The Channel logo

News

By | Kelly Fiveash 4th March 2008 12:22

Game shares rally on upbeat trading statement

Push the button

Game Group yesterday released an optimistic trading statement in an attempt to halt its tumbling share price.

The gamble appears to have paid off, with shares in the video retailer rallying some four pence this morning, currently trading at 190p on the London Stock Exchange (LSE).

Last week, the firm's shares fell 17 per cent on the LSE after Game directors sold 2.3 million shares.

Yesterday's trading statement, which is the last before the firm enters a closed trading period, offered investors reassurance about Game's current financial position. Game releases prelimary results 29 April.

The retailer said pre-tax profit for the year ended 31 January 2008 should be up a smidgen on its previous forecast of £73m – it now predicts no less than £74m, compared to £29.5m in 2007.

It was also upbeat enough to suggest its like-for-like sales growth of five per cent to 10 per cent was achievable. In early January the mood was more cautious, with Game warning that store growth was likely to slow and that it would be in the "low single digits" for the year ahead.

The firm's board said it was confident "the market for PC and video games products remains buoyant".

It said gross margin should improve by 50 to 100 basis points and added that the £7m of synergies it had identified with Gamestation should now be realised earlier that predicted.

Game bought Gamestation from Blockbuster in May last year. Following the acquisition, the Office of Fair Trading refered the deal to the Competition Commission, which cleared Game of any wrongdoing last January. ®

alert Send corrections

Opinion

Chris Mellor

Drives nails forged with Red Hat iron into VCE's coffin
Sleep Cycle iOS app screenshot

Trevor Pott

Forget big-spending globo biz: it's about the consumer... and he's desperate for a nap
Steve Bennet, ex-Symantec CEO

Chris Mellor

Enormo security firm needs to get serious about acquisitions

Features

Windows 8.1 Update  Storeapps Taskbar
Chinese Buffet self-service
Chopping down the phone tree to scrump low-hanging fruit
An original member of the System/360 family announced in 1964, the Model 50 was the most powerful unit in the medium price range.
Big Blue's big $5bn bet adjusted, modified, reduced, back for more
Microsoft CEO Satya Nadella
Redmond needs to discover the mathematics of trust