PCG Entertainment slumps as annual loss widens

11th Aug 2015 10:05

(ShareCast News) - Online gaming and media company PCG Entertainment posted a wider annual loss on the back of costs related to its flotation on AIM.The Asia-Pacific focused group, which listed on AIM in December, posted a pre-tax loss of $8.7m in 2014 compared with $2.7m in the previous year, although it posted revenue of $4,450 after failing to generate any revenue in the previous 12 months.The group said the wider loss was due to costs associated to its flotation, share issues and goodwill impairments, adding that expenses were higher than anticipated due to a delay in the listing process."We believe that actions taken by the company up to and immediately following our admission to AIM in December 2014 put us in a position to be able to deliver profitability and greater shareholder value in 2015 and beyond," group chairman Kung-Min Lin said in a statement.Meanwhile, the company has reached a deal to acquire gaming software and ancillary services distributor in Asia Centre Point Development Corp (CPDC) via a reverse takeover.The group will pay an initial $10m through the issue of PCG shares, with a deferred payment to be worth up to $10m through the issue of additional shares.In 2014, CPDC reported pre-tax profit of $2.3m and revenue of $9.4m."PCG Entertainment's acquisition of the profitable CPDC and subsequent reverse merger is expected to be transformational for the group," said CPDC's CEO Nick Bryant."We will continue to focus on growing the group's businesses organically, and the anticipated cashflow from CDPC will enable us to accelerate this growth through strategic acquisitions."PCG shares were down 11.98% to 4.62p at 1048 BST on Tuesday.