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TIDMWEB
RNS Number : 6797W
Webis Holdings PLC
02 February 2012
FOR IMMEDIATE RELEASE
02 February 2012
WEBIS HOLDINGS PLC
("the Company" or "the Group")
INTERIM RESULTS FOR THE PERIOD ENDED 27 NOVEMBER 2011
Webis Holdings plc, the global on-line gaming group, today announces its interim results for the period ended 27 November 2011.
SUMMARY:
-- Loss for the period of GBP138,000 (2010: profit of GBP162,000)
-- Group turnover of GBP53.5 million (2010: GBP55.6 million)
-- betinternet sportsbook turnover of GBP39.0 million (2010:
GBP36.2 million)
-- European Wagering Services' turnover of GBP14.5 million
(2010: GBP19.5 million)
-- Gross profit of GBP1.36 million (2010: GBP1.62 million);
gross margin of 2.54% (2010: 2.92%)
-- EBITDA loss of GBP(17,000) (2010: GBP301,000 profit)
Commenting on the results, Denham Eke, Chairman of Webis Holdings plc, said:
"betinternet.com has seen sustained turnover growth in its fixed-odds betting business, particularly in the Asia Pacific region, both throughout this period and into the start of the new football season. Activity levels in betinternet's casino and games offerings decreased due to a fall in high-roller activity, which continues to be affected by the global economic climate. We are now taking action with a view to stimulating an increase in activity levels during the second half of the year.
European Wagering Services resolved its payment issues in the early part of the year with the introduction of a new secure solution and we are looking to provide further back up in the second half. These developments, coupled with small increases in United States domestic and international content and renewed promotion to our database of current and past customers, have produced an improved performance during the latter part of the period."
ENDS
For further information:
Webis Holdings plc Tel: 01624 698141
Garry Knowles, Managing Director
Damon Waddington, Finance Director
Evolution Securities Tel: 0113 243 1619
Joanne Lake/Peter Steel
Notes to editors:
The following are attached:
1. Chairman's statement
2. Consolidated Statement of Comprehensive Income
3. Consolidated Statement of Financial Position
4. Consolidated Statement of Changes in Shareholders' Equity
5. Consolidated Statement of Cash Flows
6. Notes to the Accounts.
N.B. Pari-mutuel (or "tote" ) wagering refers to wagering into a "pool" where dividends are paid to winners and the operator retains a percentage of the "pool". "In-Running" refers to wagering whilst an event is in progress.
Introduction
The results for the six months ended 29 November 2011 show the Group recorded a loss at EBITDA level of GBP17k for the period (2010: GBP301k profit). The Group's pari-mutuel platform, European Wagering Services Limited ("EWS"), has had a particularly challenging period but improved over the latter part to record an EBITDA profit of GBP53k (2010: GBP27k EBITDA loss). The Group's sportsbook operation, betinternet.com (IOM) Limited ("betinternet"), incurred an EBITDA loss of GBP70k (2010: EBITDA profit of GBP274k). Group turnover remained broadly unchanged at GBP53.5m (2010: GBP55.6m). The Group recorded an operating loss of GBP138k (2010: GBP162k profit).
betinternet
Although there was no major football tournament last summer, betinternet has seen sustained turnover growth, particularly in the Asia Pacific region, within its fixed-odds betting business throughout this period and into the start of the new football season. Turnover on its fixed odds business increased by 28% to GBP18,025k (2010: GBP14,040k). This growth has been driven by continuing to increase betinternet's product and content offering, which commenced during the second half of the last financial year. It is anticipated that further growth can be achieved in the second half of the year with the introduction of In Play Asian Handicaps as well as other attractive markets.
As previously notified, activity levels within betinternet's casino and games decreased. This was due to a lack of high-roller activity, which continues to be impacted by the global economic climate and a declining margin. We are now in the process of taking appropriate action by allocating funds to marketing measures such as customer bonuses and promotions, with a view to stimulating an increase in activity levels during the second half of the year.
EWS
It has been a difficult trading period for EWS due to the previously documented issues with customer payment processing and declining turnover from its B2B division. For these reasons, EWS turnover has decreased by 25% to GBP14.5m (2010: GBP19.5m) but gross margin has improved to 3.8% (2010: 2.9%). We have now stabilised our payment issues with the introduction of a new secure solution during the early part of this year, and we will look to provide further back up solutions in the second half. These developments, coupled with small increases in United States domestic and international content and renewed promotion to our existing database, produced an improved performance during the latter part of the period. EWS has been able to increase its active customers by 28% from July 2011's low point and we expect this trend to continue as customers return to the website.
We continue our efforts to provide additional racetrack content and we have signed several new racetrack contracts during the period. To assist with this process of obtaining additional racetrack content we commissioned the Thoroughbred Racing Protective Bureau ("TRPB") to update its report on EWS. We expect this report to be issued during the first quarter of 2012.
During the period, we completed the migration of our Hub Operations facility to our contracted Tote providers, AmTote in Maryland, USA. This resulted in some cost savings in our Isle of Man operation and is part of our strategy to outsource more of our technical development to specialists within the e-gaming and pari-mutuel space.
Overview of Results
Group turnover has reduced to GBP53.5m (2010: GBP55.6m) during the period under review, primarily due to a significant drop in EWS' turnover to GBP14.5m (2010: GBP19.5). betinternet's turnover has increased by 8% to GBP39.0m, (2010: GBP36.1m), as a result of the additional content which has been added to the site and has proved popular in our Asia Pacific markets.
Group gross margins were 2.54% (2010: 2.92%), generating gross profit of GBP1.36m (2010: GBP1.60m). betinternet gross margin was 2.1% (2010: 2.9%), with a gross profit of GBP813k (2010: GBP1064k). The reduction in gross margin is attributable to a reduction in margin on games and casinos and a fall in the sports betting margin due to there being no major summer football tournament. EWS' gross margin improved to 3.8% (2010: 2.9%), generating a gross profit of GBP0.55m (2010: GBP0.56m), primarily as a result of the stabilisation of customer payment processing issues during the period.
Administration expenses have increased by 4.5% to GBP1.38m (2010: GBP1.32m), primarily as a result of increased expenditure on betinternet for the cost of data feeds that drive our In Play content.
Funding
In July 2011, in order to comply with Isle of Man legislation, the Group deposited GBP1,130k in designated client bank accounts. This was part funded via a short term loan facility from Burnbrae Limited on standard commercial terms.
Summary and outlook
betinternet will continue to make further enhancements to its In Play content. In particular, significant progress has been made during the latter part of the calendar year on In Play Asian Handicap content and these markets went live on the website in December 2011. We anticipate that these additional markets will drive further growth in sports betting during the second half of the year.
We are now implementing a program of further design enhancements for the betinternet website and the majority of these should be implemented during the second half. These include a new payments page and continued improvements to the look and feel, all with the purpose of improving the customer experience. betinternet has also recently enhanced its horse racing product with the addition of full race silks and runner information, which went live in December 2011.
The improvement in EWS' performance during the latter part of the first half has been maintained over recent weeks. The Board is also pleased to announce that EWS has now been approved by the US Embassy in London for E2 Treaty Trader Visa Status in the US. This three year approval on the back of "substantial investment in the US", grants the ability for the operation to transfer employees to its US subsidiary, WatchandWager LLC, as appropriate. Following this approval, Ed Comins, Pari-mutuel Operations Director has now relocated to the WatchandWager offices in San Francisco, to oversee implementation of our US strategy.
The Board remains committed to its US development, sales and marketing strategy. The key challenges remain the provision of further US facing payment processing facilities and progress in this area will most likely be enhanced by its US presence. Recruitment of domestic US thoroughbred and other international content remains another key priority, albeit it should be noted that many of the key US thoroughbred track and media groups are becoming increasingly protective towards awarding their simulcast (wagering) rights in the current market. This is a potential barrier to entry although it is expected that the updated TRPB report on our business will assist with this. An additional part of our plans will be to outsource further elements of our technology platform to proven operators within the US wagering market and this is expected to be fully completed by mid-2012.
Finally the Board welcomes the recent (23 December 2011) US Department of Justice announcement regarding its position in relation to the Wire Act in the US. As an existing licensed operator and first mover within the US, we will be monitoring the impact of this development on e-gaming in the US on a State and Federal level through the year.
Denham Eke
Chairman
1(st) February 2012
Webis Holdings plc
Consolidated Statement of Comprehensive Income
for the period ended 27 November 2011
Period to Period to Period to
27 November 28 November 29 May
2011 2010 2011
(unaudited) (unaudited) (audited)
Note GBP000 GBP000 GBP000
Turnover 2 53,474 55,611 105,546
Cost of sales (52,101) (53,970) (102,470)
Betting duty paid (15) (19) (36)
---------- ---------- ----------
Gross profit 1,358 1,622 3,040
Administration expenses (1,375) (1,321) (2,891)
--------- ---------- ----------
Earnings before interest, tax, depreciation and amortisation (17) 301 149
Depreciation and amortisation (104) (125) (248)
Share-based costs 3 - (5) (9)
---------- ---------- ----------
Total operating (loss) / profit (121) 171 (108)
Net finance cost 4 (17) (9) (2)
Taxation 5 - - -
---------- ---------- ----------
(Loss) / profit for the period (138) 162 (110)
---------- ---------- ----------
Basic (loss) / profit per share (pence) 6 (0.06) 0.08 (0.05)
Diluted (loss) / profit per share (pence) 6 (0.06) 0.07 (0.05)
The accompanying notes to this announcement form an integral part of these consolidated interim financial statements.
Consolidated Statement of Financial Position
As at 27 November 2011
27 November 28 November 29 May
Note 2011 2010 2011
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Non-current assets
Intangible assets - Goodwill 7 111 111 111
Intangible assets - Software, Website development and Trademarks 215 272 231
Property and equipment 18 48 34
---------- ---------- ----------
344 431 376
---------- ---------- ----------
Current assets
Receivables and prepayments 811 975 838
Cash and cash equivalents 2,196 997 1,470
---------- ---------- ----------
3,007 1,972 2,308
---------- ---------- ----------
Total assets 3,351 2,403 2,684
Current liabilities
Trade and other payables (2,854) (1,556) (2,049)
Convertible loan note 8 - (300) -
---------- ---------- ----------
Total current liabilities (2,854) (1,856) (2,049)
---------- ---------- ----------
Net assets 497 547 635
---------- ---------- ----------
Shareholders' equity
Called up share capital 2,302 2,068 2,302
Share premium 10,049 9,927 10,049
Share option reserve 116 112 116
Profit and loss account (11,970) (11,560) (11,832)
---------- ---------- ----------
Total shareholders' equity 497 547 635
---------- ---------- ----------
The accompanying notes to this announcement form an integral part of these consolidated interim financial statements.
Consolidated Statement of Changes in Shareholders' Equity
for the period ended 27 November 2011
Ordinary Share option reserve Profit and loss
share Share GBP000 account Total
capital premium GBP000 equity
GBP000 GBP000 GBP000
Balance as at 30 May 2010 (audited) 2,068 9,927 107 (11,722) 380
Total comprehensive profit for the
period - - - 162 162
Transactions with owners:
Share-based payment expense - - 5 - 5
---------- ---------- ---------- ---------- ----------
Balance as at 28 November 2010
(unaudited) 2,068 9,927 112 (11,560) 547
Total comprehensive loss for the
period - - - (272) (272)
Transactions with owners:
Arising on shares issued in the year 234 122 - - 356
Share-based payment expense - - 4 - 4
---------- ---------- ---------- ---------- ----------
Balance as at 29 May 2011 (audited) 2,302 10,049 116 (11,832) 635
Total comprehensive loss for the
period - - - (138) (138)
Transactions with owners:
Share-based payment expense - - - - -
---------- ---------- ---------- ---------- ----------
Balance as at 27 November 2011
(unaudited) 2,302 10,049 116 (11,970) 497
---------- ---------- ---------- ---------- ----------
The accompanying notes to this announcement form an integral part of these consolidated interim financial statements.
Consolidated Statement of Cash Flows
for the period ended 27 November 2011
Period to Period to Period to
27 November 28 November 29 May
2011 2010 2011
(unaudited) (unaudited)
GBP000 GBP000 (audited)
GBP000
Net cash inflow from operating activities 815 429 607
Cash flows from investing activities
Interest received 3 - -
Purchase of intangible assets (72) (53) (183)
Purchase of property and equipment - (6) (12)
Acquisition of investment - (68) -
---------- ---------- ----------
Net cash outflow from investing activities (69) (127) (195)
Cash flows from financing activities
Interest paid (20) (9) (2)
Issue of equity shares - - 356
---------- ---------- ----------
Net cash (outflow) / inflow from financing activities (20) (9) 354
Net increase in cash and cash equivalents 726 293 766
Cash and cash equivalents at beginning of period 1,470 704 704
---------- ---------- ----------
Net cash and cash equivalents at end of period 2,196 997 1,470
---------- ---------- ----------
Cash and cash equivalents comprise
Cash and deposits 2,196 997 1,470
---------- ---------- ----------
2,196 997 1,470
---------- ---------- ----------
Cash generated from operations
(Loss) / profit from operations (121) 171 (108)
Adjusted for:
Depreciation 104 125 248
Share-based payment cost - 5 9
Decrease / (increase) in receivables 27 (141) (4)
Increase in payables 805 269 462
---------- ---------- ----------
815 429 607
---------- ---------- ----------
The accompanying notes to this announcement form an integral part of these consolidated interim financial statements.
Notes to the accounts
for the period ended 27 November 2011
1 Accounting policies
Webis Holdings plc 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 Group's consolidated financial statements consolidate those of the Company and its subsidiaries
(together referred to as "the Group").
Statement of compliance
The consolidated interim financial statements have been prepared in accordance with IAS 34
"Interim Financial Reporting". They do not include all the information required for full annual
financial statements and should be read in conjunction with the consolidated financial statements
of the Group as at and for the period ended 29 May 2011.
Basis of preparation
The preparation of interim financial statements in conformity with IAS 34 "Interim Financial
Reporting" requires management to make judgements, estimates and assumptions that effect the
application of policies and reported amounts of assets and liabilities, income and expenses.
The estimates and associated assumptions are based on historical experience, current and expected
economic conditions, and various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making judgements about carrying value
of assets and liabilities that are not readily apparent from other sources. Actual results
may differ from these estimates.
Going concern
The Directors have prepared projected cash flow information for the next 18 months and are
satisfied that the Group has adequate resources to meets its obligations as they fall due.
The Directors consider that it is appropriate that these interim financial statements are
prepared on the going concern basis.
Basis of consolidation
(i) The consolidated financial statements incorporate the results of Webis Holdings plc and
its subsidiaries. Subsidiaries are consolidated from the date of acquisition, being the date
on which the Group obtains control, and continue until the date that such control ceases.
(ii) Intragroup balances and income and expenses arising from intragroup transactions, are
eliminated in preparing the consolidated interim financial statements.
Foreign currency
The Group's financial statements are presented in Pounds Sterling, which is the Company's
functional and presentational currency. All subsidiaries of the Group have Pounds Sterling
as their functional currency.
Foreign currency transactions are translated into the functional currency using the approximate
exchange rate prevailing at the dates of transactions. Foreign exchange gains and losses resulting
from the settlement of foreign currency transactions and from the translation at the period
end exchange rate of monetary assets and liabilities denominated in foreign currencies are
recognised in the income statement.
Revenue recognition and turnover
Turnover represents the amounts staked in respect of bets placed by customers on events which
occurred during the period. Cost of sales represents payouts to customers, together with commissions
and royalties payable to agents and suppliers of software. Open betting positions are carried
at open market value.
Segmental reporting
Segmental reporting is based on the business areas in accordance with the Group's internal
reporting structure. As of 1 June 2009 the Group determines and presents segments based on
the information that internally is provided to the CEO, the Group's chief operating decision
maker. This change in accounting policy is due to the adoption of IFRS 8 Operating Segments.
Previously operating segments were determined and presented in accordance with IAS 14 Segment
reporting.
An operating segment is a component of the Group and engages in business activities from which
it may earn revenues and incur expenses. An operating segment's operating results are reviewed
regularly by the CEO to make decisions about resources to be allocated to the segment and
assess its performance, and for which discrete financial information is available
Financing costs
Interest payable on borrowings is calculated using the effective interest rate method.
Deferred income tax
Deferred taxation is provided in full, using the liability method, on timing differences arising
between the tax bases of assets and liabilities and their carrying amounts in the consolidated
financial statements. Deferred income tax is determined using tax rates (and laws) that have
been enacted or substantially enacted by the balance sheet date and are expected to apply
when the related deferred tax is realised. Deferred tax assets are recognised to the extent
that it is probable that future taxable profit will be available against which the temporary
differences can be utilised.
Intangible assets - Goodwill
Goodwill represents the excess of fair value consideration over the fair value of the identifiable
assets and liabilities acquired, arising on the acquisition of subsidiaries. Goodwill is included
in non-current assets. Goodwill is reviewed annually for impairment and is carried at costs
less accumulated impairment losses. Goodwill arising on acquisitions before the transition
date of 29 May 2006 has been retained at the value at that date and is no longer amortised
but is tested annually for impairment.
Intangible assets - Other
Other intangible assets comprise website design and development costs and software licences
and Trademarks and are stated at acquisition cost less accumulated amortisation. Carrying
amounts are reviewed at each balance sheet date for impairment.
Costs that are directly attributable to the development of websites are recognised as intangible
assets provided that the intangible asset will generate probable economic benefits and income
streams through external use in line with SIC 32 "Intangible assets-website costs". Content
development and operating costs are expensed as incurred.
Careful judgement by the Directors is applied when deciding whether recognition requirements
for development costs have been met and whether the assets will generate probable future economic
benefit. Amortisation is calculated using the straight line method, at annual rates estimated
to write off the assets over their expected useful lives as follows:
Website design & development 33.33%
Trademarks 33.33%
Software licences 33.33%
Property and equipment
Items of property and equipment are stated at historical cost less accumulated depreciation
(see below) and impairment losses. Historical cost includes expenditure that is directly attributable
to the acquisition of the items.
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at
the balance sheet date. An asset's carrying amount is written down immediately to its recoverable
amount if the asset's carrying amount is greater than its estimated recoverable amount. Assets
are depreciated over their expected useful lives as follows:
Equipment 33.33%
Fixtures & fittings 33.33%
Impairment of assets
Goodwill arising on acquisitions and other assets that have an indefinite useful life and
are not subject to amortisation are reviewed at least annually for impairment.
Other intangible assets, property and equipment are reviewed for impairment whenever there
is an indication that the carrying amount of the asset may not be recoverable. If the recoverable
amount of an asset is less than its carrying amount, an impairment loss is recognised. Recoverable
amount is the higher of fair value less costs to sell and value in use.
If at the Balance Sheet date there is any indication that an impairment loss is recognised
in prior periods for an asset other than goodwill that no longer exists, the recoverable amount
is reassessed and the asset is reflected at the recoverable amount.
Share based payments
For all the employee share options granted after 7 November 2002 and vesting on or after 29
May 2006, an expense is recognised in the income statement with a corresponding credit to
equity. The equity share based payment is measured at fair value at the date of the grant.
Fair value is determined by reference to option pricing models, principally the Black-Scholes
model.
If vesting periods or other vesting conditions apply, the expense is allocated over the vesting
period, based on the best available estimate of the number of share options expected to vest.
Leasing
Payments made under operating leases are charged to the income statement on a straight line
basis over the period of the lease.
Equity
Share capital is determined using the nominal value of shares that have been issued.
The share premium account includes any premiums received on the initial issuing of the share
capital. Any transaction costs associated with the issuing of shares are deducted from the
premium paid.
Equity settled share-based employee remuneration is credited to the share option reserve until
related stock options are exercised. On exercise or lapse, amounts recognised in the share
option reserve are taken to retained earnings.
Retained earnings include all current and prior period results as determined in the income
statement and any other gains or losses recognised in the Statement of Changes in Shareholders'
Equity.
Financial instruments
Non-derivative financial instruments include trade and other receivables, cash and cash equivalents,
loans and borrowings and trade and other payables. Ante-post sports bets are recognised when
the Company becomes party to the contractual agreements of the instrument.
Financial assets and financial liabilities are recognised on the Group's balance sheet when
the Group becomes party to the contractual terms of the instrument. Transaction costs are
included in the initial measurement of financial instruments, except financial instruments
classified as at fair value through profit
and loss. The subsequent measurement of financial instruments is dealt with below.
Trade and other receivables
Trade and other receivables do not carry any interest and are stated at their nominal amounts
as reduced to equal the estimated present value of the future cash flows.
Cash and cash equivalents
Cash and cash equivalents defined as cash at bank and in hand as well as bank deposits and
money held for processors. Cash and cash equivalents are held for the purpose of meeting short
term cash commitments rather than for investment or other purposes.
Bank borrowings
Interest bearing bank borrowings and overdrafts are recorded at the proceeds received net
of direct issue costs. Finance charges, including premiums payable on settlement or redemption
and direct issue costs are charged on an accrual basis using the effective interest method
and are added to the carrying amount of the instrument to the extent they are not settled
in the period in which they arise.
Trade and other payables
Trade payables are non-interest bearing and are stated at amortised cost.
Convertible loans
Convertible loan notes are interest bearing and are stated at amortised cost.
The convertible loan note has been classified fully as a liability in the balance sheet, as
in the view of the directors it does not meet the definition under International Reporting
Standard 32 for an element to be disclosed under equity.
Equity instruments
Equity instruments issued by the Group are recorded at proceeds received, net of direct costs.
Ante-post sports bets
The Group may have at any point in time, an exposure on ante-post sports bets. These bets
meet the definition of a financial liability under International Accounting Standard 32 "Financial
Instruments: Disclosure and Presentation", and therefore are recorded initially at fair value,
and subsequently at amortised cost using the effective interest method.
2 Segmental Analysis
Period to Period to Period to
27 November 28 November 29 May
2011 2010 2011
(unaudited)
GBP000 (unaudited) (audited)
GBP000 GBP000
Turnover
Sportsbook Asia Pacific 32,357 28,654 57,863
UK & Ireland 4,528 5,166 8,692
Europe 1,647 1,740 4,070
Rest of the World 420 597 802
Pari-mutuel United States 7,715 10,120 17,694
Caribbean 5,249 9,334 13,912
Asia Pacific 1,294 - 2,513
UK & Ireland 264 - -
---------- ---------- ----------
53,474 55,611 105,546
---------- ---------- ----------
(Loss) / profit before tax
Sportsbook (177) 163 1
Pari-mutuel 39 3 (102)
Group - (4) (9)
---------- ---------- ----------
(138) 162 (110)
---------- ---------- ----------
Net assets / (liabilities)
Sportsbook (924) (593) (756)
Pari-mutuel 1,740 1,582 1,477
Group (319) (442) (86)
---------- ---------- ----------
497 547 635
---------- ---------- ----------
3 Share based costs
Period to Period to Period to
27 November 28 November 29 May
2011 2010 2011
(unaudited)
GBP000 (unaudited) (audited)
GBP000 GBP000
Share options - 5 9
---------- ---------- ----------
- 5 9
---------- ---------- ----------
4 Net finance cost
Period to Period to Period to
27 November 28 November 29 May
2011 2010 2011
(unaudited)
(unaudited) GBP000 (audited)
GBP000 GBP000
Bank interest receivable 3 - -
---------- ---------- ----------
3 - -
---------- ---------- ----------
Bank interest payable - (4) (5)
Loan interest payable (20) (5) 3
---------- ---------- ----------
(20) (9) (2)
---------- ---------- ----------
Net finance cost (17) (9) (2)
---------- ---------- ----------
5 Tax on (loss) / profit on ordinary activities
No provision for taxation is required for either the current or previous period, due to the
zero per cent corporate tax regime in the Isle of Man.
Unprovided deferred tax was GBPNil (2010: GBPNil).
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 the 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 options.
Period to Period to Period to
27 November 28 November 29 May
2011 2010 2011
(unaudited)
(unaudited) GBP000 (audited)
GBP000 GBP000
(Loss) / profit for the period (138) 162 (110)
---------- ---------- ----------
No. No. No.
Weighted average number of ordinary shares in
issue 230,171,644 206,826,667 212,902,757
Diluted number of ordinary shares 230,171,644 226,498,798 230,171,644
-------------- -------------- --------------
Basic (loss) / earnings per share (0.06) 0.08 (0.05)
Diluted (loss) / earnings per share (0.06) 0.07 (0.05)
---------- ---------- ----------
7 Acquisition of subsidiary
Period to Period to Period to
27 November 28 November 29 May
2011 2010 2011
(unaudited)
(unaudited) GBP000 (audited)
GBP000 GBP000
Net assets acquired - - -
Cost of acquisition - 68 68
---------- ---------- ----------
Goodwill arising on acquisition - 68 68
---------- ---------- ----------
On 1 August 2010, the Group acquired 100% of WatchandWager.com LLC, a US registered entity
and licenced for pari-mutuel wagering in North Dakota.
8 Convertible loan note
Period to Period to Period to
27 November 28 November 29 May
2011 2010 2011
(unaudited)
(unaudited) GBP000 (audited)
GBP000 GBP000
Convertible loan note - 300 -
---------- ---------- ----------
The Group had issued a GBP300,000 secured convertible loan note to Burnbrae Limited on 23
February 2007, which was secured over all the assets and undertakings of the Group and bore
interest at LIBOR plus 4%. The loan and accrued interest were converted into 23,344,977 ordinary
shares on 24 February 2011.
9 Preparation of the interim statements
The interim statements are unaudited, but have been reviewed in accordance with International
Standards on Review Engagements 2410, by our independent auditor, KPMG Audit LLC.
The comparatives for the 52 weeks ended 29 May 2011 are not the Group's full statutory accounts
for that financial period. Those accounts have been reported on by the Group's auditor and
delivered to the Companies Registry. The report of the auditor was unqualified.
10 Approval of interim statements
The interim statements were approved by the board on 1 February 2012 The interim report is
expected to be posted to shareholders on 8 February 2012 and will be available from that date
at the Group's Registered Office: Viking House, Nelson Street, Douglas, Isle of Man IM1 2AH.
A copy of the interim report will also be made available on the Group's website www.webisholdingsplc.com.
The Group's nominated adviser and broker is Evolution Securities, Kings House, 1 Kings Street,
Leeds LS1 2HH.
End
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