Shares in gambling technology company Playtech (PTEC) are starting to recover following failed attempts to take over contracts for difference providers Plus500 (PLUS) and Ava Trade during the second half of last year. The proposed deals fell foul of UK and Irish regulators, respectively, with spread-betting companies facing intense scrutiny from market watchdogs.
The group clearly wanted to put last year's debacle behind it with a set of forecast-beating annual results. Underlying sales, which excludes acquisitions and costs associated with the UK point of consumption tax, grew by 26 per cent. Adjusted cash profit rose by more than a fifth to €252m (£198m). The normal dividend rose 8 per cent but chief financial officer Ron Hoffman said remaining funds would be reserved for potential acquisitions this year.
Mr Hoffman said the group was in active negotiations with several parties to grow its new financial trading division. Recent market volatility has been good for that business as customers move quickly to try to take advantage of short-term, but often dramatic, market movements.
Analysts at Peel Hunt still expect EPS of 69ȼ this year, compared with 67.5ȼ in 2015.
| PLAYTECH (PTEC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 843p | MARKET VALUE: | £2.72bn | |
| TOUCH: | 841.5-843p | 12-MONTH HIGH: | 936p | LOW: 699p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 24 | |
| NET ASSET VALUE: | 389ȼ* | NET CASH: | €658m | |
| Year to 31 Dec | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
|---|---|---|---|---|
| 2011 | 207 | 79.0 | 32.0 | 16.5 |
| 2012 | 318 | 89.0 | 30.0 | 23.2 |
| 2013 | 367 | 491 | 167 | 23.2 |
| 2014 | 457 | 144 | 48.4 | 26.4 |
| 2015 | 630 | 142 | 44.5 | 28.5 |
| % change | +38 | -1 | -8 | +8 |
Ex-div: 5 May Payment: 3 Jun *Includes intangible assets of €751m, or 233ȼ a share £1=€1.27 | ||||
