Last checked at 2 Feb 2012 10:09
FOR IMMEDIATE RELEASE
02 February 2012
WEBIS HOLDINGS PLC
("the Company" or "the Group")
INTERIM RESULTS FOR THE PERIOD ENDED 27 NOVEMBER 2011
Webis Holdings plc, the global on-line gaming group, today announces its interim results for the period ended 27 November 2011.
SUMMARY:
·; | Loss for the period of £138,000 (2010: profit of £162,000)
|
·; | Group turnover of £53.5 million (2010: £55.6 million)
|
·; | betinternet sportsbook turnover of £39.0 million (2010: £36.2 million)
|
·; | European Wagering Services' turnover of £14.5 million (2010: £19.5 million)
|
·; | Gross profit of £1.36 million (2010: £1.62 million); gross margin of 2.54% (2010: 2.92%)
|
·; | EBITDA loss of £(17,000) (2010: £301,000 profit)
|
Commenting on the results, Denham Eke, Chairman of Webis Holdings plc, said:
"betinternet.com has seen sustained turnover growth in its fixed-odds betting business, particularly in the Asia Pacific region, both throughout this period and into the start of the new football season. Activity levels in betinternet's casino and games offerings decreased due to a fall in high-roller activity, which continues to be affected by the global economic climate. We are now taking action with a view to stimulating an increase in activity levels during the second half of the year.
European Wagering Services resolved its payment issues in the early part of the year with the introduction of a new secure solution and we are looking to provide further back up in the second half. These developments, coupled with small increases in United States domestic and international content and renewed promotion to our database of current and past customers, have produced an improved performance during the latter part of the period."
ENDS
For further information:
Webis Holdings plc | Tel: 01624 698141 |
Garry Knowles, Managing Director Damon Waddington, Finance Director
| |
Evolution Securities | Tel: 0113 243 1619 |
Joanne Lake/Peter Steel |
Notes to editors:
The following are attached:
1. | Chairman's statement |
2. | Consolidated Statement of Comprehensive Income |
3. | Consolidated Statement of Financial Position |
4. | Consolidated Statement of Changes in Shareholders' Equity |
5. | Consolidated Statement of Cash Flows |
6. | Notes to the Accounts. |
N.B. Pari-mutuel (or "tote" ) wagering refers to wagering into a "pool" where dividends are paid to winners and the operator retains a percentage of the "pool". "In-Running" refers to wagering whilst an event is in progress.
Introduction
The results for the six months ended 29 November 2011 show the Group recorded a loss at EBITDA level of £17k for the period (2010: £301k profit). The Group's pari-mutuel platform, European Wagering Services Limited ("EWS"), has had a particularly challenging period but improved over the latter part to record an EBITDA profit of £53k (2010: £27k EBITDA loss). The Group's sportsbook operation, betinternet.com (IOM) Limited ("betinternet"), incurred an EBITDA loss of £70k (2010: EBITDA profit of £274k). Group turnover remained broadly unchanged at £53.5m (2010: £55.6m). The Group recorded an operating loss of £138k (2010: £162k profit).
betinternet
Although there was no major football tournament last summer, betinternet has seen sustained turnover growth, particularly in the Asia Pacific region, within its fixed-odds betting business throughout this period and into the start of the new football season. Turnover on its fixed odds business increased by 28% to £18,025k (2010: £14,040k). This growth has been driven by continuing to increase betinternet's product and content offering, which commenced during the second half of the last financial year. It is anticipated that further growth can be achieved in the second half of the year with the introduction of In Play Asian Handicaps as well as other attractive markets.
As previously notified, activity levels within betinternet's casino and games decreased. This was due to a lack of high-roller activity, which continues to be impacted by the global economic climate and a declining margin. We are now in the process of taking appropriate action by allocating funds to marketing measures such as customer bonuses and promotions, with a view to stimulating an increase in activity levels during the second half of the year.
EWS
It has been a difficult trading period for EWS due to the previously documented issues with customer payment processing and declining turnover from its B2B division. For these reasons, EWS turnover has decreased by 25% to £14.5m (2010: £19.5m) but gross margin has improved to 3.8% (2010: 2.9%). We have now stabilised our payment issues with the introduction of a new secure solution during the early part of this year, and we will look to provide further back up solutions in the second half. These developments, coupled with small increases in United States domestic and international content and renewed promotion to our existing database, produced an improved performance during the latter part of the period. EWS has been able to increase its active customers by 28% from July 2011's low point and we expect this trend to continue as customers return to the website.
We continue our efforts to provide additional racetrack content and we have signed several new racetrack contracts during the period. To assist with this process of obtaining additional racetrack content we commissioned the Thoroughbred Racing Protective Bureau ("TRPB") to update its report on EWS. We expect this report to be issued during the first quarter of 2012.
During the period, we completed the migration of our Hub Operations facility to our contracted Tote providers, AmTote in Maryland, USA. This resulted in some cost savings in our Isle of Man operation and is part of our strategy to outsource more of our technical development to specialists within the e-gaming and pari-mutuel space.
Overview of Results
Group turnover has reduced to £53.5m (2010: £55.6m) during the period under review, primarily due to a significant drop in EWS' turnover to £14.5m (2010: £19.5). betinternet's turnover has increased by 8% to £39.0m, (2010: £36.1m), as a result of the additional content which has been added to the site and has proved popular in our Asia Pacific markets.
Group gross margins were 2.54% (2010: 2.92%), generating gross profit of £1.36m (2010: £1.60m). betinternet gross margin was 2.1% (2010: 2.9%), with a gross profit of £813k (2010: £1064k). The reduction in gross margin is attributable to a reduction in margin on games and casinos and a fall in the sports betting margin due to there being no major summer football tournament. EWS' gross margin improved to 3.8% (2010: 2.9%), generating a gross profit of £0.55m (2010: £0.56m), primarily as a result of the stabilisation of customer payment processing issues during the period.
Administration expenses have increased by 4.5% to £1.38m (2010: £1.32m), primarily as a result of increased expenditure on betinternet for the cost of data feeds that drive our In Play content.
Funding
In July 2011, in order to comply with Isle of Man legislation, the Group deposited £1,130k in designated client bank accounts. This was part funded via a short term loan facility from Burnbrae Limited on standard commercial terms.
Summary and outlook
betinternet will continue to make further enhancements to its In Play content. In particular, significant progress has been made during the latter part of the calendar year on In Play Asian Handicap content and these markets went live on the website in December 2011. We anticipate that these additional markets will drive further growth in sports betting during the second half of the year.
We are now implementing a program of further design enhancements for the betinternet website and the majority of these should be implemented during the second half. These include a new payments page and continued improvements to the look and feel, all with the purpose of improving the customer experience. betinternet has also recently enhanced its horse racing product with the addition of full race silks and runner information, which went live in December 2011.
The improvement in EWS' performance during the latter part of the first half has been maintained over recent weeks. The Board is also pleased to announce that EWS has now been approved by the US Embassy in London for E2 Treaty Trader Visa Status in the US. This three year approval on the back of "substantial investment in the US", grants the ability for the operation to transfer employees to its US subsidiary, WatchandWager LLC, as appropriate. Following this approval, Ed Comins, Pari-mutuel Operations Director has now relocated to the WatchandWager offices in San Francisco, to oversee implementation of our US strategy.
The Board remains committed to its US development, sales and marketing strategy. The key challenges remain the provision of further US facing payment processing facilities and progress in this area will most likely be enhanced by its US presence. Recruitment of domestic US thoroughbred and other international content remains another key priority, albeit it should be noted that many of the key US thoroughbred track and media groups are becoming increasingly protective towards awarding their simulcast (wagering) rights in the current market. This is a potential barrier to entry although it is expected that the updated TRPB report on our business will assist with this. An additional part of our plans will be to outsource further elements of our technology platform to proven operators within the US wagering market and this is expected to be fully completed by mid-2012.
Finally the Board welcomes the recent (23 December 2011) US Department of Justice announcement regarding its position in relation to the Wire Act in the US. As an existing licensed operator and first mover within the US, we will be monitoring the impact of this development on e-gaming in the US on a State and Federal level through the year.
Denham Eke
Chairman
1st February 2012
Webis Holdings plc
Consolidated Statement of Comprehensive Income
for the period ended 27 November 2011
Note | Period to 27 November 2011 (unaudited) £000
| Period to 28 November 2010 (unaudited) £000
| Period to 29 May 2011 (audited) £000
| |
Turnover | 2 | 53,474 | 55,611 | 105,546 |
Cost of sales | (52,101) | (53,970) | (102,470) | |
Betting duty paid | (15) | (19) | (36) | |
----------
| ----------
| ----------
| ||
Gross profit | 1,358 | 1,622 | 3,040 | |
Administration expenses | (1,375) | (1,321) | (2,891) | |
--------- | ---------- | ---------- | ||
Earnings before interest, tax, depreciation and amortisation
|
(17)
|
301
|
149 | |
Depreciation and amortisation | (104) | (125) | (248) | |
Share-based costs | 3 | - | (5) | (9) |
----------
| ----------
| ----------
| ||
Total operating (loss) / profit | (121) | 171
| (108)
| |
Net finance cost | 4 | (17)
| (9)
| (2)
|
Taxation | 5 | - | - | - |
----------
| ----------
| ----------
| ||
(Loss) / profit for the period | (138) | 162 | (110) | |
----------
| ----------
| ----------
| ||
Basic (loss) / profit per share (pence) | 6
| (0.06)
| 0.08
| (0.05)
|
Diluted (loss) / profit per share (pence) | 6 | (0.06) | 0.07 | (0.05) |
The accompanying notes to this announcement form an integral part of these consolidated interim financial statements.
Consolidated Statement of Financial Position
As at 27 November 2011
Note |
27 November 2011 (unaudited) £000
|
28 November 2010 (unaudited) £000
|
29 May 2011 (audited) £000
| |
Non-current assets | ||||
Intangible assets - Goodwill | 7 | 111 | 111 | 111 |
Intangible assets - Software, Website development and Trademarks | 215 | 272 | 231 | |
Property and equipment | 18 | 48 | 34 | |
---------- | ---------- | ---------- | ||
344 | 431 | 376 | ||
---------- | ---------- | ---------- | ||
Current assets | ||||
Receivables and prepayments | 811 | 975 | 838 | |
Cash and cash equivalents | 2,196 | 997 | 1,470 | |
---------- | ---------- | ---------- | ||
3,007 | 1,972 | 2,308 | ||
---------- | ---------- | ---------- | ||
Total assets | 3,351 | 2,403 | 2,684
| |
Current liabilities | ||||
Trade and other payables |
(2,854) |
(1,556) |
(2,049) | |
Convertible loan note | 8 | - | (300) | - |
---------- | ---------- | ---------- | ||
Total current liabilities | (2,854) | (1,856) | (2,049) | |
---------- | ---------- | ---------- | ||
Net assets | 497 | 547 | 635 | |
----------
| ----------
| ----------
| ||
Shareholders' equity | ||||
Called up share capital | 2,302 | 2,068 | 2,302 | |
Share premium | 10,049 | 9,927 | 10,049 | |
Share option reserve | 116 | 112 | 116 | |
Profit and loss account | (11,970) | (11,560) | (11,832) | |
---------- | ---------- | ---------- | ||
Total shareholders' equity |
497 |
547 |
635 | |
---------- | ---------- | ---------- |
The accompanying notes to this announcement form an integral part of these consolidated interim financial statements.
Consolidated Statement of Changes in Shareholders' Equity
for the period ended 27 November 2011
Ordinary share capital £000
|
Share premium £000
| Share option reserve £000
| Profit and loss account £000
|
Total equity £000
| |
Balance as at 30 May 2010 (audited) | 2,068 | 9,927 | 107 | (11,722) | 380 |
Total comprehensive profit for the period | - | - | - | 162 | 162 |
Transactions with owners: | |||||
Share-based payment expense | - | - | 5 | - | 5 |
---------- | ---------- | ---------- | ---------- | ---------- | |
Balance as at 28 November 2010 (unaudited) | 2,068 | 9,927 | 112 | (11,560) | 547
|
Total comprehensive loss for the period | - | - | - | (272) | (272) |
Transactions with owners: | |||||
Arising on shares issued in the year | 234 | 122 | - | - | 356 |
Share-based payment expense | - | - | 4 | - | 4 |
---------- | ---------- | ---------- | ---------- | ---------- | |
Balance as at 29 May 2011 (audited) | 2,302 | 10,049 | 116 | (11,832) | 635
|
Total comprehensive loss for the period | - | - | - | (138) | (138) |
Transactions with owners: | |||||
Share-based payment expense | - | - | - | - | - |
---------- | ---------- | ---------- | ---------- | ---------- | |
Balance as at 27 November 2011 (unaudited) | 2,302 | 10,049 | 116 | (11,970) | 497 |
---------- | ---------- | ---------- | ---------- | ---------- |
The accompanying notes to this announcement form an integral part of these consolidated interim financial statements.
Consolidated Statement of Cash Flows
for the period ended 27 November 2011
| Period to 27 November 2011 (unaudited) £000
| Period to 28 November 2010 (unaudited) £000
| Period to 29 May 2011
(audited) £000
| |
Net cash inflow from operating activities
| 815 | 429 | 607 | |
Cash flows from investing activities | ||||
Interest received | 3 | - | - | |
Purchase of intangible assets | (72) | (53) | (183) | |
Purchase of property and equipment | - | (6) | (12) | |
Acquisition of investment | - | (68) | - | |
---------- | ---------- | ---------- | ||
Net cash outflow from investing activities | (69)
| (127)
| (195)
| |
Cash flows from financing activities | ||||
Interest paid | (20) | (9) | (2) | |
Issue of equity shares | - | - | 356 | |
---------- | ---------- | ---------- | ||
Net cash (outflow) / inflow from financing activities | (20) | (9) | 354 | |
Net increase in cash and cash equivalents | 726 | 293 | 766 | |
Cash and cash equivalents at beginning of period | 1,470 | 704 | 704 | |
Net cash and cash equivalents at end of period | ---------- 2,196 | ---------- 997 | ---------- 1,470 | |
---------- | ---------- | ---------- | ||
Cash and cash equivalents comprise | ||||
Cash and deposits | 2,196 | 997 | 1,470 | |
---------- | ---------- | ---------- | ||
2,196 | 997 | 1,470 | ||
---------- | ---------- | ---------- | ||
Cash generated from operations | ||||
(Loss) / profit from operations | (121) | 171 | (108) | |
Adjusted for: | ||||
Depreciation | 104 | 125 | 248 | |
Share-based payment cost | - | 5 | 9 | |
Decrease / (increase) in receivables | 27 | (141) | (4) | |
Increase in payables | 805 | 269 | 462 | |
---------- | ---------- | ---------- | ||
815 | 429 | 607 | ||
---------- | ---------- | ---------- |
The accompanying notes to this announcement form an integral part of these consolidated interim financial statements.
Notes to the accounts
for the period ended 27 November 2011
1 | Accounting policies | ||||||||||||||
Webis Holdings plc 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 Group's consolidated financial statements consolidate those of the Company and its subsidiaries (together referred to as "the Group").
| |||||||||||||||
Statement of compliance | |||||||||||||||
The consolidated interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting". They do not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group as at and for the period ended 29 May 2011.
| |||||||||||||||
Basis of preparation | |||||||||||||||
The preparation of interim financial statements in conformity with IAS 34 "Interim Financial Reporting" requires management to make judgements, estimates and assumptions that effect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience, current and expected economic conditions, and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
| |||||||||||||||
Going concern | |||||||||||||||
The Directors have prepared projected cash flow information for the next 18 months and are satisfied that the Group has adequate resources to meets its obligations as they fall due. The Directors consider that it is appropriate that these interim financial statements are prepared on the going concern basis.
| |||||||||||||||
Basis of consolidation | |||||||||||||||
(i) The consolidated financial statements incorporate the results of Webis Holdings plc and its subsidiaries. Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control, and continue until the date that such control ceases.
(ii) Intragroup balances and income and expenses arising from intragroup transactions, are eliminated in preparing the consolidated interim financial statements.
| |||||||||||||||
Foreign currency | |||||||||||||||
The Group's financial statements are presented in Pounds Sterling, which is the Company's functional and presentational currency. All subsidiaries of the Group have Pounds Sterling as their functional currency.
Foreign currency transactions are translated into the functional currency using the approximate exchange rate prevailing at the dates of transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at the period end exchange rate of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.
| |||||||||||||||
Revenue recognition and turnover | |||||||||||||||
Turnover represents the amounts staked in respect of bets placed by customers on events which occurred during the period. Cost of sales represents payouts to customers, together with commissions and royalties payable to agents and suppliers of software. Open betting positions are carried at open market value.
| |||||||||||||||
Segmental reporting | |||||||||||||||
Segmental reporting is based on the business areas in accordance with the Group's internal reporting structure. As of 1 June 2009 the Group determines and presents segments based on the information that internally is provided to the CEO, the Group's chief operating decision maker. This change in accounting policy is due to the adoption of IFRS 8 Operating Segments. Previously operating segments were determined and presented in accordance with IAS 14 Segment reporting.
An operating segment is a component of the Group and engages in business activities from which it may earn revenues and incur expenses. An operating segment's operating results are reviewed regularly by the CEO to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available
| |||||||||||||||
Financing costs | |||||||||||||||
Interest payable on borrowings is calculated using the effective interest rate method.
| |||||||||||||||
Deferred income tax | |||||||||||||||
Deferred taxation is provided in full, using the liability method, on timing differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax is realised. Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.
| |||||||||||||||
Intangible assets - Goodwill | |||||||||||||||
Goodwill represents the excess of fair value consideration over the fair value of the identifiable assets and liabilities acquired, arising on the acquisition of subsidiaries. Goodwill is included in non-current assets. Goodwill is reviewed annually for impairment and is carried at costs less accumulated impairment losses. Goodwill arising on acquisitions before the transition date of 29 May 2006 has been retained at the value at that date and is no longer amortised but is tested annually for impairment.
| |||||||||||||||
Intangible assets - Other | |||||||||||||||
Other intangible assets comprise website design and development costs and software licences and Trademarks and are stated at acquisition cost less accumulated amortisation. Carrying amounts are reviewed at each balance sheet date for impairment.
Costs that are directly attributable to the development of websites are recognised as intangible assets provided that the intangible asset will generate probable economic benefits and income streams through external use in line with SIC 32 "Intangible assets-website costs". Content development and operating costs are expensed as incurred.
Careful judgement by the Directors is applied when deciding whether recognition requirements for development costs have been met and whether the assets will generate probable future economic benefit. Amortisation is calculated using the straight line method, at annual rates estimated to write off the assets over their expected useful lives as follows:
| |||||||||||||||
Property and equipment | |||||||||||||||
Items of property and equipment are stated at historical cost less accumulated depreciation (see below) and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the balance sheet date. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Assets are depreciated over their expected useful lives as follows:
| |||||||||||||||
Impairment of assets | |||||||||||||||
Goodwill arising on acquisitions and other assets that have an indefinite useful life and are not subject to amortisation are reviewed at least annually for impairment. Other intangible assets, property and equipment are reviewed for impairment whenever there is an indication that the carrying amount of the asset may not be recoverable. If the recoverable amount of an asset is less than its carrying amount, an impairment loss is recognised. Recoverable amount is the higher of fair value less costs to sell and value in use. If at the Balance Sheet date there is any indication that an impairment loss is recognised in prior periods for an asset other than goodwill that no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.
| |||||||||||||||
Share based payments | |||||||||||||||
For all the employee share options granted after 7 November 2002 and vesting on or after 29 May 2006, an expense is recognised in the income statement with a corresponding credit to equity. The equity share based payment is measured at fair value at the date of the grant. Fair value is determined by reference to option pricing models, principally the Black-Scholes model.
If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest.
| |||||||||||||||
Leasing | |||||||||||||||
Payments made under operating leases are charged to the income statement on a straight line basis over the period of the lease.
| |||||||||||||||
Equity | |||||||||||||||
Share capital is determined using the nominal value of shares that have been issued.
The share premium account includes any premiums received on the initial issuing of the share capital. Any transaction costs associated with the issuing of shares are deducted from the premium paid.
Equity settled share-based employee remuneration is credited to the share option reserve until related stock options are exercised. On exercise or lapse, amounts recognised in the share option reserve are taken to retained earnings.
Retained earnings include all current and prior period results as determined in the income statement and any other gains or losses recognised in the Statement of Changes in Shareholders' Equity.
| |||||||||||||||
Financial instruments | |||||||||||||||
Non-derivative financial instruments include trade and other receivables, cash and cash equivalents, loans and borrowings and trade and other payables. Ante-post sports bets are recognised when the Company becomes party to the contractual agreements of the instrument.
Financial assets and financial liabilities are recognised on the Group's balance sheet when the Group becomes party to the contractual terms of the instrument. Transaction costs are included in the initial measurement of financial instruments, except financial instruments classified as at fair value through profit and loss. The subsequent measurement of financial instruments is dealt with below.
Trade and other receivables Trade and other receivables do not carry any interest and are stated at their nominal amounts as reduced to equal the estimated present value of the future cash flows.
Cash and cash equivalents Cash and cash equivalents defined as cash at bank and in hand as well as bank deposits and money held for processors. Cash and cash equivalents are held for the purpose of meeting short term cash commitments rather than for investment or other purposes.
Bank borrowings Interest bearing bank borrowings and overdrafts are recorded at the proceeds received net of direct issue costs. Finance charges, including premiums payable on settlement or redemption and direct issue costs are charged on an accrual basis using the effective interest method and are added to the carrying amount of the instrument to the extent they are not settled in the period in which they arise.
Trade and other payables Trade payables are non-interest bearing and are stated at amortised cost.
Convertible loans Convertible loan notes are interest bearing and are stated at amortised cost.
The convertible loan note has been classified fully as a liability in the balance sheet, as in the view of the directors it does not meet the definition under International Reporting Standard 32 for an element to be disclosed under equity.
Equity instruments Equity instruments issued by the Group are recorded at proceeds received, net of direct costs.
Ante-post sports bets The Group may have at any point in time, an exposure on ante-post sports bets. These bets meet the definition of a financial liability under International Accounting Standard 32 "Financial Instruments: Disclosure and Presentation", and therefore are recorded initially at fair value, and subsequently at amortised cost using the effective interest method.
| |||||||||||||||
2 | Segmental Analysis | ||||||||||||||
Period to 27 November 2011 (unaudited) £000
| Period to 28 November 2010
(unaudited) £000
| Period to 29 May 2011
(audited) £000
| |||||||||||||
Turnover | |||||||||||||||
Sportsbook | Asia Pacific | 32,357 | 28,654 | 57,863 | |||||||||||
UK & Ireland | 4,528 | 5,166 | 8,692 | ||||||||||||
Europe | 1,647 | 1,740 | 4,070 | ||||||||||||
Rest of the World | 420 | 597 | 802 | ||||||||||||
Pari-mutuel | United States | 7,715 | 10,120 | 17,694 | |||||||||||
Caribbean | 5,249 | 9,334 | 13,912 | ||||||||||||
Asia Pacific | 1,294 | - | 2,513 | ||||||||||||
UK & Ireland | 264 | - | - | ||||||||||||
---------- | ---------- | ---------- | |||||||||||||
53,474 | 55,611 | 105,546 | |||||||||||||
----------
| ----------
| ----------
| |||||||||||||
(Loss) / profit before tax | |||||||||||||||
Sportsbook | (177) | 163 | 1 | ||||||||||||
Pari-mutuel | 39 | 3 | (102) | ||||||||||||
Group | - | (4) | (9) | ||||||||||||
---------- | ---------- | ---------- | |||||||||||||
(138) | 162 | (110) | |||||||||||||
----------
| ----------
| ----------
| |||||||||||||
Net assets / (liabilities) | |||||||||||||||
Sportsbook | (924) | (593) | (756) | ||||||||||||
Pari-mutuel | 1,740 | 1,582 | 1,477 | ||||||||||||
Group | (319) | (442) | (86) | ||||||||||||
---------- | ---------- | ---------- | |||||||||||||
497 | 547 | 635 | |||||||||||||
----------
| ----------
| ----------
| |||||||||||||
3 | Share based costs | ||||||||||||||
Period to 27 November 2011 (unaudited) £000
| Period to 28 November 2010
(unaudited) £000
| Period to 29 May 2011
(audited) £000
| |||||||||||||
Share options | - | 5 | 9 | ||||||||||||
---------- | ---------- | ---------- | |||||||||||||
- | 5 | 9 | |||||||||||||
----------
| ----------
| ----------
| |||||||||||||
4 | Net finance cost | ||||||||||||||
Period to 27 November 2011
(unaudited) £000
| Period to 28 November 2010 (unaudited) £000
| Period to 29 May 2011
(audited) £000
| |||||||||||||
Bank interest receivable | 3 | - | - | ||||||||||||
---------- | ---------- | ---------- | |||||||||||||
3 | - | - | |||||||||||||
---------- | ---------- | ---------- | |||||||||||||
Bank interest payable | - | (4) | (5) | ||||||||||||
Loan interest payable | (20) | (5) | 3 | ||||||||||||
---------- | ---------- | ---------- | |||||||||||||
(20) | (9) | (2) | |||||||||||||
---------- | ---------- | ---------- | |||||||||||||
Net finance cost | (17) | (9) | (2) | ||||||||||||
----------
| ----------
| ----------
| |||||||||||||
5 | Tax on (loss) / profit on ordinary activities | ||||||||||||||
No provision for taxation is required for either the current or previous period, due to the zero per cent corporate tax regime in the Isle of Man.
Unprovided deferred tax was £Nil (2010: £Nil).
| |||||||||||||||
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 the 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 options.
| |||||||||||||||
Period to 27 November 2011
(unaudited) £000
| Period to 28 November 2010 (unaudited) £000
| Period to 29 May 2011
(audited) £000
| |||||||||||||
(Loss) / profit for the period | (138) | 162 | (110) | ||||||||||||
----------
| ----------
| ----------
| |||||||||||||
No. | No. | No. | |||||||||||||
Weighted average number of ordinary shares in issue | 230,171,644 | 206,826,667 | 212,902,757 | ||||||||||||
Diluted number of ordinary shares | 230,171,644 | 226,498,798 | 230,171,644 | ||||||||||||
--------------
| --------------
| --------------
| |||||||||||||
Basic (loss) / earnings per share | (0.06) | 0.08 | (0.05) | ||||||||||||
Diluted (loss) / earnings per share | (0.06) | 0.07 | (0.05) | ||||||||||||
----------
| ---------- | ---------- | |||||||||||||
7 | Acquisition of subsidiary | ||||||||||||||
Period to 27 November 2011
(unaudited) £000
| Period to 28 November 2010 (unaudited) £000
| Period to 29 May 2011
(audited) £000
| |||||||||||||
Net assets acquired | - | - | - | ||||||||||||
Cost of acquisition | - | 68 | 68 | ||||||||||||
---------- | ---------- | ---------- | |||||||||||||
Goodwill arising on acquisition | - | 68 | 68 | ||||||||||||
---------- | ---------- | ---------- | |||||||||||||
On 1 August 2010, the Group acquired 100% of WatchandWager.com LLC, a US registered entity and licenced for pari-mutuel wagering in North Dakota.
| |||||||||||||||
8 | Convertible loan note | ||||||||||||||
Period to 27 November 2011
(unaudited) £000
| Period to 28 November 2010 (unaudited) £000
| Period to 29 May 2011
(audited) £000
| |||||||||||||
Convertible loan note | - | 300 | - | ||||||||||||
----------
| ----------
| ----------
| |||||||||||||
The Group had issued a £300,000 secured convertible loan note to Burnbrae Limited on 23 February 2007, which was secured over all the assets and undertakings of the Group and bore interest at LIBOR plus 4%. The loan and accrued interest were converted into 23,344,977 ordinary shares on 24 February 2011.
| |||||||||||||||
9 | Preparation of the interim statements | ||||||||||||||
The interim statements are unaudited, but have been reviewed in accordance with International Standards on Review Engagements 2410, by our independent auditor, KPMG Audit LLC.
The comparatives for the 52 weeks ended 29 May 2011 are not the Group's full statutory accounts for that financial period. Those accounts have been reported on by the Group's auditor and delivered to the Companies Registry. The report of the auditor was unqualified.
| |||||||||||||||
10 | Approval of interim statements | ||||||||||||||
The interim statements were approved by the board on 1 February 2012 The interim report is expected to be posted to shareholders on 8 February 2012 and will be available from that date at the Group's Registered Office: Viking House, Nelson Street, Douglas, Isle of Man IM1 2AH. A copy of the interim report will also be made available on the Group's website www.webisholdingsplc.com.
| |||||||||||||||
The Group's nominated adviser and broker is Evolution Securities, Kings House, 1 Kings Street, Leeds LS1 2HH. | |||||||||||||||
End