(Alliance News) - Nektan PLC on Monday said it expects to return to quarter-on-quarter growth in its financial 2020 after failing to achieve an expected breakeven in its current financial year.
The gaming technology platform provider said it expects to deliver double-digit revenue growth and a "significantly" reduced loss before interest, taxes, depreciation and amortization in its financial year ending on Sunday.
In financial 2018, Nektan reported revenue of GBP20.1 million and adjusted Ebitda loss of GBP2.4 million.
The AIM-listed firm's target of achieving Ebitda breakeven in its financial 2019 will not be achieved, it said, due to the slower trends experienced in the third quarter continuing into the final quarter of the year. Nektan noted that a number of factors are hurting earnings, including the continued effect of increasing UK regulations around player marketing and verification.
"In our B2C business, management has taken a number of actions in conjunction with the company's partners, that are delivering positive underlying results. We expect this to translate into better performance including increased margins," said Chief Executive Lucy Buckley.
"This, combined with a pipeline of new partners and product launches, underpins the board's confidence that the first quarter of financial 2020 should see a return to quarter-on-quarter growth that has been delivered by the company in nine out of the last twelve quarters," added Buckley.
Looking ahead, Nektan said it will continue to focus on "moving to profitability", as its pipeline of opportunities is continuing to develop. We expect a number of these opportunities to go live during the remainder of 2019, which has the scope to have a "transformational" impact on its business.
Nektan shares were untraded on Monday, last closing at 10.25 pence each.
