Shares in the online gaming specialist Veltyco Group PLC (LON:VLTY) crashed 56% after it sounded the earnings alarm and provided a bleak assessment of its prospects.
In a short update, it said income from its affiliate business is currently “minimal and below management expectations”, meaning the firm remains loss-making.
Revealing the scale of the challenge it faces, it explained it is reliant on managing its creditors, which continue to be “materially in excess” of its current cash resources.
Not surprisingly, Veltyco is seeking an injection of funds. However, it cautioned on its ability to continue trading as a going concern if the current trading headwinds and the lack of working capital persisted.
