Online gaming group Jackpotjoy (JPJ) only listed on the London Stock Exchange in January 2017 - a month after the period to which these financial results apply - but has a history lesson in store for potential investors.
Three years ago, Intertain listed on the Toronto Stock Exchange and bought the InterCasino brands, followed by two further online gaming acquisitions. In 2015, it acquired further brands from Gamesys, including leading UK site Jackpotjoy. Given the unregulated nature of the Canadian market, and what chief executive Andrew McIver called "a lack of investor appetite", the company decided last year to move to London, folding itself into Jackpotjoy as a subsidiary. Two-thirds of the group's revenues are generated in this country.
The company still owes around £120m related to earn-out arrangements around historic acquisitions, of which £90m is due this April. Post float, there's around £100m-worth of cash on the balance sheet to make up those payments, while the remaining £30m will be paid next year using internally generated cash. Mr McIver says the company should generate around £100m of cash each year, and insists the IPO was not simply a debt-clearing exercise.
Analysts at Canaccord Genuity expect pre-tax profits of £71.1m for the year ending December 2017, giving EPS of 93.3p, compared with £83.5m and 113p in 2016.
| JACKPOTJOY (JPJ) | ||||
|---|---|---|---|---|
| ORD PRICE: | 561p | MARKET VALUE: | £413m | |
| TOUCH: | 561-563p | 12-MONTH HIGH: | 660p | LOW: 529p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 325p* | NET DEBT: | 126% | |
| Year to 31 Dec | Turnover (CA$m) | Pre-tax profit (CA$m) | Earnings per share (CA¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2013** | nil | -1 | na | na |
| 2014** | 40.78 | -26 | na | na |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 185 | -114 | -188 | nil |
| 2016 | 267 | -40.7 | -57.0 | nil |
| % change | +44 | - | - | - |
Ex-div: na Payment: na *Includes intangible assets of £649m, or 880p a share **Pre-IPO figures | ||||
