The current economic situation is giving hard times to everyone. On Friday, Betbrokers's (AIM: BETB) shares were suspended until the company is able to sort out the financial position of one of its subsidiaries. Has Betbrokers lost the betting game?Earlier this summer, the London-based brokerage warned the investors that they might see lower then expected revenues for the year of 2008. 'The lack of funding and its inability to transact several large bets' were outlined by the comapany as the main reason for the sliding average deal size.
Average deal size in May was £424.28, while a year earlier it was £1,370.57. It's quite a frustrating figure, isn't it?
When the shares were suspended, they were priced at 0.20 pence. It is expected, that Winning Edge, the company's US subsidiary, will deliver the projected results.
Launched in 2005 with an aim to create "the first point of call for any serious bettor in the UK", Betbrokers will have to postpone its plans for some time, while it fixes its current financial position. However, given the current economic situation in the UK, I would doubt if this mission can be easily accomplished.
Reference
http://www.betbroker.co.uk
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