15 September 2015 – interim results

The interactive gaming company has announced its interim results for the six months to 30 June and these have shown declines in both revenues and profits.  Revenue for the period was £12.7m (2014: £14.5m) and adjusted pre-tax profit was £1.1m (2014: £2.1m).  Earnings per share on the same basis fell to 0.37p (2014: 0.70p) and the interim dividend was maintained at 0.22p.  Cash and cash equivalents at the end of the period (excluding player balances) were £13.9m (2014: £12.6m) and this is equivalent to 4.7p per share (2014: 4.3p)  The last few months have been difficult for the industry with the introduction of new tax rules and consolidation in the sector seems likely.  Although the shares have been disappointing performers to date we believe that patient shareholders will be rewarded and maintain our recommendation of BUY.