Gfinity PLC (AIM:GFIN), the esports company, rose more than 2% on Friday despite sales flagging and losses arising in all three of its divisions in the year to June.
The rise in the share price is likely an indication of investors understanding that the company is undergoing a massive restructuring.
The company has sold off most of its software-as-a-service business, exited its e-sports arena and will no longer be holding physical events.
Instead, the London-listed group aims to switch to a pure-play media company under newly appointed boss David Halley.
Gfinity Digital Media (GDM), which represents 12 websites and more than 50 social media channels covering all things gaming and entertainment, will be of greater focus going forward and is said to give the group “greater control over its destiny”.
Revenues for the 12 months to June 2023 fell by 60% year on year to reach £2.2 million, with the company suffering an underlying loss of £10.3 million.
Despite the drop in earnings, chairman Neville Upton remains confident about the company’s prospects now that it has undergone a restructuring.
“We now run a good business, with a sensible and much smaller cost base. We expect our salary bill for the following financial year to be reduced by over 65% and headcount by 50%,” he said in a company statement.
Gfinity shares are down more than 90% in the year to date and are trading at around 0.05p.