TIDMWEB
RNS Number : 3463C
Webis Holdings PLC
22 February 2022
Webis Holdings plc
Interim Report and Financial Statements for the period ended 30
November 2021
Webis Holdings plc (the "Group"), the global gaming operator,
today announces its unaudited interim results for the period ended
30 November 2021, extracts from which are set out below. The Report
is available on the Group'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 the Market Abuse Regulation (EU) No. 596/2014, as
it forms part of UK Domestic Law by virtue of the European Union
(Withdrawal) Act 2018. Upon the publication of this announcement,
this inside information is now considered to be in the public
domain.
For further information:
Webis Holdings plc Beaumont Cornish Limited
Denham Eke Roland Cornish/James Biddle
Tel: 01624 639396 Tel: 020 7628 3396
Group at a Glance
Webis Holdings plc and its subsidiary companies operates within
two primary segments: -
WatchandWager.com Ltd and WatchandWager.com LLC - Advanced
Deposit Wagering ("ADW")
WatchandWager.com LLC - Cal Expo Harness Racetrack
WatchandWager.com Ltd is regulated in the Isle of Man and
operates a totalisator wagering hub through its United States Tote
supplier, which enables it to conduct its ADW business by passing
wagers directly into global racetrack betting pools in real
time.
WatchandWager.com LLC has its operational base in Lexington,
Kentucky, with its head office in Larkspur, California, and
provides pari-mutuel wagering, or pool-betting, services through a
number of distribution channels to a global client base. The
company holds United States pari-mutuel licences for its ADW
business in the USA, including a multi-jurisdictional licence
issued by the States of North Dakota, and individual licences for
the States of California, Maryland, Colorado, Minnesota, New York,
Washington, West Virginia and Kentucky. The business provides
wagering opportunities predominantly on horse and greyhound racing
and has contracted with a significant number of prestigious
racetrack partners within the United States, Hong Kong, France,
Canada, United Kingdom, Ireland, and Australia amongst others. It
provides wagering facilities to customers through its interactive
website, watchandwager.com, as well as offering a
business-to-business wagering product.
WatchandWager.com LLC also operates Cal Expo Harness Racetrack
in Sacramento, California, under a licence issued by the California
Horse Racing Board. This 'bricks and mortar' presence in the
largest State economy in the USA continues to provide leverage for
our related global pari-mutuel operations.
As part of the requirements for the Isle of Man licence, client
funds for the Isle of Man licensed companies are held in fully
protected segregated client accounts within an Isle of Man
regulated bank.
Chairman's Statement
Introduction
Our principal subsidiary, WatchandWager.com ("WatchandWager"),
experienced a slight reduction in performance versus the same
period last year. That said, it should be noted that we continue to
trade well above our previous performance levels, with our handle
up by 52% versus the same period in 2018/19. In addition, the
business has a much wider scope both in terms of revenue levels and
strategic opportunities - more of below.
There are some key reasons for this minor downturn: mainly that
2020 and early 2021 months were a unique period for the Company and
indeed many online gaming operations. For almost the entire period,
we operated with either zero or highly restricted attendance at the
key racetracks with which we do business. Whilst this made our own
track somewhat harder to operate, it did assist our online and
mobile platforms as players continued to wager, albeit on a more
interactive basis. For the six months reported, these trends have
changed slightly, with increased competition for the leisure dollar
and certain increases in our cost base.
More positively, the Board is pleased with our continued
licensed position in the USA and California. During the period, we
continued to strengthen this for the benefit of shareholders.
Shareholders will note some very exciting developments in the
legislation of sports wagering in the United States and the
potential for that to be approved in California towards the end of
this year. This is a complex business and is commented upon in more
detail below. However, we do believe that WatchandWager remains
well positioned in California and indeed other States to maximize
our competitive advantage. As a result of this we continue to
review our strategic opportunities in the USA and California in
particular.
Half Year Results Review
Group amounts wagered were US$ 39.9 million, down 12% on prior
year (2020: US$ 45.4 million). Turnover reported was US$ 6.80
million (2020: US$ 7.43 million), with gross profit achieved of US$
2.18 million (2020: US$ 2.66 million). This resulted in a small
loss on the period of US$ 0.07 million (2020: profit of US$ 0.72
million).
Operating costs showed a small increase to US$ 2.22 million
(2020: US$ 2.17 million), arising from a general increase in
operating costs. Cash and cash equivalents stand at US$ 3.10
million (31 May 2021: US$ 3.24 million).
Operations Update
Business-to-consumer (B2C) - this division performed well over
the period and continues to do so. Most importantly, it now
contributes the majority of our gross margin as compared to the
more volatile business-to-business division. This is significant
because, as the Board is aware, there is no doubt that having a
strong B2C operation is our key to success and is also attractive
to other potential partners in the USA.
Comparing our key metrics versus the same period in 2020: handle
slightly reduced but active player numbers across the platform
remain stable versus prior year, and we were successful in
retaining many of our clients who were recruited during 2020. This
was achieved with a low-cost marketing budget which we deliberately
controlled in order to manage our cash flows.
We do believe that there is further scope for growth in this
sector, and this is commented on more under Outlook.
Business-to-business (B2B) - trading for this division performed
as expected. Over the past few years, this area has become
increasingly competitive in nature, and this continues to be the
case. Whilst we managed our high roller customer base effectively
with a view to maximizing our margin return, new business has been
hard to come by. This sector is very much a relationship business
where one-to-one contact with existing and new clients is very
important. This has obviously been impossible to achieve during the
COVID-19 pandemic. On top of that, we are seeing increased
competition in this sector with clients constantly attempting to
improve their margins at our expense and our content suppliers, and
indeed regulators, looking to improve their own revenue. Thus,
WatchandWager is effectively squeezed on both sides of the
equation, hence impacting our profitability. That said, we believe
there are still opportunities, especially within some of the more
niche markets that we offer. Assuming a more normal 2022 in terms
of relaxation of travel restrictions and industry events, the
Executive plan to use this opportunity to revitalize existing
business and search proactively for new business.
Cal Expo
During the period, we were forced to remain closed for live
operations as planned through the summer months. We again
benefitted from good levels of commissions from other existing
operations in California both on a land based and interactive
basis, and this remains a key part of the model.
In mid-November, we recommenced harness racing at Cal Expo in
Sacramento for our tenth season in a row, and we intend to race
until the end of April 2022. It has been a very difficult time to
run a live racing operation, and whilst we are now accepting
spectators at the track, unsurprisingly attendances have been low
due to concerns regarding the Omicron variant of COVID-19, which
will probably impact us through the rest of the season.
On a more positive note, the Board is pleased with the quality
of product being presented at Cal Expo, and we see no reason why we
cannot perform strongly to year end. Of course, our license in
California, both land-based and interactive, remain the key asset
to the company, and this is commented in more detail under
Strategy.
Licenses
During the period, we have concentrated on obtaining important
license applications and renewals. I am pleased to report that all
license applications were successfully renewed, and include the key
strategic states of California, New York and Kentucky, amongst
others. These licenses are all in good standing through the
entirety of 2022 and, in certain cases, beyond.
Compliance
There were no compliance issues reported to our various
regulators 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
Performance in the last two months has been steady. However,
seasonality impacts our content over the winter months with key
tracks closed and other tracks being abandoned due to unfavourable
weather conditions. This particularly affects our East Coast of the
USA business. Notwithstanding, we continue to trade well, and our
numbers track above our 2019/20 performance to date.
Initial performance at Cal Expo was hampered by poor weather and
an outbreak of equine flu on the facility. This impacts field sizes
and numbers of races which will transfer to lower handle. At time
of writing, I am pleased to say that equine illnesses have been
minimized and that we fully expect performance to improve into the
spring months as per previous year trends.
Overall, across all divisions, we expect an upturn in
performance in the spring of 2022, and we are very focused on
improving our handle and most importantly, our margin derived from
our activities and at the same time continuing to manage our cost
base.
Longer term
Existing operations
The Board remains optimistic regarding the current state of our
business. Most importantly, our B2C operations are now contributing
the vast majority of the margin derived from the business and we
see that area as our focus for existing operations. On that note,
the Executive are currently preparing detailed software
development, payment processing, marketing and regulatory expansion
plans for our core website. These four factors underpin a
successful USA licensed online wagering site. There is, however, an
obvious cost to all four of these items, some of which can be
financed through existing cash flows. This investment is critical
to the future growth of the business and indeed our market
valuation. The Board will keep shareholders fully informed of any
decisions to invest in the current wagering platform.
In relation to Cal Expo, shareholders are aware that we hold the
exclusive lease to the racetrack until May 2025. We have also an
option to extend that lease for another five years until May 2030.
Our Executive are currently in negotiations with the Cal Expo Board
who represent the State of California to further extend this
option. As noted, we see our extended lease as a key asset to the
company and will be making an announcement in due course.
USA Expanded Gaming
California
At time of writing, there are at least four different draft
bills that could go in front of Californian voters during the
Ballot season in November of 2022. Two are draft Native American
sponsored bills which are, unfortunately, protective in nature. On
a more positive note, the other two potential bills are being
worked on by key participants of the gaming industry of California.
These bills are much more progressive in nature and will allow for
the ability to offer mobile wagering as well as land-based
facilities. These will dramatically increase revenues back to the
State of California and, of course, provide equally important
land-based and remote-based job opportunities in the State. Figures
coming out of New Jersey and New York, which recently legalized
mobile wagering, confirm our projections for rapid growth in this
area. At present, we are fully engaged with our lobbyists in
Sacramento to make legislatures understand the benefits of a truly
democratic and competitive marketplace for sports wagering in
California to the benefit of all stakeholders.
Strategic options
Observers will be aware that the USA continues to be the land of
opportunity in our sector, particularly as other markets suffer
from oversaturation and legislative problems, particularly in the
UK and Europe. The level of expenditure from existing and new
operators in the USA has hit unprecedented heights as they all
fight for customer acquisition and dominant market share. This
strategy is risky and, for us, above our available cash flows. We
are, however, fully aware of our unique position, and we continue
to be in discussions with potential partners in order for us to
leverage the kind of scalability required to succeed in the core
USA markets.
Having sought external advice from venture capital firms and
indeed specialty gaming advisers, we continue to consider ourselves
to be undervalued on our metrics and, indeed, our potential growth
opportunity in the USA. We remain open to discussion with potential
partners and will keep shareholders fully informed of developments
in this matter.
In the meantime, we would continue to thank our staff,
participants and shareholders for their on-going support for our
business.
Denham Eke
Non-executive Chairman
21 February 2022
Condensed Consolidated Statement of Comprehensive Income
For the period ended 30 November 2021
Period to
30 November
Period to 2020
30 November
2021 (unaudited) (unaudited)
Note US$000 US$000
------------------------------------------------ ----- ------------------- --------------
Amounts wagered 39,849 45,391
------------------------------------------------ ----- ------------------- --------------
Turnover 3 6,795 7,430
Cost of sales (4,566) (4,713)
Betting duty paid (53) (60)
------------------------------------------------ ----- ------------------- --------------
Gross profit 2,176 2,657
------------------------------------------------ ----- ------------------- --------------
Operating costs (2,220) (2,172)
Other losses (3) (7)
------------------------------------------------ ----- ------------------- --------------
Government grants 1.5 - 272
Other income 39 34
Operating (loss) / profit (8) 784
------------------------------------------------ ----- ------------------- --------------
Finance costs 4 (62) (63)
------------------------------------------------ ----- ------------------- --------------
(Loss) / profit before income tax (70) 721
------------------------------------------------ ----- ------------------- --------------
Income tax expense 5 - -
------------------------------------------------ ----- ------------------- --------------
(Loss) / profit for the period (70) 721
------------------------------------------------ ----- ------------------- --------------
Other comprehensive income for the period - -
------------------------------------------------ ----- ------------------- --------------
Total comprehensive (loss) / profit for the
period (70) 721
------------------------------------------------ ----- ------------------- --------------
Basic and diluted earnings per share for (loss)
/ profit attributable to the equity holders
of the Company during the period (cents) 6 (0.02) 0.18
------------------------------------------------ ----- ------------------- --------------
Condensed Consolidated Statement of Financial Position
As at 30 November 2021
As at Year ended
30 November 2021 31 May 2021
(unaudited) (audited)
Note US$000 US$000
------------------------------------------- ----- ------------------- --------------
Non-current assets
Intangible assets 7 8 12
Property, equipment and motor vehicles 392 380
Bonds and deposits 101 101
------------------------------------------- ----- ------------------- --------------
Total non-current assets 501 493
------------------------------------------- ----- ------------------- --------------
Current assets
Bonds and deposits 882 882
Trade and other receivables 1,420 1,896
Cash, cash equivalents and restricted cash 8 4,193 5,083
------------------------------------------- ----- ------------------- --------------
Total current assets 6,495 7,861
------------------------------------------- ----- ------------------- --------------
Total assets 6,996 8,354
------------------------------------------- ----- ------------------- --------------
Equity
Called up share capital 6,334 6,334
Share option reserve 42 42
Retained losses (4,754) (4,684)
------------------------------------------- ----- ------------------- --------------
Total equity 1,6 22 1,692
------------------------------------------- ----- ------------------- --------------
Current liabilities
Trade and other payables 3,659 4,995
Loans, borrowings and lease liabilities 9 611 572
------------------------------------------- ----- ------------------- --------------
Total current liabilities 4,270 5,567
------------------------------------------- ----- ------------------- --------------
Non-current liabilities
Loans, borrowings and lease liabilities 9 1,104 1,095
Total non-current liabilities 1,104 1,095
------------------------------------------- ----- ------------------- --------------
Total liabilities 5,374 6,662
------------------------------------------- ----- ------------------- --------------
Total equity and liabilities 6,996 8,354
------------------------------------------- ----- ------------------- --------------
Condensed Consolidated Statement of Changes in Equity
For the period ended 30 November 2021
Called up Share option Retained Total
share capital reserve earnings equity
US$000 US$000 US$000 US$000
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
---------------------------- --------------- ------------- ---------- --------
Balance as at 31 May 2021
(audited) 6,334 42 (4,684) 1,692
Total comprehensive income
for the period:
Loss for the period - - (70) (70)
Transactions with owners:
Share-based payment expense - - - -
Balance as at 30 November
2021 (unaudited) 6,334 42 (4,754) 1,622
---------------------------- ----- ------- -----
Condensed Consolidated Statement of Cash Flows
For the period ended 30 November 2021
Period to Period to
30 November 30 November
2021 2020
(unaudited) (unaudited)
Note US$000 US$000
------------------------------------------------- ---- ------------- --------------
Cash flows from operating activities
(Loss) / profit before income tax (70) 721
Adjustments for:
* Depreciation 49 40
* Amortisation of intangible assets 4 21
* Rent concession received - (5)
* Finance costs 4 62 63
* Government grant utilised - (272)
* Other foreign exchange movements (5) 107
Changes in working capital:
* Decrease in receivables 476 171
* Decrease in payables (1,336) (144)
Cash flows (used in) / generated from operations (820) 702
Bonds and deposits utilised in the course
of operations - -
Net cash (used in) / generated from operating
activities (820) 702
------------------------------------------------- ---- ------------- --------------
Cash flows from investing activities
Purchase of intangible assets - -
Purchase of property, equipment and motor
vehicles - -
Net cash used in investing activities - -
------------------------------------------------- ---- ------------- --------------
Cash flows from financing activities
Interest paid 4 (62) (63)
Payment of lease liabilities (21) (21)
Repayment of loans and borrowings (3) (3)
Increase in loans, borrowings and lease
liabilities 13 13
Net cash used in financing activities (73) (74)
------------------------------------------------- ---- ------------- --------------
Net increase in cash and cash equivalents (893) 628
Cash and cash equivalents at beginning of
year 3,238 2,499
Exchange gains / (losses) on cash and cash
equivalents 3 (107)
Change in restricted cash balances 752 (27)
------------------------------------------------- ---- ------------- --------------
Cash and cash equivalents at end of period 3,100 2,993
------------------------------------------------- ---- ------------- --------------
Notes to the Unaudited Condensed Consolidated Interim Financial
Statements
For the period ended 30 November 2021
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 2021
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 2021 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
2021.
The unaudited condensed consolidated financial statements do not
constitute statutory financial statements. The statutory financial
statements for the year ended 31 May 2021, 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 2021 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 2021, 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, as the horseracing industry continued to operate
during the coronavirus pandemic, which assisted the Group in
improving profitability in 2020/21, and not withstanding the losses
incurred in the current interim period, this overall improved
performance has led to a more positive cash flow position and has
increased the Group operational cash.
Based on the above, 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 2021 (unaudited) US$000 US$000 US$000 US$000
---------------------------------------- ----------- -------- ---------- -------
External revenues 5,530 1,265 - 6,795
Segment revenue 5,530 1,265 - 6,795
---------------------------------------- ----------- -------- ---------- -------
Segment profit / (loss) before
tax 155 (155) (70) (70)
Finance costs (10) (3) (49) (62)
Depreciation and amortisation (29) (22) (2) (53)
Period to 30 November 2021 (unaudited)
---------------------------------------- ----------- -------- ---------- -------
Segment assets 2,005 3,553 1,438 6,996
---------------------------------------- ----------- -------- ---------- -------
Segment liabilities 1,106 2,833 1,435 5,374
---------------------------------------- ----------- -------- ---------- -------
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 31 May 2021 (audited)
--------------------------------------- ----------- -------- ---------- -------
Segment assets 2,138 3,915 2,301 8,354
--------------------------------------- ----------- -------- ---------- -------
Segment liabilities 1,409 3,812 1,441 6,662
--------------------------------------- ----------- -------- ---------- -------
C. Reconciliation of reportable segments profit or loss
Period to Period to
30 November 30 November
2021 2020
(unaudited) (unaudited)
US$000 US$000
------------------------------------------------ ------------ ------------
(Loss) / profit before tax
Total (loss) / profit before tax for reportable
segments - 667
(Loss) / profit before tax for other segments (70) 54
------------------------------------------------ ------------ ------------
Consolidated (loss) / profit before tax (70) 721
------------------------------------------------ ------------ ------------
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 2021 (unaudited) US$000 US$000 US$000
--------------------------------------- --------- ------- -------
Primary geographic markets
North America 5,530 969 6,499
British Isles - 296 296
Segment revenue 5,530 1,265 6,795
--------------------------------------- --------- ------- -------
Major service lines
ADW wagering 4,116 1,265 5,381
Race hosting 1,414 - 1,414
5,530 1,265 6,795
--------------------------------------- --------- ------- -------
Timing of revenue recognition
Services transferred at a point
in time 5,530 1,265 6,795
--------------------------------------- --------- ------- -------
Revenue from contracts with customers 5,530 1,265 6,795
--------------------------------------- --------- ------- -------
External revenue as reported
in Note 2 5,530 1,265 6,795
--------------------------------------- --------- ------- -------
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
--------------------------------------- --------- ------- -------
4 Finance costs
Period to Period to
30 November
30 November 2021 2020
(unaudited) (unaudited)
US$000 US$000
--------------------------------- ----------------- ------------
Loan interest payable (50) (50)
Lease liability interest payable (12) (13)
--------------------------------- ----------------- ------------
Finance costs (62) (63)
--------------------------------- ----------------- ------------
5 Income tax expense
(a) Current and Deferred Tax Expenses
The current and deferred tax expenses for the period were US$
Nil (2020: 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
2021 2020
(unaudited) (unaudited)
US$000 US$000
------------------------------------------------------- ------------ ------------
(Loss) / profit before tax (70) 721
Tax charge at IOM standard rate (0%) - -
Adjusted for:
Tax (credit) / debit for US tax (losses) / profits
(at 15%) (17) 80
Add back / (deduct) deferred tax losses not recognised 17 (80)
------------------------------------------------------- ------------ ------------
Tax charge for the period - -
------------------------------------------------------- ------------ ------------
The maximum deferred tax asset that could be recognised at
period end is approximately US$840,000 (2020: US$827,000). 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
2021 2020
(unaudited) (unaudited)
US$000 US$000
------------------------------- ------------ --------------
(Loss) / profit for the period (70) 721
------------------------------- ------------ ------------
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) (0.02) 0.18
----------------------------------------------- ----------- -----------
Diluted earnings per share (cents) (0.02) 0.18
----------------------------------------------- ----------- -----------
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 ended
30 November 2021 31 May 2021
(unaudited) (audited)
US$000 US$000
------------------------------------------------- ------------------ ------------
Cash and cash equivalents - company and other
funds 3,100 3,238
Restricted cash - protected player funds 1,093 1,845
Total cash, cash equivalents and restricted cash 4,193 5,083
------------------------------------------------- ------------------ ------------
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 ended
30 November 2021 31 May 2021
(unaudited) (audited)
US$000 US$000
------------------------------------ --- ------------------ ------------
Unsecured loan (current portion) 6 6
Lease liabilities (current portion) 105 66
Secured loans - Galloway Ltd 500 500
611 572
---------------------------------------- ------------------ ------------
Non-current liabilities
Period to Year ended
30 November 2021 31 May 2021
(unaudited) (audited)
US$000 US$000
---------------------------------------- --- ------------------ ------------
Unsecured loan (non-current portion) 16 19
Lease liabilities (non-current portion) 238 226
Secured loans - Galloway Ltd 850 850
1,104 1,095
-------------------------------------------- ------------------ ------------
Terms and repayment schedule
Period to Year ended
30 November 31 May
2021 2021
Nominal (unaudited) (audited)
interest Year of US$000
rate maturity US$000
--------------------------- ---- ---- ---------- ----------- -------------- -----------
Unsecured loan 8.90% 2025 22 25
Lease liabilities 6.00-7.00% 2023-25 343 292
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 1,715 1,667
--------------------------------------- ---------- ----------- -------------- -----------
The secured 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$23,868 (2020: US$22,041) and
Directors' fees of US$13,834 (2020: US$12,775) 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 (31 May 2021:
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 2021.
12 Approval of interim statements
The interim statements were approved by the Board on 21 February
2022. The interim report is expected to be available for
shareholders on 22 February 2022 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.
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END
IR PPUCWPUPPGBG
(END) Dow Jones Newswires
February 22, 2022 02:00 ET (07:00 GMT)
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