15th Nov 2019 11:37
(Alliance News) - Gaming industry marketing firm Veltyco Group PLC warned Friday its ability to meet liabilities and continue as a going concern may be "materially" hurt should trading performance not be as expected.
The firm said that sportsbook and casino unit Bet90 - in which it 51% owns - continues to trade in line with expectations, with revenue at their highest levels since launch. Despite this, the income from the Bet90 business remains "minimal" and so Veltyco continues to trade at a monthly loss.
Veltyco said it continued to manage its cash resources "carefully" and cut its costs base and was "actively" considering other sources of capital in order to reduce debt loads. This was after its debt levels remain "materially in excess" of its current cash resources and it continued to deliver trading losses.
The AIM-listed firm warned that if short-term trading is not in line with expectations, it is unable to manage creditors, it continues to trade at a loss or it is unable to secure funding then its "ability to continue as a going concern and to meet its liabilities will be materially impacted."
Shares in Veltyco were 55% lower at 1.62 pence in London on Friday.
By Ahren Lester; [email protected]
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