Webis warns on profits after spat with major syndicate

19th Oct 2018 08:45

(Sharecast News) - Webis Holdings warned that full year profits would be hit after its US wagering arm refunded roughly $10m to a customer after a spat with a major unnamed syndicate.WatchandWager.com, the American pool-wagering specialist of the AIM-listed group, stopped providing wagering services to the mystery syndicate on Friday and then made the refund of cash held on the customer's account.Webis anticipates the dispute will bring about in a reduction in its gross margin of around $800,000 for the year ended May 2019. Webis' balance sheet also dropped to $3.1m as a result of the refund.Following the drama, Webis has decided to streamline operations at WatchandWager, implement additional efficiencies and focus on its strategic objectives of securing replacement business-to-business clients, renewing and acquiring further US state-regulated gaming licenses, seeking suitable strategic partnerships and associations and developing and expanding its Cal Expo racetrack operation.As of 0930 BST, Webis shares had tumbled 16.82% to 1.83p.