Sportingbet is flying straight into the main market
Sportingbet (SBT) surprised the market today with the news of a dividend, move to the main market and a good set of figures.
There is also progress on the US front with news to come sooner rather than later I would estimate.
So what is going on here? My guess - the move from AIM to the main market smells like a company positioning itself to be taken over or to start using its paper to buy others. I suspect the former.
Those who follow this blog will know that SBT is a company that I have been recommending for a while - the share price has more than doubled in recent months.
There is no reason to sell SBT - the regional reach of SBT is excellent - it will not remain as a separate company for much longer. £1 should be enough to take it out but it could be higher.
Sportingbet Final Results [ADVFN]
Key Highlights
* Breadth of sports product increased significantly to over 8,000 different offers per day
* Introduced live streaming to supplement in:play betting
* Launched in Romania and South Africa
* 90+ new casino style games launched in Q4
* Intention to move listing from AIM to the Official List
* Reinstatement of dividend payments. 1.0p final dividend declared
Andrew McIver, Group Chief Executive, commented:
'This has been a very solid year for the Sportingbet Group. We are now seeing
consistent profitable growth resulting from the structural changes made
following our withdrawal from the US. Our focus on sports betting and
geographical diversification is helping to support earnings in these troubled
economic times. Additionally, our commitment to offer industry-leading sports
betting products and excellent customer service has helped us to recruit and
retain core customers. The Group is pleased to recommend the reinstatement of
dividends with 1.0p per share as a final dividend for the year just ended.
The new financial year has started well. Although Australian sports margin is
below long term averages it is made up for by strong European sports turnover
outperforming budget. The Board remains optimistic for the outcome of the
financial year at this stage.
Talks with the US Department of Justice are constructive and ongoing.
Finally, I am delighted to announce that it is our intention to move from AIM to
the Official List within the next six months, which will provide the basis for
our continued growth and success.'
.
