Server based gaming firm has had a tough year
The UK server based gaming supplier Inspired Gaming plc has issued a trading update claiming that its business has stabilised and recovered in the year to September 26 2009, following an “exceptionally difficult” 2008. The company also announced a capital reorganisation aimed at simplifying the capital structure and improving liquidity in the stock.
Inspired reported that all four divisions of its business have performed well. Machine incomes have proven broadly resilient in the face of the consumer downturn, with some weakness in the Leisure division's machines in bowling alleys, compensated by strength in the Betting and Bingo/Casino divisions and new contract wins in Virtual Racing Systems.
The directors remain cautious about wider consumer trends but are optimistic about the growth opportunities for the company.
Inspired Gaming announced in July that it had received an approach which may or may not lead to an offer being made for the company (see previous InfoPowa reports). Discussions continue with a number of parties regarding possible offers for the whole group or parts of it.
"The board has been concerned for some time that the company's capital structure is complicated and believes that it may have contributed to the relatively low liquidity in trading in the listed ordinary shares and preference shares and to shares trading below the true value of the company," the update reads.
"Following discussions with some of its larger shareholders, the board is recommending that the share capital be reorganised into one class of new ordinary shares which are held approximately 90 percent by preference shareholders and 10 percent by the ordinary shareholders.
"It is expected that the share capital reorganisation will be completed and that the new ordinary shares will replace the currently traded shares on AIM on November 27 2009."
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