REG - Webis Holdings PLC - Interim Report and Financial Statements
22/02/2022 07:00
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RNS Number : 3463C Webis Holdings PLC 22 February 2022
Webis Holdings plc
Interim Report and Financial Statements for the period ended 30 November 2021
Webis Holdings plc (the "Group"), the global gaming operator, today announces
its unaudited interim results for the period ended 30 November 2021, extracts
from which are set out below. The Report is available on the Group's website
www.webisholdingsplc.com (http://www.webisholdingsplc.com) and at the Group's
registered office: Viking House, Nelson Street, Douglas, Isle of Man IM1 2AH.
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014, as it forms part
of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.
Upon the publication of this announcement, this inside information is now
considered to be in the public domain.
For further information:
Webis Holdings plc Beaumont Cornish Limited
Denham Eke Roland Cornish/James Biddle
Tel: 01624 639396 Tel: 020 7628 3396
Group at a Glance
Webis Holdings plc and its subsidiary companies operates within two primary
segments: -
WatchandWager.com Ltd and WatchandWager.com LLC - Advanced Deposit Wagering
("ADW")
WatchandWager.com LLC - Cal Expo Harness Racetrack
WatchandWager.com Ltd is regulated in the Isle of Man and operates a
totalisator wagering hub through its United States Tote supplier, which
enables it to conduct its ADW business by passing wagers directly into global
racetrack betting pools in real time.
WatchandWager.com LLC has its operational base in Lexington, Kentucky, with
its head office in Larkspur, California, and provides pari-mutuel wagering, or
pool-betting, services through a number of distribution channels to a global
client base. The company holds United States pari-mutuel licences for its ADW
business in the USA, including a multi-jurisdictional licence issued by the
States of North Dakota, and individual licences for the States of California,
Maryland, Colorado, Minnesota, New York, Washington, West Virginia and
Kentucky. The business provides wagering opportunities predominantly on
horse and greyhound racing and has contracted with a significant number of
prestigious racetrack partners within the United States, Hong Kong, France,
Canada, United Kingdom, Ireland, and Australia amongst others. It provides
wagering facilities to customers through its interactive website,
watchandwager.com, as well as offering a business-to-business wagering
product.
WatchandWager.com LLC also operates Cal Expo Harness Racetrack in Sacramento,
California, under a licence issued by the California Horse Racing Board. This
'bricks and mortar' presence in the largest State economy in the USA continues
to provide leverage for our related global pari-mutuel operations.
As part of the requirements for the Isle of Man licence, client funds for the
Isle of Man licensed companies are held in fully protected segregated client
accounts within an Isle of Man regulated bank.
Chairman's Statement
Introduction
Our principal subsidiary, WatchandWager.com ("WatchandWager"), experienced a
slight reduction in performance versus the same period last year. That said,
it should be noted that we continue to trade well above our previous
performance levels, with our handle up by 52% versus the same period in
2018/19. In addition, the business has a much wider scope both in terms of
revenue levels and strategic opportunities - more of below.
There are some key reasons for this minor downturn: mainly that 2020 and early
2021 months were a unique period for the Company and indeed many online gaming
operations. For almost the entire period, we operated with either zero or
highly restricted attendance at the key racetracks with which we do business.
Whilst this made our own track somewhat harder to operate, it did assist our
online and mobile platforms as players continued to wager, albeit on a more
interactive basis. For the six months reported, these trends have changed
slightly, with increased competition for the leisure dollar and certain
increases in our cost base.
More positively, the Board is pleased with our continued licensed position in
the USA and California. During the period, we continued to strengthen this for
the benefit of shareholders. Shareholders will note some very exciting
developments in the legislation of sports wagering in the United States and
the potential for that to be approved in California towards the end of this
year. This is a complex business and is commented upon in more detail below.
However, we do believe that WatchandWager remains well positioned in
California and indeed other States to maximize our competitive advantage. As a
result of this we continue to review our strategic opportunities in the USA
and California in particular.
Half Year Results Review
Group amounts wagered were US$ 39.9 million, down 12% on prior year (2020: US$
45.4 million). Turnover reported was US$ 6.80 million (2020: US$ 7.43
million), with gross profit achieved of US$ 2.18 million (2020: US$ 2.66
million). This resulted in a small loss on the period of US$ 0.07 million
(2020: profit of US$ 0.72 million).
Operating costs showed a small increase to US$ 2.22 million (2020: US$ 2.17
million), arising from a general increase in operating costs. Cash and cash
equivalents stand at US$ 3.10 million (31 May 2021: US$ 3.24 million).
Operations Update
Business-to-consumer (B2C) - this division performed well over the period and
continues to do so. Most importantly, it now contributes the majority of our
gross margin as compared to the more volatile business-to-business division.
This is significant because, as the Board is aware, there is no doubt that
having a strong B2C operation is our key to success and is also attractive to
other potential partners in the USA.
Comparing our key metrics versus the same period in 2020: handle slightly
reduced but active player numbers across the platform remain stable versus
prior year, and we were successful in retaining many of our clients who were
recruited during 2020. This was achieved with a low-cost marketing budget
which we deliberately controlled in order to manage our cash flows.
We do believe that there is further scope for growth in this sector, and this
is commented on more under Outlook.
Business-to-business (B2B) - trading for this division performed as expected.
Over the past few years, this area has become increasingly competitive in
nature, and this continues to be the case. Whilst we managed our high roller
customer base effectively with a view to maximizing our margin return, new
business has been hard to come by. This sector is very much a relationship
business where one-to-one contact with existing and new clients is very
important. This has obviously been impossible to achieve during the COVID-19
pandemic. On top of that, we are seeing increased competition in this sector
with clients constantly attempting to improve their margins at our expense and
our content suppliers, and indeed regulators, looking to improve their own
revenue. Thus, WatchandWager is effectively squeezed on both sides of the
equation, hence impacting our profitability. That said, we believe there are
still opportunities, especially within some of the more niche markets that we
offer. Assuming a more normal 2022 in terms of relaxation of travel
restrictions and industry events, the Executive plan to use this opportunity
to revitalize existing business and search proactively for new business.
Cal Expo
During the period, we were forced to remain closed for live operations as
planned through the summer months. We again benefitted from good levels of
commissions from other existing operations in California both on a land based
and interactive basis, and this remains a key part of the model.
In mid-November, we recommenced harness racing at Cal Expo in Sacramento for
our tenth season in a row, and we intend to race until the end of April 2022.
It has been a very difficult time to run a live racing operation, and whilst
we are now accepting spectators at the track, unsurprisingly attendances have
been low due to concerns regarding the Omicron variant of COVID-19, which will
probably impact us through the rest of the season.
On a more positive note, the Board is pleased with the quality of product
being presented at Cal Expo, and we see no reason why we cannot perform
strongly to year end. Of course, our license in California, both land-based
and interactive, remain the key asset to the company, and this is commented in
more detail under Strategy.
Licenses
During the period, we have concentrated on obtaining important license
applications and renewals. I am pleased to report that all license
applications were successfully renewed, and include the key strategic states
of California, New York and Kentucky, amongst others. These licenses are all
in good standing through the entirety of 2022 and, in certain cases, beyond.
Compliance
There were no compliance issues reported to our various regulators during the
period.
Health & Safety
There were no health and safety issues to report across the entire Cal Expo
operation, where equine and participant welfare remain our highest priority.
Outlook
Short term
Performance in the last two months has been steady. However, seasonality
impacts our content over the winter months with key tracks closed and other
tracks being abandoned due to unfavourable weather conditions. This
particularly affects our East Coast of the USA business. Notwithstanding, we
continue to trade well, and our numbers track above our 2019/20 performance to
date.
Initial performance at Cal Expo was hampered by poor weather and an outbreak
of equine flu on the facility. This impacts field sizes and numbers of races
which will transfer to lower handle. At time of writing, I am pleased to say
that equine illnesses have been minimized and that we fully expect performance
to improve into the spring months as per previous year trends.
Overall, across all divisions, we expect an upturn in performance in the
spring of 2022, and we are very focused on improving our handle and most
importantly, our margin derived from our activities and at the same time
continuing to manage our cost base.
Longer term
Existing operations
The Board remains optimistic regarding the current state of our business. Most
importantly, our B2C operations are now contributing the vast majority of the
margin derived from the business and we see that area as our focus for
existing operations. On that note, the Executive are currently preparing
detailed software development, payment processing, marketing and regulatory
expansion plans for our core website. These four factors underpin a successful
USA licensed online wagering site. There is, however, an obvious cost to all
four of these items, some of which can be financed through existing cash
flows. This investment is critical to the future growth of the business and
indeed our market valuation. The Board will keep shareholders fully informed
of any decisions to invest in the current wagering platform.
In relation to Cal Expo, shareholders are aware that we hold the exclusive
lease to the racetrack until May 2025. We have also an option to extend that
lease for another five years until May 2030. Our Executive are currently in
negotiations with the Cal Expo Board who represent the State of California to
further extend this option. As noted, we see our extended lease as a key asset
to the company and will be making an announcement in due course.
USA Expanded Gaming
California
At time of writing, there are at least four different draft bills that could
go in front of Californian voters during the Ballot season in November of
2022. Two are draft Native American sponsored bills which are, unfortunately,
protective in nature. On a more positive note, the other two potential bills
are being worked on by key participants of the gaming industry of California.
These bills are much more progressive in nature and will allow for the ability
to offer mobile wagering as well as land-based facilities. These will
dramatically increase revenues back to the State of California and, of course,
provide equally important land-based and remote-based job opportunities in the
State. Figures coming out of New Jersey and New York, which recently legalized
mobile wagering, confirm our projections for rapid growth in this area. At
present, we are fully engaged with our lobbyists in Sacramento to make
legislatures understand the benefits of a truly democratic and competitive
marketplace for sports wagering in California to the benefit of
all stakeholders.
Strategic options
Observers will be aware that the USA continues to be the land of opportunity
in our sector, particularly as other markets suffer from oversaturation and
legislative problems, particularly in the UK and Europe. The level of
expenditure from existing and new operators in the USA has hit unprecedented
heights as they all fight for customer acquisition and dominant market share.
This strategy is risky and, for us, above our available cash flows. We are,
however, fully aware of our unique position, and we continue to be in
discussions with potential partners in order for us to leverage the kind of
scalability required to succeed in the core USA markets.
Having sought external advice from venture capital firms and indeed specialty
gaming advisers, we continue to consider ourselves to be undervalued on our
metrics and, indeed, our potential growth opportunity in the USA. We remain
open to discussion with potential partners and will keep shareholders fully
informed of developments in this matter.
In the meantime, we would continue to thank our staff, participants and
shareholders for their on-going support for our business.
Denham Eke
Non-executive Chairman
21 February 2022
Condensed Consolidated Statement of Comprehensive Income
For the period ended 30 November 2021
Note Period to
30 November 2021 (unaudited) Period to
US$000 30 November 2020
(unaudited)
US$000
Amounts wagered 39,849 45,391
3 6,795 7,430
Turnover
Cost of sales (4,566) (4,713)
Betting duty paid (53) (60)
Gross profit 2,176 2,657
Operating costs (2,220) (2,172)
Other losses (3) (7)
Government grants 1.5 - 272
Other income 39 34
Operating (loss) / profit (8) 784
Finance costs 4 (62) (63)
(Loss) / profit before income tax (70) 721
Income tax expense 5 - -
(Loss) / profit for the period (70) 721
Other comprehensive income for the period - -
Total comprehensive (loss) / profit for the period (70) 721
Basic and diluted earnings per share for (loss) / profit attributable to the 6 (0.02) 0.18
equity holders of the Company during the period (cents)
Condensed Consolidated Statement of Financial Position
As at 30 November 2021
Note
As at Year ended
30 November 2021 31 May 2021
(unaudited) (audited)
US$000 US$000
Non-current assets
Intangible assets 7 8 12
Property, equipment and motor vehicles 392 380
Bonds and deposits 101 101
Total non-current assets 501 493
Current assets
Bonds and deposits 882 882
Trade and other receivables 1,420 1,896
Cash, cash equivalents and restricted cash 8 4,193 5,083
Total current assets 6,495 7,861
Total assets 6,996 8,354
Equity
Called up share capital 6,334 6,334
Share option reserve 42 42
Retained losses (4,754) (4,684)
Total equity 1,622 1,692
Current liabilities
Trade and other payables 3,659 4,995
Loans, borrowings and lease liabilities 9 611 572
Total current liabilities 4,270 5,567
Non-current liabilities
Loans, borrowings and lease liabilities 9 1,104 1,095
Total non-current liabilities 1,104 1,095
Total liabilities 5,374 6,662
Total equity and liabilities 6,996 8,354
Condensed Consolidated Statement of Changes in Equity
For the period ended 30 November 2021
Called up Share option reserve Retained earnings Total
share capital US$000 US$000 equity
US$000 US$000
Balance as at 31 May 2020 (audited) 6,334 42 (5,508) 868
Total comprehensive income for the period:
Profit for the period - - 721 721
Transactions with owners:
Share-based payment expense - - - -
Balance as at 30 November 2020 (unaudited) 6,334 42 (4,787) 1,589
Balance as at 31 May 2021 (audited) 6,334 42 (4,684) 1,692
Total comprehensive income for the period:
Loss for the period - - (70) (70)
Transactions with owners:
Share-based payment expense - - - -
Balance as at 30 November 2021 (unaudited) 6,334 42 (4,754) 1,622
Condensed Consolidated Statement of Cash Flows
For the period ended 30 November 2021
Note Period to
30 November 2021 Period to
(unaudited) 30 November 2020
US$000 (unaudited)
US$000
Cash flows from operating activities
(Loss) / profit before income tax (70) 721
Adjustments for:
- Depreciation 49 40
- Amortisation of intangible assets 4 21
- Rent concession received - (5)
- Finance costs 4 62 63
- Government grant utilised - (272)
- Other foreign exchange movements (5) 107
Changes in working capital:
- Decrease in receivables 476 171
- Decrease in payables (1,336) (144)
Cash flows (used in) / generated from operations (820) 702
Bonds and deposits utilised in the course of operations - -
Net cash (used in) / generated from operating activities (820) 702
Cash flows from investing activities
Purchase of intangible assets - -
Purchase of property, equipment and motor vehicles - -
Net cash used in investing activities - -
Cash flows from financing activities
Interest paid 4 (62) (63)
Payment of lease liabilities (21) (21)
Repayment of loans and borrowings (3) (3)
Increase in loans, borrowings and lease liabilities 13 13
Net cash used in financing activities (73) (74)
Net increase in cash and cash equivalents (893) 628
Cash and cash equivalents at beginning of year 3,238 2,499
Exchange gains / (losses) on cash and cash equivalents 3 (107)
Change in restricted cash balances 752 (27)
Cash and cash equivalents at end of period 3,100 2,993
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
For the period ended 30 November 2021
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 financial statements as at and for the period ended 30 November
2021 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
International Financial Reporting Standards ("IFRS") and their interpretations
issued by the International Accounting Standards Board ("IASB") and adopted by
the European Union ("EU"). 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 2021 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 2021.
The unaudited condensed consolidated financial statements do not constitute
statutory financial statements. The statutory financial statements for the
year ended 31 May 2021, extracts of which are included in these unaudited
condensed consolidated financial statements, were prepared under IFRS as
adopted by the EU 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 2021 as set out in those financial
statements.
1.3 Functional and presentation currency
The Financial Information is presented in US Dollars, rounded to the nearest
thousand, which is the functional currency and also the presentation currency
of the Group.
1.4 Going Concern
As noted within the statutory financial statements for the year ended 31 May
2021, 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.
In addition, as the horseracing industry continued to operate during the
coronavirus pandemic, which assisted the Group in improving profitability in
2020/21, and not withstanding the losses incurred in the current interim
period, this overall improved performance has led to a more positive cash flow
position and has increased the Group operational cash.
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.
1.5 Government grants
The Group initially recognises government grants, that compensate for expenses
incurred, as deferred income at fair value if there is a reasonable assurance
that they will be received. They are then recognised in profit or loss on a
systematic basis in the periods in which the expenses are recognised.
2 Operating Segments
A. Basis for segmentation
The Group has the below 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 online 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 2021 (unaudited) Racetrack ADW Corporate operating costs Total
US$000 US$000 US$000 US$000
External revenues 5,530 1,265 - 6,795
Segment revenue 5,530 1,265 - 6,795
Segment profit / (loss) before tax 155 (155) (70) (70)
Finance costs (10) (3) (49) (62)
Depreciation and amortisation (29) (22) (2) (53)
Period to 30 November 2021 (unaudited)
Segment assets 2,005 3,553 1,438 6,996
Segment liabilities 1,106 2,833 1,435 5,374
Reportable segments
Period to 30 November 2020 (unaudited) Racetrack ADW Corporate operating Total
US$000 US$000 costs US$000
US$000
External revenues 5,874 1,556 - 7,430
Segment revenue 5,874 1,556 - 7,430
Segment profit before tax 282 385 54 721
Finance costs (12) (2) (49) (63)
Depreciation and amortisation (20) (41) - (61)
Period to 31 May 2021 (audited)
Segment assets 2,138 3,915 2,301 8,354
Segment liabilities 1,409 3,812 1,441 6,662
C. Reconciliation of reportable segments profit or loss
Period to Period to
30 November 2021 30 November 2020
(unaudited) (unaudited)
US$000 US$000
(Loss) / profit before tax
Total (loss) / profit before tax for reportable segments - 667
(Loss) / profit before tax for other segments (70) 54
Consolidated (loss) / profit before tax (70) 721
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 2021 (unaudited) Racetrack ADW Total
US$000 US$000 US$000
Primary geographic markets
North America 5,530 969 6,499
British Isles - 296 296
Segment revenue 5,530 1,265 6,795
Major service lines
ADW wagering 4,116 1,265 5,381
Race hosting 1,414 - 1,414
5,530 1,265 6,795
Timing of revenue recognition
Services transferred at a point in time 5,530 1,265 6,795
Revenue from contracts with customers 5,530 1,265 6,795
External revenue as reported in Note 2 5,530 1,265 6,795
Reportable segments
Period to 30 November 2020 (unaudited) Racetrack ADW Total
US$000 US$000 US$000
Primary geographic markets
North America 5,874 1,146 7,020
British Isles - 410 410
Segment revenue 5,874 1,556 7,430
Major service lines
ADW wagering 4,772 1,556 6,328
Race hosting 1,102 - 1,102
5,874 1,556 7,430
Timing of revenue recognition
Services transferred at a point in time 5,874 1,556 7,430
Revenue from contracts with customers 5,874 1,556 7,430
External revenue as reported in Note 2 5,874 1,556 7,430
4 Finance costs
Period to Period to
30 November 2021 30 November 2020
(unaudited) (unaudited)
US$000 US$000
Loan interest payable (50) (50)
Lease liability interest payable (12) (13)
Finance costs (62) (63)
5 Income tax expense
(a) Current and Deferred Tax Expenses
The current and deferred tax expenses for the period were US$ Nil (2020: 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 2021 30 November 2020
(unaudited) (unaudited)
US$000 US$000
(Loss) / profit before tax (70) 721
Tax charge at IOM standard rate (0%) - -
Adjusted for:
Tax (credit) / debit for US tax (losses) / profits (at 15%) (17) 80
Add back / (deduct) deferred tax losses not recognised 17 (80)
Tax charge for the period - -
The maximum deferred tax asset that could be recognised at period end is
approximately US$840,000 (2020: US$827,000). The Group has not recognised any
asset as it is not reasonably known when the Group will recover such deferred
tax assets.
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 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.
Period to Period to
30 November 2021 30 November 2020
(unaudited) (unaudited)
US$000 US$000
(Loss) / profit for the period (70) 721
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) (0.02) 0.18
Diluted earnings per share (cents) (0.02) 0.18
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 2021
30 November 2021 (audited)
(unaudited) US$000
US$000
Cash and cash equivalents - company and other funds 3,100 3,238
Restricted cash - protected player funds 1,093 1,845
Total cash, cash equivalents and restricted cash 4,193 5,083
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.
9 Loans, borrowings and lease liabilities
Current liabilities
Year ended
Period to 31 May 2021
30 November 2021 (audited)
(unaudited) US$000
US$000
Unsecured loan (current portion) 6 6
Lease liabilities (current portion) 105 66
Secured loans - Galloway Ltd 500 500
611 572
Non-current liabilities
Year ended
Period to 31 May 2021
30 November 2021 (audited)
(unaudited) US$000
US$000
Unsecured loan (non-current portion) 16 19
Lease liabilities (non-current portion) 238 226
Secured loans - Galloway Ltd 850 850
1,104 1,095
Terms and repayment schedule
Nominal Year ended
interest rate Year of maturity Period to 31 May 2021
30 November 2021 (audited)
(unaudited) US$000
US$000
Unsecured loan 8.90% 2025 22 25
Lease liabilities 6.00-7.00% 2023-25 343 292
Secured loan - Galloway Ltd 7.75% 2022 500 500
Secured loan - Galloway Ltd 7.00% 2024 350 350
Secured loan - Galloway Ltd 7.00% 2025 500 500
Total loans and borrowings 1,715 1,667
The secured loans from Galloway Ltd are secured over the unencumbered assets
of the Group.
10 Related party transactions
Identity of related parties
The Group has a related party relationship with its subsidiaries, 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$23,868 (2020: US$22,041) and Directors' fees
of US$13,834 (2020: US$12,775) were charged in the period by Burnbrae Ltd of
which Denham Eke is a common Director. The Group also had a loan of
US$1,350,000 (31 May 2021: US$1,350,000) from Galloway Ltd, a company related
to Burnbrae Limited by common ownership and Directors (see note 9).
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 2021.
12 Approval of interim statements
The interim statements were approved by the Board on 21 February 2022. The
interim report is expected to be available for shareholders on 22 February
2022 and will be available from that date on the Group's website
www.webisholdingsplc.com.
The Group's nominated adviser and broker is Beaumont Cornish Limited, Building
3, Chiswick Park, 566 Chiswick High Road, London W4 5YA.
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