The Ainsworth Game Technology Limited (ASX: AGI) share price has dropped 3% so far after the company issued a trading update.
Ainsworth Game Technology was founded in 1995 and now is in over 50 countries. It’s a gaming business, namely slot machines. It designs, manufactures, installs, services and provides support for its gaming machines.
Ainsworths’ Trading Update
The company said that its second half performance is below the expectations it announced during reporting season in February earlier this year.
On a pre currency basis, profit before tax (excluding ‘one off items’) is now expected to be around $4 million for the six months to 30 June 2019.
The company blamed intense competitive market pressures and delays encountered in new product approvals which were not achieved in the expected timeframes, although these are being steadily achieved.
Australian earnings in-particular are disappoint, although the Americas show good signs of progress according to Ainsworth.
Net debt is expected to be around $7 million at the end of June 2019.
This update has obviously disappointed the market, but it’s not my type of business that I like investing in so I’m happy just to watch from the sidelines.
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