TIDMCLTV

RNS Number : 7100Z

Cellcast plc

21 May 2019

21 May 2019

Cellcast plc

("Cellcast" or the "Company")

Update on overseas consulting services

The Board of Cellcast plc (AIM: CLTV) announces an update on the Company's consulting services to gaming and lottery operators in East Africa. The Company's sole customer for these services is based in Kenya.

As announced in the Company's 2018 annual report, the Company's revenues for its overseas lottery and gaming consultancy services were impacted in 2018 due to the adverse effect of a new taxation rate on the business of the Company's clients in Kenya. This taxation rate was introduced as a result of the Kenyan Government seeking to implement advertising restrictions on the gambling industry.

On 30 April 2019, Kenya's Betting Control and Licensing Board (the "BCLB") issued a notice detailing its plans to drastically curtail its licensees' ability to advertise from 30 May 2019. The planned restrictions impact on outdoor advertising of gambling, gambling adverts on social media, gambling adverts between 6am and 10pm and celebrity endorsement of gambling operations.

The scope of the advertising restrictions have yet to be finalised and, until these are formalised, the potential impact on Cellcast's overseas consulting services is not clear. Moreover, a case filed in the Kenyan High Court arguing against the restrictions has led to the implementation of the planned restrictions being temporarily suspended pending the final determination of this court case. However, the Board of Cellcast believes that there is increasing political opposition in Kenya to the industry as a whole.

Such restrictions, were they to be implemented, could impact Cellcast and the sustainability of its overseas consultancy revenues, as Cellcast provides services, with a focus on Kenya, to clients trading in this sector.

The board of Cellcast will continue to monitor developments in Kenya and any notifications from the BCLB. In the year ended 31 December 2018, the Company reported total revenues of GBP395,000 from its overseas consultancy services. Further, the Company currently has a trade debtor from its Kenyan client, totalling GBP453,000.

For further information:

 
 Cellcast plc 
 Craig Gardiner, CEO                  Tel: +44 (0) 203 376 
                                       9420 
 craig@cellcast.tv                    www.cellcast.tv 
 
 Allenby Capital Limited (Nominated 
  Adviser) 
 Nick Naylor/James Reeve              Tel: +44 (0) 20 3328 
                                       5656

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

MSCABMLTMBJTMLL

(END) Dow Jones Newswires

May 21, 2019 05:45 ET (09:45 GMT)

Cellcast (LSE:CLTV)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Cellcast Charts.
Cellcast (LSE:CLTV)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Cellcast Charts.