-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MSKs1WUje6YBLdTasKIBjwGIfx0f0aAfhMMHPboLVx+C1ffIzp6ga+JOowUIVpaJ gnVkmX0+Nl1uJUrbMTYBvQ== 0000857323-97-000011.txt : 19970624 0000857323-97-000011.hdr.sgml : 19970624 ACCESSION NUMBER: 0000857323-97-000011 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970222 FILED AS OF DATE: 19970623 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: GTECH HOLDINGS CORP CENTRAL INDEX KEY: 0000857323 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370] IRS NUMBER: 050450121 STATE OF INCORPORATION: DE FISCAL YEAR END: 0223 FILING VALUES: FORM TYPE: 10-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-11250 FILM NUMBER: 97628246 BUSINESS ADDRESS: STREET 1: 55 TECNOLOGY WAY CITY: WEST GREENWICH STATE: RI ZIP: 02817 BUSINESS PHONE: 4013921000 MAIL ADDRESS: STREET 1: 55 TECHNOLOGY WAY STREET 2: LEGAL DEPARTMENT CITY: WEST GREENWICH STATE: RI ZIP: 02817 10-K/A 1 AMENDMENT TO ANNUAL REPORT ON FORM 10-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K/A Amendment No. 1 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: February 22, 1997 Commission file number 1-11250 GTECH Holdings Corporation Delaware 05-0450121 (State or other jurisdiction of (I.R.S. Employer ID Number) incorporation or organization) 55 Technology Way, West Greenwich, Rhode Island 02817 (401) 392-1000 (Address and telephone number of Principal Executive Offices) Securities registered pursuant to Section 12(b) of the Act: Title of Each Class: Common Stock $.01 par value Name of Each Exchange on which Registered: New York Stock Exchange Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [X] On May 31, 1997 there were outstanding 42,025,170 shares of the registrant's Common Stock. The purpose of this amendment to Form 10-K is to include the audited financial statements of Camelot Group plc, a significant equity method foreign investee, pursuant to rule 3.09 of Regulation S-X which requires such financial statements to be filed as an amendment to the Company's Annual Report on Form 10-K not later than six months following the end of Camelot Group plc's 1997 fiscal year. PART IV ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K (a) Financial Statement Schedules and Exhibits: Page(s) (1) Report of Ernst & Young LLP, Independent Auditors F-1 (2) Report of Price Waterhouse, Independent Accountants F-2 The following consolidated financial statements of GTECH Holdings Corporation and subsidiaries are included in Item 8: Consolidated Balance Sheets at February 22, 1997 F-3 and February 24, 1996 Consolidated Income Statements F-4 Fiscal year ended February 22, 1997, Fiscal year ended February 24, 1996 and Fiscal year ended February 25, 1995 Consolidated Statements of Shareholders' Equity F-5 Fiscal year ended February 22, 1997, Fiscal year ended February 24, 1996 and Fiscal year ended February 25, 1995 Consolidated Statements of Cash Flows F-6 Fiscal year ended February 22, 1997, Fiscal year ended February 24, 1996 and Fiscal year ended February 25, 1995 Notes to Consolidated Financial Statements F-7 to F-24 The following financial statements of Camelot Group plc are included in Item 14: Report of Independent Accountants Profit and Loss Account For the period ended 1 February 1997 For the period ended 3 February 1996 For the ten months ended 4 February 1995 Balance Sheet 1 February 1997 3 February 1996 Cash Flow Statement For the period ended 1 February 1997 For the period ended 3 February 1996 For the ten months ended 4 February 1995 Notes to Financial Statements All other financial statement schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are not required under the related instructions or are inapplicable and, therefore, have been omitted. (3) Exhibits: 3.1 Restated Certificate of Incorporation of Holdings, as amended (incorporated by reference to Exhibit 3.1 to the Form S-l of Holdings and GTECH Corporation ("GTECH"), Registration No. 33-31867 (the "1990 S-1"). 3.2 Certificate of Amendment to the Certificate of Incorporation of Holdings (incorporated by reference to Exhibit 3.2 to the Form S-1 of Holdings, Registration No. 33-48264 (the "July 1992 S-1")). +3.3 Amended and Restated By-Laws of Holdings. 4.1 Credit Agreement, dated as of September 15, 1994, among GTECH, certain financial institutions and NationsBank of North Carolina, N.A., as Agent (incorporated by reference to Exhibit 4.1 of Holdings' 1995 10-K). 4.2 Amendment No. 1 to Credit Agreement, dated May 26, 1996, among GTECH, certain financial institutions and NationsBank of North Carolina, N.A., as Agent (incorporated by reference to Exhibit 4 of Holdings' 10-Q for the quarterly period ended May 25, 1996). 4.3 Specimen Form of certificate for Common Stock (incorporated by reference to Exhibit 4.18 of the December 1992 S-1). 10.1 Employment Agreement dated as of January 23, 1990 between GTECH, Holdings and Victor Markowicz (incorporated by reference to Exhibit (b) (11) to the Schedule 13E.3 filed by GTECH Corporation, Holdings, GTEK Acquisition, Donaldson, Lufkin & Jenrette Securities Corporation ("DLJCC"), Victor Markowicz and Guy B. Snowden, File No. 0-12604).* 10.2 Amendment to the Employment Agreement dated as of January 23, 1990 between GTECH, Holdings and Victor Markowicz (incorporated by reference to Exhibit 10.2 to the July 1992 S-1).* 10.3 Confirmation of Waiver respecting certain provisions of the Employment Agreement dated as of January 23, 1990 between GTECH, Holdings and Victor Markowicz, dated February 13, 1996 (incorporated by reference to Exhibit 10.3 of Holdings' 1996 10-K).* +10.4 Second Amendment to Employment Agreement dated February 12, 1997 among GTECH, Holdings and Victor Markowicz.* 10.5 Employment Agreement dated as of January 23, 1990 between GTECH, Holdings and Guy B. Snowden (incorporated by reference to Exhibit (b) (12) to the Schedule 13E.3 filed by GTECH, Holdings, GTEK Acquisition, DLJCC, Victor Markowicz and Guy B. Snowden, file no. 0-12604).* 10.6 Amendment to the Employment Agreement dated as of January 23, 1990 between GTECH, Holdings and Guy B. Snowden (incorporated by reference to Exhibit 10.4 of the July 1992 S-1).* 10.7 Confirmation of Waiver respecting certain provisions of the Employment Agreement dated as of January 23, 1990 between GTECH, the Company and Guy B. Snowden, dated February 13, 1996 (incorporated by reference to Exhibit 10.6 of Holdings' 1996 10-K).* +10.8 Second Amendment to Employment Agreement dated as of February 12, 1997 among GTECH, Holdings and Guy B. Snowden. 10.9 Employment Agreement dated October 27, 1994 between Holdings and William Y. O'Connor (incorporated by reference to Exhibit 10.14 of Holdings' 1995 10-K).* 10.10 Amendment to Employment Agreement dated February 13, 1996 between Holdings and William Y. O'Connor (incorporated by reference to Exhibit 10.11 of the Holdings' 1996 10-K).* 10.11 Promissory Note dated February 2, 1995 of Guy B. Snowden to Holdings (incorporated by reference to Exhibit 10.18 of Holdings' 1995 10-K).* 10.12 Promissory Note dated February 2, 1995 of Donald L. Stanford to LAC Corporation (incorporated by reference to Exhibit 10.19 of Holdings' 1995 10-K).* 10.13 Promissory Note dated February 2, 1995 of Michael R. Chambrello to LAC Corporation (incorporated by reference to Exhibit 10.22 of Holdings' 1995 10-K).* 10.14 GTECH Corporation Executive Perquisites Program (incorporated by reference to Exhibit 10.8 of Holdings' 1993 10-K).* 10.15 Form of Indemnification Agreement (incorporated by reference as Exhibit 10.14 of GTECH's 1992 10-K). 10.16 List of Indemnification Agreement signatories and dates (incorporated by reference to Exhibit 10.17 of Holdings' 1996 10-K). 10.17 Form of Executive Separation Agreement and Schedule of Recipients (incorporated by reference to Exhibit 10.18 of Holdings' 1996 10-K). 10.18 Supplemental Retirement Plan effective January 1, 1992 and List of participants (incorporated by reference to Exhibit 10.16 of GTECH's 1992 10-K).* 10.19 Contract for the Texas Lottery Operator for the State of Texas between GTECH and the Texas Comptroller of Public Accounts--Lottery Division, dated March 7, 1992 (incorporated by reference to Exhibit 10.44 of GTECH's 1992 10-K). 10.20 Amendment to the Contract for the Texas Lottery Operator for the State of Texas between GTECH and the Texas Comptroller of Public Accounts--Lottery Division, dated June 1, 1994 (incorporated by reference to Exhibit 10 of Holdings' 10-Q for the quarterly period ended May 25, 1996). 10.21 Second Amendment to the Contract for the Texas Lottery Operator for the State of Texas between GTECH and the Texas Comptroller of Public Accounts --Lottery Division, dated May 28, 1996 (incorporated by reference to Exhibit 10.1 to the Form S-3 of Holdings, Registration No. 333-3602). 10.22 Purchase and Sale Agreement dated 8 February 1994 between Camelot Group plc and GTECH (incorporated by reference to Exhibit 10.31 of Holdings' 1995 10-K). 10.23 Terminals Supply Agreement dated 8 February 1994 among Camelot Group plc, International Computers Limited and GTECH (incorporated by reference to Exhibit 10.32 of the Company's 1995 10-K). 10.24 Field Services Agreement dated 8 February 1994 among Camelot Group plc, International Computers Limited and GTECH (incorporated by reference to Exhibit 10.33 of Holdings' 1995 10-K). 10.25 Lottery Technology Support Services Agreement dated 8 February 1994 between Camelot Group plc and GTECH (incorporated by reference to Exhibit 10.34 of Holdings' 1995 10-K). 10.26 Amended and Restated Agreement of Limited Partnership by and among GTECH, GP Technology Associates, L.P. and GP Technology, Inc. dated August 26, 1993; Certificate of Limited Partnership of West Greenwich Technology Associates, L.P. dated August 26, 1993; Amended and Restated Indenture of Lease between GTECH and West Greenwich Technology Associates, L.P. dated August 26, 1993 (incorporated by reference to Exhibit 10.24 of Holdings' 1994 10-K). 10.27 Business Agreement dated December 28, 1990 between Digital Equipment Corporation and GTECH; Work Statement Number NED91188 dated March 11, 1991 to GTECH from Digital Equipment Corporation; First Addendum dated March 19, 1991 to Digital Work Statement Number NED91188 dated March 11, 1991 to GTECH from Digital Equipment Corporation (incorporated by reference to Exhibit 10.57 of the July 1992 S-1). 10.28 Maintenance Agreement Number 117A dated December 1, 1989, between GTECH and Concurrent Computer Corporation (incorporated by reference to Exhibit 10.58 of the July 1992 S-1). 10.29 Restricted Rights Arrangement between Holdings and Mr. O'Connor (incorporated by reference to Exhibit 10.44 of Holdings' 1995 10-K).* 10.30 1992 Outside Directors' Director Stock Unit Plan (incorporated by reference to Exhibit 10.55 of Holdings' 1993 10-K).* 10.31 1994 Stock Option Plan, as amended (incorporated by reference to Exhibit 10.38 of Holdings' 1996 10-K).* 10.32 1996 Non-Employee Directors' Stock Option Plan (incorporated herein by reference to the Appendix of Holdings' 1996 Notice of Annual Meeting and Proxy Statement).* +11. Computations of Earnings Per Share. +21.1 Subsidiaries of the Company. +23.1 Consent of Ernst & Young LLP. +23.2 Consent of Price Waterhouse. +27 Financial Data Schedule. - ---------------------------- + Filed herewith. * Indicates a management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 14(c) of Form 10-K. Certain instruments defining the rights of holders of long-term debt have not been filed pursuant to item 601(b)(4)(iii)(A) of Regulation SK. Copies of such instruments will be furnished to the Commission upon request. (b) Reports on Form 8-K: A report on Form 8-K was filed by the Holdings during the second quarter of the fiscal year covered by this report. SIGNATURES Pursuant to the requirements of Section 13 of the Securities Exchange Act of 1934, the registrant has duly caused this Amendment to Annual Report on Form 10-K to be signed on its behalf by the undersigned hereunto duly authorized on June 20, 1997. GTECH HOLDINGS CORPORATION By /s/ Robert J. Plourde --------------------------------------------- Robert J. Plourde, Vice President and Corporate Controller CAMELOT GROUP PLC ACCOUNTS FOR THE PERIOD ENDED 1 February 1997 REGISTERED NUMBER: 2822203 STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE ACCOUNTS Camelot Group plc has a financial year end of 31 March and prepares its annual report and accounts for that period to comply with the Companies Act 1985. These accounts have been prepared specifically to enable GTECH Corporation, an ultimate shareholder in the company, to prepare its own consolidated financial statements and do not represent the results of the company for its own financial year or the company's statutory financial statements. In preparing these accounts, the directors are required to: (1) select suitable accounting policies and then apply them consistently; (2) make judgements and estimates that are reasonable and prudent; (3) state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts; (4) prepare the accounts on the going concern basis unless it is inappropriate to presume that the group will continue in business. The directors are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the group and to enable them to ensure that the accounts comply with the Companies Act 1985. They are also responsible for taking reasonable steps to safeguard the assets of the group and to prevent and detect fraud and other irregularities. The directors confirm that they have complied with these requirements, and, having a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, have adopted the going concern basis in preparing the accounts. LEGISLATIVE BACKGROUND The establishment of the UK National Lottery was enabled by the passing of The National Lottery etc. Act 1993. A regulator, the Director General of The National Lottery, was appointed under the Act and invited applications for a licence to run The National Lottery (the section 5 licence) and for licences to promote lottery games as part of The National Lottery (section 6 licences). Following a highly competitive tendering process, Camelot was informed of its success on 25 May 1994 and the section 5 licence was formally awarded on 29 July 1994. Camelot has also been awarded a section 6 licence for the on-line National Lottery game and a number of section 6 licences for the Instant games. The section 5 licence expires on 30 September 2001 and the section 6 licences are of varying lengths depending on the games. REPORT OF INDEPENDENT ACCOUNTANTS To the Board of Directors and Shareholders of Camelot Group plc We have audited the financial statements and financial schedules of Camelot Group plc on pages 3 to 19 which are expressed in pounds sterling. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements and financial statement schedules based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United Kingdom and the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements audited by us referred to above present fairly, in all material respects, the financial position of Camelot Group plc at 1 February 1997 and 3 February 1996 and the results of its operations, total recognised gains and losses and cash flows for the years ended 1 February 1997 and 3 February 1996 and the ten months ended 4 February 1995 in conformity with generally accepted accounting principles in the United Kingdom. Price Waterhouse 21 March 1997
PROFIT AND LOSS ACCOUNT For the period ended 1 February 1997 pounds sterling ("ps") - ------------------------------------------------------ ------- ------------ ------------ ------------ 1997 1996 1995 Notes m m m - ------------------------------------------------------ ------- ------------ ------------ ------------ Turnover - continuing operations On-line 3,684.9 3,588.6 681.9 Instants 908.3 1,399.8 - - ------------------------------------------------------ ------- ------------ ------------ ------------ 4,593.2 4,988.4 681.9 Cost of sales Prizes (2,319.8) (2,509.2) (321.9) Lottery duty (551.2) (598.6) (81.8) National Lottery Distribution Fund (1,240.0) (1,350.9) (181.3) Retailers' commission (235.1) (253.7) (34.8) Terminal and data communication costs (101.0) (104.7) (13.9) - ------------------------------------------------------ ------- ------------ ------------ ------------ Gross profit 146.1 171.3 48.2 Operating costs (93.8) (96.7) (52.5) Other operating income 1.2 1.1 0.3 - ------------------------------------------------------ ------- ------------ ------------ ------------ Operating profit/(loss) 1 53.5 75.7 (4.0) Net interest receivable 4 11.5 8.8 0.7 - ------------------------------------------------------ ------- ------------ ------------ ------------ Profit/(loss) on ordinary activities before taxation 65.0 84.5 (3.3) Tax on profit on ordinary activities 5 (22.3) (29.1) - - ------------------------------------------------------ ------- ------------ ------------ ------------ Profit/(loss) on ordinary activities after taxation 42.7 55.4 (3.3) Dividends 6 (18.9) (9.5) - - ----------------------------------------------------- ------- ------------ ------------ ------------ Profit/(loss) retained for the financial period 16 23.8 45.9 (3.3) - ------------------------------------------------------ ------- ------------ ------------ ------------
The period to 1 February 1997 includes costs and revenue from 4 February 1996 to 1 February 1997 and relate to sales for 52 draws. The period to 3 February 1996 includes costs and revenue from 5 February 1995 to 3 February 1996 and relate to sales for 52 draws. The period to 4 February 1995 includes costs and revenue from 1 April 1994 to 4 February 1995. Sales relate to 12 draws from the first draw on 19 November 1994 to 4 February 1995. STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES The group has no recognised gains or losses other than its profit for the period. HISTORICAL COST PROFITS There are no material differences between the results disclosed above and the results on an unmodified historical cost basis.
BALANCE SHEET At 1 February 1997 pounds sterling ("ps") - -------------------------------------------------------- ------- ------------ ------------ 1997 1996 Notes m m - -------------------------------------------------------- ------- ------------ ------------ Fixed assets Tangible assets 7 91.7 102.9 - -------------------------------------------------------- ------- ------------ ------------ 91.7 102.9 Current assets Stocks 8 1.4 5.4 Debtors: amounts falling due within one year 9 98.5 82.0 Debtors: amounts falling due after more than one year 9 44.6 62.0 Amounts recoverable from the Trust in respect of prizes 10a 81.0 67.2 Trust reserve account 10b 11.0 5.0 Cash at bank and in hand 10c 159.8 239.1 - -------------------------------------------------------- ------- ----------- ------------ 396.3 460.7 Current liabilities Creditors: amounts falling due within one year 12 (341.7) (458.2) - -------------------------------------------------------- ------- ----------- ------------ Net current assets 54.6 2.5 - -------------------------------------------------------- ------- ----------- ------------ Total assets less current liabilities 146.3 105.4 Creditors: amounts falling due after more than one year 12 (1.4) (1.4) Provision for liabilities and charges 13 (28.5) (11.4) - -------------------------------------------------------- ------- ----------- ------------ 116.4 92.6 - -------------------------------------------------------- ------- ----------- ------------ Capital and reserves Called up share capital 15 50.0 50.0 Profit and loss account 16 66.4 42.6 - -------------------------------------------------------- ------- ----------- ------------ Equity shareholders' funds 17 116.4 92.6 - -------------------------------------------------------- ------- ----------- ------------
Approved by the Board on 21 March 1997 Tim Holley Peter C M Murphy Chief Executive Director of Finance
CASH FLOW STATEMENT For the period ended 1 February 1997 pounds sterling ("ps") - -------------------------------------------------------- ------- ------------ ------------ ------------ 1997 1996 1995 Notes m m m - -------------------------------------------------------- ------- ------------ ------------ ------------ Net cash (outflow)/inflow from operating activities 11a (14.1) 249.8 69.3 - -------------------------------------------------------- ------- ------------ ------------ ------------ Returns on investments and servicing of finance Interest received 10.7 8.8 0.7 Interest element of finance lease payments (0.3) (0.4) - - -------------------------------------------------------- ------- ------------ ------------ ------------ 10.4 8.4 0.7 - -------------------------------------------------------- ------- ------------ ------------ ------------ Taxation Taxation paid (25.0) (4.2) - Consortium relief payments (10.6) - - - -------------------------------------------------------- ------- ------------ ------------ ------------ (35.6) (4.2) - - -------------------------------------------------------- ------- ------------ ------------ ------------ Payment to the trust reserve account 10b (6.0) - (5.0) - -------------------------------------------------------- ------- ------------ ------------ ------------ Capital expenditure Purchase of tangible fixed assets (14.5) (44.2) (75.8) - -------------------------------------------------------- ------- ------------ ------------ ------------ Equity dividends paid (18.9) (9.5) - - -------------------------------------------------------- ------- ------------ ------------ ------------ Management of liquid resources Decrease/(increase) in term deposits 11c 100.0 (203.4) (21.6) - -------------------------------------------------------- ------- ------------ ------------ ------------ Financing Issue of ordinary share capital - - 49.9 Capital element of finance lease payments 11b (0.6) (0.4) - - -------------------------------------------------------- ------- ------------ ------------ ------------ (0.6) (0.4) 49.9 - -------------------------------------------------------- ------- ------------ ------------ ------------ - -------------------------------------------------------- ------- ------------ ------------ ------------ Increase/(decrease) in cash 11c 20.7 (3.5) 17.5 - -------------------------------------------------------- ------- ------------ ------------ ------------
ACCOUNTING POLICIES a. Basis of accounting The accounts are prepared under the historical cost convention and in accordance with all applicable UK accounting standards. These accounts have been prepared solely for the purpose of providing results for the period to 1 February 1997 for GTECH UK Limited, one of the five shareholders. b. Group accounts The accounts presented are for Camelot Group plc only. Camelot Group plc has two 100% equity owned subsidiaries. These have not been consolidated as they are dormant and are not material for the purposes of giving a true and fair view. c. Turnover On-line turnover comprises of lottery ticket sales with adjustments being made for on-line Multidraw and subscriptions tickets. Turnover for the period ended 4 February 1995 relates to the period 1 April 1994 to 4 February 1995 and includes the first 12 on-line draws which started on 14 November 1995. Turnover for the periods ended 1 February 1997 and 3 February 1996 include sales for 52 draws. Instant ticket sales are recognised once the pack of tickets is settled. A pack becomes settled on the earlier of 15 days after the first ticket is sold or when 60% of the prizes are validated. d. Taxation The charge for taxation is based on the profit for the period. Deferred taxation is accounted for in respect of timing differences between profit as computed for taxation purposes and profit as stated in the accounts. All deferred tax liabilities are fully provided. Advanced corporation taxation on dividends paid, which is expected to be recovered, is included within debtors. e. Value added tax All costs include the attributable value added tax to the extent that it is not recoverable. f. Fixed assets and depreciation Fixed assets are stated at cost less depreciation. The group's policy is to write off the cost of assets evenly over the shorter of the estimated useful life of the asset or the remaining Section 5 licence period. The principal rates of depreciation used are as follows: Leasehold improvements The shorter of the lease period and the remaining licence period. Computer hardware 25% Fixtures and fittings 20% Terminals and network installation The shorter of seven years and the remaining licence period. Permanent point of sale equipment 50% Other plant and equipment 20% - 50% g. Leasing Operating lease rentals are charged to the profit and loss account as incurred. Tangible fixed assets acquired under finance leases are included in the balance sheet at their equivalent capital value and are depreciated over their useful lives. The corresponding liabilities are recorded as a creditor and the interest element of the finance lease rentals is charged to the profit and loss account. h. Stocks Stocks consist of instant tickets, terminal rolls and playslips. They are valued at cost using the first-in first-out method or at net realisable value, whichever is the lower. i. Pensions The group operates a defined contribution scheme. The cost of the contributions is charged to the profit and loss account in the period in respect of which they relate. j. Cash and liquid reserves Cash comprises cash in hand and overnight deposits. Liquid resources comprise deposits repayable within three months. k. Escrow account The escrow account is a fund held for the sole benefit of the National Lottery Distribution Fund. Amounts payable to the escrow account are allocated to the profit and loss account evenly over the period of the licence, commencing from the first day of ticket sales. l. Advertising and marketing costs Advertising and marketing costs are charged to the profit and loss account when they are incurred.
pounds sterling ("ps") 1997 1996 1995 1. Operating profit m m m ----------------------------------------------------------------- ---------- ---------- ---------- Operating profit is after charging: Depreciation on owned assets 23.4 17.0 2.6 Depreciation on assets under finance leases 0.7 0.6 - Loss on disposal of fixed assets 1.9 - - Auditors' remuneration - audit 0.1 0.2 0.1 - prize draw attendance 0.2 0.2 0.1 - other services 0.2 0.2 0.1 Operating lease rentals - land and buildings 1.2 1.5 0.7 - plant and equipment 1.2 0.9 0.4 ----------------------------------------------------------------- ---------- ---------- ---------- 2. Employee numbers and costs ----------------------------------------------------------------- ---------- ---------- ---------- Employee costs (including directors' emoluments) Wages and salaries 15.5 14.2 5.3 Social security costs 1.4 1.4 0.5 Pension costs 0.6 1.0 0.3 ----------------------------------------------------------------- ---------- ---------- ---------- Total 17.5 16.6 6.1 ----------------------------------------------------------------- ---------- ---------- ---------- 1997 1996 1995 Number Number Number Average number of employees 625 553 223 ----------------------------------------------------------------- ---------- ---------- ----------
3. Directors' remuneration - ------------------------------------------------------------------------- The emoluments of the executive directors are determined by a remuneration committee consisting exclusively of non-executive directors. The committee is constituted in accordance with the Cadbury committee guidelines. The five non-executive directors and their alternates nominated by the shareholder companies do not receive any emoluments from Camelot. The emoluments of the other non-executive directors are determined by the shareholder companies. All emoluments are paid to the directors out of the amount retained by Camelot under the terms of the Licence to run The National Lottery after paying all prizes, duties and contributions to the National Lottery Distribution Fund. The executive directors are eligible for annual bonuses if target returns to the National Lottery Distribution Fund and profit to Camelot are met. These bonuses are capped at 50% of annual base salary. On target performance yields 30% of annual base salary. The first annual bonus was paid in the period to 3 February 1996 based on the results for the period from 1 June 1994 to 30 June 1995 and this is included in these accounts. Bonuses paid in the period ended 1 February 1997 are based on the results for the year ended 30 June 1996. In order to drive the long term performance of the company and returns to the National Lottery Distribution Fund, and in the absence of a share option scheme, the remuneration committee has authorised a long-term incentive plan for the executive directors and other senior executives. Bonuses payable under this plan are based upon cumulative funds generated for the National Lottery Distribution Fund and cumulative pre-tax profits over the period 1 June 1994 to 30 September 1997. The on target bonus payable for this scheme is 100% of annual base salary. The maximum amount payable is 140% of annual base salary. This bonus is non pensionable. Performance related bonuses below include part payments relating to this scheme.
Performance Salary/ related Benefits 1997 1996 1995 fees bonuses in kind Total Total Total pounds sterling ("ps") 000 000 000 000 000 000 - -------------------------------------------------- ----------- ----------- ----------- ----------- ----------- ----------- Chairman Sir George Russell (appointed 27.4.95) 50 - 1 51 38 - Sir Ron Dearing (resigned 27.4.95) - - - - 10 35 Chief executive Tim Holley 258 303 25 586 383 271 Executive directors David Clark 144 170 36 350 241 170 Norman Hawkins (resigned 30.9.96) 95 233 10 338 212 152 Peter Murphy 144 170 38 352 201 140 David Rigg 141 170 14 325 170 118 Non-executive directors Mary Baker 20 - - 20 20 14 Jim Butler 20 - - 20 20 14 Sir Peter Imbert 20 - - 20 20 14 - -------------------------------------------------- ----------- ----------- ----------- ----------- ----------- ----------- 892 1,046 124 2,062 1,315 928 - -------------------------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
The Directors emoluments in respect of 1995 relate to the 8 months from 1 June 1994 to 4 February 1995, except for the chairman which is for the period. Norman Hawkins received ps30,000 and benefits in kind of ps2,310 in respect of lieu of notice, which are included in the above table. The total emoluments of the directors including pension contributions were as follows:
1997 1996 1995 pounds sterling ("ps") 000 000 000 - --------------------------------------------------- ---------- ---------- ---------- Executive directors' salaries and benefits 905 833 554 Executive directors' performance related payments 1,046 374 299 Non-executive directors' fees 60 70 40 Chairman's salary and benefits 51 38 35 Pension contributions 209 313 208 - --------------------------------------------------- ---------- ---------- --------- 2,271 1,628 1,136 - --------------------------------------------------- ---------- ---------- ---------
The emoluments of Sir George Russell, the chairman for the period comprise salary of ps50,000 (1996 - ps37,500). The emoluments of Sir Ron Dearing for the period 5 February 1995 to 27 April 1995 comprise salary of ps10,000. (1995 salary ps33,333, benefits ps2,768). No pension contribution was made on their behalf. The total emoluments of the non-executive directors (including the chairman and alternate directors) are as shown below:
1997 1996 1995 pounds sterling ("ps") Number Number Number - ----------------------------------------------------------------- --------- --------- --------- ps nil 10 10 10 ps 5,001 - ps10,000 - 1 - ps10,001 - ps15,000 - - 3 ps15,001 - ps20,000 3 3 - ps35,001 - ps40,000 - 1 1 ps50,001 - ps55,000 1 - - - ----------------------------------------------------------------- --------- --------- ---------
The total emoluments for the period ended 1 February 1997, excluding pension contributions, of the executive directors were within the following bands:
1997 1996 1995 pounds sterling ("ps") Number Number Number - ----------------------------------------------------------------- --------- --------- --------- ps115,001 - ps120,000 - - 1 ps140,001 - ps145,000 - - 1 ps150,001 - ps155,000 - - 1 ps170,001 - ps175,000 - 1 1 ps200,001 - ps205,000 - 1 - ps210,001 - ps215,000 - 1 - ps240,001 - ps245,000 - 1 - ps270,001 - ps275,000 - - 1 ps325,001 - ps330,000 1 - - ps335,001 - ps340,000 1 - - ps350,001 - ps355,000 2 - - ps380,001 - ps385,000 - 1 - ps585,001 - ps590,000 1 - - - ----------------------------------------------------------------- --------- --------- ---------
The emoluments of the chief executive, who was the highest paid director, comprise salary of ps258,250 (1996: ps243,264, 1995: ps160,000), benefits of ps24,976 (1996: ps17,252, 1995: ps10,893) excluding pension contributions, and performance related bonuses of ps302,890 (1996 : ps123,000, 1995: ps100,000). The company made pension contributions of ps94,448 (1996: ps157,028, 1995: ps98,000) on his behalf.
4. Net interest receivable 1997 1996 1995 pounds sterling ("ps") m m m ---------------------------------------------------------------- ---------- ---------- ---------- Interest Receivable 11.8 9.2 0.7 Interest payable on finance leases (0.3) (0.4) - ---------------------------------------------------------------- ---------- ---------- ---------- 11.5 8.8 0.7 ---------------------------------------------------------------- ---------- ---------- ---------- 5. Tax on profits on ordinary activities ---------------------------------------------------------------- ---------- ---------- ---------- UK corporation tax at 33% based on the profit for the year 1.9 32.4 - Deferred taxation charge/(credit) at 33% 20.4 (3.3) - ---------------------------------------------------------------- ---------- ---------- ---------- 22.3 29.1 - ---------------------------------------------------------------- ---------- ---------- ---------- Deferred taxation ---------------------------------------------------------------- ---------- ---------- ---------- Timing differences between capital allowances and depreciation (3.3) 6.2 - Other timing differences 23.7 (9.5) - ---------------------------------------------------------------- ---------- ---------- ---------- 20.4 (3.3) - ---------------------------------------------------------------- ---------- ---------- ---------- Other timing differences relate to an amount paid in respect of the escrow account (see note 14). 6. Dividends ---------------------------------------------------------------- ---------- ---------- ---------- Final dividend paid for the financial year ended 31 March 1996 : 8.9 - - 17.8p per share Interim paid for the financial year ended 31 March 1997 : 20p per share (1996 - 19p per share) 10.0 9.5 - ---------------------------------------------------------------- ---------- ---------- ---------- 18.9 9.5 - ---------------------------------------------------------------- ---------- ---------- ----------
Assets in Leasehold Plant and the course of pounds sterling ("ps") improvements equipment construction Total 7. Tangible Assets m m m m -------------------------------------------- -------------- ------------ ------------- ------------- Cost At 3 February 1996 6.3 101.8 15.0 123.1 Additions 0.3 14.5 - 14.8 Transfers - 15.0 (15.0) - Disposals - (3.6) - (3.6) -------------------------------------------- -------------- ------------ ------------- ------------- At 1 February 1997 6.6 127.7 - 134.3 -------------------------------------------- -------------- ------------ ------------- ------------- Accumulated depreciation At 3 February 1996 1.0 17.4 1.8 20.2 Provision for the period 0.8 23.3 - 24.1 Transfers - 1.8 (1.8) - Disposals - (1.7) - (1.7) --------------------------------------------- -------------- ------------ ------------- ------------- At 1 February 1997 1.8 40.8 - 42.6 --------------------------------------------- -------------- ------------ ------------- ------------- Net book amount At 3 February 1996 5.3 84.4 13.2 102.9 At 1 February 1997 4.8 86.9 - 91.7 -------------------------------------------- -------------- ------------ ------------- -------------
Assets in the course of construction consisted of terminals and point of sale equipment not yet installed at retailers. The net book amount of leasehold improvements includes furniture and fittings of ps0.8 million (1996: ps 0.8m). The net book amount of plant and equipment held under finance leases is ps1.6 million (1996: ps1.7m).
pounds sterling ("ps") 1997 1996 8. Stocks m m ------------------------------------------------------- ---------- ---------- Instant tickets 1.2 4.5 Playslips, terminal rolls and other consumables 0.2 0.9 ------------------------------------------------------- ---------- ---------- 1.4 5.4 ------------------------------------------------------- ---------- ---------- 9. Debtors ------------------------------------------------------- ---------- ---------- Trade debtors 68.1 57.4 Advanced corporation tax recoverable 4.7 2.4 Corporation tax 0.9 - Escrow deferred expense 14.1 14.1 Prepayments and accrued income 10.7 8.1 ------------------------------------------------------- ---------- ---------- 98.5 82.0 ------------------------------------------------------- ---------- ---------- Trade debtors represent amounts due from retailers. Debtors due after more than one year ------------------------------------------------------- ---------- ---------- Escrow deferred expense 44.6 58.7 Deferred taxation - 3.3 ------------------------------------------------------- ---------- ---------- 44.6 62.0 ------------------------------------------------------- ---------- ----------
10. Trust accounts and cash In order to protect the interests of prize winners and players, Camelot has established trust accounts operated by an independent trustee, The Law Debenture Trust Corporation plc. There are a number of trust accounts operated in order to separate funds to be paid for prizes and amounts received from players in respect of future draws from Camelot's own funds. a. Amounts recoverable from the trust in respect of prizes - operational trust Funds in the operational trust represent the outstanding prize liability. Camelot is reimbursed retrospectively as prizes are paid. The balance of any interest arising on this account (after expenses of the trust) is for the benefit of The National Lottery Distribution Fund. The operational trust account balance of ps81.0 million (1996: ps 67.2 million) represents the amounts recoverable from the trust in respect of prizes paid by the company and is shown as a current asset. b. Trust reserve account Camelot transferred ps5 million into a trust account at the launch of the on-line game. During the year Camelot transferred a further ps6m into the trust account at the launch of the Midweek on-line game. The amount (or the relevant part) will be repayable to Camelot at the end of the section 5 licence period in accordance with the trust deed. This amount is recoverable after more than one year. c. Cash at bank and in hand The split of Camelot's cash balances between Camelot accounts and trust accounts is as follows: pounds sterling ("ps") 1997 1996 Cash at bank and in hand m m ---------------------------------------- ---------- ---------- Camelot bank accounts 130.0 223.7 Trust bank accounts 29.8 15.4 ---------------------------------------- ---------- ---------- 159.8 239.1 ---------------------------------------- ---------- ---------- Camelot bank accounts On 12 April 1996 the Camelot bank account balance reduced by ps90.4m as a result of the first payment to the escrow account (see note 14). In addition, ps135.3m was paid to the National Lottery Distribution Fund on 26 July in respect of the outstanding prize liability for the year to 31 March 1996. Subscription trust Amounts transferred to the subscription trust are those amounts received from players relating to future draws, whether by subscription or by using the multidraw facility. Camelot is reimbursed after the draw to which the funds relate. The subscription trust balance is included in trust bank accounts in the table above. The trust accounts and interest received thereon are subject to first fixed and floating charges in favour of the trustee. Floating charges have been given in respect of certain Camelot assets to the trustee and to Camelot's bankers, The Royal Bank of Scotland plc.
pounds sterling ("ps") 1997 1996 1995 11. Notes to the cash flow statement m m m -------------------------------------------------------------------- ---------- ---------- ---------- a. Reconciliation of operating profit to net cash (outflows)/inflows from operating activities -------------------------------------------------------------------- ---------- ---------- ---------- Operating profit 53.5 75.7 (4.0) Depreciation 24.1 17.6 2.6 Loss on disposal of fixed assets 1.9 - - Movement in working capital Decrease/(Increase) in stocks 4.0 (1.9) (3.5) Decrease/(Increase) in debtors 1.7 (91.1) (46.3) (Increase) in amount recoverable from the Trust in respect of prizes (13.8) (39.6) (27.6) (Decrease)/increase in creditors (85.5) 289.1 148.1 -------------------------------------------------------------------- ---------- ---------- ---------- Net cash (outflow)/inflow from operating activities (14.1) 249.8 69.3 -------------------------------------------------------------------- ---------- ---------- ---------- Share Finance capital leases b. Analysis of changes in financing during the period m m -------------------------------------------------------------------- --------- --------- At 3 February 1996 50.0 2.0 Inception of finance lease contracts - 0.6 Cash (outflow) from finance lease payments - (0.6) -------------------------------------------------------------------- --------- --------- At 1 February 1997 50.0 2.0 -------------------------------------------------------------------- --------- --------- c. Analysis of changes in cash and liquid resources during the period 1997 1996 1995 Cash m m m -------------------------------------------------------------------- ---------- ---------- ---------- At beginning of period 14.1 17.6 0.1 Increase/(decrease) in period 20.7 (3.5) 17.5 -------------------------------------------------------------------- ---------- --------- ---------- At end of period 34.8 14.1 17.6 -------------------------------------------------------------------- ---------- ---------- ---------- Term deposits ------------------------------------------------------------------- ---------- ---------- ---------- At beginning of period 225.0 21.6 - (Decrease)/increase in period (100.0) 203.4 21.6 ------------------------------------------------------------------- ---------- ---------- ---------- At end of period 125.0 225.0 21.6 ------------------------------------------------------------------- ---------- ---------- ---------- ------------------------------------------------------------------- ---------- ---------- ---------- Total cash at bank and in hand 159.8 239.1 39.2 ------------------------------------------------------------------- ---------- ---------- ----------
pounds sterling ("ps") 1997 1996 12. Creditors: amounts falling due within one year m m ------------------------------------------------------------------- ---------- ---------- Trade creditors and accruals 43.5 38.6 Fixed asset creditors 0.4 0.7 Lottery duty 49.9 67.9 Amounts payable to the National Lottery Distribution Fund 22.6 118.6 Advance receipts for future draws 12.3 14.7 Prize liability 99.1 76.5 Outstanding prize liability commitment 113.3 110.0 Taxation payable - 30.6 Obligations under finance leases 0.6 0.6 ------------------------------------------------------------------- --------- ---------- 341.7 458.2 ------------------------------------------------------------------- --------- ---------- Advance receipts for future draws represent the Multidraw and subscription payments relating to future draws. The prize liability represents unclaimed prizes. At 1 February 1997 Camelot had transferred ps81.0m into the trust to meet these liabilities (1996: ps67.1m). The outstanding prize liability commitment represents the difference between the target prize payout commitment and the actual payout. Any amounts not utilised for the payment of prizes are for the benefit of the National Lottery Distribution Fund and will be paid over to the National Lottery Distribution Fund in July 1997. 1997 1996 Creditors: Amounts falling due after more than one year m m ------------------------------------------------------------------- ---------- ---------- Obligations under finance leases payable within five years 1.4 1.4 ------------------------------------------------------------------- ---------- ---------- 1.4 1.4 ------------------------------------------------------------------- ---------- ---------- At 1 February 1997 the company had a total of ps20m of undrawn borrowing facilities (1996: ps30m, 1995: ps45m). This is analysed between a ps10m committed revolving credit facility and a ps10m money market facility. In addition there is an overdraft facility of ps30m available to the company. Deferred Other taxation provisions Total 13. Provisions for liabilities and charges m m m ------------------------------------------------------------------- ---------- ----------- --------- At 3 February 1996 (reclassified) - 11.4 11.4 Utilised in the period - (0.7) (0.7) Provided in the period 17.1 0.7 17.8 ------------------------------------------------------------------- ---------- ----------- --------- At 1 February 1997 17.1 11.4 28.5 ------------------------------------------------------------------- ---------- ----------- --------- Balances previously included within trade creditors and accruals in the 1996 comparative have been reclassified as provisions for liabilities and charges in order to conform with current year presentation.
pounds sterling ("ps") 14. Escrow account - -------------------------------------------------------------------------------- The licence provides for Camelot to make a payment to an escrow account such that the total balance of this escrow account equals 2.5% of the previous financial year's sales to date less ps40 million. The balance is held in this account for the benefit of the National Lottery Distribution Fund. As stated in the accounting policy note, amounts payable to the escrow account are allocated to the profit and loss account evenly over the period of the licence, commencing from the first day of ticket sales. In 1997 ps14.1m was charged to the profit and loss (1996: ps14.1m, 1995: ps3.2m). The first payment to the escrow account of ps90.4m was made on 12 April 1996. The difference between the payment and the cumulative charge to profit has been treated as a deferred expense and is disclosed within debtors. The payment gives rise to a deferred tax charge (see note 5).
pounds sterling ("ps") 1997 1996 15. Share capital m m ---------------------------------------------------------------------- ---------- ---------- Authorised 100,000,000 ordinary shares of ps1 each 100.0 100.0 Allotted, called up and fully paid Ordinary shares in issue at the beginning of the period 50.0 50.0 ---------------------------------------------------------------------- ---------- ---------- Ordinary shares in issue at the end of the period 50.0 50.0 ---------------------------------------------------------------------- ---------- ---------- Shareholding Number of Analysis of shareholding % Shares ---------------------------------------------------------------------- -------------- ------------- Cadbury Schweppes plc 22.5 11,250,000 De la Rue plc 22.5 11,250,000 GTECH UK Limited 22.5 11,250,000 International Computers Limited 10.0 5,000,000 Racal Electronics Plc 22.5 11,250,000 ---------------------------------------------------------------------- -------------- ------------- 1997 1996 16. Reserves m m ---------------------------------------------------------------------- -------------- ------------- Profit and loss account at the beginning of the period 42.6 (3.3) Retained profit for the period 23.8 45.9 ---------------------------------------------------------------------- -------------- ------------- Profit and loss account at the end of the period 66.4 42.6 ---------------------------------------------------------------------- -------------- -------------
pounds sterling ("ps") 1997 1996 17. Reconciliation of movements in shareholders' funds m m --------------------------------------------------------------------- -------------- -------------- Profit for the period 42.7 55.4 Dividends (18.9) (9.5) --------------------------------------------------------------------- -------------- -------------- Retained profit for the period 23.8 45.9 Balance at the beginning of the period 92.6 46.7 --------------------------------------------------------------------- -------------- -------------- Balance at the end of the year 116.4 92.6 --------------------------------------------------------------------- -------------- -------------- 1997 1996 18. Financial commitments m m --------------------------------------------------------------------- -------------- -------------- Commitments for capital expenditure not provided for in the accounts were as follows: Expenditure authorized but not contracted for - 11.5 --------------------------------------------------------------------- -------------- -------------- Total capital expenditure commitments - 11.5 --------------------------------------------------------------------- -------------- --------------
pounds sterling ("ps") 19. Contingent liabilities - -------------------------------------------------------------------------------- If the licence is revoked for any reason, Camelot will be liable for a payment of ps40m to the National Lottery Distribution Fund. The shareholders have provided unconditional and irrevocable guarantees to pay this amount. Fixed and floating charges have been given on certain assets to the trustee and to The Royal Bank of Scotland plc. See note 10 for further details.
1997 1997 1996 1996 Land and Plant and Land and Plant and buildings equipment buildings equipment 20. Operating leases m m m m ------------------------------------------ ------------- ----------- ----------- ------------ Annual operating lease commitments expiring: Within one year - - 0.1 - Between two and five years 1.2 1.2 0.6 1.1 ------------------------------------------ ------------- ----------- ----------- ------------ Payments to be made in the following year 1.2 1.2 0.7 1.1 ------------------------------------------ ------------- ----------- ----------- ------------
21. Pension arrangements - -------------------------------------------------------------------------------- The group operates a defined contribution scheme. Employees who transferred from shareholder companies have continued to participate in their respective shareholder pension plans via an agreed deed of participation. All amounts payable under these schemes are charged to the profit and loss account as they fall due. The total amount charged in respect of pensions to the profit and loss in 1997 was ps0.6m (1996 ps1.0m, 1995: ps0.5m). 22. Related party transactions - -------------------------------------------------------------------------------- Camelot has a number of contracts with its shareholders, their parent and/or their subsidiary companies. The main services provided are: Cadbury Schweppes plc: Consultancy services covering marketing, consumer trends and retail developments. De La Rue plc: Supply of consumables and Instant tickets including consultancy services. GTECH Corporation: Supply of Instants only terminals. Warranty for on-line and Instants terminals. Supply of software. General consultancy. Supply of on-line terminal kits to International Computers Limited. International Computers Limited: Assembly of on-line terminals. Retailer training. Terminal maintenance. Racal Electronics Plc: Network communications and maintenance.
The amounts included in the accounts for the period to 1 February 1997 excluding VAT are given below: - --------------------------------------------------------------------------------------------------------- Purchases of Amounts revenue items Purchases of payable/(prepaid) and stock Capital items at 1 February 1997 pounds sterling ("ps") m m m - ------------------------------------------------ ---------------- ---------------- -------------------- Cadbury Schweppes plc 0.6 - 0.2 De La Rue plc 7.8 - - GTECH Corporation* 26.1 0.9 4.7 International Computers Limited* 7.9 7.6 (0.5) Racal Electronics plc 21.5 5.1 4.4 - ------------------------------------------------ ---------------- ---------------- -------------------- Part of an agreement with De La Rue plc for the supply of consumables and Instant tickets was terminated during the period for a sum of ps2.8m. This amount has been charged against profit and is included in the above table. In addition, payments of ps7.8m and ps2.8m were paid to Cadbury Schweppes plc and International Computers Limited in respect of consortium taxation relief. The amounts included in the accounts for the period to 3 February 1996 excluding VAT are given below: - -------------------------------------------------------------------------------------------------------- Purchases of Amounts revenue items Purchases of payable (prepaid) and stock capital items at 3 February 1996 m m m - ------------------------------------------------ ----------------- ----------------- ------------------ Cadbury Schweppes plc 0.5 - 0.2 De La Rue plc 17.3 - 0.2 GTECH Corporation* 25.9 3.8 3.6 International Computers Limited* 8.5 11.1 0.6 Racal Electronics plc 14.1 8.1 3.1 - ------------------------------------------------ ----------------- ----------------- ------------------
The amounts included in the accounts for the period 1 April 1994 to 4 February 1995 excluding VAT as given below: - ------------------------------------------------------------------------------------------------------ Purchases of Amounts revenue items Purchases of payable/(prepaid) and stock capital items at 4 February 1995 m m m - ------------------------------------------------ ----------------- ------------------ ------------------ Cadbury Schweppes plc 0.2 - 0.2 De La Rue plc 6.2 - 0.5 GTECH Corporation* 4.4 - 3.9 International Computers Limited* 2.5 39.1 1.0 Racal Electronics plc 2.4 14.1 16.5 - ------------------------------------------------ ------------------ ------------------ ------------------
* On-line terminal kits are supplied by GTECH Corporation (the parent company of GTECH UK Limited) to International Computers Limited and then sold by International Computers Limited to Camelot Group plc. 23. Subsidiary undertakings - -------------------------------------------------------------------------------- Camelot Group plc owns the entire equity share capital equity of the following dormant companies: - -------------------------------------------------------------------------------- Country of incorporation Camelot Lotteries Limited England National Lottery Enterprises Limited England - -------------------------------------------------------------------------------- These subsidiaries have share capital of ps3 in total. This amount represents Camelot's cost of investment in these subsidiaries. They are not material for the purpose of giving a true and fair view for these financial statements and have not been consolidated. National Lottery Enterprises Limited was formerly known as Camelot Lotteries (No 2) Limited. Exhibit 23.1 Consent of Independent Auditors We consent to the incorporation by reference in the following Registration Statements (Form S-8 No. 33-88426, Form S-8 No. 333-27835 and Form S-8 No. 333-27831), of our report dated April 11, 1997, with respect to the consolidated financial statements of GTECH Holdings Corporation included in the Annual Report (Form 10-K/A, Amendment No. 1) for the fiscal year ended February 22, 1997. Ernst & Young LLP Providence, Rhode Island June 17, 1997 Exhibit 23.2 Consent of Independent Accountants We consent to the incorporation by reference in the following Registration Statements (Form S-8 No. 33-88426, Form S-8 No. 333-27835 and Form S-8 No. 333-27831), of our report dated March 21, 1997, with respect to the consolidated financial statements of Camelot Group plc and subsidiaries as of February 1, 1997 and February 3, 1996, and for the years ended February 1, 1997 and February 3, 1996 and for the period from April 1, 1994 through February 4, 1995. Price Waterhouse London, England June 16, 1997 -----END PRIVACY-ENHANCED MESSAGE-----