REG - World Chess PLC - Interim Results for Six Months Ended 30 June 2024
30/09/2024 07:00
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RNS Number : 0957G World Chess PLC 30 September 2024
30 September 2024
World Chess Plc
("World Chess" or the "Company" or the "Group")
Interim Results for the Six Months Ended 30 June 2024
World Chess plc (LSE: CHSS), a leading chess organisation seeking to promote
the mass market appeal of chess globally through the offering of different
chess-related activities, is pleased to announce its unaudited interim results
for the six months ended 30 June 2024.
Financial Overview for the six months to June 2024
● Revenue of €1.2m (H1 2023: €1.2m)
● Pre-tax loss of €1.9m (H1 2023: €2.3m)
● Fundraise of €1.5m (H1 2023: €3.5m)
Corporate, strategic and operational progress
The first six months of 2024 has seen World Chess continue to strengthen its
position in the global chess market, investing in its digital and media
ventures, including improvements to the FIDE Online Arena, highlights include:
● Launch of 'Swiss Queens Wednesday', which is a major online
women's tournament series in partnership with the International Chess
Federation (FIDE). The only tournament series in Womens' online chess,
featuring weekly online events with participation of elite female players,
including World Champions (https://chessarena.com/swiss-queens-wednesday
(https://chessarena.com/swiss-queens-wednesday) ).
● Confirmation of continued partnership with FIDE for the exclusive
use of the World Chess Championship sets in the FIDE Championship Matches, the
Candidates Tournaments and other elite events through 2024 and 2025 and the
release of an exclusive special edition chess set to celebrate the 2024 FIDE
Candidates Tournament.
● New collaboration with Sunset+Vine, the sports focused TV
production company, to launch chess news and lifestyle television programme.
● Further upgrades to chessarena.com, the FIDE Online Arena,
including a new user interface, as well as IOS and Android apps creating a
more personalised playing experience.
● Since the start of the period, the number of registered users grew
7% to 803,872 whilst the number of 'premium' paid subscribers grew 8% to 9,198
The Company is also phasing out its legacy pricing model, with a new Pro price
increased to €49 per year. This is up 95% from the previous price and
includes FIDE ID, issued to all Pro users.
Post-period events
● In September 2024 the Company announced a new strategic investor
had agreed to subscribe for 12,000,000 new ordinary shares of World Chess for
a total subscription amount of €1.2m payable in three instalments with the
final payment due on 15 January 2025.
● Hosted "Clash of Blames," a rematch between Vladimir Kramnik and
Grandmaster José Alcántara, featuring chessarena.com's advanced
anti-cheating technology, held both online and in-person in London. The event
gained coverage in the news media, including the Times, as well as in the
social media.
● Extension of its partnership with the Algorand Foundation to
enhance chessarena.com with a new Algorand Tournament Series and unique
digital chess assets.
Ilya Merenzon, Chief Executive Officer of World Chess, said:
"We have continued to build the products that are, in our view, in line with
what modern chess looks like - user-friendly, social, competitive, and
well-designed. The chess interface, as evident from our more established
competitors, requires a facelift, and we are looking forward to challenging
the status quo and bringing new features and design solutions into the sport.
Our business goals are to rapidly increase our awareness and market share.
Looking ahead, we remain committed to driving chess into new, dynamic spaces.
We will continue to expand our digital footprint, enhance our chess products
and deliver high-profile events that unite and excite the global chess
community."
The half-yearly financial report has not been audited or reviewed by auditors
pursuant to the Financial Reporting Council guidance on Review of Interim
Financial Information.
For more information, please visit https://worldchess.com/investors
(https://worldchess.com/investors) or contact:
World Chess Via Yellow Jersey PR
Ilya Merenzon, CEO
Novum Securities Limited - Financial Adviser +44 (0) 20 7399 9400
David Coffman / George Duxberry
Allenby Capital Limited - Broker +44 (0) 20 3328 5656
Joscelin Pinnington / Tony Quirke (Sales)
John Depasquale / Lauren Wright (Corporate Finance)
Yellow Jersey PR
Charles Goodwin +44 (0) 77 4778 8221
Annabelle Wills +44 (0) 77 7519 4357
Notes to Editors
About World Chess Plc
World Chess (LSE: CHSS) is a London-based chess gaming and entertainment
company and Fédération Internationale des Échecs ('FIDE') official
commercial partner. World Chess organised the FIDE Championship Matches in the
USA, and the UK, and revolutionised the sport by signing the biggest media
partnerships in history. World Chess develops Armageddon, the chess league for
prime-time television. World Chess also runs FIDE Online Arena, the exclusive
official chess gaming platform. More at worldchess.com
(https://worldchess.com/) .
INTERIM MANAGEMENT REPORT
Chessarena.com, the FIDE Online Arena
Following the launch of Arena 2.0 in October 2023, key new features introduced
by World Chess in 2024 include the ability to start playing a game of chess
with one click, meaning interested users don't have to register and can simply
click and play, encouraging first-time players to the platform, and offering
the ability to start multiple games in different time controls allowing
players to find a relevant opponent faster.
In January 2024 'Swiss Queens Wednesday', the women's online tournament series
in partnership with FIDE, was launched on chessarena.com, giving women chess
players the chance to challenge stereotypes, inspire future generations, and
demonstrate their strategic prowess on a global stage and promote gender
diversity through chess.
In August 2024, chessarena.com hosted 'Clash of Blames' the much anticipated
rematch between 14th World Chess Champion, Vladimir Kramnik, and Grandmaster
José Alcántara following the controversial Clash of Claims. This event
highlighted chessarena.com's anti-cheating engine, unique in online chess as
the only anti-cheating engine approved by FIDE, the international governing
body of chess.
On 3 September 2024, the Company announced the extension of its partnership
with the Algorand Foundation for an additional year. Algorand's cutting-edge
blockchain technology will continue to enhance the chessarena.com ecosystem
through a new Algorand Tournament Series and unique digital chess assets,
further enriching the platform's offerings and user experience. Further
details of subsequent events are set out in note 14 of this unaudited
condensed consolidated interim financial information.
At the end of August 2024, chessarena.com had 832,090 registered users and
10,300 paid subscribers.
World Chess TV
In May 2024 World Chess announced the launch of a new chess news television
programme, intended to be broadcast on several TV stations. This series,
consisting of ten 30-minute episodes, will cover a range of topics including
major issues, scandals, and significant events in the chess world. Produced in
collaboration with Sunset+Vine, the programme will also feature content
sponsored by it.com Domains and aims to broaden chess's appeal and inspire
global audiences, while making chess accessible and engaging for all viewers.
World Chess Club Berlin
The World Chess Club Berlin has hosted a series of exciting events and
tournaments aimed at promoting the game and engaging the chess community.
Highlights include Chess Boxing, FIDE-rated Rapid and Blitz tournaments as
well as regular Sunday Cup and amateur tournaments. The club has also
introduced new educational programs and workshops for players of all levels,
designed to enhance their skills and knowledge of the game.
Armageddon 2025
Armageddon, the World Chess global chess series, which captivated audiences in
2023, will return in 2025 for another round of high-stakes chess competition.
The inaugural event showcased intense matchups and dramatic finishes,
featuring some of the world's top players battling under a unique, time-crunch
format designed to heighten suspense and excitement.
Preparations are underway to enhance the event even further, promising
innovative features and expanded global reach. The 2025 Armageddon is set to
continue its tradition of blending strategic depth with electrifying gameplay,
further solidifying its status as a premier chess spectacle.
Tournaments revenue recognised in the period includes €250,000 (H1 2023:
€456,008) which was included in accruals and deferred income at the start of
the period. This income relates to a multiyear sponsorship agreement entered
into in 2018.
New Strategic Investor
On 27 September 2024 the Company announced a new strategic investor had agreed
to subscribe for 12,000,000 new ordinary shares of World Chess for a total
subscription amount of €1.2m payable in three instalments with the final
payment due on 15 January 2025. The newly issued shares will be admitted to
trading on the London Stock Exchange's Main Market, with admission to follow
receipt of the final payment.
Listing Category
On 29 July 2024, the Listing Rules were replaced by the UK Listing Rules
("UKLR") under which the existing Standard Listing category was replaced by
the Equity Shares (transition) category under Chapter 22 of the UKLR.
Consequently, with effect from that date the Company is admitted to Equity
Shares (transition) category of the Official List under Chapter 22 of the UKLR
and to trading on the London Stock Exchange's Main Market for listed
securities.
Principal Risks and Uncertainties
Taking considered risk is the essence of all business and investment activity,
in relation to risk the Company's main objective is to minimise the chance of
a material adverse outcome arising from causes which could reasonably have
been foreseen, this includes both 'upside' (opportunity) and 'downside'
(threat) risks.
The principal risks that are specific to the Group are summarised below; in
the opinion of the Directors these risks remain unchanged from those detailed
in the Company's annual report for the year ended 31 December 2023 which was
approved by the Board of Directors on 25 April 2024.
● Availability of funding: The Company continues to be reliant on
raising further financing to support its ongoing operations.
● Subscriber Growth: Retaining and attracting online subscribers is
crucial to the Group's success. This depends on product quality, user
experience, and responding to changing preferences. Failure in these areas
could harm the business.
● Platform Stability: Disruptions in service or systems, whether
from the Group or third parties, could damage the Group's reputation and
customer base, negatively affecting business performance.
● Data Security: Compliance with data protection laws like GDPR and
safeguarding user data are vital. A failure here could harm the Group's
business and lead to claims. The new head of products risk and compliance is
tasked with enhancing data governance and security.
● Anti-Cheating: Cheating remains a significant challenge in online
chess. While World Chess employs advanced anti-cheating technologies, ongoing
improvement and investment are necessary. Incentivising players to engage in
over-the-board chess can also help reduce online cheating.
● World Chess Online Arena Contract with FIDE: The contract with
FIDE is an important tool helping to establish platform's dominance. The
contract may be terminated by FIDE in August 2026 subject to certain
conditions (for more information see Company's April 2023 Prospectus).
Otherwise it should renew for another 5 years (until August 2031).
● Rating Recognition and Adoption: The platform's official FIDE
ratings are a key advantage but face challenges in adoption and integration
with over-the-board ratings and tournaments.
● Reliance on Key Individuals: The business heavily depends on a few
key management personnel. Losing any of them could adversely affect the Group.
Related Parties' Transactions
Details of material transactions with Directors are disclosed in note 13.
Transactions with and between the Company and its subsidiary undertakings, who
are related parties, have been eliminated on consolidation and are disclosed
in note 13.
Other than as disclosed in note 13 to this unaudited condensed consolidated
interim financial information there have been no changes to the related
parties' transactions described in the Company's annual report for the year
ended 31 December 2022 which was approved by the Board of Directors on 28
April 2023.
Outlook
The Company continues to advance its mission of popularising chess through a
series of initiatives. Over the course of the second half, World Chess will
continue to build on its successful partnership with the Algorand Foundation,
leveraging their blockchain technology to launch a new Algorand Tournament
Series on chessarena.com, whilst also and gearing up for the highly
anticipated return of the World Chess Armageddon in 2025, which promises to
deliver another round of intense, high-stakes competition.
The organisation will also focus on growing its presence through strategic
partnerships and expanding its educational and community engagement
initiatives. By continuing to innovate and elevate the chess experience, World
Chess aims to solidify its position as a leading force in the global chess
arena and attract new audiences to the sport.
Approved by the Board on 27 September 2024 and signed on its behalf by:
Graham Woolfman Ilya Merenzon
Non Executive Chair of the Board of Directors Chief Executive Officer
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR
THE PERIOD 1 JANUARY 2024 TO 30 JUNE 2024
6 months to 30 June 2024 Unaudited 6 months to 30 June 2023 Unaudited Year ended 31 December 2023 Audited
Notes € € €
Revenue 3 1,218,912 1,234,713 2,345,492
Cost of (498,394) (1,347,197) (2,166,390)
sales
GROSS PROFIT 720,518 (112,484) 179,102
Other operating income 2,900 151,872 11,706
Administrative expenses (2,505,348) (1,974,288) (4,344,248)
OPERATING LOSS BEFORE EXCEPTIONAL ITEMS (1,781,930) (1,934,900) (4,153,440)
Exceptional Items 4 (8,213) (311,216) (326,776)
OPERATING LOSS (1,790,143) (2,246,116) (4,480,216)
Finance costs 5 (79,082) (101,164) (191,393)
Finance income 5 69 68 139
LOSS BEFORE INCOME TAX (1,869,156) (2,347,212) (4,671,470)
Income tax - - (13,629)
LOSS FOR THE PERIOD (1,869,156) (2,347,212) (4,685,099)
OTHER COMPREHENSIVE INCOME
(Loss)/gain on currency translation 5,391 - (7,323)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR (1,863,765) (2,347,212) (4,692,422)
Loss attributable to:
Owners of the parent (1,869,156) (2,347,212) (4,685,099)
Total comprehensive income attributable to:
Owners of the parent (1,863,765) (2,347,212) (4,692,422)
LOSS PER SHARE - CONTINUING AND TOTAL OPERATIONS
Basic and diluted 6 (0.0027) (0.0037) (0.007)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2024
30 June 2024 30 June 31 December 2023
2023 Unaudited
Unaudited Audited
Notes € € €
NON-CURRENT ASSETS
Intangible assets 8 3,015,515 2,976,044 3,086,827
Property, plant and equipment 9 1,002,220 1,217,104 1,029,516
Right-of-use assets 9 1,131,394 1,214,763 1,206,820
Deferred tax 63,272 76,697 63,272
5,212,401 5,484,608 5,386,435
CURRENT ASSETS
Inventories 145,818 152,265 187,018
Trade and other receivables 580,489 560,866 256,464
Tax receivable 60,093 214,171 -
Cash and cash equivalents 92,202 254,308 186,881
878,602 1,181,610 630,363
TOTAL ASSETS 6,091,003 6,666,218 6,016,798
EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Called up share capital 11 78,520 75,613 75,647
Share premium 11 12,754,046 11,027,393 11,048,183
Translation reserve 64,009 61,824 58,618
Retained earnings (12,043,880) (7,836,834) (10,174,724)
TOTAL EQUITY 852,695 3,327,996 1,007,724
NON-CURRENT LIABILITIES
Lease liabilities 12 1,241,112 1,331,944 1,304,273
Provision for liabilities 157,887 184,154 157,887
1,398,999 1,516,098 1,462,160
CURRENT LIABILITIES
Trade and other payables 3,681,332 1,527,524 3,397,717
Lease liabilities 12 122,889 109,889 116,208
Interest bearing loans and borrowings 35,088 184,711 32,989
3,839,309 1,822,124 3,546,914
TOTAL LIABILITIES 5,238,308 3,338,222 5,009,074
TOTAL EQUITY AND LIABILITIES 6,091,003 6,666,218 6,016,798
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD 1 JANUARY 2024 TO 30 JUNE 2024
Called up share capital Retained Earnings Share Premium Translation reserve Total equity
€ € € € €
Balance at 1 January 2023 68,260 (5,489,625) 6,518,849 65,941 1,163,425
Changes in equity
Issue of share capital 7,353 - 4,508,544 - 4,515,897
Total comprehensive income - (2,347,209) - (4,117) (2,351,326)
Balance at 30 June 2023 75,613 (7,836,834) 11,027,393 61,824 3,327,996
Balance at 1 January 2024 75,647 (10,174,724) 11,048,183 58,618 1,007,724
Changes in equity
Issue of share capital 2,873 - 1,705,863 - 1,708,736
Total comprehensive income - (1,869,156) - 5,391 (1,863,765)
Balance at 30 June 2024 78,520 (12,043,880) 12,754,046 64,009 852,695
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD 1 JANUARY 2024 TO 30 JUNE 2024
6 months to 30 June 2024 Unaudited 6 months to 30 June 2023 Unaudited Year ended 31 December 2023 Audited
Notes € € €
Cash flows from operating activities
Cash absorbed from operations 1 (1,787,971) (2,233,412) (3,338,149)
Interest paid (391) (23,769) (6,638)
Finance cost paid (77,060) (77,395) (163,495)
Tax refund received (60,093) 36,946 250,913
Net cash used in operating activities (1,925,515) (2,297,630) (3,257,369)
Cash flows from investing activities
Purchase of intangible fixed assets (1,455,838) (736,977) (3,317,267)
Proceeds from disposal of intangible fixed assets 1,237,206 275,256 2,495,727
Purchase of property, plant and equipment (31,065) (588,868) (631,603)
Proceeds from disposal of property, plant and equipment - - 1,185
Interest received 69 68 139
Net cash used in investing activities (249,628) (1,050,521) (1,451,819)
Cash flows from financing activities
Loan advanced in the period 400,000 13,019 1,508,737
Loan repayments in period - - (30,050)
Payment of lease liabilities (56,480) (47,489) (100,596)
Amount introduced by directors 222,349 129,913 14,167
Proceeds from share issue 1,508,736 3,475,568 3,475,569
Net cash generated from financing activities 2,074,605 3,571,011 4,867,827
Increase/(decrease) in cash and cash equivalents (100,538) 222,860 158,639
Cash and cash equivalents at beginning of period 2 186,881 35,565 35,565
Effect of foreign exchange rate changes 5,859 (4,117) (7,323)
Cash and cash equivalents at end of period 2 92,202 254,308 186,881
.
NOTES TO THE STATEMENTS OF CASH FLOWS
FOR THE PERIOD 1 JANUARY 2024 TO 30 JUNE 2024
1 RECONCILIATION OF LOSS BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS
Group 6 months to 30 June 2023 Unaudited 6 months to 30 June 2023 Unaudited Year ended 31 December 2023 Audited
€ € €
Loss before income tax (1,869,156) (2,347,212) (4,671,470)
Depreciation and amortisation 423,738 442,753 843,237
Provision - 3,502 (22,765)
Finance costs 79,082 101,164 191,393
Finance income (69) (68) (139)
(1,366,405) (1,799,861) (3,659,744)
Decrease/(increase) in inventories 41,200 35,426 673
Decrease/(increase) in trade and other receivables (324,025) 101,700 406,102
Decrease in trade and other payables (138,741) (570,677) (85,180)
Cash absorbed from operations (1,787,971) (2,233,412) (3,338,149)
2 CASH AND CASH EQUIVALENTS
The amounts disclosed on the Statements of Cash Flows in respect of cash and
cash equivalents are in respect of these Statement of Financial Position
amounts:
Group 6 months to 30 June 2024 Unaudited 6 months to 30 June 2023 Unaudited Year ended 31 December 2023 Audited
€ € €
30 June 2024
Cash and cash equivalents 92,202 254,308 186,881
31 December 2023
Cash and cash equivalents 186,881 35,565 35,565
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE
PERIOD 1 JANUARY 2024 TO 30 JUNE 2024
1 STATUTORY INFORMATION
This unaudited condensed consolidated interim financial information is for
World Chess PLC ('the Company') and its subsidiary undertakings, (together the
'Group'). The Company is a public limited company incorporated and domiciled
in England with registration number 10589323 and registered office Eastcastle
House, 27/28 Eastcastle Street, London, W1W 8DH.
The Company is listed on the Official List and its
entire issued share capital was admitted for trading on the Main Market of the
London Stock Exchange on 6 April 2023 with ticker symbol CHSS.
2 ACCOUNTING POLICIES
Basis of preparation
This unaudited condensed consolidated financial
information which incorporate the financial information of the Company and its
subsidiary undertakings, have been prepared in accordance with Accounting
Standard IAS 34 'Interim Financial Reporting' as contained in UK - adopted
International Accounting Standards and IFRIC interpretations and with those
parts of the Companies Act 2006 applicable to companies reporting under IFRS.
The interim report does not include all the notes of
the type normally included in an annual financial report. Accordingly, this
report is to be read in conjunction with the annual report for the year ended
31 December 2023 which was approved by the Board of Directors on 25 April 2024
and any public announcements made by the Company during the interim reporting
period.
This financial information has been prepared under
the historical cost convention and unless otherwise specified are presented in
Euro which is the functional currency of the Group and rounded to the nearest
€.
Going concern
Based on the Group's Statement of Financial Position
and a review of its forecast future operating budgets and forecasts, the
Directors have a reasonable expectation that the Group has adequate resources
to continue in operational existence for at least twelve months from the date
of signing of this unaudited condensed consolidated interim financial
information. This review of future operating budgets and forecasts included
certain reasonable downside scenarios and confirmed that even in the case of
such downside scenarios the Group could continue to operate and meet its
obligations as they fall due. Accordingly, the Directors have adopted the
going concern basis in preparing this financial information.
In making this assessment, the Directors have
considered the resilience of the Group in severe but plausible scenarios,
taking into account the principal risks and uncertainties facing the Group and
the effectiveness of any mitigating actions. The Directors' assessment
considered the potential impacts of these scenarios, both individually and in
combination, on the Group's business model, future performance, solvency and
liquidity over the period. Sensitivity analysis was also used to stress test
the Group's strategic plan and to confirm that sufficient headroom would
remain available under the Group's credit facilities. The Directors consider
that under each of these scenarios, the mitigating actions would be effective
and sufficient to ensure the continued viability of the Group.
Risks and uncertainties
Taking considered risk is the essence of all business
and investment activity, the Audit Committee is responsible for a formal risk
assessment on an annual basis and also for reporting, by exception, on any
material changes during the year affecting the risks the Group is currently
exposed to and any potential future risks that need to be considered. The
Group's activities expose it to a variety of risks, including market risk
(foreign currency risk and interest rate risk), credit risk and liquidity
risk, these risks and the activities of the Directors to minimise their
potential adverse effects on the Group's financial performance have not
substantially changed from those set out in the Company's annual report for
the year ended 31 December 2023 which is available from the Company's website:
www.worldchess.com (http://www.worldchess.com) .
3 REVENUE
Revenue from contracts with customers
Revenue by business class 6 months to 30 June 2024 Unaudited 6 months to 30 June 2023 Unaudited Year ended 31 December 2023 Audited
as restated
€ € €
Tournaments 268,879 825,507 1,381,341
Online Arena 307,150 101,051 204,151
Clubs 333,096 17,742 163,305
Merchandising 309,787 290,413 596,695
1,218,912 1,234,713 2,345,492
By geographical area 6 months to 30 June 2024 Unaudited 6 months to 30 June 2023 Unaudited Year ended 31 December 2024 Audited
€ € €
United Kingdom 783,245 1,172,857 2,661,639
Europe 408,968 45,099 902,235
United States of America 26,699 16,757 51,804
1,218,912 1,234,713 2,345,492
4 EXCEPTIONAL ITEMS
6 months to 30 June 2024 Unaudited 6 months to 30 June 2023 as restated Year ended 31 December 2022 Audited
Unaudited
€ € €
Listing costs - 308,250 308,250
Exchange loss on Crypto-assets 8,213 2.966 18,526
8,213 311,216 326,776
Listing
costs
Legal and professional costs associated with the
listing of the entire issued share capital of World Chess PLC on the Main
Market of the London Stock Exchange in April 2023.
Loss on Crypto-assets
The Group has historically received some sponsorship
revenue in the form of crypto-assets which it has converted to fiat currencies
at the earliest opportunity, usually upon receipt or in accordance with an
agreed schedule of conversion. Crypto-assets are not amortised but are
reviewed for impairment if the prevailing price at which they can be converted
into fiat currency indicates their value has fallen below their carrying
value. Any impairment or realised gains on the conversion of crypto-assets to
fiat currency are recognised within exceptional items.
5 NET FINANCE COSTS
6 months to 30 June 2024 Unaudited 6 months to 30 June 2023 Unaudited Year ended 31 December 2023 Audited
€ €
Finance income:
Loan interest receivable 69 68 139
69 68 139
Finance costs:
Other loan interest 2,022 23,769 27,898
Interest on IFRS 16 lease liabilities 77,060 77,395 163,495
79,082 101,164 191,393
6 LOSS PER SHARE
The basic earnings per share is calculated by
dividing the (loss)/profit attributable to owners of the parent company by the
weighted average number of shares in issue during the year. In calculating the
diluted earnings per share, any outstanding share options, warrants and
convertible loans are taken into account where the impact of these is
dilutive.
6 months to 30 June 2024 Unaudited 6 months to 30 June 2023 Unaudited Year ended 31 December 2023 Audited
Loss attributable to the owners of the parent company € (1,869,156) (2,347,212) (4,685,099)
Weighted average number of shares in issue 686,467,495 632,688,761 650,232,851
Basic and diluted earnings per share € (0.0027) (0.0037) (€0.007)
7 DIVIDENDS
No dividend was recommended or paid for the period
under review.
8 INTANGIBLE ASSETS
Exclusive FIDE rights Software Licence Online Platform Crypto-assets Total
€ € € € €
COST
At 1 January 2024 1,105,291 115,000 3,924,971 4,215 5,149,477
Additions - - 222,630 1,233,208 1,455,838
Disposals - - - (1,237,206) (1,237,206)
At 30 June 2024 1,105,291 115,000 4,147,601 217 5,368,109
AMORTISATION
At 1 January 2024 773,703 56,000 1,232,947 - 2,062,650
Amortisation for period 55,265 11,500 223,179 289,944
At 30 June 2023 828,968 67,500 1,456,126 - 2,352,594
NET BOOK VALUE
At 30 June 2024 276,323 47,500 2,691,475 217 3,015,515
At 31 December 2023 331,588 59,000 2,692,024 4,215 3,086,827
The Directors considered the carrying value at 30
June 2024 for each asset identified above, except crypto-assets, and it was
determined that no impairment was required. Where an asset does not generate
cash inflows that are largely independent of the cash inflows from other
assets or groups of assets the carrying value was considered against the
smallest identifiable group of assets that generates cash inflows (cash
generating unit or CGU).
The Directors considered the carrying value at 30
June 2024 for crypto-assets based on the prevailing exchange rate at which the
crypto-asset could readily be converted into US dollars or Euros and it was
determined that no impairment was required.
9 PROPERTY, PLANT AND EQUIPMENT
Right of use asset Fixtures and fittings Computer Equipment Total
€ € € €
COST
At 1 January 2024 1,495,114 1,283,631 1,698 2,780,443
Additions - 31,065 - 31,065
At 30 June 2024 1,495,114 1,314,696 1,698 2,811,508
DEPRECIATION
At 1 January 2024 288,294 254,115 1,698 544,107
Charge for period 75,426 58,368 - 133,794
Exchange difference - (7) - (7)
At 30 June 2024 363,720 312,476 1,698 677,894
NET BOOK VALUE
At 30 June 2024 1,131,394 1,002,220 - 2,133,614
At 31 December 2023 1,206,820 1,029,516 - 2,236,336
10 INVESTMENTS
Shares in group undertakings
30 June 30 June 31 December 2023
2024
2023 Unaudited
Audited
Unaudited
€ € €
COST
At start of the period 351,616 351,616 351,616
Additions - - -
Disposals - - -
At end of the period 351,616 351,616 351,616
IMPAIRMENTS
At start of the period 50,000 50,000 50,000
Disposals - - -
At end of the period 50,000 50,000 50,000
CARRYING VALUE
At end of the period 301,616 301,616 301,616
At start of the period 301,616 301,616 301,616
The Directors considered the carrying value at 30
June 2024 for each group undertaking, identified below, and it was determined
that no further impairment was required.
Subsidiary Name % holding Registered Office Nature of business
World Chess Events Limited 100 Eastcastle House, 27/28 Eastcastle Street, United Kingdom, W1W 8DH Organising chess events (Worldwide)
World Chess US, Inc 100 1201 N. Orange Street, Suite 762, Wilmington, New Castle County, DE, USA 19801 Organising chess events (USA), online chess
World Chess Europe GmbH 100 Mittelstrasse 51 - 53, 10117 Berlin, Deutschland Various chess related activities, chess club activities
World Chess Sakartvelo LLC 100 Georgia, City Tbilisi, Didube district, Ak. Tsereteli Avenue, N 49-51-51a, Various chess related activities
Entrance 3, Floor 13, Apartment N 128
11 CALLED UP SHARE CAPITAL
30 June 2024 31 December 2023
Unaudited Audited
Number of shares € Number of shares €
Allotted, issued, and fully paid Ordinary shares of £0.0001 691,724,039 78,520 667,193,501 75,647
Number of shares Nominal value Share capital Share Premium (€)
(€)
At 31 December 2023 667,193,501 £0.0001 75,647 11,048,183
At 30 June 2024 691,724,039 £0.0001 78,520 12,754,046
12 FINANCIAL LIABILITIES - BORROWINGS
Group
30 June 30 June 31 December 2023
2024
2023
Audited
Unaudited Unaudited
€ € €
Current:
Other loans less than 1 year 35,088 184,711 32,989
Lease liabilities 122,889 109,889 116,208
157,977 294,600 149,197
Non-current:
Lease liabilities 1,241,112 1,331,944 1,304,273
1,241,112 1,331,944 1,304,273
13 RELATED PARTIES' DISCLOSURES
Directors
Details of remuneration and service contracts and other material contracts
with Directors, remain unchanged from those detailed in the Company's annual
report for the year ended 31 December 2023 which was approved by the Board of
Directors on 25 April 2024
Group undertakings
The following transactions took place during the six
months ended 30 June 2024 with and between group undertakings.
● World Chess Events Ltd paid €90,000 to World Chess Sakartvelo
LLC for the provision of staff and other services,
● World Chess Events Ltd paid €18,888 to World Chess US Inc in
commission on third party transactions,
● World Chess Events Ltd paid €395 to World Chess Europe GmbH for
the purchase of inventory,
● World Chess Europe GmbH paid €57,897 to World Chess PLC in
interest payments,
● World Chess Europe GmbH paid €2,392 to World Chess Events Ltd
for the purchase of inventory,
● World Chess US Inc paid €1,121 to World Ches Events Ltd for the
purchase of inventory,
Balances at 30 June 2024
The following balances remained outstanding at 30
June 2023 from and between group undertakings.
Due to/(from) World Chess PLC Due to/(from) other group undertakings Total due to/(from) group undertakings
Directors
● Ilya Merenzon (44,218) (263,135) (307,353)
● Matvey Shekhovtsov (18,200) - (18,200)
● Richard Collett (14,673) - (14,673)
● Graham Woolfman (6,236) - (6,236)
● Neil Rafferty (6,269) - (6,269)
● Jamison Reed Firestone (4,698) - (4,698)
(94,294) (263,135) (357,429)
Group undertakings
● World Chess Events Ltd 4,481,464 113,266 4,594,730
● World Chess Europe GmbH 2,376,697 1,973 2,891,525
● World Chess US Inc. (218,648) (99) (318,045)
● World Chess Sakartvelo LLC - (16,093)
6,639,513 115,140 7,152,117
6,545,219 (147,995) 6,794,688
14 SUBSEQUENT EVENTS
On 27 September 2024 the Company announces a new strategic investor had agreed
to subscribe for 12,000,000 new ordinary shares of World Chess for a total
subscription amount of €1.2m payable in three instalments with the final
payment due on 15 January 2025. The newly issued shares will be admitted to
trading on the London Stock Exchange's Main Market, with admission to follow
receipt of the final payment.
On 3 September 2024 the Company announced the extension of its partnership
with the Algorand Foundation for an additional year, during which Algorand's
cutting-edge blockchain technology will continue to enhance the chessarena.com
ecosystem through a new Algorand Tournament Series and unique digital chess
assets, further enriching the platform's offerings and user experience.
In August 2024, World Chess hosted 'Clash of Blames', the highly anticipated
rematch of the controversial 'Clash of Claims' between the 14th World Chess
Champion Vladimir Kramnik and Grandmaster José Alcántara. The event held
online at chessarena.com and in person at the Sky Guild Gaming Centre in
London, showcased chessarena.com's advanced anti-cheating technology.
15 OTHER
Copies of the unaudited half-yearly results have not
been sent to shareholders, however copies are available at www.worldchess.com
(http://www.worldchess.com) or on request from the Company's Registered
Office.
16 APPROVAL OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Responsibility Statement
The Company's Directors, whose names and functions appear below this
statement, are responsible for preparing this unaudited interim condensed
consolidated financial information in accordance with the Disclosure Guidance
and Transparency Rules of the United Kingdom's Financial Conduct Authority
('DTR') and with Accounting Standard IAS 34 'Interim Financial Reporting'.
The Directors, and each Director individually, confirms that, to the best of
their knowledge, this unaudited condensed consolidated financial information
gives a true and fair view of the assets, liabilities, financial position and
profit or loss of the Group and that the interim management report includes a
fair review of the information required by DTR4.2.7R 7R (indication of
important events during the first six months and description of principal
risks and uncertainties for the remaining six months of the year) and by
DTR4.2.8R (disclosure of material related parties' transactions).
Board of Directors:
Ilya Merenzon (Chief Executive Officer)
Matvey Shekhovtsov (Chief Operating Officer)
Richard Collett (Chief Financial Officer)
Graham Woolfman (Chair)
Neil Rafferty (Non-Executive Director)
Jamison Reed Firestone (Non-Executive Director)
This unaudited condensed consolidated financial information was approved by
the Board on 27 September 2024.
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