This may possibly not be a excellent case in point of robbing Peter to pay Paul, but it’s quite near. Ainsworth Video game Technology has had a few of hard yrs, looking at a fall in its once-a-year performance in 2019 in advance of 2020 brought even more losses due to COVID-19. A submitting (pdf) it just submitted to the Australian Securities Trade (ASE) implies that it has acquired a new 5-year credit history line well worth $35 million and, though that could be seen as possibly good information, closer evaluation proves if not. Ainsworth is using the money to pay off an additional credit rating line it had.
Ainsworth, by means of its Ainsworth Sport Engineering Inc. subsidiary, picked up a new secured-credit rating facility really worth $35 million by means of a deal it worked out with US-centered Western Alliance Bancorp. Even so, the business added, “Proceeds of US$28 million from this new facility have been applied to extinguish all business obligations below the prior revolving credit history facility with Australia and New Zealand Banking Team Ltd (ANZ).” AGT Pty Ltd and Ainsworth Recreation Engineering Ltd. are listed as guarantors of the new credit facility.
Particulars about the new personal loan, these kinds of as curiosity, what Ainsworth will do with the leftover $7 million and more, weren’t provided in the submitting, but ought to be announced shortly. The company is set to release its most current earnings info subsequent Thursday, February 25, at which time all the updates are predicted to be furnished. Ainsworth presented a hint at what’s to come with the update following week, adding that it is organized to present “improved revenue” for the previous 6 months of 2020. It expects to demonstrate a 71% raise more than the AUD$42 million ($32.68 million) it reported for the to start with half of the 12 months, but nonetheless has far more operate to do. That determine would be 33% a lot less than what it reported for the very last 6 months of 2019.
Need to that prediction come true, it would be a massive advancement more than Ainsworth’s preceding forecast. CEO Lawrence Levy mentioned very last November that COVID-19’s ongoing pressure on the gaming marketplace was forcing a prolonged retraction and added, “We cautiously anticipate the tough marketplace circumstances experienced” in the former fiscal calendar year “to proceed in the to start with 50 %, fiscal calendar year 2021. As a result, for [the first half of] fiscal-12 months 2021, we be expecting to report a reduction right before tax for the group, excluding the impacts of foreign exchange and a single-off goods, of about AUD15 million [$11 million], which is in line with the company’s anticipations given the result of the September quarter.”