Gamingking Share Discussion Threads

[bonkers2] 20/12/2005 22:36

"so many are selling".. not seen it myself.

[marine boy] 20/12/2005 17:07

Don't worry Willz, the fire's out now.

[willz] 20/12/2005 14:36

With effect from the 1st November all financial, administrative and sales functions were centred on Hemel Hempstead and all manufacturing, research, development and technical support services were centred on Hainault.

Here's a good idea lets relocate to near a big oil refinery that could quite easily catch fire! oops!

[itschristof2] 20/12/2005 11:46

y is it then mb ,that so many are selling this close to thursday , sorry for the lack of know , but new to this ,i seem to find my self stuck in gmc at mo on a loss ,,didnt want to get stuck in anywere else ,but really did like the look of ggk,

[marine boy] 20/12/2005 10:21

ChairmanÕs Statement

For the 6 months to 31 October 2005

I am pleased to report that revenue for the six months to 31st October 2005 is £2.54m, a growth of 71% over the same period last year, yielding an operating profit of £73k (2004 £6k) and a profit before tax of £48k (2004 £9k). The consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" as stated in note 1.

Whilst AIM listed companies are not required to prepare accounts under IFRS until 2007 the Directors believe that in keeping with its policy to adhere to best practice, that an early adoption is in the best interests of the shareholders, so that a fairer comparison with other listed companies can be made.

The Group continues to enjoy strong cash reserves. A net decrease in cash of £86k in the first half of the year was primarily attributable to the acquisition of Gemini Club Supplies Limited (a transaction that was successfully concluded in late October) and corporation tax associated with the acquisition of Kelly's Eye. Throughout the first half of the year, capital expenditure has continued to be deployed in the manufacturing and design modifications of vending terminals to meet demands from existing and new clients. Research and development has also been going on in the design of vending technology for use in public places outside the registered club environment.

The results comparison with last year has been positively affected by the acquisition of Kelly's Eye (No 1) Limited in May 2005. The Group funded the purchase of Kelly's Eye with a combination of a medium term loan of £800,000 and new shares. This debt is shown separately from the cash position mentioned above.

As reported at the time, the acquisition of Gemini affords the Group a premier position amongst client clubs in the north west. With effect from the 1st November 2005 the Group also completed the acquisition of Independent Leisure Supplies (ILS), which should help consolidate the Group's position in the north east of England.

Since the Kelly's Eye acquisition in May 2005, a great deal of effort and energy has been expended in the consolidation of the Lotteryking and Kelly's Eye operations. A key element of the consolidation programme has been the introduction of a new, company wide IT reporting system. With effect from the 1st November all financial, administrative and sales functions were centred on Hemel Hempstead and all manufacturing, research, development and technical support services were centred on Hainault. Invariably, there are costs associated with a consolidation programme of this nature and the majority of these costs have been absorbed within the income statement in this interim period. The costs have been principally in the areas of salary adjustments, redundancy and IT systems training and development.

Critical to the continued increase in revenue and profit will be the ability of the sales force to sell effectively across the entire product range. Additional products are being added to the range. To support the sales force endeavours there is a plan to introduce a new sales catalogue in early 2006 and to also begin the gradual introduction of an online sales capability for client clubs.

The acquisition of Kelly's Eye has afforded us the opportunity to undertake a margin analysis and it is apparent that Lotteryking was enjoying a better margin than Kelly's Eye, and most probably better than its competitors. However the product mix of the two companies was very different and in the first half of this year the overall gross margin has reduced due to the change in the business mix. We anticipate that the combined buying power of the two businesses will enable the Group to improve its margins over the course of the next twelve months.

The majority of Gamingking's direct competitors are privately owned businesses which seldom finance researching new projects and machine development.

The annual Group costs associated with public status are calculated to be in the region of £525,000. The Board is very mindful of Group costs and seeks at all times to contain such costs. For the half-year Group costs are well below budget with little increase over the same period last year. As part of the cost control exercise, the Marble Arch office was closed in September.

Strategy
In May 2005, the Board completed a review of its core strategy. As a result, the Board has agreed to focus on the Group's market leading position in the supply of lottery and gaming products to the registered member's club environment and also to broaden the product offering to capitalise on the Group's core area of lottery vending expertise. The Board believes that this will optimise long term shareholder value.

The previous strategy of developing and pursuing a wide range of lottery related opportunities for third parties has been reduced to a much narrower range of projects where we expect a greater chance of success in bringing a return to shareholders.

The acquisitions of Kelly's Eye, Gemini Club Supplies and Independent Leisure Supplies have served to re-enforce our strategy, and together with Lotteryking, will form the bedrock of the Group, whilst we develop a range of new products for deployment in the club market and also develop a presence in other closely related markets.

Whilst firmly believing that this strategy, implemented by an experienced management team, is the best way of delivering long-term shareholder value, the Board is mindful that the core business primarily operates in a competitive environment, where the barriers to entry are relatively low. Over the course of the coming years, legislative changes as contained within the Gambling Act 2005, will come into full effect and undoubtedly there will be further consolidation in the club supply arena. The Board will continue to monitor the changing contours of the lottery landscape, seeking ways to grasp the new opportunities, whilst at the same time deepening its roots with client clubs in an endeavour to secure lasting commercial relationships, such that they can withstand the competitive impact of new marketplace entrants.

New Product Development
As previously reported, the Group continues to explore areas of product development and this interim statement provides an ideal opportunity to inform shareholders of developments to date.

CLUB VIEW NETWORK
The Group has been working on the creation of an internet site for clubs and club members, acting as an information zone for club members and a communications conduit for clubs to their members. The Club View Network, which has been developed with only a very modest amount of capital expenditure, has been well received and is now on trial with a select number of clubs. If the trials prove to be successful, a more comprehensive roll out programme will be embarked upon throughout 2006.

The Club View Network will serve to take Gamingking closer to the club member and will offer them online game play opportunities.

TOTE-ALL
Tote-All, the electronic tote system, developed by Lotteryking Limited, is currently on trial in a small number of clubs, where the results have been mixed. It is becoming apparent that whilst many clubs have paper based totes, the operation of which is widely recognised as being time demanding, clubs tend to operate tote systems which are unique to themselves. The Tote-All software system therefore, requires further modification, in order to meet all requirements. The plan is to re-launch Tote-All on a region-by-region basis in early 2006.

SKILLS WITH PRIZES (SWPs)
SWP technology and legislation offers some interesting commercial opportunities and in pursuit of these opportunities, a number of high quality, electronic SWP terminals have been sited in client clubs where their player appeal and revenue profile is being closely monitored. The Board hopes to broaden its presence in this area over the course of the next year.

YOUR "LOCAL" LOTTERY
The Board is keen to deploy its lottery and vending expertise in areas outside of its traditional club market and to this end has been exploring the pub market. A concept has been developed which has met with Gaming Board (Gambling Commission) approval and as we enter the new year, it is planned to trial the concept in concert with a number of pub group owners.

Outlook
Traditionally the second half of the year is the stronger period but throughout this period we will continue to bed in the recent acquisitions and arrange to take full advantage of the synergies and cross-selling opportunities presented. We are not anticipating those aspects of the 2005 Gambling Act that directly impact lottery activities to come in force before September 2007.

We hope that progress will be made in a number of the developments noted above although it is unlikely that they will be net contributors to profit in the current financial year.

Douglas Yates
Chairman

[marine boy] 20/12/2005 08:35

Can anyone confirm if this is GGK's "UK Postcode Lottery" website. I can't find any direct link to GGK but it is based in the N.E. & was initiated in June this year.

http://www.postcodelottery.co.uk/web/show/id=26111


From the chairman's statement year ended 30th April 2005:

During the course of the year a number of creatively led Section 5 Society Lottery concepts were either developed or pursued to include Red Hot Seat Lotto, Soccalot and the UK Post Code Lottery, the latter in association with Novamedia nl.

[marine boy] 20/12/2005 07:42

GMC are still more than five times their low - it's hardly suprising the price has retracted a bit. Even if GGK were to double from its low it would be 3p. Investors are very hasty with GGK but I think 3p is easily on the cards very soon. Any possible predator & this could go to 5p. GGK have made some good moves this year & who know's, there might even be a small divi.

[itschristof2] 19/12/2005 11:37

gmc had good figures to,,,, but they went down ,,,

[someuwin] 19/12/2005 09:46

Should start to move up soon - results on thursday - very good figures expected!

[marine boy] 16/12/2005 16:15

The Gaming Corporations (GMC) revenues have been significantly boosted by the on-line sector. Whilst not on the same scale as GMC, GGK's in-house network is a step in a similar direction.

"Club View Network Ð this is our in-house designed web site for individual clubs and club members. Not only is it a comprehensive club information zone but it is also designed to become an online, electronic ordering system for the clubs and an ecommerce and on-line game play site for club members in their homes."

[bots24] 16/12/2005 15:36

Heidigy Thanks for the education link I stand corrected....I await next weeks positive figures

Marine B suggest its not a good idea to shout too loud as G Brown will find someway to load more tax on it....look whats happened to the North Sea Energy Producers...............

[marine boy] 16/12/2005 15:36

You really must read the trading update of Oct 10th - it is very very positive. Like death duties, gambling is not going away - it is the next growth sector. I'd rather put my chips on this share than on the table.

[someuwin] 16/12/2005 15:12

I am expecting the results to be very positive.

[heidigynne] 16/12/2005 14:46

bots24;
There was trading statement included with the agm statement.

[available here;- ].

Any significant deviation from that outlook should be reported.

rgds.,

H.

[bots24] 16/12/2005 14:32

MarineB thx for info; however if GGK wish the share price to benifit from a very good set of figures why leave it until just before Xmas to release them. I understand about how big they have grown but what if 1 or more of the other divisions has taken a big hit ??? I just have a negative feeling they trying to mask something IMHO.....They could have delayed the release of the figures until early in the new year when most of the city will back at there desks rather than now......sorry it does not add up....hope I am wrong....

[marine boy] 16/12/2005 13:57

Bots24, don't forget that GGK is a larger organisation now & they will need to include figures from Kelley's Eye, Independent Leisure & Gemini Supplies that they bought this year. GGK has quietly expanded this year & and I have no concerns about the results date being pushed back a little.

For the year ended 31st December 2004 Kelly's Eye had net assets of £166,000, revenues of £2,117,000 and an operating profit of £217,703. This will hopefully have grown also & is what will make the biggest impact on the figures.

[bots24] 16/12/2005 13:41

Q. regarding the results next week........why have GGK chosen to push the date back to release the results to just before Xmas when everyone will be winding down & perhaps largely brahns & list in the city ?????

Are they going to try a New Labour whizz of burying bad news when most people will not be paying full or any attention at all ???

Last years results were announced in early December so if they are going to release as most people believe a very good of figures why leave it until the market will be nearly closed for the holiday as trading will be very thin IMHO. As this will not have the most advantageous effect IF the figures are very good.............

Just a viewpoint

[english bigblls] 16/12/2005 11:21

Results next week - could be interesting retford?

[retford1] 16/12/2005 10:43

I agree that GGK has tremendous potential, but at 2p the market cap is around £6m. Probably about right for today, however, if they keep putting the Lotteryking machines into clubs and pubs (my local rugby club has just installed one) GGK could start making serious money. After the cost of the equipment, a percentage payout to the club and the punter, the rest is profit. They will be installing thousands of Lotterykings over the next year and also putting them into unlicensed premises ie cafes. The £6m market cap will look undervalued. And Lotteryking is only one string to the bow. Long hold for big bucks.

[someuwin] 16/12/2005 07:40

Only 4 shopping days till results!

[marine boy] 15/12/2005 20:58

Hardly a tree shake, just a little profit taking at 2p which you would expect from the low of 1.44p bid. A brief respite, a pause for breath and onwards to 3p.

[english bigblls] 15/12/2005 17:24

Typical "tree-shake" today designed to get shares back after yesterday's rise. Didn't really work though, so I expect we will be up higher again tomorrow.

[someuwin] 15/12/2005 10:59

Will be up again soon I think.

[english bigblls] 15/12/2005 10:56

Gone quiet this morning - "the calm before the storm"?

[heidigynne] 14/12/2005 23:10

I'm with bonkers2 here, [and marineboy].

[Abstract from Chairmans Statement, Finals 30/04/05

"In March shareholders will undoubtedly have noticed an element of volatility in
the Company's share price. There would appear to have been no specific reason
for this share price movement or the trading of 210m shares within a narrow
timeframe."


So, disregarding the price anomaly;

Just follow the co. announcements through the year.
Progress has been steady and exactly as described 'on the can'.
The gaming frenzy [noted above] has passed and here is a co. that has done all that it has stated it will.
Gaming tho' has not gone away, and GGK's approach is [to me] well thought through and deliverable.
Directly approaching the Gaming Commission for vending outlet of lottery sales clarification [under the 2005 act] smacks of thinking management.

For me, medium term 'long'.

rgds.,

H.

ps. [discrete cough],
'Madame', ['er indoors'] is not yet aware that her portfolio now includes a bespoke gaming co., hope 'twill be appreciated!