Game loses console war as profits plunge by 81pc
VIDEO games retailer Game
Digital extended its losing streak with final results which revealed a profit plunge of 81pc to £4.9m.
In the 53 weeks to July 30, the high street store saw revenue drop 5.1pc to £822.5m as it battled a ‘challenging UK console market’.
Shares in the beleaguered business are down 44.6pc this year and it said it remained cautious about the year ahead though it was encouraged by the forthcoming line-up of new games, console and virtual reality launches.
Chief executive Martyn Gibbs said: ‘We recognise that we need to continue to reposition and transform the business.’
The firm said it was seeing significant progress from its turnaround plan, which includes cost- saving initiatives and improving supplier terms. It has also been investing in online gaming and events to broaden its revenue stream.
It has launched ‘gaming arenas’ for customers to come in try games in two stores, with plans for at least another 10 to follow by the end of January, and significant investment over the next three years.
Yesterday was also game over for non-executive director Franck Tuil who has been on the board since May 2014. Tuil wants to focus more fully on his role as senior portfolio manager at activist investor firm Elliott Advisors. Game shares stumbled 4.3pc, or 3p, to 67p. Shareholders of Arbuthnot Bank
ing Group are set for a bumper payout as it announced a special dividend of £3 a share in its thirdquarter trading update.
Arbuthnot said its lending pipeline had shown good growth despite the time between approval and drawdown of loans increasing and added that the fall in the Bank’s base rate of interest will hit the margin it makes on its loans in the short term.
But the group is accelerating expansion plans with a new site in Manchester to open next year.
Shareholders will pocket a total of £45m from the special dividend, due on November 18. Shares climbed 3.5pc, or 54.5p, to 1634.5p.
Intercontinental Hotels Group is set to report a third quarter trading update today.
A special dividend in May and upbeat comments from the group in August sent shares higher – they’re up 21.4pc year to date.
Analysts at The Share Centre, which has a ‘ hold’ on the stock, said now will be the time to see whether those positive prospects have materialised. The broker said it was interested in the level of new franchise sign-ups to the brand as well as its progress in the boutique hotels business. Shares closed 0.2pc, or 7p, lower at 3238p.
Also set to be announced today is the appointment of a new nonexecutive director at CloudCall. The Aim-listed telephony services firm will appoint Gary Browning to the board. He was previously chief executive at recruitment services company Penna Consulting. CloudCall’s shares yesterday finished 5.9pc, or 4p, lower at 64p. A short but sweet update from
Coats Group sent shares soaring. Peel Hunt raised its target price for the industrial thread manufacturer as it revealed sales had improved in the third quarter of the year.
The group is growing its market share and improving productivity. It now expects operating profit for the year to be ahead of expectations. Shares advanced 8.2pc, or 2.75p, to 36.5p.
As the pound made more progress against the euro and dollar the
FTSE 100 fell for a second day. The market closed down 0.7pc, or 46.27 points, at 6977.74.
Aim-listed Vianet Group provides monitoring systems for leisure and vending firms. Its services include monitoring draft beer pumps to help firms reduce wastage, keep pipes clean and the beer cool.
Yesterday, it reported trading in the first half of the financial year was ahead of the same period a year ago and growth is in line with expectations. Shares gained 2.1pc, or 2p, to 96.5p.