Business
Trading Update, Strategic Review and Board Changes
Trading Update, Strategic Review and Board Changes.
About this update from Gfinity Plc
[{"type":"text","content":"\n \n \n RNS Number : 2337G\n Gfinity PLC\n 16 March 2020\n \n \n \n \n The 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 \n \n \n \n \n 16 March 2020\n \n \n \n \n \n Gfinity plc\n \n \n (\"Gfinity\" or the \"Company\")\n \n \n \n \n \n Trading Update, Strategic Review and Board Changes \n \n \n \n \n \n Gfinity plc (AIM: GFIN), a world-leading esports provider, announces an update on current trading and outlook for the full year. \n \n \n \n \n \n Separately, the Company has undertaken a strategic review of the business and will begin a series of broader cost reduction initiatives with immediate effect.\n \n \n \n \n \n Update on current trading and full year outlook\n \n \n \n \n \n Results for the six months to 31 December 2019 (\"H1\") remain unchanged. As announced in the trading update on 23 January 2020, the Company expects to report H1 revenue of c. £3.5 million, a gross profit of £2.1 million and an adjusted operating loss of £2.4 million. \n \n \n \n \n \n However, the start of the second half of this financial year has not seen commercial opportunities materialise as expected, and discussions around strategic partnerships have also not progressed as quickly as anticipated. \n \n \n \n \n \n The challenging market conditions have now been exacerbated by the unprecedented impact of the COVID-19 virus which is forcing the postponement of all live sporting and esports events. Two major events that Gfinity designs and delivers for clients, and due to take place before July 2020, have now been postponed. The Company is closely monitoring developments regarding COVID-19 and its ongoing impact on the business and will continue to update the market as appropriate.\n \n \n \n \n \n Consequently, the Board now expects that for the year to 30 June 2020 revenue will be lower and adjusted loss before tax will be higher than current market expectations. In light of all this, the Company is pursuing other options for financing in the short term and continues its discussions with several pot...