Sources of finance or funding

January 04, 2020

Umbrella’s sources of finance are mainly four: money invested by shareholders, income generated by online gaming activities, borrowing from banks and reinvested profits.

Umbrella is a public limited company freely traded on the indian stock exchange as UMB. Umbrella Group plc’s issued share capital as at 31 December 2019 comprised 123,456,789 ordinary shares each with a par value of GBP 1. Ownership is organized via shares and it is considered to be public since shareholders can be anybody who purchases equity of the company.

As a gaming operator the group offers online sport betting and casino games like slot machines, card games and other kinds of games where players bet their money in the hope to win a prize. If the player loses, the casino or in this case Umbrella wins. Since the operator has a statistical advantage on the bets done by players the higher the number of bets the higher is the house edge and so the revenues generated by these activities.

The company also borrows money from banks to finance its activities. To investment it and to make more than it costs to borrow it. For example, by purchasing assets or financing innovative projects that will generate a return of investment in future greater than capital invested, and the cost paid to borrow the money.

Although 2019 was a tough year for Umbrella the business has been a profitable organization for many years and still continues to be so. Thanks to this fact in the past years the firm not only paid out dividends to the shareholders who have a stake in the company but also reinvested part of the generated profits to make the business bigger and better.

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Written by Claudio Maccari . Passionate developer and former windsurfer. You can read more about me here