Inspired Gaming looks to exit pubs
17 March, 2008
AIM-listed group reviews operations after trading deteriorates
Inspired Gaming, the supplier of more than 80,000 AWP machines to leisure outlets, is looking to exit the pub sector after reporting weak trading conditions .
In a statement to the stock exchange the group said it was reviewing the business with a view to focusing the group’s “capital allocation and management resources on the faster gaming and leisure sectors” at home and abroad.
The move effectively suggests that Inspired is looking to get out of pubs, a division for which was only established last summer, headed by ex-Laurel executive Paul Marsh.
The group said its review would be concluded by June this year, when it will announce its half year results.
The statement said the directors of the group had expected the pubs division to be “marginally profitable”, despite the impact of the smoking ban, thanks to cost savings.
However, trading had deteriorated with increasing numbers of pub closures.
“If this trend were to continue,” the group said, “the Board do not believe that this recent deterioration could be offset by gains in other areas of the business”, sales across which remained “positive”.
Shares in Inspired Gaming were launched onto the Alternative Investment Market in June 2006 at 180p and peaked at 368p last September, when the group revealed it had received an indicative offer of 385p a share from a financial institution, FL Group.
However the offer was withdrawn at the beginning of December last year.
Inspired’s shares were trading at 175p today.