Last checked at 8 Feb 2011 07:00
FOR IMMEDIATE RELEASE
08 February 2011
WEBIS HOLDINGS PLC
("the Company" or "the Group")
INTERIM RESULTS FOR THE PERIOD ENDED 28 NOVEMBER 2010
Webis Holdings plc, the global on-line gaming group, today announces its interim results for the period ended 28 November 2010.
HIGHLIGHTS:
·; | Profit for the period of £162,000 (2009: loss of £58,000)
|
·; | Group turnover of £55.6 million (2009: £56.4 million)
|
·; | betinternet sportsbook turnover of £36.2 million (2009: £38.0 million)
|
·; | European Wagering Services' turnover of £19.4 million (2009: £18.4 million)
|
·; | Gross profit increased by 11% to £1.62 million (2009: £1.46 million); gross margin increased by 0.33% to 2.92% (2009: 2.59%)
|
·; | Increase in EBITDA to £301,000 (2009: £87,000)
|
·; | European Wagering Services obtains North Dakota Pari-mutuel hub operating licence
|
·; | betinternet upgrades games including the addition of CTXM 'real-time' casino
|
Commenting on the results, Denham Eke, Chairman of Webis Holdings plc, said:
"I am pleased to report that the Group generated a net profit during the first six months of the financial year. Our betinternet.com sportsbook recorded a pre-tax profit following a successful World Cup tournament last summer, where the results were generally favourable for bookmakers. During the early part of the football season, the division's gross margin was also more stable than the prior year. European Wagering Services ("EWS"), our pari-mutuel operation, generated an overall increase in turnover during the period. However, the division's higher margin business was affected by the withdrawal of payment processing services for part of the period. EWS broke even at net profit level as a result.
Overall conditions in the markets served by the Group remain challenging. The board believes, however, that EWS is now well positioned for growth in the US market following the division's acquisition of a US licence. Whilst the benefits of our growth strategy for EWS may not become apparent until the new financial year, the board is of the view that it is important to invest in this part of the Group for the future benefit of shareholders. As previously announced, the board is reviewing it strategy for betinternet and this process is continuing. The board will provide a further update to shareholders as appropriate."
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
I am pleased to report that the Group generated a net profit during the first six months of the financial year. Our betinternet.com sportsbook ("betinternet") recorded a pre-tax profit following a successful World Cup tournament last summer, where the results were generally favourable for bookmakers. During the early part of the football season, the division's gross margin was also more stable than the prior year. European Wagering Services ("EWS"), our pari-mutuel operation, generated an overall increase in turnover during the period. However, the division's higher margin business was affected by the withdrawal of payment processing services for part of the period. EWS broke even at net profit level as a result.
European Wagering Services
EWS experienced a difficult trading period in the first half after our payment processing facility was, as previously notified, withdrawn with no notice in July. This hindered our ability to accept and return funds to players using our link2bet.com website, responsible for the majority of the operation's higher-margin business. We acted quickly to establish a temporary payment solution and, following the establishment of a permanent more robust solution, EWS' turnover returned to being in line with the board's expectations towards the end of the period.
Following the acquisition of a United States pari-mutuel hub operating licence with the North Dakota Racing Commission, the board has established a clearly-defined business plan for the growth of EWS, which it is now actively pursuing. This plan will involve establishing a physical presence within the US and increasing marketing and development activity as well as the level of racing content. EWS' link2bet.com website is core to the achievement of these objectives. The board also anticipates that the acquisition of a US licence will facilitate the identification and implementation of additional long-term cost-effective payment processing solutions.
The pace of regulatory change within the US gaming market is also expected to accelerate, and, initially, is likely to be phased in on a state-by-state basis rather than at Federal level. As it is important that the business keeps abreast of any changes, Ed Comins, the Group's Pari-Mutuel Operations Director, during the year will relocate to the US to monitor this aspect more closely and direct the implementation of our growth strategy.
betinternet
betinternet returned to profitability during the period, which included the World Cup finals in South Africa. This was achieved despite a reduction in high roller casino activity, which tends to be of a less frequent and more sporadic nature. The margin for the World Cup was ahead of the board's expectations and the business has also achieved a better margin since the start of the current football season than in the corresponding period last year. Encouragingly, weekly turnover on our fixed-odds sports betting has increased as the football season has progressed, in line with an increase in our content. We have, in particular, enhanced our In-Running offering, where we now offer live betting on Basketball, Cricket, Rugby, Snooker and Tennis as well as a significantly wider selection of football leagues. Turnover on In-Running events increased by 138% compared to the same period last year and this activity achieved a higher profit margin than pre-match betting.
We also upgraded betinternet's casino and games offering during the period by introducing a solution from CTXM, a well-established provider of gaming services.
We have been working on an upgrade of the 'look-and-feel' of betinternet's website, which we plan to launch later this month. This upgrade will provide a more contemporary appearance and will place greater emphasis to current In-Running events as well as sports events about to "go live". We will also roll-out our new Poker product at the same time.
Overview of results
Group turnover reduced to £55.6 million (2009: £56.4 million), primarily due to a fall in betinternet's turnover to £36.2 million (2009: £38.0 million) following the aforementioned decrease in casino activity. EWS' turnover grew by 5% to £19.4 million (2009: £18.4 million). Group gross profit increased to £1.6 million (2009: £1.5 million), leading to an overall improvement in gross margin by 0.33% to 2.92% (2009: 2.59%).
Administration expenses reduced by 3.6% to £1.32 million (2009: £1.37m), primarily as a result of cost savings following expiry of our previous head office lease arrangements and a reduction in betinternet marketing spend in light of the ongoing strategy review.
The Group generated an operating profit of £171,000 during the period (2009: loss of £51,000) and recorded a pre-tax profit of £162,000 (2009: loss of £58,000).
Summary
Overall, conditions in the markets served by the Group remain challenging. The board believes, however, that EWS is now well positioned for growth in the US market following the division's acquisition of a US licence. Whilst the benefits of our growth strategy for EWS may not become apparent until the new financial year, the board is of the view that it is important to invest in this part of the Group for the future benefit of shareholders. As previously announced, the board is reviewing its strategy for betinternet and this process is continuing. The board will provide a further update to shareholders as appropriate.
Denham Eke
Chairman
Webis Holdings plc
Consolidated Statement of Comprehensive Income
for the period ended 28 November 2010
Note | Period to 28 November 2010 (unaudited) £000
| Period to 29 November 2009 (unaudited) £000
| Period to 30 May 2010 (audited) £000
| |
Turnover | 2 | 55,611 | 56,377 | 114,167 |
Cost of sales | (53,970) | (54,899) | (111,519) | |
Betting duty paid | (19) | (17) | (30) | |
----------
| ----------
| ----------
| ||
Gross profit | 1,622 | 1,461 | 2,618 | |
Administration expenses | (1,321) | (1,374) | (2,655) | |
--------- | ---------- | ---------- | ||
Earnings before interest, tax, depreciation and amortisation
|
301
|
87
|
(37) | |
Depreciation and amortisation | (125) | (126) | (255) | |
Share-based costs | 3 | (5) | (12) | (23) |
----------
| ----------
| ----------
| ||
Total operating profit / (loss) | 171 | (51)
| (315)
| |
Net finance cost | 4 | (9)
| (7)
| (22)
|
Taxation | 5 | - | - | - |
----------
| ----------
| ----------
| ||
Profit / (loss) for the period | 162 | (58) | (337) | |
----------
| ----------
| ----------
| ||
Basic profit / (loss) per share (pence) | 6
| 0.08
| (0.03)
| (0.16)
|
Diluted profit / (loss) per share (pence) | 6 | 0.07 | (0.03) | (0.16) |
The accompanying notes to this announcement form an integral part of these consolidated interim financial statements.
Consolidated Statement of Financial Position
As at 28 November 2010
Note | Period to 28 November 2010 (unaudited) £000
| Period to 29 November 2009 (unaudited) £000
| Period to 30 May 2010 (audited) £000
| |
Non-current assets | ||||
Intangible assets - Goodwill | 7 | 111 | 43 | 43 |
Intangible assets - Software, Website development and Trademarks | 272 | 329 | 311 | |
Property and equipment | 48 | 93 | 75 | |
---------- | ---------- | ---------- | ||
431 | 465 | 429 | ||
---------- | ---------- | ---------- | ||
Current assets | ||||
Trade and other receivables | 975 | 755 | 834 | |
Cash and cash equivalents | 997 | 1,425 | 999 | |
---------- | ---------- | ---------- | ||
1,972
| 2,180
| 1,833
| ||
Total assets | 2,403 | 2,645 | 2,262
| |
Current liabilities | ||||
Bank overdraft Trade and other payables | - (1,556) | (345) (1,352) | (295) (1,287) | |
Convertible loan note | 8 | (300) | -
| (300)
|
---------- | ---------- | ---------- | ||
(1,856) | (1,697) | (1,882) | ||
---------- | ---------- | ---------- | ||
Non-current liabilities | ||||
Convertible loan note | 8 | -
| (300)
| -
|
Total liabilities | (1,856) | (1,997) | (1,882) | |
---------- | ---------- | ----------
| ||
Net assets | 547 | 648 | 380 | |
----------
| ----------
| ----------
| ||
Shareholders' equity | ||||
Called up share capital | 2,068 | 2,068 | 2,068 | |
Share premium | 9,927 | 9,927 | 9,927 | |
Share option reserve | 112 | 96 | 107 | |
Profit and loss account | (11,560) | (11,443) | (11,722) | |
---------- | ---------- | ---------- | ||
Total shareholders' equity |
547 |
648 |
380 | |
---------- | ---------- | ---------- |
The accompanying notes to this announcement form an integral part of these consolidated interim financial statements.
Statement of Changes in Shareholders' Equity
for the period ended 28 November 2010
Ordinary share capital £000
|
Share premium £000
| Share option reserve £000
| Profit and loss account £000
|
Total equity £000
| |
Balance as at 31 May 2009 (audited) | 2,068 | 9,927 | 84 | (11,385) | 694 |
Share based payments - share options | - | - | 12 | - | 12 |
Loss for the period | - | - | - | (58) | (58) |
---------- | ---------- | ---------- | ---------- | ---------- | |
Balance as at 29 November 2009 (unaudited) | 2,068 | 9,927 | 96 | (11,443) | 648
|
Share based payments - share options | - | - | 11 | - | 11 |
Loss for the period | - | - | - | (279) | (279) |
---------- | ---------- | ---------- | ---------- | ---------- | |
Balance as at 30 May 2010 (audited) | 2,068 | 9,927 | 107 | (11,722) | 380
|
Share based payments - share options | - | - | 5 | - | 5 |
Loss for the period | - | - | - | 162 | 162 |
---------- | ---------- | ---------- | ---------- | ---------- | |
Balance as at 28 November 2010 (unaudited) | 2,068 | 9,927 | 112 | (11,560) | 547 |
---------- | ---------- | ---------- | ---------- | ---------- |
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 28 November 2010
| Period to 28 November 2010 (unaudited) £000
| Period to 29 November 2009 (unaudited) £000
| Period to 30 May 2010 (audited) £000
| |
Net cash inflow / (outflow) from operating activities
| 429 | (67) | (335) | |
Cash flows from investing activities | ||||
Purchase of intangible assets | (121) | (130) | (211) | |
Purchase of property and equipment | (6) | (13) | (25) | |
---------- | ---------- | ---------- | ||
Net cash outflow from investing activities | (127)
| (143)
| (236)
| |
Cash flows from financing activities | ||||
Interest paid | (9) | (7) | (22) | |
---------- | ---------- | ---------- | ||
Net cash outflow from financing activities | (9) | (7) | (22) | |
Net increase / (decrease) in cash and cash equivalents | 293 | (217) | (593) | |
Cash and cash equivalents at beginning of period | 704 | 1,297 | 1,297 | |
Net cash and cash equivalents at end of period | ---------- 997 | ---------- 1,080 | ---------- 704 | |
---------- | ---------- | ---------- | ||
Cash and cash equivalents comprise | ||||
Cash and deposits | 997 | 1,425 | 999 | |
Bank overdraft | - | (345) | (295) | |
---------- | ---------- | ---------- | ||
997 | 1,080 | 704 | ||
---------- | ---------- | ---------- | ||
Cash generated from operations | ||||
Profit / (loss) from operations | 171 | (51) | (315) | |
Adjusted for: | ||||
Depreciation | 125 | 126 | 255 | |
Share-based payment charge | 5 | 12 | 23 | |
Increase in receivables | (141) | (42) | (121) | |
Increase / (decrease) in creditors | 269 | (112) | (177) | |
---------- | ---------- | ---------- | ||
429 | (67) | 335 | ||
---------- | ---------- | ---------- |
The accompanying notes to this announcement form an integral part of these consolidated interim financial statements.
Notes to the accounts
for the period ended 28 November 2010
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 30 May 2010.
| ||||||||||||||||
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 a three segment format, of which the primary format is the business areas in accordance with the Group's internal reporting structure and the secondary format is for geographical.
| ||||||||||||||||
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.
| ||||||||||||||||
Financial instruments | ||||||||||||||||
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:
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 in 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 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 fair value.
Convertible loans Convertible loan notes are interest bearing and are stated at fair value.
Equity instruments Equity instruments issued by the Group are recorded at proceeds received, net of direct costs.
| ||||||||||||||||
2 | Segmental Analysis | |||||||||||||||
Period to 28 November 2010 (unaudited) £000
| Period to 29 November 2009 (unaudited) £000
| Period to 30 May 2010 (audited) £000
| ||||||||||||||
Turnover | ||||||||||||||||
Sportsbook | Far East | 28,654 | 26,077 | 54,476 | ||||||||||||
UK & Ireland | 5,166 | 6,384 | 13,656 | |||||||||||||
Europe | 1,740 | 4,527 | 9,738 | |||||||||||||
Rest of the World | 597 | 943 | 1,332 | |||||||||||||
Pari-mutuel | United States | 10,120 | 8,131 | 18,788 | ||||||||||||
Caribbean | 9,334 | 10,315 | 16,177 | |||||||||||||
---------- | ---------- | ---------- | ||||||||||||||
55,611 | 56,377 | 114,167 | ||||||||||||||
----------
| ----------
| ----------
| ||||||||||||||
Profit/ (loss) before tax | ||||||||||||||||
Sportsbook | 163 | (334) | (778) | |||||||||||||
Pari-mutuel | 3 | 288 | 464 | |||||||||||||
Group | (4) | (12) | (23) | |||||||||||||
---------- | ---------- | ---------- | ||||||||||||||
162 | (58) | (337) | ||||||||||||||
----------
| ----------
| ----------
| ||||||||||||||
Net assets / (liabilities) | ||||||||||||||||
Sportsbook | (593) | (313) | (757) | |||||||||||||
Pari-mutuel | 1,582 | 1,403 | 1,579 | |||||||||||||
Group | (442) | (442) | (442) | |||||||||||||
---------- | ---------- | ---------- | ||||||||||||||
547 | 648 | 380 | ||||||||||||||
----------
| ----------
| ----------
| ||||||||||||||
3 | Share based costs | |||||||||||||||
Period to 28 November 2010 (unaudited) £000
| Period to 29 November 2009 (unaudited) £000
| Period to 30 May 2010 (audited) £000
| ||||||||||||||
Share options | 5 | 12 | 23 | |||||||||||||
---------- | ---------- | ---------- | ||||||||||||||
5 | 12 | 23 | ||||||||||||||
----------
| ----------
| ----------
| ||||||||||||||
4 | Net finance cost | |||||||||||||||
Period to 28 November 2010 (unaudited) £000
| Period to 29 November 2009 (unaudited) £000
| Period to 30 May 2010 (audited) £000
| ||||||||||||||
Bank interest receivable | - | - | - | |||||||||||||
---------- | ---------- | ---------- | ||||||||||||||
- | - | - | ||||||||||||||
---------- | ---------- | ---------- | ||||||||||||||
Bank interest payable | (4) | (1) | (4) | |||||||||||||
Loan interest payable | (5) | (6) | (18) | |||||||||||||
---------- | ---------- | ---------- | ||||||||||||||
(9) | (7) | (22) | ||||||||||||||
---------- | ---------- | ---------- | ||||||||||||||
Net finance cost | (9) | (7) | (22) | |||||||||||||
----------
| ----------
| ----------
| ||||||||||||||
5 | Tax on profit / (loss) 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 (2009: £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 28 November 2010 (unaudited) £000
| Period to 29 November 2009 (unaudited) £000
| Period to 30 May 2010 (audited) £000
| ||||||||||||||
Profit / (loss) for the period | 162 | (58) | (337) | |||||||||||||
----------
| ----------
| ----------
| ||||||||||||||
No. | No. | No. | ||||||||||||||
Weighted average number of ordinary shares in issue | 206,826,667 | 206,826,667 | 206,826,667 | |||||||||||||
Diluted number of ordinary shares | 226,498,798 | 206,826,667 | 226,498,798 | |||||||||||||
--------------
| --------------
| --------------
| ||||||||||||||
Basic earnings / (loss) per share | 0.08 | (0.03) | (0.16) | |||||||||||||
Diluted earnings / (loss) per share | 0.07 | (0.03) | (0.16) | |||||||||||||
----------
| ---------- | ---------- | ||||||||||||||
7 | Acquisition of subsidiary | |||||||||||||||
Period to 28 November 2010 (unaudited) £000
| Period to 29 November 2009 (unaudited) £000
| Period to 30 May 2010 (audited) £000
| ||||||||||||||
Net assets acquired | - | - | - | |||||||||||||
Cost of acquisition | 68 | - | - | |||||||||||||
---------- | ---------- | ---------- | ||||||||||||||
Goodwill arising on acquisition | 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. The company was dormant during the period under review.
| ||||||||||||||||
8 | Convertible loan note | |||||||||||||||
Period to 28 November 2010 (unaudited) £000
| Period to 29 November 2009 (unaudited) £000
| Period to 30 May 2010 (audited) £000
| ||||||||||||||
Convertible loan note | 300 | 300 | 300 | |||||||||||||
----------
| ----------
| ----------
| ||||||||||||||
The Group issued a £300,000 secured convertible loan note to Burnbrae Limited on 23 February 2007. The loan note is secured over all the assets and undertakings of the Group and bears interest at the rate of LIBOR plus 4%. The loan is due to be repaid on 25 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 auditors, KPMG Audit LLC.
The comparatives for the 52 weeks ended 30 May 2010 are not the Group's full statutory accounts for that financial period. Those accounts have been reported on by the Group's auditors and delivered to the Companies Registry. The report of the auditors was unqualified.
| ||||||||||||||||
10 | Approval of interim statements | |||||||||||||||
The interim statements were approved by the board on 8 February 2011 The interim report is expected to be posted to shareholders on 15 February 2011 and will be available from that date at the Group's Registered Office: Viking House, Nelson Street, Douglas, Isle of Man IM1 2AH.
| ||||||||||||||||
The Group's nominated advisor and broker is Evolution Securities, Kings House, 1 King Street, Leeds LS1 2HH. | ||||||||||||||||
End