March 16, 2020 / 2:13 PM / 13 days ago

BRIEF-Gfinity Sees FY Revenue To Be Lower, Adjusted Pretax Loss To Be Higher Than Market Expectations

March 16 (Reuters) - Gfinity PLC:

* TRADING UPDATE, STRATEGIC REVIEW AND BOARD CHANGES

* RESULTS FOR SIX MONTHS TO 31 DECEMBER 2019 REMAIN UNCHANGED

* START OF SECOND HALF OF THIS FINANCIAL YEAR HAS NOT SEEN COMMERCIAL OPPORTUNITIES MATERIALISE AS EXPECTED

* DISCUSSIONS AROUND STRATEGIC PARTNERSHIPS HAVE ALSO NOT PROGRESSED AS QUICKLY AS ANTICIPATED

* 2 MAJOR EVENTS THAT GFINITY DESIGNS AND DELIVERS FOR CLIENTS, AND DUE TO TAKE PLACE BEFORE JULY 2020, HAVE NOW BEEN POSTPONED

* CHALLENGING MARKET CONDITIONS HAVE NOW BEEN EXACERBATED BY UNPRECEDENTED IMPACT OF COVID-19 VIRUS

* EXPECTS THAT FOR YEAR TO 30 JUNE 2020 REVENUE WILL BE LOWER AND ADJUSTED LOSS BEFORE TAX WILL BE HIGHER THAN CURRENT MARKET EXPECTATIONS

* PURSUING OTHER OPTIONS FOR FINANCING IN SHORT TERM AND CONTINUES ITS DISCUSSIONS WITH SEVERAL POTENTIAL STRATEGIC INVESTORS

* RECENTLY EXECUTIVE TEAM INITIATED A COMPREHENSIVE STRATEGIC REVIEW

* RECOMMENDATION TO BOARD INCLUDED A RESTRUCTURING PLAN TO REDUCE COST BASE TO REFLECT CHANGE IN EXPECTED REVENUE FOR YEAR AND OUTLOOK

* IMPLEMENTING A SIGNIFICANT COST REDUCTION PROGRAMME, INCLUDING IMPLEMENTING BOARD AND MANAGEMENT CHANGES

* GARRY COOK, EXECUTIVE CHAIRMAN, AND GRAHAM WALLACE, CHIEF EXECUTIVE OFFICER, WILL STAND DOWN FROM THEIR POSITIONS

* JOHN CLARKE APPOINTED CHIEF EXECUTIVE OFFICER WITH IMMEDIATE EFFECT

* NEVILLE UPTON WILL SUCCEED GARRY COOK AS CHAIRMAN WITH IMMEDIATE EFFECT

* TAKEN DECISION TO EXIT AREAS THAT ARE HAVING A NEGATIVE IMPACT ON CASH, SUCH AS LOW MARGIN TOURNAMENT OPERATIONS Source text for Eikon: Further company coverage:

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