Gaming Realms Share Price (GMR)

Completely agree GingerH.

I am a long term supporter and holder.

My entire business life was spent working in businesses that charged little amounts on a regular basis over a prolonged time to a growing number of people, across increasing numbers of country markets. - great model, and one which makes near-term results more accurate to predict.

What I do not want to do is be overly eager in talking the share up, but yes, if 33% growth in revenue is delivered, and operational gearing continues, then the adj EBITDA for FY'24 and '25 will be to the upside.

So, what are the brakes on the SP?....

- selling shareholder?

- Our genre of game has limited life span? i.e. less than 10 years

- Government regulation against on-line gaming / betting.

all possible, but it has been ever thus, ....and since changing their business model about 4 /5 years ago this company has posted results which have shown growth in the top, middle and bottom lines of the financial accounts.

FG

FG, you said "If year on year growth of 21% in Adj EBITDA in 1st half '24 is repeated in the second half, then the full time Adj EBITDA will be around £5.8m + (1.21 x x£5.2m ) = £12.1m."

I want to point out that revenue in the first 2 months of H2 has grown 33% and therefore EBITDA should be up quite a lot more than the 21% you have factored in here.

I am baffled by the SP drop after these results and have topped up my holding accordingly.

If anyone has seen any forecasts from the company could they share the link here please.

TYIA

I agree i can clearly see 52-57p here so I'm in at 36p ish. Interesting growth here, net looks like £8.4m to me within a year or so. Brokers look a little too bullish but 50% is ok.

Reported adj EBITDA is £5.8m for 1st Half.

Reported Adj EBITDA for 2nd Half '23 was £5.2m

If year on year growth of 21% in Adj EBITDA in 1st half '24 is repeated in the second half, then the full time Adj EBITDA will be around £5.8m + (1.21 x x£5.2m ) = £12.1m.

Reported Cash in bank at 30th June was £9.6m, up £2.1m for the six months. If this growth in operations continues, then it is very possible that CIB at the end of FY '24 will reach £12.0m.

For a growing Tech company a valuation multiple of 12 x is reasonable.... but you can use a more cautious or bullish figure as you see fit.

12 x 12.1m = £145.2m

Add in the cash gives a gross value of £157.2m

Equivalent to 53.3p per share.

I bought this morning at 35.7p per share.

giving a 49% upside.

FG