St James House warns of 'constrained' working capital

(Sharecast News) - Lottery and eCommerce business St James House said on Friday that while working capital remained "constrained" and "an area of focus", the group believes its improving operating performance would gradually alleviate its position.
St James House also said the completion of a subscription for new shares and capitalisation of existing liabilities would "substantially" assist it in rectifying its working capital position.

On an operational level, the group has seen the number of Lottery lines played on a weekly basis continue to grow, with the overall number of lines played approximately 33% higher in February 2020 than that seen a year earlier.

"This growth has kept the Lottery Business on target to make a positive operating contribution to the group for the second half of the year to 31 January 2020," said St James.

Euro IBAN account openings in the AIM-listed firm's payments business increased 16%, while the growth of sterling accounts was in excess of 700%

In card payment services, improvements in KYC approval process and card distribution led to an increase of 80% in transaction volumes - with St James' extended target for 20,000 cards to be delivered and activated remaining unchanged.

As of 1110 GMT, St James House shares were down 2.51% at 38.02p.