Webis Holdings PLC – Final Results and Notice of AGM
Webis Holdings plc, the global gaming group, today announces its audited results and the publication of its 2019 Report and Accounts (“Accounts”) for the year ended 31 May 2019, extracts from which are set out below.
The Accounts are being posted to shareholders today together with the Notice of Annual General Meeting, and will be available on the Group’s website www.webisholdingsplc.com and at the Group’s Registered Office: Viking House, Nelson Street, Douglas, Isle of Man IM1 2AH.
The AGM will be held at The Claremont Hotel, 18/19 Loch Promenade, Douglas, Isle of Man, at 11.00 a.m. on 23 December 2019.
Chairman’s Statement
Introduction
It has been a mixed year for our core USA based business, WatchandWager.com LLC (“WatchandWager”) over the financial year reported, with a reduction in amounts wagered, and an overall loss returned, but against that a significant strengthening of our licensed USA position in the increasingly expanded world of USA regulated gaming.
Despite the loss reported, the Board is overall satisfied with the performance over the year reported for our three core business units, namely “Business-to-Consumer”, “Business-to-Business” and our racetrack operation at “Cal Expo” in Sacramento, California, and these three sectors are commented upon in more detail below.
Equally importantly, and as shareholders are aware, the company, as an Isle of Man owned operation, still occupies a unique advantage in the USA, with our array of USA licenses, banking, settlement and general business operational skills. We also consider our license and lease at the Cal Expo racetrack in Sacramento, California, to be a significant asset in regulated gaming globally, but of course mainly in the USA and California. The Company still stands well positioned in particular in California, and also other States that it is licensed and operates in.
Year End Results Review
The Group amounts wagered for the year ended 31 May 2019 was US$136.4 million (2018: US$461.2 million) – a significant decline due to the loss of a large wagering syndicate as previously reported to shareholders on 19 October 2018 and commented on below. Gross Profit reported was US$4.5 million (2018: US$5.6 million). This led to an overall loss on the year.
Operating costs were US$5.3 million: down 5% on 2019 (2018: US$5.6 million), as we continue to manage costs over the entire operation. We expect these costs to reduce in the current financial year. As a result, our loss from operations was US$930,000.
Shareholder equity stands at US$1.2 million (2018: US$2.0 million). Total cash stands at US$2.6 million (2018: US$13.4 million), which includes ring-fenced funds held as protection against our player liability as required under USA and Isle of Man gambling legislation. An amount of US$875,000 was held during the year as bonds and deposits with regulatory authorities.
Approach to Risk and Corporate Governance
As part of the adoption of the Quoted Companies Alliance Corporate Governance code, the Board completed an assessment of the risks inherent in the business and defined and adopted a statement of risk appetite, being the amount and type of risk, it is prepared to seek, accept or tolerate in pursuit of value. This being: –
“The Group’s general risk appetite is a moderate, balanced one that allows it to maintain appropriate growth, profitability and scalability, whilst ensuring full regulatory compliance.”
The Group’s primary risk drivers include: –
Strategic
Reputational
Credit
Operational
Market
Liquidity, Capital and Funding
Regulatory and Compliance
Conduct
Our risk appetite has been classified under an “impact” matrix defined as Zero, Low, Medium and High. Appropriate steps are underway to ensure the prudential control monitoring of risks to the Group and the Audit, Risk and Compliance Committee will oversee this essential requirement. Further details of the Corporate Governance Statement will be found in the Annual Report.