Webis reduces loss, lifts turnover but cautions on low US gross margins

Shares in Webis are down almost a quarter after narrowing its full-year pre-tax loss and more than doubling turnover, at the same time cautioning about increasing rivalry and low gross margins in its US sector becoming the norm.

"The increases in turnover were due both to growth in our business to consumer sector, notably the watchandwager.com website and mobile product, and business trading activity in international markets," the company said.

Full-year pre-tax loss to $215,000, from a loss of $715,000. Turnover had more than doubled to $148.1m, from $67.8m.

Webis said directors were encouraged by these results, which showed a further improvement in trading from its USA operations.

It added that the rise in turnover further cemented WatchandWagers' position as a credible provider within those USA markets in which it operates.

"However, the sector is increasingly competitive with high volumes but low gross margins becoming the norm.

"Notwithstanding, the improvement in gross profit is a positive indicator and building on that success remains the major focus for the second half of the year and beyond."

At 14:02 GMT, shares in AIM-quoted Webis were down 23.86% to 1.68p each.