BETBROKERS BROKE?

29 August 2008

Share-listing suspended after subsidiary placed in administration


The AIM-listed independent broker and clearing house for the sports betting industry, Betbrokers plc has announced that its shares have been temporarily suspended after one of its subsidiaries, Betbrokers Limited, was placed in administration.

The group also said its nominated advisor Daniel Stewart and Company has resigned with immediate effect.

"Currently the company is unable to fully ascertain the effect of this on the company's financial position," a spokesman said, commenting that the suspension was of a temporary nature.

In June this year Betbroker plc shares dived 27percent after it was announced that a lack of available funds in the company's clearing house account had impacted and restricted the value of bets that the company had been able to take in recent months (see previous InfoPowa report). At the time the company hoped for a cash injection of between GBP 1 and GBP 2 million.

The Chief Executive and Chairman of Betbrokers, Wayne Lochner said at the time: "I am disappointed that the lack of available funding within the clearing house has had a detrimental effect on the company's UK performance for the period. The lack of funding in the clearing house and our inability to transact several large bets has resulted in a decrease in the average deal size. Importantly, other KPI's for the UK business, including the number of transactions and trading volumes, indicate Betbrokers continued progress."

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