BETB Betbrokers

    RNS Number : 3303W
  Betbrokers PLC
  10 June 2008
   

    
 Press Release    10 June 2008

    Betbrokers plc
    ("Betbrokers", "the Group" or "the Company")

    Trading Update

    Betbrokers plc (AIM: BETB), the UK's first retail and wholesale brokerage and clearing house for the sports betting industry, today
announces the following trading update.

    Despite significant demand for the Company's product and services in the UK, a lack of available funds in the clearing house account has
severely restricted the value of bets that can be taken. Accordingly, despite the positive impact of a reduced marketing spend and a
reduction in headcount, current trading performance has declined and it has become necessary to reduce the market's expectations.  Whilst
revenues are expected to be lower, the Company remains confident that it will be profitable and cash-flow generative for the full year to 31
December 2008.

    On 13 March 2008 Betbrokers announced the raising of �495,000 via the issue of 10 per cent secured loan notes due 2013 and these funds
have made a significant difference to trading. However, the size and profile of recent trading activity has shown these funds to be
insufficient to enable the Company's performance to meet the market's expectations.  

    The average deal size in May 2008 was �424.28 (May 2007: �1,370.57).  This reduction is due to the fact that the Company was forced to
turn down a majority of bets due to a lack of available funds in the clearing house. The number of transactions in May 2008 stands at 5,352
(May 2007: 3,967) with traded volumes at �2,270,724 (May 2007: �4,468,149).  As at 31 May 2008, the Group's retail client base totaled 1,548
(31 December 2007: 1,345) with wholesale clients (bookmakers) at 330 (31 December 2007: 317).  

    The Group's wholly-owned US subsidiary, Winning Edge, continues to perform in line with management's expectations.

    Further to the above trading update, the Company is looking to strengthen the Board of Directors and is considering a share
consolidation to reduce the volatility and spread associated with the current share price.

    Commenting on the trading statement, Wayne Lochner, Chief Executive and Chairman of Betbrokers, said: "I am disappointed that the lack
of available funding within the clearing house has had a detrimental impact on the Company's UK performance for the period.  The lack of
funding in the clearing house and our inability to transact several large bets has resulted in a decrease in the average deal size. 
Importantly, other KPI's for the UK business, including the number of transactions and trading volumes, indicate Betbrokers continued
progress.

    "I am pleased with the demonstrable level of demand for the Company's product offering and look forward to continuing our innovation,
and to expanding the services that we can offer our clients."  

    - Ends -

    For further information, please contact:
 Betbrokers plc
 Wayne Lochner, Chairman and Chief Executive  Tel: +44 (0) 20 7127 9815
 wlochner@betbrokers.com                            www.betbrokers.com 

 Daniel Stewart & Company plc
 Simon Leathers / Simon Starr  Tel: +44(0) 20 7776 6550

    Media enquiries:
 Abchurch
 Chris Lane / Nick Probert        Tel: +44 (0) 20 7398 7715
 nick.probert@abchurch-group.com    www.abchurch-group.com 

This information is provided by RNS
The company news service from the London Stock Exchange
 
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