Veltyco Group plc (AIM: VLTY), the online marketing company for the gaming industry, provides the following update on current trading and the Group’s financial position.
Trading within the Group’s Bet90 sportsbook and casino business, in which Veltyco has a 51% interest, continues to be in line with management expectations, with Bet90 achieving its highest revenues since launch in July and October 2019. However, as a result of reduced marketing activities, income from the Group’s affiliate business is currently minimal and below management expectations. The Group therefore continues to trade at a loss on a monthly basis and the Directors continue to seek to further reduce the Group’s overall cost base to match its income.
As previously announced, the Group continues to be reliant on being able to manage its creditors, which continue to be materially in excess of the Group’s current cash resources. As a result of the Group’s creditor balance and the continued trading losses, the Directors continue to manage the Group’s cash resources carefully. Accordingly, the Directors continue to actively explore further appropriate sources of capital to enable it to reduce it liabilities and to provide general working capital.
In the event that trading in the short term is not in line with the Board’s revised expectations and/or the Group is not able to manage its creditors and/or the Group continues to trade at a loss and/or the Group is not able to secure further funding as outlined above, the Group’s ability to continue as a going concern and to meet its liabilities will be materially impacted.