Business
Trading Update
Trading Update.
About this update from Gfinity Plc
[{"type":"text","content":"\n \nRNS Number : 6562A Gfinity PLC 23 January 2020 \n\n \nThe information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.\n \n23 January 2020\nGfinity plc\n(\"Gfinity\" or the \"Group\")\n \nUpdate on first half performance and full year outlook \n \nGfinity plc (AIM: GFIN), a world-leading esports provider, announces an update on half year performance and outlook for the full year, ahead of the publication of unaudited interim results for the six month period ended 31 December 2019, expected to be announced on 4 March 2020. \n \nH1 performance\n \nTrading through the first half of the financial year has continued broadly in line with management's expectations. Gfinity expects to report H1 revenue of circa £3.5 million, which is lower than the same period last year (H1 2019: £4.4m) primarily due to the transition away from low margin Elite Series revenues, as explained below. Significant growth in higher margin revenue streams during H1 are expected to deliver a circa 300% increase in gross profit to £2.1 million (H1 2019: £0.5 million) whilst continued cost discipline is expected to further reduce adjusted operating loss* for the period to £2.4 million (H1 2019: £4.4 million).\n \nFull year outlook\n \nOver the past year, Gfinity's leadership team has refocused the business on a Strategic Client Management model, which has helped to establish a robust pipeline of new opportunities. The Group continues to improve its revenue mix and margin as it shifts the profile of its work towards own community revenues, strategic programme consulting and higher margin content creation, which supplement the end-to-end esports programmes the Group continues to deliver for its major partners. This has been complemented by changes to the Group's leadership team and wider commercial team to support the delivery of further growth.\n \nThe execution of this strategy has progressed well and the Group is committed to quickening the pace of its implementation. To facilitate this, the Board has taken the decision not to progress a material...