Webis Results Reflect Challenging Year

But company optimistic in trading update

Webis Holding's plc released its 2016 annual report detailing challenging conditions in the first half which were slightly offset by an improved performance in the second.
Key performance highlights for the 12-month period ending May 31, 2016, include:
– Group turnover of US$ 224.3 million (2015: US$154.4 million) up 45 percent on continuing operations.
– Gross Profit decreased by 3.3 percent to US$ 4.1 million (2015: US$4.2 million).
– Reduction in overall gross margin of 1.8 percent (2015: 2.7%).
– Operating costs were US$5.04 million: almost identical to 2015 (2015: US$ 5.03 million).
– Loss from continuing operations was US$1.2 million (2015: loss of US$1.6 million), including re-organisational costs, impairments and one-off costs.
– A basic and diluted loss per share for continuing operations of 31 cents (2015: loss of 40 cents).
– Shareholder equity decreased to US$1.9 million (2015: US$3.2 million).
– Total cash stands at US$ 6.4 million (2015: US$6.1 million), which includes a ring-fenced player liability amount of US$0.9 million (2015: US$1.4 million).
The company said its core USA based business subsidiary WatchandWager.com delivered an improved trading performance, despite delivering an overall loss on the year.
"It has been very much a game of two halves in this sector. The first six months of the year reflected a slower than anticipated turnover and less content availability. Importantly, the second half showed a marked improvement in turnover to May 2016, a trend that has continued into the new financial year. The reason for this is an increase in the number of active players and further improvements in content availability," Denhem Eke, non-executive Chairman of the group said.
"WatchandWager has now achieved a vital critical mass and level of expertise to become a significant player in this [US] market. The Board remains very positive for further growth in the Business Trading sector in the future, especially in core reputable horseracing jurisdictions".
In closing, Eke reported good turnover levels and EBITDA profitability in the first four months of the company's current fiscal calendar, saying the Board is very encouraged by the growth of the business.

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