Nektan has been suspended from trading in London after failing to publish its accounts before the end of 2019.
The white label and gaming content provider, which is listed on the Alternative Investment Market, said in late December it would not be able to publish its audited annual report and accounts for the year ended 30 June 2019 by 31 December as it is in advanced stages of a significant restructuring of operations, including the potential sale of its UK B2C operations.
It said it is likely to publish its accounts during January, but it has been confirmed today (Thursday) that the group has been suspended from trading on AIM under AIM Rule 40 “until such time as the accounts have been duly published in compliance with AIM Rule 19”.
Despite the suspension, Nektan expressed confidence about its position, outlining a series of developments it suggests will be beneficial to its position.
“In its international B2B and B2C divisions, the group continues to experience strong interest from potential partners globally,” the company said in a statement. “The group is pleased to report that it is ahead of expectations and on track to complete 20 new site launches by the end of December 2019. In addition, the group has a strong pipeline of further launches scheduled for Q1 calendar 2020.
“The board continues to expect these launches to be transformational, with a number of these partners expected to deliver significant revenues to Nektan once fully established, which is considered typically to be three to four months after going live.
“Notwithstanding that, the group is pleased that a number of the new launches have started producing revenue underpinning confidence in the group's B2B division and validating the decision to restructure in order to dedicate resources to these opportunities.”
It has been a tumultuous few months for Nektan, which saw the resignation of CEO Lucy Buckley after just a few months in situ in September. She was replaced by founder Gary Shaw on an interim basis.
Nektan raised more than £2.7m in new investment in the second half of 2019. In September it announced plans to raise £3m in working capital, as well as restructuring existing loan agreements, warning the business requires new funding to continue as a going concern.
In a business update published in September alongside details of the capital restructuring and share placement, Nektan revealed significant scope to expand its B2B business in its fiscal year ended 30 June 2020. It admitted its B2C white label division has struggled in the UK as a result of the increased remote gaming duty and more stringent player verification controls. Nektan noted that it is currently in the process of paying £4.6m in point of consumption tax to Her Majesty’s Revenue and Customs.