Transformed Nektan eyes ‘break even’ comeback

‘B2B focused’ Nektan Plc remains confident that it can achieve EBITDA break-even results by the end of year trading.

Publishing its corporate results for the six-month period ending 31 December 2019 (H1 2019), Nektan recorded corporate revenues of £800,000, up 157% on corresponding H1 2018’s £310,000.

The London-AIM firm pointed to its improved commercial pipeline, which sees its software active across 34 brands.

Further improved topline metrics saw Nektan reduce its adjusted EBITDA losses to £1.65 million from the corresponding £1.77 million.

During the trading period, Nektan offloaded its entire B2C unit to Grace Media for £200,000, a period in which corporate costs attributed to impairment charges, exceptional items and administrative expenses totalled £3 million.

Closing its H1 2019 accounts, Nektan declared an operating loss of £2.5 million, up 6.9% from 2018’s loss.

“While we are currently live with 34 sites across multiple continents, we see a strong pipeline of partner launches from leading global businesses to deliver their online gaming solutions,” said Gary Shaw, interim chief executive officer of Nektan.

“The roll-out of these sites should take place over the next 2-3 months, which will significantly transform the revenue profile of the group.”

Closing its trading statement, Nektan outlined that it was following COVID-19 developments closely with governance in discussions with advisors and stakeholders related to company options.

“The effects of COVID-19 are only beginning to be understood by the company and our sector, which creates material uncertainty as we understand the effects on our key stakeholders,” Shaw added. “The directors are assessing all available options and we will provide further updates as appropriate.”

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