables

     42,134       40,524  
  

 

 

   

 

 

 
     361,839       309,112  
  

 

 

   

 

 

 

TOTAL LIABILITIES

     380,444       330,020  
  

 

 

   

 

 

 

EQUITY

    

Issued capital

     273,435       269,338  

Earnout reserve

     (249,955     —    

Foreign exchange reserve

     (4,469     (2,094

Accumulated profit

     384,093       246,808  
  

 

 

   

 

 

 
     403,104       514,052  
  

 

 

   

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

     783,548       844,072  
  

 

 

   

 

 

 

 

11


SGHC Limited

Consolidated Statements of Cash Flows

for the Six months ended June 30, 2022 and June 30, 2021

 

 

 

     2022     2021  
     € ‘000s     € ‘000s  

Cash flows from operating activities

    

Profit for the period

     135,337       102,487  

Add back:

    

Income tax expense

     14,582       6,011  

Profit on disposal of assets

     —         (3,093

Change in fair value of warrant liability

     (34,614     —    

Change in fair value of earnout liability

     (194,936     —    

Fx on revaluation of warrants and earnouts

     24,029       —    

Share based payment expense

     126,252       —    

Depreciation of property, plant and equipment

     2,704       1,398  

RSU expense

     3,376       —    

Gain on bargain purchase

     —         (10,661

Amortization of right-of-use assets

     2,379       1,223  

Amortization of intangible assets

     26,087       39,360  

Increase in provisions

     257       1,895  

Finance income

     (665     (688

Finance expense

     473       5,755  

Unrealized foreign currency gain

     (11,857     (526

Changes in working capital:

    

Decrease in trade and other receivables

     12,825       29,210  

Decrease in trade and other payables

     (46,028     (26,733

Increase in customer liabilities

     (2,461     3,335  

Change in restricted cash

     (7,621     (9,087
  

 

 

   

 

 

 

Cash from operating activities

     50,119       139,886  

Dividends tax paid

     (5,569     —    

Corporation tax rebates received

     1,846       —    

Corporation tax paid

     (13,781     (9,746
  

 

 

   

 

 

 

Net cash flows from operating activities

     32,615       130,140  

Cash flows from investing activities

    

Cash received in interest

     519       464  

Acquisition/disposals of intangible assets

     (12,762     —    

Acquisition of property, plant and equipment

     (2,740     (1,334

Acquisition of businesses, net of cash acquired

     —         5,151  

Cash used in financial assets

     —         (848

Restricted cash guarantee

     (41,448     —    

Receipts from loans receivable

     18,485       —    

Issuance of loans receivable

     (3,749     (25

Receipt of repayment of loans and borrowings

     —         34,449  

Cash used in regulatory deposits

     (538     (5,650
  

 

 

   

 

 

 

Net cash flows from/(used in) from investing activities

     (42,233     32,207  

Cash flows from/(used in) financing activities

    

Shares repurchased

     (222,345     (10,731

Proceeds from shares issued net of transaction costs

     (1,487     —    

Cash paid for deferred consideration

     (13,200     (2,089

Proceeds from shares issued

     172,119       3,570  

Repayment of interest-bearing loans and borrowings

     (4,761     (16,815

Repayment of lease liabilities - interest

     (468     (205

Repayment of lease liabilities - principal

     (2,573     (2,566
  

 

 

   

 

 

 

Net cash flows used in financing activities

     (72,715     (28,836

(Decrease)/increase in cash and cash equivalents

     (82,333     133,511  

Cash and cash equivalents at beginning of the period

     293,798       138,540  

Effects of exchange rate fluctuations on cash held

     8,555       (225
  

 

 

   

 

 

 

Cash and cash equivalents at end of the period

     220,020       271,826  
  

 

 

   

 

 

 

 

12