Cashflow crisis causes L&G share suspension

Thursday 18th February 2010 | EGR Magazine

LEISURE & Gaming has suspended trading in its shares while it looks at ways of resolving cashflow difficulties, which may include selling off parts of its business.

The Italian-facing operator blamed its lack of working capital on poor sports betting margins arising from the consistent success of the dominant football teams across Europe since the start of the year, revealed in revealed in L&G’s first-quarter update last month, issued alongside its full-year figures.

According to a statement issued this morning, directors are in “early stage discussions” with parties regarding securing further funding for the business, and that a strategic review of the business was underway which could lead to the “disposal of certain businesses and assets in its portfolio.”

The company continues to trade, and said it will make a “further announcement will be made in due course.”

L&G is not the first British operator to fall foul of the Italian market, with Ladbrokes selling its loss-making Italian business to Cogetch last month and William Hill selling its Italian joint venture to Intralot in 2008.

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