TIDMWEB
RNS Number : 2638Q
Webis Holdings PLC
25 February 2021
Webis Holdings plc
("Webis" or "the Group")
Interim Report and Financial Statements for the period ended 30
November 2020 ("The Report")
Webis Holdings plc, the global gaming group, today announces its
unaudited interim results for the period ended 30 November 2020,
extracts from which are set out below.
The Report is available on the Company's website
www.webisholdingsplc.com and at the Group's registered office:
Viking House, Nelson Street, Douglas, Isle of Man IM1 2AH.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
For further information:
Webis Holdings plc Tel: 01624 639396 Denham Eke
Beaumont Cornish Limited Tel: 020 7628 3396 Roland Cornish/James
Biddle
Chairman's Statement
Introduction
I am pleased to report a sustained improvement in trading for
our principal subsidiary WatchandWager.com, with a significant
return to profitability and a continuation of the positive trends
reported at the end of the 2019/20 financial year. Moreover, I
anticipate a sustained performance to the financial year ending May
2021, with certain caveats for the continued impact of Covid-19 and
other factors outside our control. In short, I am pleased to report
the Group is now in a far better position than in recent years,
with a much better business mix and clear avenues for growth
ahead.
Equally significantly, despite the impact of Covid-19, the
business has proved very resilient. In common with other
interactive operators, on-line business levels have continued to be
strong. This reflects and validates our strategy to provide by far
the widest range of live content available to our clients with a
truly 24/7 global platform for players. This has served us well
during these difficult times, and we expect this position to
continue for the foreseeable future.
For the long term, the Board is fully aware of our licensed
position in the USA and California in particular, and how this
position can be leveraged to benefit shareholders. As a result, we
have taken measures to protect our assets in the USA and will
continue to do so as a priority. We stand in an enviable position
as a licensed operator in the States, and in particularly in
California, the fifth biggest economy in the world, and where we
hold both an online licence and a license to operate retail
operations at Cal Expo racetrack in Sacramento. Momentum continues
to gather daily for regulated Sports Betting in numerous states,
including California. At time of writing, the Board is confident
that California will approve this measure no later than 2022, with
many other major States actively operating by then. Conversely, the
position in other jurisdictions for online gambling is becoming
increasingly difficult, with significant regulatory headwinds
facing operators exposed to Europe and the UK. As a result, there
is significant interest in our USA licensed position as we outline
our plans to maximise this position.
Half Year Results Review
Group amounts wagered were US$ 45.3 million, up 20% on prior
year (2019: US$ 37.7 million). Turnover reported was US$ 7.4
million (2019: US$ 8.1 million), but with gross profit also
increasing significantly to US$ 2.67 million (2018: US$ 1.79
million), a growth of 49% versus prior year. This resulted in a
profit on the period of US$ 0.72 million (2019: loss of US$ 0.21
million). This turnaround of almost US$ 1 million in profit over
the six months reflects the changing business mix in the operation,
again improving our overall margin derived from more "retail-style"
wagering activity, especially on-line. This is encouraging for the
future.
Operating costs showed a small increase to US$ 2.17 million
(2019: US$ 2.00 million), reflecting the additional costs of
setting up racetrack operations in the autumn of 2019 during the
Covid-19 pandemic. These costs are expected to stabilise. It should
be noted that Cash and cash equivalents stand at US$ 2.93 million,
and an improvement from last year (2019: US$ 1.49 million).
Operations Update
Business-to-consumer - this division performed well over the
period and continues so to do. In common with other interactive
platforms, the impact of Covid-19 has not materially affected
trading and in some areas has increased business. Racetracks now
operate globally with no crowds with very few retail off-track
betting shops open, as well as fewer other recreational
competition. This has assisted on-line operations, to the extent
that we have seen a 62% increase in handle (amounts bet) over the
period reported. We have every intention of maintaining this
momentum.
At the same time, we are very aware that, as a racetrack
operator at Cal Expo, the impact of Covid-19 has been far more
severe for our associated horsemen and racetrack partners. Under
the pari-mutuel model, increases in handle are directly passed on
to our partners in terms of host track fees, horsemen
contributions, and statutory duties. In fact, in certain States,
notably our key State of California, we have volunteered to pay
increased contributions to purses in 2021. We believe this is the
right thing to do to encourage and protect an industry that employs
millions of staff globally.
Business-to-business - trading for this division continued to be
largely flat. This sector is becoming increasingly competitive in
nature. We compete with a wide range of operators who seem intent
on maximising the volume of amounts wagered at the expense of
margin. This is, of course, commercially unattractive, and we have
specifically declined to compete, avoiding accepting wagers at
little or no commission which is a race to the bottom. We expect
that this situation will continue for the foreseeable future but is
not sustainable long term. Major racing and wagering jurisdictions
need to realise the importance of achieving a proper return on the
rights to wager on their content, especially from "high rollers".
This is never more important than during the Covid-19 crisis, to
support the horsemen and all related participants in the
industry.
Cal Expo
During the period, we were mainly closed for racing as planned
during the summer months. However, we benefited from a higher
proportion of revenues from interactive platforms. This helped to
build up our cash flows in our operating and purse pool funds to
restart the season.
In early November, we re-commenced harness racing at the Cal
Expo racetrack in Sacramento for the ninth season, and we plan to
race until end of April 2021. This has been a difficult period to
run any retail operation, and we have and continue to race behind
closed doors, so losing our important on track revenue. We have
been very mindful to abide with all County and State legislation in
respect to Covid-19 guidelines, and I would greatly like to thank
all our staff, horsemen and all persons situated at Cal Expo for
respecting and adhering to these regulations on an ongoing
basis.
Licenses
During the period, we have concentrated on obtaining important
licence applications and renewals. I am pleased to report that all
licence applications were successfully renewed, and include the key
strategic states of California, New York and Kentucky, amongst
others. These licences are all in good standing through the
entirety of 2021 and, in certain cases, beyond.
Compliance
There were no compliance issues reported to our various
regulations during the period.
Health & Safety
There were no health and safety issues to report across the
entire Cal Expo operation, where equine and participant welfare
remain our highest priority.
Outlook
Short term
Despite our positive first six months, as anticipated, our
performance has slightly tapered off in the last few months. This
is normal and expected. It is a factor of reduced content, poor
weather and the unique constraints of Covid-19 which have impacted
our racetrack performance. The operations at Cal Expo have been
particularly difficult, but we are committed to live operations and
ensuring a safe meeting and a form of income for all concerned.
In a more positive vein, we expect an upturn in performance in
the Spring in 2021 as the weather improves and we promote the high
quality domestic and international content for which we are
licensed. As a result, we expect a steady trading pattern to
year-end May 2021. We will keep shareholders appraised of
performance, should this deviate from that anticipated.
Longer term
Existing operations
The Board remains optimistic regarding current operations and
performance. The USA operation is a much better place financially
than two years ago. Equally positively, our core content of
horseracing globally has performed extremely well as an "elite
sport" to keep live operations to high capacity globally, contrary
to some other sports. It should be noted however that an easing in
in Covid-19 restrictions will increase competition to the leisure
dollar in relation to our B2C operations. We have anticipated this
welcome development globally but are also working to maintain our
positive business momentum. We have recently hired an expert
consultant in marketing recruitment, retention and reactivation
strategies across the platform and we see this as an important part
of our strategy going forward.
Conversely of course a return to on track attendance and other
retail betting operations would be most welcome to our operations
at Cal Expo. We have as good racing product at the venue and see
this product is integral to the future. We welcome to receiving our
loyal patrons back at our track, as permitted under Sacramento
County regulations.
USA Expanded Gaming
It cannot have gone unnoticed to shareholders and observers
alike that the sustained growth of USA licensed expended gambling
is the hottest subject in the global industry. In that regard,
Webis and our principal subsidiary WatchandWager, remain very
well-positioned as a licensed operator in many states, and of
course in California. Almost all factors are in our favour with
legislation passing or on the verge of passing in many key states,
as updated almost daily both in trade and financial media. At the
same time, many major large multi-national gambling entities
continue to search for merger or acquisition of key assets in the
USA. This is compounded due to the ongoing downturn in the
industry, in the UK, where the affordability review is a very real
threat to non-USA players, unlike our operation. On top of that the
unfortunate economic impact of Covid-19 and other natural disasters
has hastened the need for more taxes and duties in states,
especially in California.
It now seems a certainty that more and more states will continue
to legalise sports betting in the next two years, including
California, the most complex but lucrative state. As a result, the
Board believes that now is the time to escalate our plans to take
advantage of our position. As a relatively small but well
positioned company, we will upgrade our profile on several levels.
This includes to reviewing and improving our Board structure,
especially in the USA, plus increasing our presence in California
and our overall profile in the industry. One key factor is
educating the decision-makers and regulators to understand the
fiscal benefits of including mobile wagering within retail
operations.
Overall, we consider the company to be undervalued on key
metrics and our potential for growth it is important that now we
"fight above our weight' to make the industry aware of this. We
will keep shareholders fully informed of developments in our
exciting future strategies.
In the meantime, we would continue to thank our staff,
participants and shareholders for their on-going support for our
growing business during tricky times.
Denham Eke
Non-executive Chairman
25 February 2021
Condensed Consolidated Statement of Comprehensive Income
For the period ended 30 November 2020
Period to
30 November
Period to 2019
30 November
2020 (unaudited) (unaudited)
Note US$'000 US$'000
------------------------------------------------ ----- ------------------- --------------
Amounts wagered 45,391 37,725
------------------------------------------------ ----- ------------------- --------------
Turnover 3 7,430 8,060
Cost of sales (4,713) (6,228)
Betting duty paid (60) (42)
------------------------------------------------ ----- ------------------- --------------
Gross profit 2,657 1,790
------------------------------------------------ ----- ------------------- --------------
Operating costs (2,172) (2,006)
Other losses (7) (10)
------------------------------------------------ ----- ------------------- --------------
Government grants 1.5 272 -
Other income 34 60
Operating profit / (loss) 784 (166)
------------------------------------------------ ----- ------------------- --------------
Finance costs 4 (63) (41)
------------------------------------------------ ----- ------------------- --------------
Profit / (loss) before income tax 721 (207)
------------------------------------------------ ----- ------------------- --------------
Income tax expense 5 - -
------------------------------------------------ ----- ------------------- --------------
Profit / (loss) for the period 721 (207)
------------------------------------------------ ----- ------------------- --------------
Other comprehensive income for the period - -
------------------------------------------------ ----- ------------------- --------------
Total comprehensive income for the period 721 (207)
------------------------------------------------ ----- ------------------- --------------
Basic and diluted earnings per share for profit
/ (loss) attributable to the equity holders of
the Company during the period (cents) 6 0.18 (0.05)
------------------------------------------------ ----- ------------------- --------------
Condensed Consolidated Statement of Financial Position
As at 30 November 2020
As at Year to
30 November 31 May
2020 2020
(unaudited) (audited)
Note US$'000 US$'000
------------------------------------------- ----- -------------- ------------
Non-current assets
Intangible assets 7 9 30
Property, equipment and motor vehicles 375 415
Bonds and deposits 101 101
------------------------------------------- ----- -------------- ------------
Total non-current assets 485 546
------------------------------------------- ----- -------------- ------------
Current assets
Bonds and deposits 882 882
Trade and other receivables 1,085 1,256
Cash, cash equivalents and restricted cash 8 4,490 3,969
------------------------------------------- ----- -------------- ------------
Total current assets 6,457 6,107
------------------------------------------- ----- -------------- ------------
Total assets 6,942 6,653
------------------------------------------- ----- -------------- ------------
Equity
Called up share capital 6,334 6,334
Share option reserve 42 42
Retained losses (4,787) (5,508)
------------------------------------------- ----- -------------- ------------
Total equity 1,589 868
------------------------------------------- ----- -------------- ------------
Current liabilities
Trade and other payables 3,605 3,749
Deferred income - 272
Loans, borrowings and lease liabilities 9 86 97
------------------------------------------- ----- -------------- ------------
Total current liabilities 3,691 4,118
------------------------------------------- ----- -------------- ------------
Non-current liabilities
Loans, borrowings and lease liabilities 9 1,662 1,667
Total non-current liabilities 1,662 1,667
------------------------------------------- ----- -------------- ------------
Total liabilities 5,353 5,785
------------------------------------------- ----- -------------- ------------
Total equity and liabilities 6,942 6,653
------------------------------------------- ----- -------------- ------------
Condensed Consolidated Statement of Changes in Equity
For the period ended 30 November 2020
Called up Share option Retained Total
share capital reserve earnings equity
US$'000 US$'000 US$'000 US$'000
Balance as at 31 May 2019
(audited) 6,334 42 (5,224) 1,152
Total comprehensive income
for the period:
Loss for the period - - (207) (207)
Transactions with owners:
Share-based payment expense - - - -
Balance as at 30 November
2019 (unaudited) 6,334 42 (5,431) 945
---------------------------- --------------- ------------- ---------- ---------
Balance as at 31 May 2020
(audited) 6,334 42 (5,508) 868
Total comprehensive income
for the period:
Profit for the period - - 721 721
Transactions with owners:
Share-based payment expense - - - -
Balance as at 30 November
2020 (unaudited) 6,334 42 (4,787) 1,589
---------------------------- ------------- ------------ -------- --------
Condensed Consolidated Statement of Cash Flows
For the period ended 30 November 2020
Period to Period to
30 November 30 November
2020 2019
(unaudited) (unaudited)
Note US$'000 US$'000
--------------------------------------------- ---- ------------- --------------
Cash flows from operating activities
Profit / (loss) before income tax 721 (207)
Adjustments for:
* Depreciation 40 47
* Amortisation of intangible assets 21 38
* Rent concession received (5) -
* Finance costs 4 63 41
* Government grant utilised (272) -
* Other foreign exchange movements 107 (8)
Changes in working capital:
* Decrease in receivables 171 226
* (Decrease) / increase in payables (144) 81
Cash flows generated from operations 702 218
Bonds and deposits utilised in the course
of operations - -
Net cash generated from operating activities 702 218
--------------------------------------------- ---- ------------- --------------
Cash flows from investing activities
Purchase of intangible assets - -
Purchase of property, equipment and motor
vehicles - (5)
Net cash used in investing activities - (5)
--------------------------------------------- ---- ------------- --------------
Cash flows from financing activities
Interest paid 4 (63) (41)
Payment of lease liabilities (21) (17)
Repayment of loans and borrowings (3) -
Loans, borrowings and lease liabilities
received 13 -
Net cash used in financing activities (74) (58)
--------------------------------------------- ---- ------------- --------------
Net increase in cash and cash equivalents 628 155
Cash and cash equivalents at beginning of
year 2,499 1,363
Exchange (losses) / gains on cash and cash
equivalents (107) 9
Increase in movement of restricted cash (27) (30)
--------------------------------------------- ---- ------------- --------------
Cash and cash equivalents at end of period 2,993 1,497
--------------------------------------------- ---- ------------- --------------
Notes to the Condensed Consolidated Interim Financial
Statements
For the period ended 30 November 2020
1 Reporting entity
Webis Holdings plc (the "Company") is a company domiciled in the
Isle of Man. The address of the Company's registered office is
Viking House, Nelson Street, Douglas, Isle of Man, IM1 2AH. The
Webis Holdings plc unaudited condensed consolidated financial
statements as at and for the period ended 30 November 2020
consolidate those of the Company and its subsidiaries (together
referred to as the "Group").
1.1 Basis of accounting
The unaudited condensed consolidated financial statements of the
Group (the "Financial Information") are prepared in accordance with
Isle of Man law and International Financial Reporting Standards
("IFRS") and their interpretations issued by the International
Accounting Standards Board ("IASB") and adopted by the European
Union ("EU"). The financial information in this report has been
prepared in accordance with the Group's accounting policies. Full
details of the accounting policies adopted by the Group are
contained in the consolidated financial statements included in the
Group's annual report for the year ended 31 May 2020 which is
available on the Group's website: www.webisholdingsplc.com.
The accounting policies and methods of computation and
presentation adopted in the preparation of the Financial
Information are consistent with those described and applied in the
consolidated financial statements for the year ended 31 May
2020.
The unaudited condensed consolidated financial statements do not
constitute statutory financial statements. The statutory financial
statements for the year ended 31 May 2020, extracts of which are
included in these unaudited condensed consolidated financial
statements, were prepared under IFRS as adopted by the EU and have
been filed at Companies Registry.
1.2 Use of judgements and estimates
The preparation of the Financial Information requires management
to make judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets and
liabilities, income and expenses. Actual results could differ
materially from these estimates. In preparing the Financial
Information, the critical judgements made by management in applying
the Group's accounting policies and the key sources of estimation
uncertainty were the same as those that applied to the consolidated
financial statements as at and for the year ended 31 May 2020 as
set out in those financial statements.
1.3 Functional and presentation currency
The Financial Information is presented in US Dollars, rounded to
the nearest thousand, which is the functional currency and also the
presentation currency of the Group.
1.4 Going Concern
As noted within the statutory financial statements for the year
ended 31 May 2020, the Directors have continued to undertake
several strategies to support and sustain the Group as a going
concern. These include: seeking to broadening its client base and
expand its business to customer base; renewing various US state
licenses, along with continuing to develop and expand the Cal Expo
racetrack operations; and monitoring the status of sports betting
legislation within the State of California, all of which remain key
priorities for the Group in achieving its goal of profitability and
maintaining adequate liquidity in order to continue its operations.
While the Directors continue to assess all strategic options in
this regard, the ultimate success of strategies adopted remains
difficult to predict.
In addition, the horseracing industry has continued to operate
during the coronavirus pandemic, which has helped to generate
increased profitability and the Group has continued to see the
benefits of this during this interim period.
Notwithstanding the losses incurred in the last financial year,
and with the profitability reported in this interim period, along
with the continued support of the Company's principal shareholder,
via Galloway Limited, a related party, the Directors believe that
the Group has adequate resources to meet its obligations as they
fall due.
1.5 Government grants
The Group initially recognises government grants, that
compensate for expenses incurred, as deferred income at fair value
if there is a reasonable assurance that they will be received. They
are then recognised in profit or loss on a systematic basis in the
periods in which the expenses are recognised.
2 Operating Segments
A. Basis for segmentation
The Group has the below two operating segments, which are its
reportable segments. The segments offer different services in
relation to various forms of pari-mutuel racing, which are managed
separately due to the nature of their activities.
Reportable segments and operations provided
Racetrack operations - hosting of races through the management
and operation of a racetrack facility, enabling patrons to attend
and wager on horse racing, as well as utilise simulcast
facilities.
ADW operations - provision of online ADW services to enable
customers to wager into global racetrack betting pools.
The Group's Board of Directors review the internal management
reports of the operating segments on a monthly basis.
B. Information about reportable segments
Information relating to the reportable segments is set out
below. Segment revenue along with segment profit / (loss) before
tax are used to measure performance as management considers this
information to be a relevant indicator for evaluating the
performance of the segments.
Reportable segments
Corporate
operating
Racetrack ADW costs Total
Period to 30 November 2020 (unaudited) US$'000 US$'000 US$'000 US$'000
---------------------------------------- ----------- -------- ---------- --------
External revenues 5,874 1,556 - 7,430
Segment revenue 5,874 1,556 - 7,430
---------------------------------------- ----------- -------- ---------- --------
Segment profit before tax 282 385 54 721
Finance costs (12) (2) (49) (63)
Depreciation and amortisation (20) (41) - (61)
Period to 30 November 2020 (unaudited)
---------------------------------------- ----------- -------- ---------- --------
Segment assets 1,409 3,511 2,022 6,942
---------------------------------------- ----------- -------- ---------- --------
Segment liabilities 801 3,139 1,413 5,353
---------------------------------------- ----------- -------- ---------- --------
Reportable segments
Corporate
operating
Racetrack ADW costs Total
Period to 30 November 2019 (unaudited) US$'000 US$'000 US$'000 US$'000
--------------------------------------- ----------- -------- ---------- --------
External revenues 6,879 1,181 - 8,060
Segment revenue 6,879 1,181 - 8,060
--------------------------------------- ----------- -------- ---------- --------
Segment loss before tax (37) (149) (21) (207)
Finance costs (8) (2) (31) (41)
Depreciation and amortisation (21) (64) - (85)
--------------------------------------- ----------- -------- ---------- --------
Period to 31 May 2020 (audited)
--------------------------------------- ----------- -------- ---------- --------
Segment assets 1,185 3,216 2,252 6,653
--------------------------------------- ----------- -------- ---------- --------
Segment liabilities 870 3,513 1,402 5,785
--------------------------------------- ----------- -------- ---------- --------
C. Reconciliation of reportable segments profit or loss
Period to Period to
30 November 30 November
2020 2019
(unaudited) (unaudited)
US$'000 US$'000
--------------------------------------------------------- ------------ ------------
Profit / (loss) before tax
Total profit / (loss) before tax for reportable segments 667 (186)
Profit / (loss) before tax for other segments 54 (21)
--------------------------------------------------------- ------------ ------------
Consolidated profit / (loss) before tax 721 (207)
--------------------------------------------------------- ------------ ------------
3. Revenue
The Group's operations and main revenue streams are those
described in the last annual financial statements. The Group's
revenue is derived from contracts with customers.
Disaggregation of revenue
In the following tables, revenue is disaggregated by primary
geographical market, major services lines and timing of revenue
recognition. The tables also include a reconciliation of the
disaggregated revenue with the Group's reportable segments (see
Note 2).
Reportable segments
Racetrack ADW Total
Period to 30 November 2020 (unaudited) US$'000 US$'000 US$'000
--------------------------------------- --------- -------- --------
Primary geographic markets
North America 5,874 1,146 7,020
British Isles - 410 410
Segment revenue 5,874 1,556 7,430
--------------------------------------- --------- -------- --------
Major service lines
ADW wagering 4,772 1,556 6,328
Race hosting 1,102 - 1,102
5,874 1,556 7,430
--------------------------------------- --------- -------- --------
Timing of revenue recognition
Services transferred at a point
in time 5,874 1,556 7,430
--------------------------------------- --------- -------- --------
Revenue from contracts with customers 5,874 1,556 7,430
--------------------------------------- --------- -------- --------
External revenue as reported
in Note 2 5,874 1,556 7,430
--------------------------------------- --------- -------- --------
Reportable segments
Racetrack ADW Total
Period to 30 November 2019 (unaudited) US$'000 US$'000 US$'000
--------------------------------------- --------- -------- --------
Primary geographic markets
North America 6,879 765 7,644
British Isles - 404 404
Asia Pacific - 12 12
Segment revenue 6,879 1,181 8,060
--------------------------------------- --------- -------- --------
Major service lines
ADW wagering 2,733 1,181 3,914
Race hosting 4,146 - 4,146
6,879 1,181 8,060
--------------------------------------- --------- -------- --------
Timing of revenue recognition
Services transferred at a point
in time 6,879 1,181 8,060
--------------------------------------- --------- -------- --------
Revenue from contracts with customers 6,879 1,181 8,060
--------------------------------------- --------- -------- --------
External revenue as reported
in Note 2 6,879 1,181 8,060
--------------------------------------- --------- -------- --------
4 Finance costs
Period to Period to
30 November 30 November
2020 2019
(unaudited) (unaudited)
US$'000 US$'000
--------------------------------- ------------ ------------
Loan interest payable (50) (31)
Lease liability interest payable (13) (10)
--------------------------------- ------------ ------------
Finance costs (63) (41)
--------------------------------- ------------ ------------
5 Income tax expense
(a) Current and Deferred Tax Expenses
The current and deferred tax expenses for the period were US$
Nil (2019: US$ Nil). Despite having made losses in the past, no
deferred tax was recognised as there is no reasonable expectation
that the Group will recover the resultant deferred tax assets.
(b) Tax Rate Reconciliation
Period to Period to
30 November 30 November
2020 2019
(unaudited) (unaudited)
US$'000 US$'000
------------------------------------------------------- ------------ ------------
Profit / (loss) before tax 721 (207)
Tax charge at IOM standard rate (0%) - -
Adjusted for:
Tax debit / (credit) for US tax profits / (losses)
(at 15%) 80 (65)
(Deduct) / add back deferred tax losses not recognised (80) 65
------------------------------------------------------- ------------ ------------
Tax charge for the period - -
------------------------------------------------------- ------------ ------------
The maximum deferred tax asset that could be recognised at
period end is approximately US$ 827,000 (2019: US$ 875,000). The
Group has not recognised any asset as it is not reasonably known
when the Group will recover such deferred tax assets.
6 Earnings per ordinary share
The calculation of the basic earnings per share is based on the
earnings attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the period.
The calculation of diluted earnings per share is based on the
basic earnings per share, adjusted to allow for the issue of
shares, on the assumed conversion of all dilutive share
options.
An adjustment for the dilutive effect of share options and
convertible debt in the previous period has not been reflected in
the calculation of the diluted loss per share, as the effect would
have been anti-dilutive.
Period to Period to
30 November 30 November
2020 2019
(unaudited) (unaudited)
US$'000 US$'000
---------------------------------------------------- ------------ --------------
Profit / (loss) for the period 721 (207)
---------------------------------------------------- ------------ ------------
No. No.
---------------------------------------------------- ----------- -------------
Weighted average number of ordinary shares in issue 393,338,310 393,338,310
Dilutive element of share options if exercised 14,000,000 14,000,000
---------------------------------------------------- ----------- -------------
Diluted number of ordinary shares 407,338,310 407,338,310
---------------------------------------------------- ----------- -------------
Basic earnings per share (cents) 0.18 (0.05)
---------------------------------------------------- ----------- -----------
Diluted earnings per share (cents) 0.18 (0.05)
---------------------------------------------------- ----------- -----------
The earnings applied are the same for both basic and diluted
earnings calculations per share as there are no dilutive effects to
be applied.
7 Intangible assets
Intangible assets include goodwill which relates to the
acquisition of the pari-mutuel business which is both a cash
generating unit and a reportable segment, including goodwill
arising on the acquisition in 2010 of WatchandWager.com LLC, a US
registered entity licenced for pari-mutuel wagering in North
Dakota.
The Group tests intangible assets annually for impairment, or
more frequently if there are indicators that the intangible assets
may be impaired. The goodwill balance was fully impaired in the
financial year ended 31 May 2015.
8 Cash, cash equivalents and restricted cash
Period to Year to
30 November 31 May
2020 2020
(unaudited) (audited)
US$'000 US$'000
------------------------------------------------- ------------- ----------
Cash and cash equivalents - company and other
funds 2,993 2,499
Restricted cash - protected player funds 1,497 1,470
Total cash, cash equivalents and restricted cash 4,490 3,969
------------------------------------------------- ------------- ----------
The Group holds funds for operational requirements and for its
non-Isle of Man customers, shown as 'company and other funds' and
on behalf of its Isle of Man regulated customers and certain USA
state customers, shown as 'protected player funds'.
Protected player funds are held in fully protected client
accounts within an Isle of Man regulated bank and in segregated
accounts within a USA regulated bank.
9 Loans, borrowings and lease liabilities
Current liabilities
Period to Year to
30 November 31 May
2020 2020
(unaudited) (audited)
US$'000 US$'000
------------------------------------ ------------- ----------
Unsecured loan (current portion) 6 5
Lease liabilities (current portion) 80 92
86 97
--------------------------------------- ------------- ----------
Non-current liabilities
Period to Year to
30 November 31 May
2020 2020
(unaudited) (audited)
US$'000 US$'000
---------------------------------------- ------------- ----------
Unsecured loan (non-current portion) 22 25
Lease liabilities (non-current portion) 290 292
Secured loans - Galloway Ltd 1,350 1,350
1,662 1,667
------------------------------------------- ------------- ----------
Terms and repayment schedule
Period to Year to
30 November 31 May
2020 2020
Nominal (unaudited) (audited)
interest Year of
rate maturity US$'000 US$'000
--------------------------- --- --- --- ---------- ----------- ------------- -----------
Unsecured loan 8.90% 2025 28 30
Lease liabilities 7.00-9.00% 2021-25 370 384
Secured loan - Galloway
Ltd 7.75% 2022 500 500
Secured loan - Galloway
Ltd 7.00% 2024 350 350
Secured loan - Galloway
Ltd 7.00% 2025 500 500
------------------------------------------ ---------- ----------- ------------- -----------
Total loans and borrowings 1,748 1,764
------------------------------------------ ---------- ----------- ------------- -----------
The loans from Galloway Ltd are secured over the unencumbered
assets of the Group.
10 Related party transactions
Identity of related parties
The Group has a related party relationship with its
subsidiaries, and with its Directors and executive officers and
with Burnbrae Ltd (significant shareholder).
Transactions with and between subsidiaries
Transactions with and between the subsidiaries in the Group
which have been eliminated on consolidation are considered to be
related party transactions.
Transactions with entities with significant influence over the
Group
Rental and service charges of US$ 22,041 (2019: US$ 5,205) and
Directors' fees of US$ 12,775 (2019: US$ 22,586) were charged in
the period by Burnbrae Ltd of which Denham Eke is a common
Director. The Group also had a loan of US$ 1,350,000 (2020: US$
1,350,000) from Galloway Ltd, a company related to Burnbrae Limited
by common ownership and Directors (see note 9).
Transactions with other related parties
There were no transactions with other related parties during the
period.
11 Subsequent events
There were no significant subsequent events identified after 30
November 2020.
12 Approval of interim statements
The interim statements were approved by the Board on 25 February
2021. The interim report is expected to be available for
shareholders on 26 February 2021 and will be available from that
date on the Group's website www.webisholdingsplc.com.
The Group's nominated adviser and broker is Beaumont Cornish
Limited, Building 3, Chiswick Park, 566 Chiswick High Road, London
W4 5YA.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR FLFIAFAISFIL
(END) Dow Jones Newswires
February 25, 2021 02:00 ET (07:00 GMT)
Webis (LSE:WEB)
Historical Stock Chart
From Feb 2024 to Mar 2024
Webis (LSE:WEB)
Historical Stock Chart
From Mar 2023 to Mar 2024