4th Feb 2016 08:40
LONDON (Alliance News) - Galasys PLC on Thursday warned on its pretax profit for 2015, which it said may be reduced by exceptional costs relating to the court proceedings for the ongoing dispute over changes to the composition of its board.
The company, which provides ticketing services to the leisure and entertainment industry in Asia, is in the midst of a battle between its chief executive officer and its chairman. Chief Executive Officer Seah Kok Wah and Executive Director Chuah Teong Ming requisitioned a general meeting to remove Non-Executive Chairman Teh Kim Seng in December, but this was blocked by the UK High Court.
In the UK, the court will next consider the case on February 23, having initially issued an order which blocked the proposals from being tabled to shareholders.
In Jersey, the Royal Court is hearing a case both involving the composition of the board and whether Teh Kim Seng and Chuah Teong Ming have the authority to conduct litigation on behalf of the company. The hearing has started and the proceedings are set to be resolved at a hearing on April 18, 2016.
Meanwhile, proceedings at the Malaysian High Court are ongoing.
Galasys on Thursday said that if the legal costs are ruled to be for the account of the company, its pretax profit in 2015 could be materially below market expectations.
Aside from this, trading in 2015 was in line with market expectations, Galasys said, adding that it recently signed new deals in Malaysia and China totalling GBP290,000.
In Malaysia, it is providing the ticketing system for the Tropical Island Waterpark in Kuala Terengganu, while the Chinese deal is for an e-ticketing and membership service to the Oriental Pearl and TV Tower in Pudong.
"I am pleased that we have been able to complete another successful year with a strong financial and operating performance. We have continued to grow the business throughout 2015 and, with these latest contract wins, we now provide our solutions and services to over 170 amusement parks across China and South East Asia, compared to 60 sites at the time of our admission to AIM in May 2014," Chief Executive Seah Kok Wah said in a statement.
Shares in Galasys were untraded on Thursday, last quoted at 15.60 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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