30
September 2024
World Chess
Plc
("World
Chess" or the "Company" or the "Group")
Interim Results for the Six
Months Ended 30 June 2024
World Chess plc (LSE: CHSS), a
leading chess organisation seeking to promote the mass market
appeal of chess globally through the offering of different
chess-related activities, is pleased to announce its unaudited
interim results for the six months ended 30 June 2024.
Financial Overview for the six months to June
2024
●
Revenue of €1.2m (H1 2023: €1.2m)
●
Pre-tax loss of €1.9m (H1 2023: €2.3m)
●
Fundraise of €1.5m (H1 2023: €3.5m)
Corporate,
strategic and operational progress
The first six months of 2024 has
seen World Chess continue to strengthen its position in the global
chess market, investing in its digital and media ventures,
including improvements to the FIDE Online Arena, highlights
include:
● Launch of
'Swiss Queens Wednesday', which is a major online women's
tournament series in partnership with the International Chess
Federation (FIDE). The only tournament series in Womens' online
chess, featuring weekly online events with participation of elite
female players, including World Champions
(https://chessarena.com/swiss-queens-wednesday).
● Confirmation
of continued partnership with FIDE for the exclusive use of the
World Chess Championship sets in the FIDE Championship Matches, the
Candidates Tournaments and other elite events through 2024 and 2025
and the release of an exclusive special edition chess set to
celebrate the 2024 FIDE Candidates Tournament.
● New
collaboration with Sunset+Vine, the sports focused TV production
company, to launch chess news and lifestyle television
programme.
● Further
upgrades to chessarena.com, the FIDE Online Arena, including a new
user interface, as well as IOS and Android apps creating a more
personalised playing experience.
● Since the
start of the period, the number of registered users grew 7% to
803,872 whilst the number of 'premium' paid subscribers grew 8% to
9,198 The Company is also phasing out its legacy pricing model,
with a new Pro price increased to €49 per year. This is up 95% from
the previous price and includes FIDE ID, issued to all
Pro users.
Post-period events
● In September
2024 the Company announced a new strategic investor had agreed to
subscribe for 12,000,000 new ordinary shares of World Chess for a
total subscription amount of €1.2m payable in three instalments
with the final payment due on 15 January 2025.
● Hosted
"Clash of Blames," a rematch between Vladimir Kramnik and
Grandmaster José Alcántara, featuring chessarena.com's advanced
anti-cheating technology, held both online and in-person in London.
The event gained coverage in the news media, including
the Times, as well as in the social media.
● Extension of
its partnership with the Algorand Foundation to enhance
chessarena.com with a new Algorand Tournament Series and unique
digital chess assets.
Ilya Merenzon, Chief Executive Officer of World Chess,
said:
"We have continued to build the products that are, in our view,
in line with what modern chess looks like - user-friendly, social,
competitive, and well-designed. The chess interface, as evident
from our more established competitors, requires a facelift, and we
are looking forward to challenging the status quo and bringing new
features and design solutions into the sport. Our business
goals are to rapidly increase our awareness and market share.
Looking ahead, we remain committed to driving chess into new,
dynamic spaces. We will continue to expand our digital footprint,
enhance our chess products and deliver high-profile events that
unite and excite the global chess
community."
The half-yearly financial report has not been
audited or reviewed by auditors pursuant to the Financial Reporting
Council guidance on Review of Interim Financial
Information.
For
more information, please visit https://worldchess.com/investors
or
contact:
|
World Chess
Ilya Merenzon, CEO
|
Via Yellow Jersey PR
|
|
Novum Securities Limited - Financial Adviser
David Coffman / George
Duxberry
|
+44 (0) 20 7399 9400
|
|
Allenby Capital Limited - Broker
Joscelin Pinnington / Tony Quirke
(Sales)
John Depasquale / Lauren Wright
(Corporate Finance)
|
+44 (0) 20 3328 5656
|
|
Yellow Jersey PR
Charles Goodwin
Annabelle Wills
|
+44 (0) 77 4778 8221
+44 (0) 77 7519 4357
|
Notes to
Editors
About World
Chess Plc
World Chess (LSE: CHSS) is a London-based chess
gaming and entertainment company and Fédération Internationale des
Échecs ('FIDE') official commercial partner. World Chess organised
the FIDE Championship Matches in the USA, and the UK, and
revolutionised the sport by signing the biggest media partnerships
in history. World Chess develops Armageddon, the chess league for
prime-time television. World Chess also runs FIDE Online Arena, the
exclusive official chess gaming platform. More at worldchess.com.
INTERIM MANAGEMENT REPORT
Chessarena.com, the FIDE Online Arena
Following the launch of Arena 2.0 in October
2023, key new features introduced by World Chess in 2024 include
the ability to start playing a game of chess with one click,
meaning interested users don't have to register and can simply
click and play, encouraging first-time players to the platform, and
offering the ability to start multiple games in different time
controls allowing players to find a relevant opponent
faster.
In January 2024 'Swiss Queens Wednesday', the
women's online tournament series in partnership with FIDE, was
launched on chessarena.com, giving women chess players the chance
to challenge stereotypes, inspire future generations, and
demonstrate their strategic prowess on a global stage and promote
gender diversity through chess.
In August 2024, chessarena.com hosted 'Clash of
Blames' the much anticipated rematch between 14th World Chess
Champion, Vladimir Kramnik, and Grandmaster José Alcántara
following the controversial Clash of Claims. This event highlighted
chessarena.com's anti-cheating engine, unique in online chess as
the only anti-cheating engine approved by FIDE, the international
governing body of chess.
On 3 September 2024, the Company announced the
extension of its partnership with the Algorand Foundation for an
additional year. Algorand's cutting-edge blockchain technology will
continue to enhance the chessarena.com ecosystem through a new
Algorand Tournament Series and unique digital chess assets, further
enriching the platform's offerings and user experience. Further
details of subsequent events are set out in note 14 of this
unaudited condensed consolidated interim financial
information.
At the end of August 2024, chessarena.com had
832,090 registered users and 10,300 paid subscribers.
World Chess TV
In May 2024 World Chess announced the launch of
a new chess news television programme, intended to be broadcast on
several TV stations. This series, consisting of ten 30-minute
episodes, will cover a range of topics including major issues,
scandals, and significant events in the chess world. Produced in
collaboration with Sunset+Vine, the programme will also feature
content sponsored by it.com Domains and aims to broaden chess's
appeal and inspire global audiences, while making chess accessible
and engaging for all viewers.
World Chess Club Berlin
The World Chess Club Berlin has hosted a series
of exciting events and tournaments aimed at promoting the game and
engaging the chess community. Highlights include Chess Boxing,
FIDE-rated Rapid and Blitz tournaments as well as regular Sunday
Cup and amateur tournaments. The club has also introduced new
educational programs and workshops for players of all levels,
designed to enhance their skills and knowledge of the
game.
Armageddon 2025
Armageddon, the World Chess global chess
series, which captivated audiences in 2023, will return in 2025 for
another round of high-stakes chess competition. The inaugural event
showcased intense matchups and dramatic finishes, featuring some of
the world's top players battling under a unique, time-crunch format
designed to heighten suspense and excitement.
Preparations are underway to enhance the event
even further, promising innovative features and expanded global
reach. The 2025 Armageddon is set to continue its tradition of
blending strategic depth with electrifying gameplay, further
solidifying its status as a premier chess spectacle.
Tournaments revenue recognised in the period
includes €250,000 (H1 2023: €456,008) which was included in
accruals and deferred income at the start of the period. This
income relates to a multiyear sponsorship agreement entered into in
2018.
New
Strategic Investor
On 27 September 2024 the Company announced a
new strategic investor had agreed to subscribe for 12,000,000 new
ordinary shares of World Chess for a total subscription amount of
€1.2m payable in three instalments with the final payment due on 15
January 2025. The newly issued shares will be admitted to trading
on the London Stock Exchange's Main Market, with admission to
follow receipt of the final payment.
Listing Category
On 29 July 2024, the Listing Rules
were replaced by the UK Listing Rules ("UKLR") under which the
existing Standard Listing category was replaced by the Equity
Shares (transition) category under Chapter 22 of the UKLR.
Consequently, with effect from that date the Company is admitted to
Equity Shares (transition) category of the Official List under
Chapter 22 of the UKLR and to trading on the London Stock
Exchange's Main Market for listed securities.
Principal Risks and Uncertainties
Taking considered risk is the essence of all
business and investment activity, in relation to risk the Company's
main objective is to minimise the chance of a material adverse
outcome arising from causes which could reasonably have been
foreseen, this includes both 'upside' (opportunity) and 'downside'
(threat) risks.
The principal risks that are specific to the
Group are summarised below; in the opinion of the Directors these
risks remain unchanged from those detailed in the Company's annual
report for the year ended 31 December 2023 which was approved by
the Board of Directors on 25 April 2024.
● Availability of
funding: The Company continues to be
reliant on raising further financing to support its ongoing
operations.
● Subscriber
Growth: Retaining and attracting
online subscribers is crucial to the Group's success. This depends
on product quality, user experience, and responding to changing
preferences. Failure in these areas could harm the
business.
● Platform
Stability: Disruptions in service or
systems, whether from the Group or third parties, could damage the
Group's reputation and customer base, negatively affecting business
performance.
● Data
Security: Compliance with data
protection laws like GDPR and safeguarding user data are vital. A
failure here could harm the Group's business and lead to claims.
The new head of products risk and compliance is tasked with
enhancing data governance and security.
● Anti-Cheating: Cheating remains
a significant challenge in online chess. While World Chess employs
advanced anti-cheating technologies, ongoing improvement and
investment are necessary. Incentivising players to engage in
over-the-board chess can also help reduce online
cheating.
● World Chess Online Arena
Contract with FIDE: The contract
with FIDE is an important tool helping to establish platform's
dominance. The contract may be terminated by FIDE in August 2026
subject to certain conditions (for more information see Company's
April 2023 Prospectus). Otherwise it should renew for another 5
years (until August 2031).
● Rating Recognition and
Adoption: The platform's official
FIDE ratings are a key advantage but face challenges in adoption
and integration with over-the-board ratings and
tournaments.
● Reliance on Key
Individuals: The business heavily
depends on a few key management personnel. Losing any of them could
adversely affect the Group.
Related Parties' Transactions
Details of material transactions
with Directors are disclosed in note 13. Transactions with and
between the Company and its subsidiary undertakings, who are
related parties, have been eliminated on consolidation and are
disclosed in note 13.
Other than as disclosed in note 13
to this unaudited condensed consolidated interim financial
information there have been no changes to the related parties'
transactions described in the Company's annual report for the year
ended 31 December 2022 which was approved by the Board of Directors
on 28 April 2023.
Outlook
The Company continues to advance its
mission of popularising chess through a series of initiatives. Over
the course of the second half, World Chess will continue to build
on its successful partnership with the Algorand Foundation,
leveraging their blockchain technology to launch a new Algorand
Tournament Series on chessarena.com, whilst also and gearing up for
the highly anticipated return of the World Chess Armageddon in
2025, which promises to deliver another round of intense,
high-stakes competition.
The organisation will also focus on
growing its presence through strategic partnerships and expanding
its educational and community engagement initiatives. By continuing
to innovate and elevate the chess experience, World Chess aims to
solidify its position as a leading force in the global chess arena
and attract new audiences to the sport.
Approved by the Board on 27 September 2024 and
signed on its behalf by:
|
Graham
Woolfman
|
Ilya Merenzon
|
|
Non Executive Chair of the Board of
Directors
|
Chief Executive Officer
|
CONSOLIDATED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE
PERIOD 1 JANUARY 2024 TO
30 JUNE 2024
|
|
|
|
6 months to 30 June 2024
Unaudited
|
|
6 months to 30 June 2023
Unaudited
|
|
Year ended 31 December 2023
Audited
|
|
|
Notes
|
|
€
|
|
€
|
|
€
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
3
|
|
1,218,912
|
|
1,234,713
|
|
2,345,492
|
|
Cost of
sales
|
|
|
(498,394)
|
|
(1,347,197)
|
|
(2,166,390)
|
|
GROSS
PROFIT
|
|
|
720,518
|
|
(112,484)
|
|
179,102
|
|
|
|
|
|
|
|
|
|
|
Other operating income
|
|
|
2,900
|
|
151,872
|
|
11,706
|
|
Administrative expenses
|
|
|
(2,505,348)
|
|
(1,974,288)
|
|
(4,344,248)
|
|
OPERATING LOSS
BEFORE EXCEPTIONAL ITEMS
|
|
|
(1,781,930)
|
|
(1,934,900)
|
|
(4,153,440)
|
|
|
|
|
|
|
|
|
|
|
Exceptional Items
|
4
|
|
(8,213)
|
|
(311,216)
|
|
(326,776)
|
|
OPERATING
LOSS
|
|
|
(1,790,143)
|
|
(2,246,116)
|
|
(4,480,216)
|
|
|
|
|
|
|
|
|
|
|
Finance costs
|
5
|
|
(79,082)
|
|
(101,164)
|
|
(191,393)
|
|
Finance income
|
5
|
|
69
|
|
68
|
|
139
|
|
LOSS BEFORE
INCOME TAX
|
|
|
(1,869,156)
|
|
(2,347,212)
|
|
(4,671,470)
|
|
|
|
|
|
|
|
|
|
|
Income tax
|
|
|
-
|
|
-
|
|
(13,629)
|
|
LOSS FOR THE
PERIOD
|
|
|
(1,869,156)
|
|
(2,347,212)
|
|
(4,685,099)
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
(Loss)/gain on currency translation
|
|
|
5,391
|
|
-
|
|
(7,323)
|
|
|
|
|
|
|
|
|
|
|
TOTAL
COMPREHENSIVE INCOME FOR THE YEAR
|
|
|
(1,863,765)
|
|
(2,347,212)
|
|
(4,692,422)
|
|
|
|
|
|
|
|
|
|
|
Loss attributable to:
|
|
|
|
|
|
|
|
|
Owners of the parent
|
|
|
(1,869,156)
|
|
(2,347,212)
|
|
(4,685,099)
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income attributable
to:
|
|
|
|
|
|
|
|
|
Owners of the parent
|
|
|
(1,863,765)
|
|
(2,347,212)
|
|
(4,692,422)
|
|
|
|
|
|
|
|
|
|
|
LOSS PER SHARE
- CONTINUING AND TOTAL OPERATIONS
|
|
|
|
|
|
|
|
|
Basic and diluted
|
6
|
|
(0.0027)
|
|
(0.0037)
|
|
(0.007)
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENT OF FINANCIAL POSITION AT
30 JUNE 2024
|
|
|
|
30 June
2024
Unaudited
|
|
30 June
2023 Unaudited
|
|
31 December
2023
Audited
|
|
|
Notes
|
|
€
|
|
€
|
|
€
|
|
NON-CURRENT
ASSETS
|
|
|
|
|
|
|
|
|
Intangible assets
|
8
|
|
3,015,515
|
|
2,976,044
|
|
3,086,827
|
|
Property, plant and equipment
|
9
|
|
1,002,220
|
|
1,217,104
|
|
1,029,516
|
|
Right-of-use assets
|
9
|
|
1,131,394
|
|
1,214,763
|
|
1,206,820
|
|
Deferred tax
|
|
|
63,272
|
|
76,697
|
|
63,272
|
|
|
|
|
5,212,401
|
|
5,484,608
|
|
5,386,435
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
|
|
Inventories
|
|
|
145,818
|
|
152,265
|
|
187,018
|
|
Trade and other receivables
|
|
|
580,489
|
|
560,866
|
|
256,464
|
|
Tax receivable
|
|
|
60,093
|
|
214,171
|
|
-
|
|
Cash and cash equivalents
|
|
|
92,202
|
|
254,308
|
|
186,881
|
|
|
|
|
878,602
|
|
1,181,610
|
|
630,363
|
|
TOTAL
ASSETS
|
|
|
6,091,003
|
|
6,666,218
|
|
6,016,798
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND
LIABILITIES
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Called up share capital
|
11
|
|
78,520
|
|
75,613
|
|
75,647
|
|
Share premium
|
11
|
|
12,754,046
|
|
11,027,393
|
|
11,048,183
|
|
Translation reserve
|
|
|
64,009
|
|
61,824
|
|
58,618
|
|
Retained earnings
|
|
|
(12,043,880)
|
|
(7,836,834)
|
|
(10,174,724)
|
|
TOTAL
EQUITY
|
|
|
852,695
|
|
3,327,996
|
|
1,007,724
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Lease liabilities
|
12
|
|
1,241,112
|
|
1,331,944
|
|
1,304,273
|
|
Provision for liabilities
|
|
|
157,887
|
|
184,154
|
|
157,887
|
|
|
|
|
1,398,999
|
|
1,516,098
|
|
1,462,160
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Trade and other payables
|
|
|
3,681,332
|
|
1,527,524
|
|
3,397,717
|
|
Lease liabilities
|
12
|
|
122,889
|
|
109,889
|
|
116,208
|
|
Interest bearing loans and
borrowings
|
|
|
35,088
|
|
184,711
|
|
32,989
|
|
|
|
|
3,839,309
|
|
1,822,124
|
|
3,546,914
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
|
5,238,308
|
|
3,338,222
|
|
5,009,074
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY
AND LIABILITIES
|
|
|
6,091,003
|
|
6,666,218
|
|
6,016,798
|
CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD 1 JANUARY 2024 TO
30 JUNE 2024
|
|
Called up share
capital
|
|
Retained Earnings
|
|
Share Premium
|
|
Translation reserve
|
|
Total equity
|
|
|
€
|
|
€
|
|
€
|
|
€
|
|
€
|
|
Balance at 1
January 2023
|
68,260
|
|
(5,489,625)
|
|
6,518,849
|
|
65,941
|
|
1,163,425
|
|
Changes in
equity
|
|
|
|
|
|
|
|
|
|
|
Issue of share capital
|
7,353
|
|
-
|
|
4,508,544
|
|
-
|
|
4,515,897
|
|
Total comprehensive income
|
-
|
|
(2,347,209)
|
|
-
|
|
(4,117)
|
|
(2,351,326)
|
|
Balance at 30
June 2023
|
75,613
|
|
(7,836,834)
|
|
11,027,393
|
|
61,824
|
|
3,327,996
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1
January 2024
|
75,647
|
|
(10,174,724)
|
|
11,048,183
|
|
58,618
|
|
1,007,724
|
|
Changes in
equity
|
|
|
|
|
|
|
|
|
|
|
Issue of share capital
|
2,873
|
|
-
|
|
1,705,863
|
|
-
|
|
1,708,736
|
|
Total comprehensive income
|
-
|
|
(1,869,156)
|
|
-
|
|
5,391
|
|
(1,863,765)
|
|
Balance at 30
June 2024
|
78,520
|
|
(12,043,880)
|
|
12,754,046
|
|
64,009
|
|
852,695
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENT OF CASH FLOWS
FOR THE PERIOD 1 JANUARY 2024 TO
30 JUNE 2024
|
|
|
|
6 months to 30 June 2024
Unaudited
|
|
6 months to 30 June 2023
Unaudited
|
|
Year ended 31 December 2023
Audited
|
|
|
Notes
|
|
€
|
|
€
|
|
€
|
|
Cash flows
from operating activities
|
|
|
|
|
|
|
|
|
Cash absorbed from operations
|
1
|
|
(1,787,971)
|
|
(2,233,412)
|
|
(3,338,149)
|
|
Interest paid
|
|
|
(391)
|
|
(23,769)
|
|
(6,638)
|
|
Finance cost paid
|
|
|
(77,060)
|
|
(77,395)
|
|
(163,495)
|
|
Tax refund received
|
|
|
(60,093)
|
|
36,946
|
|
250,913
|
|
Net cash used in operating
activities
|
|
|
(1,925,515)
|
|
(2,297,630)
|
|
(3,257,369)
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from investing activities
|
|
|
|
|
|
|
|
|
Purchase of intangible fixed assets
|
|
|
(1,455,838)
|
|
(736,977)
|
|
(3,317,267)
|
|
Proceeds from disposal of intangible fixed
assets
|
|
|
1,237,206
|
|
275,256
|
|
2,495,727
|
|
Purchase of property, plant and
equipment
|
|
|
(31,065)
|
|
(588,868)
|
|
(631,603)
|
|
Proceeds from disposal of property, plant and
equipment
|
|
|
-
|
|
-
|
|
1,185
|
|
Interest received
|
|
|
69
|
|
68
|
|
139
|
|
Net cash used in investing
activities
|
|
|
(249,628)
|
|
(1,050,521)
|
|
(1,451,819)
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities
|
|
|
|
|
|
|
|
|
Loan advanced in the period
|
|
|
400,000
|
|
13,019
|
|
1,508,737
|
|
Loan repayments in period
|
|
|
-
|
|
-
|
|
(30,050)
|
|
Payment of lease liabilities
|
|
|
(56,480)
|
|
(47,489)
|
|
(100,596)
|
|
Amount introduced by directors
|
|
|
222,349
|
|
129,913
|
|
14,167
|
|
Proceeds from share issue
|
|
|
1,508,736
|
|
3,475,568
|
|
3,475,569
|
|
Net cash generated from financing
activities
|
|
|
2,074,605
|
|
3,571,011
|
|
4,867,827
|
|
|
|
|
|
|
|
|
|
|
Increase/(decrease) in cash and cash
equivalents
|
|
|
(100,538)
|
|
222,860
|
|
158,639
|
|
Cash and cash equivalents at beginning of
period
|
2
|
|
186,881
|
|
35,565
|
|
35,565
|
|
Effect of foreign exchange rate
changes
|
|
|
5,859
|
|
(4,117)
|
|
(7,323)
|
|
Cash and cash
equivalents at end of period
|
2
|
|
92,202
|
|
254,308
|
|
186,881
|
|
|
|
|
|
|
|
|
|
.
NOTES TO THE
STATEMENTS OF CASH FLOWS
FOR THE PERIOD 1 JANUARY 2024 TO
30 JUNE 2024
|
1
|
RECONCILIATION
OF LOSS BEFORE INCOME TAX TO CASH GENERATED FROM
OPERATIONS
|
|
|
Group
|
|
6 months to 30 June 2023
Unaudited
|
|
6 months to 30 June 2023
Unaudited
|
|
Year ended 31 December 2023
Audited
|
|
|
|
|
€
|
|
€
|
|
€
|
|
|
Loss before income tax
|
|
(1,869,156)
|
|
(2,347,212)
|
|
(4,671,470)
|
|
|
Depreciation and amortisation
|
|
423,738
|
|
442,753
|
|
843,237
|
|
|
Provision
|
|
-
|
|
3,502
|
|
(22,765)
|
|
|
Finance costs
|
|
79,082
|
|
101,164
|
|
191,393
|
|
|
Finance income
|
|
(69)
|
|
(68)
|
|
(139)
|
|
|
|
|
(1,366,405)
|
|
(1,799,861)
|
|
(3,659,744)
|
|
|
|
|
|
|
|
|
|
|
|
Decrease/(increase) in inventories
|
|
41,200
|
|
35,426
|
|
673
|
|
|
Decrease/(increase) in trade and other
receivables
|
|
(324,025)
|
|
101,700
|
|
406,102
|
|
|
Decrease in trade and other payables
|
|
(138,741)
|
|
(570,677)
|
|
(85,180)
|
|
|
Cash absorbed
from operations
|
|
(1,787,971)
|
|
(2,233,412)
|
|
(3,338,149)
|
|
2
|
CASH AND CASH
EQUIVALENTS
|
|
|
|
The amounts disclosed on the Statements of Cash
Flows in respect of cash and cash equivalents are in respect of
these Statement of Financial Position amounts:
|
|
|
|
Group
|
|
6 months to 30 June 2024
Unaudited
|
|
6 months to 30 June 2023
Unaudited
|
|
Year ended 31 December 2023
Audited
|
|
|
|
|
€
|
|
€
|
|
€
|
|
|
30 June
2024
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
92,202
|
|
254,308
|
|
186,881
|
|
|
|
|
|
|
|
|
|
|
|
31 December 2023
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
186,881
|
|
35,565
|
|
35,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
NOTES TO THE
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE
PERIOD 1 JANUARY 2024 TO
30 JUNE 2024
1
STATUTORY INFORMATION
This unaudited condensed consolidated interim
financial information is for World Chess PLC ('the Company') and
its subsidiary undertakings, (together the 'Group'). The Company is
a public limited company incorporated and domiciled in England with
registration number 10589323 and registered office Eastcastle
House, 27/28 Eastcastle Street, London, W1W 8DH.
The Company is listed on the Official List and its entire issued
share capital was admitted for trading on the Main Market of the
London Stock Exchange on 6 April 2023 with ticker symbol
CHSS.
2
ACCOUNTING POLICIES
Basis of preparation
This unaudited condensed consolidated financial information which
incorporate the financial information of the Company and its
subsidiary undertakings, have been prepared in accordance with
Accounting Standard IAS 34 'Interim Financial Reporting' as
contained in UK - adopted International Accounting Standards and
IFRIC interpretations and with those parts of the Companies Act
2006 applicable to companies reporting under IFRS.
The interim report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this
report is to be read in conjunction with the annual report for the
year ended 31 December 2023 which was approved by the Board of
Directors on 25 April 2024 and any public announcements made by the
Company during the interim reporting period.
This financial information has been prepared under the historical
cost convention and unless otherwise specified are presented in
Euro which is the functional currency of the Group and rounded to
the nearest €.
Going concern
Based on the Group's Statement of Financial Position and a review
of its forecast future operating budgets and forecasts, the
Directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence for at least twelve
months from the date of signing of this unaudited
condensed consolidated interim financial information. This
review of future operating budgets and forecasts included certain
reasonable downside scenarios and confirmed that even in the case
of such downside scenarios the Group could continue to operate and
meet its obligations as they fall due. Accordingly, the Directors
have adopted the going concern basis in preparing this financial
information.
In making this assessment, the Directors have considered the
resilience of the Group in severe but plausible scenarios, taking
into account the principal risks and uncertainties facing the Group
and the effectiveness of any mitigating actions. The Directors'
assessment considered the potential impacts of these scenarios,
both individually and in combination, on the Group's business
model, future performance, solvency and liquidity over the period.
Sensitivity analysis was also used to stress test the Group's
strategic plan and to confirm that sufficient headroom would remain
available under the Group's credit facilities. The Directors
consider that under each of these scenarios, the mitigating actions
would be effective and sufficient to ensure the continued viability
of the Group.
Risks and uncertainties
Taking considered risk is the essence of all business and
investment activity, the Audit Committee is responsible for a
formal risk assessment on an annual basis and also for reporting,
by exception, on any material changes during the year affecting the
risks the Group is currently exposed to and any potential future
risks that need to be considered. The Group's activities expose it
to a variety of risks, including market risk (foreign currency risk
and interest rate risk), credit risk and liquidity risk, these
risks and the activities of the Directors to minimise their
potential adverse effects on the Group's financial performance have
not substantially changed from those set out in the Company's
annual report for the year ended 31 December 2023 which is
available from the Company's website: www.worldchess.com.
3
REVENUE
|
|
Revenue from contracts with
customers
|
|
|
Revenue by
business class
|
|
6 months to 30 June 2024
Unaudited
|
|
6 months to 30 June 2023
Unaudited
as restated
|
|
Year ended 31 December 2023
Audited
|
|
|
|
|
€
|
|
€
|
|
€
|
|
|
Tournaments
|
|
268,879
|
|
825,507
|
|
1,381,341
|
|
|
Online Arena
|
|
307,150
|
|
101,051
|
|
204,151
|
|
|
Clubs
|
|
333,096
|
|
17,742
|
|
163,305
|
|
|
Merchandising
|
|
309,787
|
|
290,413
|
|
596,695
|
|
|
|
|
1,218,912
|
|
1,234,713
|
|
2,345,492
|
|
|
|
|
|
|
|
|
|
|
|
By
geographical area
|
|
6 months to 30 June 2024
Unaudited
|
|
6 months to 30 June 2023
Unaudited
|
|
Year ended 31 December 2024
Audited
|
|
|
|
|
€
|
|
€
|
|
€
|
|
|
United Kingdom
|
|
783,245
|
|
1,172,857
|
|
2,661,639
|
|
|
Europe
|
|
408,968
|
|
45,099
|
|
902,235
|
|
|
United States of America
|
|
26,699
|
|
16,757
|
|
51,804
|
|
|
|
|
1,218,912
|
|
1,234,713
|
|
2,345,492
|
|
|
|
|
|
|
|
|
|
4
EXCEPTIONAL ITEMS
|
|
|
|
6 months to 30 June 2024
Unaudited
|
|
6 months to 30 June 2023 as
restated
Unaudited
|
|
Year ended 31 December 2022
Audited
|
|
|
|
|
€
|
|
€
|
|
€
|
|
|
Listing costs
|
|
-
|
|
308,250
|
|
308,250
|
|
|
Exchange loss on Crypto-assets
|
|
8,213
|
|
2.966
|
|
18,526
|
|
|
|
|
8,213
|
|
311,216
|
|
326,776
|
|
|
|
|
|
|
|
|
|
Listing
costs
Legal and professional costs associated with the listing of the
entire issued share capital of World Chess PLC on the Main Market
of the London Stock Exchange in April 2023.
Loss on Crypto-assets
The Group has historically received some sponsorship revenue in the
form of crypto-assets which it has converted to fiat currencies at
the earliest opportunity, usually upon receipt or in accordance
with an agreed schedule of conversion. Crypto-assets are not
amortised but are reviewed for impairment if the prevailing price
at which they can be converted into fiat currency indicates their
value has fallen below their carrying value. Any impairment or
realised gains on the conversion of crypto-assets to fiat currency
are recognised within exceptional items.
5
NET FINANCE COSTS
|
|
|
|
6 months to 30 June 2024
Unaudited
|
|
6 months to 30 June 2023
Unaudited
|
|
Year ended 31 December 2023
Audited
|
|
|
|
|
|
|
€
|
|
€
|
|
|
Finance income:
|
|
|
|
|
|
|
|
|
Loan interest receivable
|
|
69
|
|
68
|
|
139
|
|
|
|
|
69
|
|
68
|
|
139
|
|
|
|
|
|
|
|
|
|
|
|
Finance costs:
|
|
|
|
|
|
|
|
|
Other loan interest
|
|
2,022
|
|
23,769
|
|
27,898
|
|
|
Interest on IFRS 16 lease
liabilities
|
|
77,060
|
|
77,395
|
|
163,495
|
|
|
|
|
79,082
|
|
101,164
|
|
191,393
|
|
|
|
|
|
|
|
|
|
6
LOSS PER SHARE
The basic earnings per share is calculated by dividing the
(loss)/profit attributable to owners of the parent company by the
weighted average number of shares in issue during the year. In
calculating the diluted earnings per share, any outstanding share
options, warrants and convertible loans are taken into account
where the impact of these is dilutive.
|
|
|
|
6 months to 30 June 2024
Unaudited
|
|
6 months to 30 June 2023
Unaudited
|
|
Year ended 31 December 2023
Audited
|
|
|
Loss attributable to the owners of the parent
company €
|
|
(1,869,156)
|
|
(2,347,212)
|
|
(4,685,099)
|
|
|
Weighted average number of shares in
issue
|
|
686,467,495
|
|
632,688,761
|
|
650,232,851
|
|
|
Basic and diluted earnings per share
€
|
|
(0.0027)
|
|
(0.0037)
|
|
(€0.007)
|
7
DIVIDENDS
No dividend was recommended or paid for the period under
review.
8
INTANGIBLE ASSETS
|
|
|
|
Exclusive FIDE rights
|
|
Software Licence
|
|
Online Platform
|
|
Crypto-assets
|
|
Total
|
|
|
|
|
€
|
|
€
|
|
€
|
|
€
|
|
€
|
|
|
COST
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2024
|
|
1,105,291
|
|
115,000
|
|
3,924,971
|
|
4,215
|
|
5,149,477
|
|
|
Additions
|
|
-
|
|
-
|
|
222,630
|
|
1,233,208
|
|
1,455,838
|
|
|
Disposals
|
|
-
|
|
-
|
|
-
|
|
(1,237,206)
|
|
(1,237,206)
|
|
|
At 30 June 2024
|
|
1,105,291
|
|
115,000
|
|
4,147,601
|
|
217
|
|
5,368,109
|
|
|
AMORTISATION
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2024
|
|
773,703
|
|
56,000
|
|
1,232,947
|
|
-
|
|
2,062,650
|
|
|
Amortisation for period
|
|
55,265
|
|
11,500
|
|
223,179
|
|
|
|
289,944
|
|
|
At 30 June 2023
|
|
828,968
|
|
67,500
|
|
1,456,126
|
|
-
|
|
2,352,594
|
|
|
NET BOOK
VALUE
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June 2024
|
|
276,323
|
|
47,500
|
|
2,691,475
|
|
217
|
|
3,015,515
|
|
|
At 31 December 2023
|
|
331,588
|
|
59,000
|
|
2,692,024
|
|
4,215
|
|
3,086,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Directors considered the carrying value at 30 June 2024 for
each asset identified above, except crypto-assets, and it was
determined that no impairment was required. Where an asset does not
generate cash inflows that are largely independent of the cash
inflows from other assets or groups of assets the carrying value
was considered against the smallest identifiable group of assets
that generates cash inflows (cash generating unit or
CGU).
The Directors considered the carrying value at 30 June 2024 for
crypto-assets based on the prevailing exchange rate at which the
crypto-asset could readily be converted into US dollars or Euros
and it was determined that no impairment was required.
9
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
Right of use asset
|
|
Fixtures and fittings
|
|
Computer Equipment
|
|
Total
|
|
|
|
|
€
|
|
€
|
|
€
|
|
€
|
|
|
COST
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2024
|
|
1,495,114
|
|
1,283,631
|
|
1,698
|
|
2,780,443
|
|
|
Additions
|
|
-
|
|
31,065
|
|
-
|
|
31,065
|
|
|
At 30 June 2024
|
|
1,495,114
|
|
1,314,696
|
|
1,698
|
|
2,811,508
|
|
|
DEPRECIATION
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2024
|
|
288,294
|
|
254,115
|
|
1,698
|
|
544,107
|
|
|
Charge for period
|
|
75,426
|
|
58,368
|
|
-
|
|
133,794
|
|
|
Exchange difference
|
|
-
|
|
(7)
|
|
-
|
|
(7)
|
|
|
At 30 June 2024
|
|
363,720
|
|
312,476
|
|
1,698
|
|
677,894
|
|
|
NET BOOK
VALUE
|
|
|
|
|
|
|
|
|
|
|
At 30 June 2024
|
|
1,131,394
|
|
1,002,220
|
|
-
|
|
2,133,614
|
|
|
At 31 December 2023
|
|
1,206,820
|
|
1,029,516
|
|
-
|
|
2,236,336
|
|
|
|
|
|
|
|
|
|
|
|
10
INVESTMENTS
Shares in group undertakings
|
|
|
|
30 June
2024
Unaudited
|
|
30 June
2023 Unaudited
|
|
31 December 2023
Audited
|
|
|
|
|
€
|
|
€
|
|
€
|
|
|
COST
|
|
|
|
|
|
|
|
|
At start of the period
|
|
351,616
|
|
351,616
|
|
351,616
|
|
|
Additions
|
|
-
|
|
-
|
|
-
|
|
|
Disposals
|
|
-
|
|
-
|
|
-
|
|
|
At end of the period
|
|
351,616
|
|
351,616
|
|
351,616
|
|
|
IMPAIRMENTS
|
|
|
|
|
|
|
|
|
At start of the period
|
|
50,000
|
|
50,000
|
|
50,000
|
|
|
Disposals
|
|
-
|
|
-
|
|
-
|
|
|
At end of the period
|
|
50,000
|
|
50,000
|
|
50,000
|
|
|
CARRYING
VALUE
|
|
|
|
|
|
|
|
|
At end of the period
|
|
301,616
|
|
301,616
|
|
301,616
|
|
|
At start of the period
|
|
301,616
|
|
301,616
|
|
301,616
|
|
|
|
|
|
|
|
|
|
The Directors considered the carrying value at 30 June 2024 for
each group undertaking, identified below, and it was determined
that no further impairment was required.
|
|
Subsidiary
Name
|
%
holding
|
Registered
Office
|
Nature of
business
|
|
|
World Chess
Events Limited
|
100
|
Eastcastle House, 27/28 Eastcastle Street,
United Kingdom, W1W 8DH
|
Organising chess events (Worldwide)
|
|
|
World Chess US,
Inc
|
100
|
1201 N. Orange Street, Suite 762, Wilmington,
New Castle County, DE, USA 19801
|
Organising chess events (USA), online
chess
|
|
|
World Chess
Europe GmbH
|
100
|
Mittelstrasse 51 - 53, 10117 Berlin,
Deutschland
|
Various chess related activities, chess club
activities
|
|
|
World Chess
Sakartvelo LLC
|
100
|
Georgia, City Tbilisi, Didube district, Ak.
Tsereteli Avenue, N 49-51-51a, Entrance 3, Floor 13, Apartment N
128
|
Various chess related activities
|
11
CALLED UP SHARE CAPITAL
|
|
|
|
30 June 2024
Unaudited
|
|
31 December 2023
Audited
|
|
|
|
|
Number of shares
|
|
€
|
|
Number of shares
|
|
€
|
|
|
Allotted, issued, and fully paid Ordinary
shares of £0.0001
|
|
691,724,039
|
|
78,520
|
|
667,193,501
|
|
75,647
|
|
|
|
|
Number of shares
|
|
Nominal value
|
|
Share capital
(€)
|
|
Share Premium (€)
|
|
|
At 31 December 2023
|
|
667,193,501
|
|
£0.0001
|
|
75,647
|
|
11,048,183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June 2024
|
|
691,724,039
|
|
£0.0001
|
|
78,520
|
|
12,754,046
|
12
FINANCIAL LIABILITIES - BORROWINGS
|
|
|
Group
|
|
|
|
|
30 June
2024
Unaudited
|
|
30 June
2023
Unaudited
|
|
31 December 2023
Audited
|
|
|
|
|
€
|
|
€
|
|
€
|
|
|
Current:
|
|
|
|
|
|
|
|
|
Other loans less than 1 year
|
|
35,088
|
|
184,711
|
|
32,989
|
|
|
Lease liabilities
|
|
122,889
|
|
109,889
|
|
116,208
|
|
|
|
|
157,977
|
|
294,600
|
|
149,197
|
|
|
|
|
|
|
|
|
|
|
|
Non-current:
|
|
|
|
|
|
|
|
|
Lease liabilities
|
|
1,241,112
|
|
1,331,944
|
|
1,304,273
|
|
|
|
|
1,241,112
|
|
1,331,944
|
|
1,304,273
|
13
RELATED PARTIES' DISCLOSURES
Directors
Details of remuneration and service
contracts and other material contracts with Directors, remain
unchanged from those detailed in the Company's annual report for
the year ended 31 December 2023 which was approved by the Board of
Directors on 25 April 2024
Group undertakings
The following transactions took place during the six months ended
30 June 2024 with and between group undertakings.
●
World Chess Events Ltd paid €90,000 to World Chess
Sakartvelo LLC for the provision of staff and other
services,
●
World Chess Events Ltd paid €18,888 to World Chess
US Inc in commission on third party transactions,
●
World Chess Events Ltd paid €395 to World Chess
Europe GmbH for the purchase of inventory,
●
World Chess Europe GmbH paid €57,897 to World
Chess PLC in interest payments,
●
World Chess Europe GmbH paid €2,392 to World Chess
Events Ltd for the purchase of inventory,
●
World Chess US Inc paid €1,121 to World Ches
Events Ltd for the purchase of inventory,
Balances at 30 June 2024
The following balances remained outstanding at 30 June 2023 from
and between group undertakings.
|
|
|
|
Due to/(from) World Chess
PLC
|
|
Due to/(from) other group
undertakings
|
|
Total due to/(from) group
undertakings
|
|
|
Directors
|
|
|
|
|
|
|
|
|
●
Ilya Merenzon
|
|
(44,218)
|
|
(263,135)
|
|
(307,353)
|
|
|
●
Matvey Shekhovtsov
|
|
(18,200)
|
|
-
|
|
(18,200)
|
|
|
●
Richard Collett
|
|
(14,673)
|
|
-
|
|
(14,673)
|
|
|
●
Graham Woolfman
|
|
(6,236)
|
|
-
|
|
(6,236)
|
|
|
●
Neil Rafferty
|
|
(6,269)
|
|
-
|
|
(6,269)
|
|
|
●
Jamison Reed Firestone
|
|
(4,698)
|
|
-
|
|
(4,698)
|
|
|
|
|
(94,294)
|
|
(263,135)
|
|
(357,429)
|
|
|
|
|
|
|
|
|
|
|
|
Group undertakings
|
|
|
|
|
|
|
|
|
●
World Chess Events Ltd
|
|
4,481,464
|
|
113,266
|
|
4,594,730
|
|
|
●
World Chess Europe GmbH
|
|
2,376,697
|
|
1,973
|
|
2,891,525
|
|
|
●
World Chess US Inc.
|
|
(218,648)
|
|
(99)
|
|
(318,045)
|
|
|
●
World Chess Sakartvelo LLC
|
|
-
|
|
|
|
(16,093)
|
|
|
|
|
6,639,513
|
|
115,140
|
|
7,152,117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,545,219
|
|
(147,995)
|
|
6,794,688
|
14
SUBSEQUENT EVENTS
On 27 September 2024 the Company announces a
new strategic investor had agreed to subscribe for 12,000,000 new
ordinary shares of World Chess for a total subscription amount of
€1.2m payable in three instalments with the final payment due on 15
January 2025. The newly issued shares will be admitted to trading
on the London Stock Exchange's Main Market, with admission to
follow receipt of the final payment.
On 3 September 2024 the Company announced the
extension of its partnership with the Algorand Foundation for an
additional year, during which Algorand's cutting-edge blockchain
technology will continue to enhance the chessarena.com ecosystem
through a new Algorand Tournament Series and unique digital chess
assets, further enriching the platform's offerings and user
experience.
In August 2024, World Chess hosted 'Clash of
Blames', the highly anticipated rematch of the controversial 'Clash
of Claims' between the 14th World Chess Champion Vladimir Kramnik
and Grandmaster José Alcántara. The event held online at
chessarena.com and in person at the Sky Guild Gaming Centre in
London, showcased chessarena.com's advanced anti-cheating
technology.
15
OTHER
Copies of the unaudited half-yearly results have not been sent to
shareholders, however copies are available at www.worldchess.com or on request
from the Company's Registered Office.
16
APPROVAL OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
Responsibility
Statement
The Company's Directors, whose names and
functions appear below this statement, are responsible for
preparing this unaudited interim condensed consolidated financial
information in accordance with the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct
Authority ('DTR') and with Accounting Standard IAS 34 'Interim
Financial Reporting'.
The Directors, and each Director individually,
confirms that, to the best of their knowledge, this unaudited condensed consolidated financial
information gives a true and fair view of the assets,
liabilities, financial position and profit or loss of the Group and
that the interim management report includes a fair review of the
information required by DTR4.2.7R 7R (indication of important
events during the first six months and description of principal
risks and uncertainties for the remaining six months of the year)
and by DTR4.2.8R (disclosure of material related parties'
transactions).
Board of
Directors:
Ilya Merenzon (Chief Executive
Officer)
Matvey Shekhovtsov (Chief Operating
Officer)
Richard Collett (Chief Financial
Officer)
Graham Woolfman (Chair)
Neil Rafferty (Non-Executive
Director)
Jamison Reed Firestone (Non-Executive
Director)
This unaudited condensed
consolidated financial information was approved by the
Board on 27 September 2024.