REG - Webis Holdings PLC - Interim Report for Period Ended 30 November 2023
27/02/2024 07:00
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RNS Number : 5208E Webis Holdings PLC 27 February 2024
27 February 2024
Webis Holdings plc
(the "Group")
Interim Report for the Period Ended 30 November 2023
Webis Holdings plc, the global gaming group, today announces its Interim
Report and Accounts for the period ended 30 November 2023.
Denham Eke, Non-executive Chairman stated:
"Our principal subsidiary, WatchandWager.com ("WatchandWager"), again had a
varied start to the first six months of the financial year. As for the same
period last year, trading was strong during the summer months. However,
trading was difficult during the months of September, October, and November -
largely because of adverse weather conditions forcing a number of
cancellations throughout the US. Group amounts wagered were US$ 37.4 million,
down 2% on prior year (2022: US$ 38.2 million). Turnover reported was US$ 5.90
million (2022: US$ 6.23 million), with gross profit achieved of US$ 1.80
million (2022: US$ 1.99 million). This resulted in a loss on the period of US$
0.54 million (2022: loss of US$ 0.33 million). Operating costs showed a small
decrease to US$ 2.30 million (2022: US$ 2.31 million). Cash and cash
equivalents stand at US$ 1.82 million (31 May 2023: US$ 2.15 million).
I remain optimistic that trading will improve in line with expectations,
especially as we continue with the roll out of our new Business-to-Customer
marketing strategy".
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance
with the Company's obligations under Article 17 of MAR.
For further information:
Webis Holdings plc Beaumont Cornish Limited
Denham Eke Roland Cornish/James Biddle
Tel: 01624 639396 Tel: 020 7628 339
Chairperson's Statement
Introduction
Our principal subsidiary, WatchandWager.com LLC ("WatchandWager"), has had a
difficult start to the period reported and that has continued in the last few
months. However, there continue to be many encouraging signs for the business,
both in terms of future performance, and our strategic options in the USA,
which remains the biggest growth market globally for licensed land based and
on-line gaming operators, such as WatchandWager.
Trading was in line with expectations during the first quarter of the
financial year, but the second quarter did not perform to expectations,
largely due to adverse weather conditions. This is not abnormal, but again
reflects the cyclical nature of the business.
Despite these difficult trading conditions, we remain optimistic about the
future of the operation. We are particularly pleased by the performance of our
Business-to-Consumer sector, namely the on-line wagering from our client base
on our key website, www.watchandwager.com (http://www.watchandwager.com) .
This sector is performing above general market trends and is a key focus for
the future, both in terms of trading and strategic opportunities for the
Group.
As fixed odds sports betting spreads throughout the USA at an impressive rate,
there is a growing demand by the larger operators to partner, merge or even
acquire licensed pari-mutuel operators. Our internal market analysis suggests
WatchandWager has a unique position in the USA as one of the top five licensed
operators in our sector. Our stable platform of technology, payments,
licenses, and most importantly content, is of interest to the larger sports
betting operators, who are looking to augment their gross margins, which are
under increasing pressure. Our licensed operation at Cal Expo with its "bricks
and mortar" presence in California, enhances that position, especially in
relation to leverage in California and the USA generally.
Half Year Results Review
Group amounts wagered were US$ 37.4 million, down 2% on prior year (2022: US$
38.2 million). Turnover reported was US$ 5.90 million (2022: US$ 6.23
million), with gross profit achieved of US$ 1.80 million (2022: US$ 1.99
million). This resulted in a loss on the period of US$ 0.54 million (2022:
loss of US$ 0.33 million).
Operating costs showed a small decrease to US$ 2.30 million (2022: US$ 2.31
million). Cash and cash equivalents stand at US$ 1.82 million (31 May 2023:
US$ 2.15 million).
Operations Update
Business-to-Consumer (B2C)
This division performed above market expectations over the period reported. On
known statistics and at time of writing, the overall advanced deposit wagering
market in the USA is showing a decline of an estimated 10.8% in handle versus
prior year comparisons. The key reasons for this being the cost-of-living
crisis, and the proliferation of other forms of gaming, particularly on-line
sports betting, which has grown exponentially for operators from a handle
point of view, if not necessarily in terms of profitability.
Against these downward market trends, I am pleased to report that handle and
active players on the platform has remained steady against the same period
last year and continues to do so to time of writing. Most importantly, this
sector now contributes over 80% of our ADW gross margin as compared to the
lower margin Business-to-Business division. The Board is encouraged by this
performance given a relatively low expenditure on development and marketing.
Related to that, the Executive have rolled out a development plan to improve
user experience on our main site, which is almost complete at time of writing.
Based on previous successful campaigns, we will also be rolling out our
targeted social media campaign, aimed at acquiring customers (at a sensible
cost), and also retention and reactivation. This will start in April and carry
on through the key summer months. The Executive will be monitoring the key
performance indicators of this campaign on an ongoing basis. The campaign is
designed to be flexible and adjustable dependent on performance.
Business-to-Business (B2B)
This sector remains important to the overall business, providing an important
contribution to the bottom line. That said, whilst we do not turn down
properly regulated business and we continue to service an elite group of
players; this market is increasingly competitive,
and the margin derived is significantly lower than B2C. We continue to provide
"niche" opportunities to important creative player groups who see market
opportunities using our services and wide range of content, but are aware that
this sector has become mature. We will continue to service this sector, not
least as the volumes wagered are important to the business.
Cal Expo
Following the end of Racing in May 2023, we had a solid "dark money"
performance (the revenues we receive in the summer months when the track is
not operating), although it was somewhat impacted by the economic headwinds.
We recommenced live racing operations in November 2023, with initial
performance being steady. We expect a better performance in March to May 2024,
which have traditionally been our strongest months, both in terms of horse
population and the level of wagers placed. We also have some opportunities in
relation to our lease at Cal Expo and our unique positioning in Northern
California which we will keep shareholders updated upon.
Licenses
USA and Isle of Man
I am pleased to report that we have successfully renewed and retained our
entire portfolio of licenses in the USA and also the Isle of Man with no
regulatory issues. We consider our array of licenses to continue to be a key
asset to the Group, in addition to content rights.
Content Rights
Based on competitor research, we know that we offer the widest range of live
content of any tote (pari-mutuel) website in the world, both within the USA
and internationally. In total, we take wagers from over twenty-four key
licensed jurisdictions. These cover all the major horseracing centres, notably
in the USA, Canada, UK, Ireland, France, Australia, Hong Kong, South Africa
and multiple other countries.
In the USA, we accept wagers on thoroughbred, harness (standard bred),
greyhound and jai alai content. Most importantly, we enjoy contracts with all
the major key content providers in the USA, notably Churchill Downs, Monarch
Content Management (Stronach Group), the New York Racing Association, and Penn
National. These contractual relationships give us access to all the major
races conducted in the USA. They have been built up over many years of
operational reliability, as well as of course the leverage of our Cal Expo
licence.
Alongside our licenses and our proven wagering platform operations, we
consider our range of content agreements to be key asset to the Group, and we
will seek to further emphasise this to the outer industry.
We are, however, very conscious of the growth in wagering on other sports
outside horseracing in the USA. Whilst sports wagering is still not licensed
in California, we are looking at new and innovative products to add to the
website offering, alongside our core offering. We will keep shareholders fully
informed in relation to progress in this area.
Compliance and Health & Safety
There were no compliance issues reported to our various regulators during the
period. In addition, there were no health and safety issues to report across
the entire Cal Expo operation, where equine and participant welfare remain our
highest priority. We consider both these points to be integral to our
reputation as an operation.
Outlook
Short term trading
As stated, we have had a difficult trading period post November 2023. Despite
that, I remain confident that, as we approach the spring months, trading will
improve in line with expectations. We see the ability to continue to grow B2C
trading further with the implementation of the web development work, and the
subsequent marketing plan, as key performance indicators. In addition, we
expect to see a stronger performance from our Cal Expo retail operations over
the next few months, which is traditionally our strongest period of the
financial year.
Strategic Outlook
The Board agree that we must focus on four key areas to achieve growth, and a
return to profitability and advance our known licensed position in the USA for
the benefit of shareholders. These four initiatives are as follows:
§ To grow the B2C business platform in terms of player numbers and
handle, and therefore improve margin for the business. We have proven that
there is consistent growth in this sector and the next six months will be very
important in this area.
§ To continue to grow our land-based licenses at Cal Expo and potentially
in other States. There are some very interesting developments in this area at
time of writing, and we will update shareholders as soon as there is more
tangible news.
§ To utilise our key assets to provide third party services to existing
or new entrants into the US market. Evidence suggests there is a good market
for these services as stated above. These are the potential to share our US
and international content rights, our licenses especially in California, our
US based banking and payment methods, and our technology.
§ Finally, and related to point three, we are very aware that strategic
interest in USA regulated gaming, including horseracing, is very strong at
present and will continue to be for several years. The larger operators, and
also new entrants to the market, are looking for stable operations to either
merge with or to acquire outright. This is exactly what WatchandWager offers,
and the key Executive has been instructed by the Board to pursue these
opportunities, if they are of benefit to shareholders. We will keep
shareholders fully informed of any developments in this area.
Finally, I would like to thank all our shareholders, customers, and our staff
in the various jurisdictions for their loyalty and support of the business.
Denham Eke
Non-executive Chair
26 February 2024
Condensed Consolidated Statement of Comprehensive Income
For the period ended 30 November 2023
Note Period to
30 November 2023 (unaudited) Period to
US$000 30 November 2022
(unaudited)
US$000
Amounts wagered 37,415 38,241
3 5,903 6,226
Turnover
Cost of sales (4,059) (4,185)
Betting duty paid (48) (52)
Gross profit 1,796 1,989
Operating costs (2,298) (2,307)
Other gains 13 12
Other income 25 62
Operating loss (464) (244)
Finance costs 4 (77) (81)
Loss before income tax (541) (325)
Income tax expense 5 - -
Loss for the period (541) (325)
Other comprehensive income for the period - -
Total comprehensive loss for the period (541) (325)
Basic and diluted earnings per share for loss attributable to the equity 6 (0.14) (0.08)
holders of the Company during the period (cents)
Condensed Consolidated Statement of Financial Position
As at 30 November 2023
Note
As at Year ended
30 November 2023 31 May 2023
(unaudited) (audited)
US$000 US$000
Non-current assets
Intangible assets 7 14 19
Property, equipment, and motor vehicles 612 661
Bonds and deposits 100 100
Total non-current assets 726 780
Current assets
Bonds and deposits 883 883
Trade and other receivables 1,234 1,378
Cash, cash equivalents and restricted cash 8 2,796 3,285
Total current assets 4,913 5,546
Total assets 5,639 6,326
Equity
Called up share capital 6,334 6,334
Share option reserve 42 42
Retained losses (6,344) (5,803)
Total equity 32 573
Current liabilities
Trade and other payables 3,278 3,712
Loans, borrowings, and lease liabilities 9 470 462
Total current liabilities 3,748 4,174
Non-current liabilities
Loans, borrowings, and lease liabilities 9 1,859 1,579
Total non-current liabilities 1,859 1,579
Total liabilities 5,607 5,753
Total equity and liabilities 5,639 6,326
Denham Eke, Non-executive Chair, 26 February 2024
Condensed Consolidated Statement of Changes in Equity
For the period ended 30 November 2023
Called up Share option reserve Retained earnings Total
share capital US$000 US$000 equity
US$000 US$000
Balance as at 31 May 2022 (audited) 6,334 42 (5,058) 1,318
Total comprehensive income for the period:
Loss for the period - - (325) (325)
Balance as at 30 November 2022 (unaudited) 6,334 42 (5,383) 993
Called up Share option reserve Retained earnings Total
share capital US$000 US$000 equity
US$000 US$000
Balance as at 31 May 2023 (audited) 6,334 42 (5,803) 573
Total comprehensive income for the period:
Loss for the period - - (541) (541)
Balance as at 30 November 2023 (unaudited) 6,334 42 (6,344) 32
Condensed Consolidated Statement of Cash Flows
For the period ended 30 November 2023
Note Period to
30 November 2023 Period to
(unaudited) 30 November 2022
US$000 (unaudited)
US$000
Cash flows from operating activities
Loss before income tax (541) (325)
Adjustments for:
- Depreciation 54 50
- Amortisation of intangible assets 3 3
- Loan interest paid 4 57 51
- Bank interest received 4 (10) -
- Decrease / (increase) in movement of restricted cash 160 (27)
- Increase in lease liabilities 30 30
- Other foreign exchange movements (14) (168)
Changes in working capital:
- Decrease in receivables 144 157
- Decrease in payables (434) (114)
Cash flows used in operations (551) (343)
Bonds and deposits utilised in the course of operations - -
Net cash used in operating activities (551) (343)
Cash flows from investing activities
Purchase of intangible assets - (3)
Purchase of property, equipment and motor vehicles (3) -
Net cash used in investing activities (3) (3)
Cash flows from financing activities
Loan interest paid 4 (57) (51)
Bank interest received 4 10 -
Increase of lease liabilities - principal 6 7
Payment of lease liabilities - interest 4 (30) (30)
Repayment of loans and borrowings (510) (10)
Loans and borrowings received 792 -
Net cash generated from / (used) in financing activities 211 (84)
Net decrease in cash and cash equivalents (343) (430)
Cash and cash equivalents at beginning of year 2,148 3,062
Exchange gains on cash and cash equivalents 14 168
Cash and cash equivalents at end of period 1,819 2,800
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the period ended 30 November 2023
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 interim financial statements as at and for the period ended 30
November 2023 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
UK Adopted - International Accounting Standards. 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 2023 which is available on the Group's
website: www.webisholdingsplc.com (http://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 2023.
The unaudited condensed consolidated financial statements do not constitute
statutory financial statements. The statutory financial statements for the
year ended 31 May 2023, extracts of which are included in these unaudited
condensed consolidated financial statements, were prepared under UK Adopted -
International Accounting Standards 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 2023 as set out in those financial
statements.
1.3 Functional and presentation currency
Items included in the unaudited condensed consolidated financial statements
are measured using the currency of the primary economic environment in which
the entity operates ('the functional currency'). As the primary activities of
the Group and the primary transactional currency of the Group's customers are
carried out in US Dollars, the unaudited condensed consolidated financial
statements have been presented in US Dollars, which is the Company's
presentational and functional currency.
1.4 Going Concern
As noted within the statutory financial statements for the year ended 31 May
2023, 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.
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.
2 Operating Segments
A. Basis for segmentation
The Group has 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 on-line 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
Period to 30 November 2023 (unaudited) Racetrack ADW Corporate operating costs Total
US$000 US$000 US$000 US$000
External revenues 4,887 1,016 - 5,903
Segment revenue 4,887 1,016 - 5,903
Segment loss before tax (6) (479) (56) (541)
Finance costs (27) (3) (57) (87)
Depreciation and amortisation (33) (23) (1) (57)
Period to 30 November 2023 (unaudited)
Segment assets 1,687 2,749 1,203 5,639
Segment liabilities 1,265 2,553 1,789 5,607
Reportable segments
Period to 30 November 2022 (unaudited) Racetrack ADW Corporate operating Total
US$000 US$000 costs US$000
US$000
External revenues 5,101 1,125 - 6,226
Segment revenue 5,101 1,125 - 6,226
Segment profit / (loss) before tax 75 (315) (85) (325)
Finance costs (30) (1) (50) (81)
Depreciation and amortisation (31) (21) (1) (53)
Period to 31 May 2023 (audited)
Segment assets 2,187 2,846 1,293 6,326
Segment liabilities 1,523 2,802 1,428 5,753
C. Reconciliation of reportable segments profit or loss
Period to Period to
30 November 2023 30 November 2022
(unaudited) (unaudited)
US$000 US$000
Loss before tax
Total loss before tax for reportable segments (485) (240)
Loss before tax for other segments (56) (85)
Consolidated loss before tax (541) (325)
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
Period to 30 November 2023 (unaudited) Racetrack ADW Total
US$000 US$000 US$000
Primary geographic markets
North America 4,887 731 5,618
British Isles - 243 243
Caribbean - 42 42
Segment revenue 4,887 1,016 5,903
Major service lines
ADW wagering 3,518 1,016 4,534
Race hosting 1,369 - 1,369
4,887 1,016 5,903
Timing of revenue recognition
Services transferred at a point in time 4,887 1,016 5,903
Revenue from contracts with customers 4,887 1,016 5,903
External revenue as reported in Note 2 4,887 1,016 5,903
Reportable segments
Period to 30 November 2022 (unaudited) Racetrack ADW Total
US$000 US$000 US$000
Primary geographic markets
North America 5,101 881 5,982
British Isles - 243 243
Caribbean - 1 1
Segment revenue 5,101 1,125 6,226
Major service lines
ADW wagering 3,708 1,125 4,833
Race hosting 1,393 - 1,393
5,101 1,125 6,226
Timing of revenue recognition
Services transferred at a point in time 5,101 1,125 6,226
Revenue from contracts with customers 5,101 1,125 6,226
External revenue as reported in Note 2 5,101 1,125 6,226
4 Finance costs
Period to Period to
30 November 2023 30 November 2022
(unaudited) (unaudited)
US$000 US$000
Bank interest receivable 10 -
Loan interest payable (57) (51)
Lease liability interest payable (30) (30)
Net finance costs (77) (81)
5 Income tax expense
(a) Current and Deferred Tax Expenses
The current and deferred tax expenses for the period were US$ Nil (2022: 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 2023 30 November 2022
(unaudited) (unaudited)
US$000 US$000
Loss before tax (541) (325)
Tax charge at IOM standard rate (0%) - -
Adjusted for:
Tax credit for US tax losses (at 21%) (119) (70)
Add back tax losses not recognised 119 70
Tax charge for the period - -
The maximum deferred tax asset that could be recognised at period end is
approximately US$ 1,256,000 (2022: US$ 1,055,000). The Group has not
recognised any asset as it might not be recoverable within the allowed period.
The tax losses for tax years beginning in January 2018 are currently permitted
to be carried forward indefinitely. Tax losses incurred prior to that period
expire after 20 years.
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 in the current 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 2023 30 November 2022
(unaudited) (unaudited)
US$000 US$000
Loss for the period (541) (325)
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) (0.14) (0.08)
Diluted earnings per share (cents) (0.14) (0.08)
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
Year ended.
Period to 31 May 2023
30 November 2023 (audited)
(unaudited) US$000
US$000
Cash and cash equivalents - company and other funds 1,819 2,148
Restricted cash - protected player funds 977 1,137
Total cash, cash equivalents and restricted cash 2,796 3,285
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. These funds are segregated from operational funds of the Company and are
held on trust for the customers entitled to them.
9 Loans, borrowings, and lease liabilities
Current liabilities
Year ended.
Period to 31 May 2023
30 November 2023 (audited)
(unaudited) US$000
US$000
Unsecured loans (current portion) 22 21
Lease liabilities (current portion) 98 91
Secured loans - Galloway Limited 350 350
470 462
Non-current liabilities
Year ended
Period to 31 May 2023
30 November 2023 (audited)
(unaudited) US$000
US$000
Unsecured loans (non-current portion) 15 26
Lease liabilities (non-current portion) 552 553
Secured loans - Galloway Limited 1,292 1,000
1,859 1,579
Terms and repayment schedule
Nominal Year ended
interest rate Year of maturity Period to 31 May 2023
30 November 2023 (audited)
(unaudited) US$000
US$000
Unsecured loans 1.00-8.90% 2025 37 47
Lease liabilities 6.00-9.50% 2023-30 650 644
Secured loan - Galloway Ltd 7.75% 2027 - 500
Secured loan - Galloway Ltd 7.00% 2024 350 350
Secured loan - Galloway Ltd 7.00% 2025 500 500
Secured loan - Galloway Ltd 11.00% 2028 792 -
Total loans and borrowings 2,329 2,041
The secured loans from Galloway Ltd are secured over the unencumbered assets
of the Group, which includes the Cash and cash equivalents - Company and other
funds of US$ 1,819,000 (31 May 2023: US$ 2,148,000) and Cash bonds of US$
875,000 (31 May 2023: US$ 875,000).
10 Related party transactions
Identity of related parties
The Parent Company has a related party relationship with its subsidiaries, and
with its Directors and executive officers, and with Burnbrae Ltd (significant
shareholder). During the period, Webis Holdings plc recharged head office
costs to WatchandWager.com Ltd of US$ 141,891 (2022: US$ 118,717) and to
WatchandWager.com LLC of US$ 212,837 (2022: US$ 178,075). WatchandWager.com
LLC recharged support costs of US$ 4,460 (2022: US$ 4,041) to
WatchandWager.com Ltd. At the period end, Webis Holdings plc had receivable
balances with WatchandWager.com Ltd of US$ 591,442 (31 May 2023: US$ 168,575)
and with WatchandWager.com LLC of US$ 482,459 (31 May 2023: US$ 511,166).
WatchandWager.com Ltd had a receivable balance of US$ 7,923,114 (31 May 2023:
US$ 7,656,283) with WatchandWager.com LLC. There were no impairments on these
balances.
Transactions and balances 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 balances with entities with significant influence over the
Group
Rental and service charges of US$ 21,615 (2022: US$ 16,883) and Directors'
fees of US$ 21,925 (2022: US$ 17,230) were charged in the period by Burnbrae
Ltd of which Denham Eke is a common Director and Katie Errock is an employee.
Trade payables at the period end of US$ 3,504 (31 May 2023: US$ 3,580) related
to rental and service charges. The Group also had loans of US$ 1,642,220 (31
May 2023: US$ 1,350,000) from Galloway Ltd, a company related to Burnbrae
Limited by common ownership and Directors (see note 9). Interest expense of
US$ 56,239 (2022: US$ 49,738) was paid on this loan.
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 2023.
12 Approval of interim statements
The interim statements were approved by the Board on 23 February 2024. The
interim report is expected to be available for shareholders on 27 February
2024 and will be available from that date on the Group's website
www.webisholdingsplc.com (http://www.webisholdingsplc.com) .
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