REG - Webis Holdings PLC - Final Results and Notice of AGM <Origin Href="QuoteRef">WEBH.L</Origin> - Part 2
21/11/2017 07:06
- Part 2: For the preceding part double click ID:nRSU0344Xa
Depreciation
At 31 May 2016 535 474 21 1,030
Charge for the year 11 51 9 71
At31 May 2017 546 525 30 1,101
Net book value
At 31 May 2017 33 55 21 109
At 31 May 2016 47 87 26 160
At 31 May 2016
47
87
26
160
Cost
At 31 May 2016 401 141 542
Additions 18 - 18
Currency translation differences - (2) (2)
At 31 May 2017 419 139 558
Depreciation
At 31 May 2016 401 137 538
Charge for the year 2 2 4
At 31 May 2017 403 139 542
Net book value
At 31 May 2017 16 - 16
At 31 May 2016 - 4 4
At 31 May 2016
-
4
4
11 Investments
Investments in subsidiaries are held at cost. Details of investments at 31 May
2017 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 2,863 2,499 - -
Bonds and deposits which expire within one to two years 2 - - -
Bonds and deposits which expire within two to five years 101 105 - -
2,966 2,604 - -
2,966
2,604
-
-
A rent deposit of US$100,000 is held by California Exposition & State Fair and
is for a term of 5 years (2016: US$100,000). Cash bonds of US$925,000 has been
paid as security deposits in relation to various US State ADW licences (2016:
US$500,000). Rent and other security deposits total US$12,081 (2016:
US$71,462).
Under the terms of the licencing agreement with the Hong Kong Jockey Club the
Company is required to hold a retention amount of US$1,929,285 / HK$15,000,000
(2016: US$1,932,019 / HK$15,000,000).
13 Cash and cash equivalents
Cash and cash equivalents - company and other funds 13,827 5,538 1,169 4,067
Cash and cash equivalents - protected player funds 1,245 907 1,245 907
Total cash and cash equivalents 15,072 6,445 2,414 4,974
907
1,245
907
Total cash and cash equivalents
15,072
6,445
2,414
4,974
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 2,275 1,546 - -
Other receivables and prepayments 796 1,125 35 37
3,071 2,671 35 37
1,125
35
37
3,071
2,671
35
37
15 Trade and other payables
Trade payables 18,439 9,724 11 15
Amounts due to Group undertakings - - 962 3,994
Taxes and national insurance 31 52 2 2
Accruals and other payables 414 285 35 25
18,884 10,061 1,010 4,036
18,884
10,061
1,010
4,036
Amounts due to Group undertakings are unsecured, interest free and repayable
on demand. Included within trade payables are amounts due to customers of
US$18,324,542 (2016: US$9,656,431).
16 Loans
Loan - Galloway Ltd 500 - 500 -
500 - 500 -
-
500
-
500
-
500
-
A loan of $500,000 was received from Galloway Ltd in February 2017, to provide
financing for cash-backed bonding agreements. The loan is for a term of five
years, attracts interest at 7.75% per annum and is secured over the
unencumbered assets of the company (see note 20).
17 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 (2016: 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 2017 were as follows:
No.
At 31 May 2016 - 1p ordinary shares 14,000,000
Options granted -
Options lapsed -
Options exercised -
At 31 May 2017 - 1p ordinary shares 14,000,000
During the previous 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 volatility of the options is
calculated at 75%, with a risk free interest rate of 0.86%.
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$1,986 (2016: US$457), with the corresponding amount reflected in the share
option reserve in the Statement of Financial Position and Statement of Changes
in Equity.
18 Capital commitments
As at 31 May 2017, the Group had capital commitments of US$53,500, of which
US$32,500 related to a new player website and US$21,000 to a new player
management system (2016: US$Nil).
19 Operating lease commitments
At 31 May 2017, the Group was committed to future minimum lease payments of:
Payments due within one year 88 86
Payments due between one to five years 351 345
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$48,719 (2016: US$60,038) and Directors' fees
of US$46,748 (2016: US$54,002) were charged in the year by Burnbrae Limited,
of which Denham Eke and Nigel Caine are common Directors. The Group also
received a loan
in February 2017 of US$500,000 (2016: US$Nil) from Galloway Ltd, a company
related to Burnbrae Limited by common ownership and Directors (note 16).
Transactions with key management personnel
The total amounts for Directors' remuneration were as follows:
Emoluments - salaries, bonuses and taxable benefits 343 332
- fees 66 77
409 409
409
409
Directors' Emoluments
BasicsalaryUS$000 FeesUS$000 BonusUS$000 TerminationpaymentsUS$000 BenefitsUS$000 2017TotalUS$000 2016TotalUS$000
Executive
Ed Comins 310 - - - 33 343 332
Non-executive
Denham Eke* - 26 - - - 26 30
Nigel Caine* - 21 - - - 21 24
Sir James Mellon - 19 - - - 19 23
Aggregate emoluments 310 66 - - 33 409 409
* Paid to Burnbrae Limited.
14,000,000 share options were issued to Ed Comins (see note 17), during the
previous financial year.
21 Financial risk management
Capital structure
The Group's capital structure is as follows:
Cash and cash equivalents 15,072 6,445
Loans and similar income (500) -
Net funds 14,572 6,445
Shareholders' equity (1,939) (1,932)
Capital employed 12,633 4,513
Capital employed
12,633
4,513
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 risks
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:
2017
Financial liabilities
Trade creditors 18,439 (18,439) (18,439) - -
Income tax and national insurance 31 (31) (31) - -
Other creditors and loans 665 (665) (165) - (500)
19,135 (19,135) (18,635) - (500)
19,135
(19,135)
(18,635)
-
(500)
2016
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 9,724 (9,724) (9,724) - -
Income tax and national insurance 52 (52) (52) - -
Other creditors and loans 35 (35) (35) - -
9,811 (9,811) (9,811) - -
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 15,072 6,445
Bonds and deposits 2,966 2,604
Trade and other receivables 2,952 2,551
20,990 11,600
20,990
11,600
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 2,950 2,549
2,950 2,549
2,950
2,549
Of the above receivables, US$2,275,000 (2016: US$1,546,000) relates to amounts
owed from racing tracks. These receivables are actively monitored to avoid
significant concentration of credit risk and the Directors consider there to
be no significant concentration of credit risk.
The Directors consider that all the above financial assets that are not
impaired for each of the reporting dates under review are of good credit
quality. No amounts were considered past due at the year-end (2016: US$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 Pounds Sterling, Hong Kong
Dollars and Euros.
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:
2017 HKD US$000 GBP US$000 EUR US$000 USD US$000 Total US$000
Current assets 8,734 164 7,752 4,356 21,006
Current liabilities (8,629) (145) (6,976) (3,634) (19,384)
Short-term exposure 105 19 776 722 1,622
(8,629)
(145)
(6,976)
(3,634)
(19,384)
Short-term exposure
105
19
776
722
1,622
2016 HKD GBP EUR USD Total
US$000 US$000 US$000 US$000 US$000
Current assets 4,673 464 2,106 4,372 11,615
Current liabilities (5,099) (389) (1,824) (2,749) (10,061)
Short-term exposure (426) 75 282 1,623 1,554
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
2017 would have increased/(decreased) equity and profit and loss by the
amounts shown below:
Current assets 8 388 436 832
Current liabilities (7) (349) (431) (787)
Net assets 1 39 5 45
5
45
Current assets 23 105 234 362
Current liabilities (20) (91) (255) (366)
Net assets 3 14 (21) (4)
Net assets
3
14
(21)
(4)
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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