Issuing a market statement, the governance of London AIM-listed online gambling group Stride Gaming Plc has clarified its strategic position/intent, following media reports that it seeks an outright sale of the business.
Stride governance confirms that at present ‘all strategic options are being considered’ with a view to maximising shareholder value, including – i) implementing an aggressive UK and international growth strategy, ii) assessment of potential acquisition targets, iii) participating in industry consolidation through a sale of the business.
In its update, Stride confirms the appointment of Investec as lead financial advisor, assisting the ongoing governance review. Furthermore, as of this morning Stride has placed itself as operating under an ‘offer period’, in-line with the city Takeover Code.
Following a turbulent 2018 trading, in which Stride was fined £7.1 million by the UK Gambling Commission (UKGC), for a series of compliance, transactional and AML failures. Stride governance maintains confidence in its executive team to meet growing fiscal and regulatory market demands, whilst delivering on significant growth opportunities.
“The Group has a clear focus on winning and retaining mass-market, recreational customers onto its bingo and casino sites. Stride continues to leverage its infrastructure and proprietary technology to migrate more customers onto the Group’s higher margin proprietary platform and drive cost synergies across the business.”
“The Board believes the Group will continue to be highly cash generative and the Board remains committed to its revised dividend policy to distribute at least 50% of Adjusted net earnings in dividends.” Stride details in its market update.
Moving forward, Stride governance will publish a strategic update to corporate stakeholders, ahead of announcing its interim results for the period ending February 28, 2019.