Leisure & Gaming PLC (AIM: LNG) has requested its shares to be suspended on AIM due to uncertainty over its financial position. It is currently in early stage discussions with a number of parties with a view to securing further funding for the business and it is undertaking a strategic review which may lead to a disposal of certain businesses and assets in its portfolio.
However, it is not expecting an offer to be made for the group.
The European betting and gaming group said that, further to comments made last month when it reported results for the first quarter to end-March, football results have continued to be unfavourable and sports margins have remained below expectations and this has had a consequential impact on the company's profitability and cash position. Leisure & Gaming finds itself constrained by a lack of working capital.
In April, the group said the first quarter saw disappointing margins on sports betting as the dominant teams in the Premiership and European football leagues recorded consistent success throughout the quarter, contrasting with margins seen in Q1 2009, when these teams regularly failed to win.
All businesses continue to trade, Leisure & Gaming said.