REG - Webis Holdings PLC - Final Results and Notice of AGM <Origin Href="QuoteRef">WEBH.L</Origin> - Part 2
30/11/2016 07:08
- Part 2: For the preceding part double click ID:nRSd4801Qa
(used in)/from discontinued operations
Net cash used in operating activities (12) (336)
Net cash used in investing activities - (2)
Net cash flow for the year (12) (338)
Net cash flow for the year
(12)
(338)
(c) Effect of discontinued operations on the financial position of the
Group
Closure costs paid from Group funds (12) (253)
Net liabilities (12) (253)
Cash and cash equivalents disposed of - -
Net cash outflow (12) (253)
Net cash outflow
(12)
(253)
The above represents costs met by Group in relation to the administration
costs of the discontinued operations at the year end.
8 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 year.
The calculation of diluted earnings per share is based on the basic earnings
per share, adjusted to allow for the issue of shares, on the assumed
conversion of all dilutive share options.
An adjustment for the dilutive effect of share options and convertible debt in
the previous period has not been reflected in the calculation of the diluted
loss per share, as the effect would have been anti-dilutive.
Loss for the year - all operations (1,242) (1,995)
Loss for the year - continuing operations (1,230) (1,563)
Loss for the year - discontinued operations (12) (432)
Loss for the year - discontinued operations
(12)
(432)
Weighted average number of ordinary shares in issue 393,338,310 393,338,310
Diluted number of ordinary shares 397,874,810 393,338,310
Basic earnings per share - all operations (0.32) (0.51)
Diluted earnings per share - all operations (0.31) (0.51)
Basic and diluted earnings per share - continuing operations (0.31) (0.40)
Basic earnings per share - discontinued operations (0.01) (0.11)
Basic earnings per share - discontinued operations
(0.01)
(0.11)
9 Intangible assets
Cost
Balance at 31 May 2015 177 1,246 50 1,423 50
Additions during the year - 51 - 51 -
Currency translation differences - (1) - (1) -
Balance at 31 May 2016 177 1,296 50 1,473 50
Amortisation and Impairment
At 31 May 2015 177 1,076 50 1,253 50
Amortisation for the year - 107 - 107 -
Impairment of goodwill - - - - -
At 31 May 2016 177 1,183 50 1,360 50
Net book value
At 31 May 2016 - 113 - 113 -
At 31 May 2015 - 170 - 170 -
At 31 May 2015
-
170
-
170
-
The goodwill balance brought forward relates to the historical acquisition of
subsidiary businesses. The goodwill balances were fully impaired during the
year ended 31 May 2015. The Group tests intangible assets annually for
impairment or more frequently if there are indications that the intangible
assets may be impaired (see note 1).
10 Property, equipment and motor vehicles
Cost
At 31 May 2015 573 454 47 1,074
Additions during the year 11 107 - 118
Currency translation differences (2) - - (2)
At 31 May 2016 582 561 47 1,190
Depreciation
At 31 May 2015 522 423 11 956
Charge for the year 13 51 10 74
At 31 May 2016 535 474 21 1,030
Net book value
At 31 May 2016 47 87 26 160
At 31 May 2015 51 31 36 118
At 31 May 2015
51
31
36
118
Cost
At 31 May 2015 401 141 542
Additions - - -
Disposals - - -
At 31 May 2016 401 141 542
Depreciation
At 31 May 2015 401 130 531
Charge for the year - 7 7
At 31 May 2016 401 137 538
Net book value
At 31 May 2016 - 4 4
At 31 May 2015 - 11 11
At 31 May 2015
-
11
11
11 Investments
Investments in subsidiaries are held at cost. Details of investments at 31
May 2016 are as follows:
WatchandWager.com Limited Isle of Man Operation of interactive wagering totaliser hub 100
WatchandWager.com LLC United States of America Operation of interactive wagering totaliser hub and harness racetrack 100
Technical Facilities & Services Limited Isle of Man Dormant 100
betinternet.com (IOM) Limited Isle of Man Dormant 100
betinternet.com NV Netherlands Antilles Dormant 100
B.E. Global Services Limited Isle of Man Dormant 100
Dormant
100
12 Bonds and deposits
Bonds and deposits which expire within one year 2,499 2,441 - -
Bonds and deposits which expire within one to two years - - - -
Bonds and deposits which expire within two to five years 105 204 - -
2,604 2,645 - -
2,604
2,645
-
-
A rent deposit of US$200,000 was paid to California Exposition & State Fair in
2012. This was reduced to US$100,000 in the current year and is for a term of
5 years (2015: US$200,000). US$500,000 has been paid as a bond in relation
to WatchandWager's Californian ADW licence (2015: US$500,000). Rent and
security deposits of US$69,462 have been paid in relation to security deposits
(2015: US$7,685). An annually renewable insurance bond of US$2,000 is also in
place.
Under the terms of the licencing agreement with the Hong Kong Jockey Club the
Company is required to hold a retention amount of US$1,932,019 / HK$15,000,000
(2015: US$1,935,685 / HK$15,000,000).
13 Cash and cash equivalents
Cash and cash equivalents - company and other funds 5,538 4,691 4,067 1,426
Cash and cash equivalents - protected player funds 907 1,412 907 1,412
Total cash and cash equivalents 6,445 6,103 4,974 2,838
Total cash and cash equivalents
6,445
6,103
4,974
2,838
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, shown as 'protected player funds'.
Protected player funds are held in fully protected client accounts within an
Isle of Man regulated bank.
14 Trade and other receivables
Trade receivables 1,546 1,111 - -
Other receivables and prepayments 1,125 1,468 37 41
2,671 2,579 37 41
2,671
2,579
37
41
15 Trade and other payables
Trade payables 9,724 7,678 15 21
Amounts due to Group undertakings - - 3,994 1,509
Open sports bets - 1 - -
Taxes and national insurance 52 72 2 -
Accruals and other payables 285 690 25 148
10,061 8,441 4,036 1,678
10,061
8,441
4,036
1,678
Amounts due to Group undertakings are unsecured, interest free and repayable
on demand. Included within trade payables are amounts due to customers of
US$9,656,431 (2015: US$7,591,139).
16 Share capital
Allotted, issued and fully paid
At beginning and close of year: ordinary shares of 1p each 393,338,310 6,334 6,334
At 31 May: ordinary shares of 1p each 393,338,310 6,334 6,334
At 31 May: ordinary shares of 1p each
393,338,310
6,334
6,334
The authorised share capital of the Company is US$9,619,000 divided into
600,000,000 ordinary shares of £0.01 each.
Options
Movements in share options during the year ended 31 May 2016 were as follows:
No.
At 31 May 2015 - 1p ordinary shares -
Options granted 14,000,000
Options lapsed -
Options exercised -
At 31 May 2016 - 1p ordinary shares 14,000,000
During the year the Group established an equity-settled share based option
program. The fair value of options granted is recognised as an expense, with
a corresponding increase in equity. The fair value is measured at grant date
using a Black-Scholes model and is spread over the vesting period. The amount
recognised in equity is adjusted to reflect the actual number of share options
which are expected to vest.
The options were issued on 3 March 2016 to Ed Comins, Managing Director of the
Group. The fair value of each option on the grant date was estimated as being
£0.0022. The options are able to be exercised from 3 March 2019 and expire on
2 March 2026. The weighted average exercise price of all options is £0.01.
The charge for share options recorded in profit and loss for the year was
US$457 (2015: credit of US$156,000).
17 Open sports bets liabilities
Due to the closure of the sportsbook operations in 2015, the Group is no
longer exposed to open sports bets liabilities. This related to stakes that
could be received from a customer in respect of some event happening in the
future, and hence the level of any actual liability to the Group could not be
assessed until after that event had occurred, although the maximum potential
liability could be determined. Therefore, as at the financial position date,
there were US$Nil (2015: US$1,157) of such stakes that had been received where
the event to which they related was after the financial position date.
Accordingly, such amounts had been reflected as open sports bets in the
Statements of Financial Position (see note 15).
The maximum possible liability on open sports bets was US$Nil (2015:
US$0.007m).
18 Capital commitments
As at 31 May 2016, the Group had no capital commitments (2015: US$Nil).
19 Operating lease commitments
At 31 May 2016, the Group was committed to future minimum lease payments of:
Payments due within one year 86 119
Payments due between one to five years 345 102
Payments due beyond five years 86 -
Payments due beyond five years
86
-
20 Related party transactions
Identity of related parties
The Group has a related party relationship with its subsidiaries (see note
11), and with its directors and executive officers and with Burnbrae Ltd
(significant shareholder).
Transactions with and between subsidiaries
Transactions with and between the subsidiaries in the Group, which have been
eliminated on consolidation, are considered to be related party transactions.
Transactions with entities with significant influence over the Group
Rental and service charges of US$60,038 (2015: US$56,293) and directors' fees
of US$54,002 (2015: US$31,890) were charged in the year by Burnbrae Limited,
of which Denham Eke and Nigel Caine are common directors.
Transactions with key management personnel
The total amounts for directors' remuneration were as follows:
Emoluments - salaries, bonuses and taxable benefits 332 667
- fees 77 56
409 723
409
723
Directors' fees of US$54,002 were paid to Burnbrae Ltd (2015: US$31,890).
Details of share options issued in the year can be seen in note 16.
21 Financial risk management
Capital structure
The Group's capital structure is as follows:
Cash and cash equivalents 6,445 6,103
Loans and similar income - -
Net funds 6,445 6,103
Shareholders' equity (1,932) (3,174)
Capital employed 4,513 2,929
Capital employed
4,513
2,929
The Group's principal financial instruments comprise cash and cash
equivalents, trade receivables and payables that arise directly from its
operations. The main purpose of these financial instruments is to finance the
Group's operations. The existence of the financial instruments exposes the
Group to a number of financial risks, which are described in more detail
below.
The principal risks which the Group is exposed to relate to liquidity risks,
credit risks and foreign exchange risks.
Liquidity risk
Liquidity risk is the risk that the Group will be unable to meet its financial
obligations as they fall due.
The Group's objective is to maintain continuity of funding through trading and
share issues but to also retain flexibility through the use of short-term
loans if required.
Management controls and monitors the Group's cash flow on a regular basis,
including forecasting future cash flow. Banking facilities are kept under
review to ensure they meet the Group's requirements. Funds equivalent to
customer balances are held in designated bank accounts where applicable to
ensure that Isle of Man Gambling Supervision Commission player protection
principles are met. The directors anticipate that the business will continue
to generate sufficient cash flow in the forthcoming period to meet its
financial obligations.
The following are the contractual maturities of financial liabilities:
2016
Financial liabilities
Trade creditors 9,724 (9,724) (9,724) - -
Income tax and national insurance 52 (52) (52) - -
Other creditors 35 (35) (35) - -
9,811 (9,811) (9,811) - -
9,811
(9,811)
(9,811)
-
-
2015
Financial liabilities
Carrying amount US$000 Contractual cash flowUS$000 6 months or less US$000 Up to 1 year US$000 1-5 years US$000
Trade creditors 7,678 (7,678) (7,678) - -
Income tax and national insurance 72 (72) (72) - -
Other creditors 295 (295) (295) - -
8,045 (8,045) (8,045) - -
Credit risk
Credit risk is the risk that one party to a financial instrument will cause a
financial loss for the other party by failing to discharge an obligation.
Classes of financial assets - carrying amounts
Cash and cash equivalents 6,445 6,103
Bonds and deposits 2,604 2,645
Trade and other receivables 2,551 2,443
11,600 11,191
11,600
11,191
Generally, the maximum credit risk exposure of financial assets is the
carrying amount of the financial assets as shown on the face of the balance
sheet (or in the notes to the financial statements). Credit risk, therefore,
is only disclosed in circumstances where the maximum potential loss differs
significantly from the financial asset's carrying amount.
The maximum exposure to credit risks for receivables in any business segment:
Pari-mutuel 2,549 2,304
2,549 2,304
2,549
2,304
Of the above receivables, US$1,546,000 (2015: US$1,111,000) relates to amounts
owed from racing tracks. These receivables are actively monitored to avoid
significant concentration of credit risk and the directors consider there to
be no significant concentration of credit risk.
The directors consider that all the above financial assets that are not
impaired for each of the reporting dates under review are of good credit
quality. No amounts were considered past due at the year end (2015: US$Nil).
The credit risk for liquid funds and other short-term financial assets is
considered negligible, since the counterparties are reputable banks with
high-quality external credit ratings.
Interest rate risk
The Group finances its operations mainly through capital with limited levels
of borrowings. Cash at bank and in hand earns negligible interest at floating
rates, based principally on short-term interbank rates.
Any movement in interest rates would not be considered to have any significant
impact on net assets at the balance sheet date.
Foreign currency risks
The Group operates internationally and is subject to transactional foreign
currency exposures, primarily with respect to Pound Sterling, Swedish Krona,
Hong Kong Dollar and Singapore Dollar.
The Group does not actively manage the exposures but regularly monitors the
Group's currency position and exchange rate movements and makes decisions as
appropriate.
At the reporting date the Group had the following exposure:
2016 HKD US$000 GBPUS$000 EURUS$000 USDUS$000 SGDUS$000 SEKUS$000 TotalUS$000
Current assets 4,673 464 2,106 4,477 - - 11,720
Current liabilities (5,099) (389) (1,824) (2,749) - - (10,061)
Short-term exposure (426) 75 282 1,728 - - 1,659
2015 HKDUS$000 GBPUS$000 EURUS$000 USDUS$000 SGDUS$000 SEKUS$000 TotalUS$ 000
Current assets 3,080 1,149 255 6,315 1 524 11,324
Current liabilities (5,320) (584) (56) (2,482) - - (8,442)
Short-term exposure (2,240) 565 199 3,833 1 524 2,882
The following table illustrates the sensitivity of the net result for the year
and equity in regards to the Group's financial assets and financial
liabilities and the US Dollar-Sterling exchange rate, US Dollar-Euro exchange
rate and US Dollar-Hong Kong Dollar exchange rate.
A 5% weakening of the US Dollar against the following currencies at 31 May
2016 would have increased/(decreased) equity and profit and loss by the
amounts shown below:
Current assets 23 105 234 362
Current liabilities (20) (91) (255) (366)
Net assets 3 14 (21) (4)
Net assets
3
14
(21)
(4)
Current assets 57 13 154 224
Current liabilities (29) (3) (266) (298)
Net assets 28 10 (112) (74)
Net assets
28
10
(112)
(74)
A 5% strengthening of the US Dollar against the above currencies would have
had the equal but opposite effect on the above currencies to the amounts shown
above on the basis that all other variables remain constant.
22 Controlling party and ultimate controlling party
The directors consider the ultimate controlling party to be Burnbrae Limited
and its beneficial owner Jim Mellon by virtue of their combined shareholding
of 63.10%.
23 Subsequent events
To the knowledge of the directors, there have been no material events since
the end of the reporting period that require disclosure in the accounts.
This information is provided by RNS
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