TradingSports Trades on AIM
TradingSports Exchange Systems plc said Thursday that it has raised £4 million through an institutional placing on the start of it being traded on the Alternative Investment Market.
TradingSports, which is a person-to-person betting site, is the United Kingdom's first publicly traded betting exchange.
The company received 115 pence for each ordinary share, and 3,478,261 shares were placed. After the placing, the company's market capitalization reached £12.1 million. Joe Tighe, the chairman and chief executive of TradingSports, said the strong reception the placement received shows that his company has good prospects in the U.K. betting exchange market.
"Following the recent changes in betting legislation, the potential of person-to-person betting providing bettors with an exciting gambling experience, has now been recognized and endorsed," he said. "The placing, the rapid increase in matched bets that TradingSports has enjoyed over the past few weeks, and the fact that TradingSports is the first publicly quoted betting exchange in the U.K. means that the group now has the financial resources to leverage its technology and market position to deliver considerable growth."
The company said the proceeds of the placing would be used to attract new bettors to TradingSports as well as allow it to attract and retain employees. The company also said it will use the funds to pay costs associated with contract implementation and business development in Europe, North America and Asia.
Stanley Leisure Completes Purchase of Palm Beach Club
Stanley Leisure plc (SLY) said last week that its purchase of the Palm Beach Club Ltd. is now final.
The agreement was able to be fully realized when London Clubs International's shareholders approved it an extraordinary general meeting on May 22.
Stanley Leisure's acquisition of Palm Beach Club Ltd. was completed on May 23.
Will Hill Reports Growth in Gross Win
William Hill plc (WMH) reported a strong financial position at its annual general meeting on Thursday. John Brown, chairman, told shareholders that the company is continuing to perform ahead of the corresponding period in the previous year.
For the five weeks ended May 20, the company is reporting an increase in gross win of 20.2 percent from the same period in 2002. Operating expenses are up 8.5 percent.
"Roughly half the growth in gross win was due to the roll out of fixed odds betting terminals and the balance is due to organic growth and the impact of recent acquisitions," Brown said.
Brown said the retail and interactive divisions of the business are performing strongly and that the company plans to deliver interim results that are in line with the top section of current market estimates for the year.
UK Gaming Update Impacts Stocks
The Independent, a U.K. newspaper, reported that talk of the government delay its liberal overhaul on gambling legislation is having a detrimental effect on gambling industry stocks.
Gaming analyst Andrew Burnett told the newspaper that the rumors caused shares or the Rank Group plc (RNK) to fall 5.5 pence to 285.75 pence per share and shares of Stanley Leisure plc (SLY) to fall 9 pence to 309 pence per share.
Iain Wilkie, hospitality and leisure partner at Ernst & Young, said the update on gaming legislation is overdue.
"If it is deferred then it's only a question of when, not if," he said. "Modernization (of the gaming industry) is long overdue."