On January 28, Nektan PLC reported an increase in annual revenues. Unfortunately, it also had to inform shareholders that annual losses had increased as well. This came as part of their year-end report, in which the company saw a pretax loss of £6.4 million, a £1.4 million increase over the previous year.
While the losses were disappointing, Nektan pointed to a number of factors that played a role in the losses. This included restructuring costs, valued at a loss of £2.8 million that was part of the removal of its subsidiary firm, Respin LLC.
Despite the losses, shareholders appeared to be pleased with the increase in revenue, which rose 14% over the previous year. The fiscal year 2019 ended with revenues of £22.6 million, an increase of £2.7 million from the previous year, thanks to the sharp rise of their B2B sales.
In a statement, interim CEO Gary Shaw pointed out that that restructuring was another factor that helped the company see an increase in its growth. “The restructuring represents an important milestone for Nektan. We can now focus on executing our strategy of becoming a dedicated casino technology and gaming content provider globally. These initial results support the directors’ decision to focus solely on B2B opportunities.”
With these positive factors, Nektan expects they will break even overall by June of this year. B2B sales rose by 153.1% in the final six months of the fiscal year, and it is expected that the following six months, which ended in December, will improve even more.
The group now has operations on three continents – Asia, Europe, and Africa – and expects to expand into Latin America by the end of the first quarter of this year. They are providing six new sites that launched this month, and have reported that 21 new sites will launch within the next few months.
This is the kind of news that has many within Nektan thinking that the company will see a significant profit for the fiscal year that ends in June 2020. The launching of these sites coupled with the sale of their B2B business to Grace Media in January has things looking bright. They not only sold this business but added a partnership with Grace. Now they look to expand their international B2C and B2B businesses.
