Ainsworth reports profits down in first half of its fiscal year

News on 28 Feb 2018

Ainsworth Technology, a gambling technology and equipment supplier based in Australia, has posted a significant reduction in its Net Profit After Tax (NPAT) during the first half of its fiscal 2018 year, attributing the fall to lower domestic sales and a one-off tax adjustment cost.

NPAT was down 53 percent year-on-year at A$9.7 million as domestic revenue declined 10 percent to A$37.1 million, offset to some extent by a small increase in international revenue to A$83.2 million. EBITA in the period fell 23 percent to A$24.6 million.

CEO Danny Gladstone said the results had been expected, and that management remained optimistic that there was good momentum going into Ainsworth’s second half, buoyed by a strong North American performance and improved sales in Latin America.

“Our first half results provide a solid base for a strong second half performance. We enter H2 with good momentum and we are making continuing progress in growing in the Americas where our innovative technologies perform well,” Gladstone said.

The board has recommended an interim dividend of 1.5 cents per ordinary share.

Earlier this year Austrian gambling technology and equipment giant Novomatic announced that full regulatory authorisations had been achieved, allowing its purchase of a 52 percent stake in Ainsworth to move ahead.

The completion of the transaction took place on 5th January 2018, making Novomatic the majority controlling shareholder of Ainsworth.

The news was followed by an announcement that founder Len Ainsworth had resigned as an executive director, although he will continue to support the board as a consultant for a period of 12 months.

Related and similar