Financial Review
Treasury Management
The Group’s treasury function provides a centralised service for the provision of finance and the management and control of liquidity, foreign exchange and interest rates. The function operates as a cost centre and manages the Group’s treasury exposure to reduce risk in accordance with policies approved by the Board.
It is not the policy of the Group to trade in or enter into speculative transactions. Authorities, procedures and reporting responsibilities are documented and regularly reviewed.
Due to the international nature of its core activities, the Group’s reported profits, net assets and cash flows are all affected by foreign exchange rate movements.
Operations are financed by a mixture of retained profits, bank borrowings and long-term loans. In addition, various financial instruments, such as trade receivables and trade payables, arise directly from the Group’s operations.
Certain customers in the Australian region are allowed to place bets on credit. The Group’s policy in respect of credit risk is to require appropriate credit checks are made on potential customers before bets are placed and credit limits set accordingly.