Zattikka PLC Trading Update (9585I)

TIDMZATT

RNS Number : 9585I

Zattikka PLC

09 July 2013

 
 For immediate release   9 July 2013 
 

ZATTIKKA PLC

('Zattikka' or the 'Group')

Trading Update

Zattikka, the online games entertainment group, makes the following trading update, ahead of its interim results for the half year to 30 June 2013.

In its preliminary results announcement for the full year ended 31 December 2013, the Group indicated that, while the start to trading in 2013 was encouraging, results would be heavily weighted to the second half of 2013. However, trading in June fell below the board's expectations. As a result of reviewing again the likely outcome for the rest of the year, the board now believes that the Group's trading performance will be materially below market expectations for the full year ending 31 December 2013.

The primary variations in trading from management's previous expectations are the delay to the anticipated release of Arena of Heroes to allow for App Store support (released 27 June), the need to update certain elements of the content of Legacy of a Thousand Suns (initially launched in April 2013) and, most significantly in respect to the outlook, the lack of anticipated growth in the subscriber base in Hattrick. The net result is reduced cash flows from operations which will restrict the Group's ability to invest in growth in the second half. As a result the board is now undertaking a full strategic review of its businesses, operations and cost structure. As part of this review the board is entering into negotiations with certain holders of the loan notes issued by the Group on admission to AIM with a view to extinguishing a substantial proportion of the Group's liabilities, including an amount of approximately GBP0.275m loan note interest now due.

The Group had cash or cash equivalents of approximately $950k at 30 June 2013. As stated in the preliminary results published on 6 June 2013, the ability of the Group to continue as a going concern is dependent on further implementing its business plans, continuing access to its on-demand working capital loan facility (which is now fully drawn) and the continuing support of its creditors, including the loan note holders. The Group is evaluating all strategic options.

A further announcement will be made in due course.

The Group expects to announce its interim results by 30 September 2013.

For further information, please contact:

 
Zattikka 
Mark Opzoomer, Chief Executive Officer   [phone] 
Rob Gorle, Chief Financial Officer 
 Canaccord Genuity Limited 
  Nominated Adviser and Broker 
  Simon Bridges / Peter Stewart           [phone] 
 Buchanan 
  Jeremy Garcia / Clare Akhurst           [phone] 
 

www.buchanan.uk.com

About Zattikka:

Zattikka plc is a digital games entertainment group, developing games and providing publishing services in this sector of the rapidly evolving multi-billion dollar global digital entertainment market. Headquartered in the United Kingdom with shares listed on London's AIM (ZATT), Zattikka games studios include Sneaky Games (USA), Spellgun (USA and China) and Hattrick (Europe). Business to business services include high quality game art and design services provided by Concept Art House (USA and China) and in-game analytics insights through its bespoke SNAP technology platform developed in London.

For more information visit www.zattikka.com

This information is provided by RNS

The company news service from the London Stock Exchange

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