Nektan CEO Gary Shaw has remarked that the £200,000 sale of the firm’s UK B2C business to Grace Media “is very reassuring to all stakeholders involved,” as previously announced “significant restructuring” continues.
The sale to Grace Media, which forms part of the Active Win Group, follows the appointment Mark Phillips and Julie Swan of PCR London LLP as joint administrators of group subsidiary Nektan (Gibraltar) Limited, which subsequently led to the sale.
Nektan states for the year ended June 30, 2018, the UK B2C business generated turnover of £19.4m and was loss making, with the sum payable as an initial £50,000 and the remaining balance payable subject to the UK B2C business meeting a series of agreed KPIs. The sale proceeds will be used by the administrators in the course of running the administration of NGL.
Warren Jacobs, CEO of Active Win Group, explained: “The opportunity to acquire the UK B2C business allows Active Win Group to expand further into the UK online casino market, furthering our growth in this market from being a white label operator ourselves, to working with the full complement of business partners established by Nektan in recent years.
“We believe that with the right focus and attention, in a changing and dynamic market, that we will be able to deliver for all our stakeholders, including all of our newly acquired white label partners.
“We look forward to working together with Nektan as our exclusive B2B partner as we grow the business in the coming years.”
Nektan stresses that the sale will have no impact on the ongoing business of the company, with a B2B partnership entered alongside Active Win to facilitate continued, uninterrupted delivery of services to the UK B2C business.
Gary Shaw, interim chief executive officer of Nektan, commented: “For the administrators of NGL to secure the sale of the UK B2C business to a group of the calibre of Active Win Group, in order to see the continued, uninterrupted delivery of the white label operation the group has built over the years, is very reassuring to all stakeholders involved.
“We look forward to working in partnership through the B2B relationship with the buyer as they take the business forward.”
In a previous announcement the company said that an NGL outstanding debt of £4.6m to HMRC in remote gaming duty, increased to £5.6m in November and relating to the group’s UK B2C business, had been ringfenced.
The protects Nektan from any claim by the HMRC, however it was confirmed that the company “has been working with its advisors and the administrators to develop a repayment plan acceptable to HMRC to allow the RGD liability to be repaid in full over time.”
Via the restructuring plans in place Nektan directors believe it will allow the firm to target new emerging markets with a strengthened balance sheet and cash position, as well as noting that ongoing trading will not be affected during this period.
Shaw added: “I wish to place on record Nektan’s appreciation of the continued support from all of its employees, partners, suppliers and shareholders.
“The group restructuring reaffirms the directors’ decision to focus on emerging opportunities in international markets both directly and through our established re-seller relationships.
“The completion of our recent fundraising has provided the company with the financial strength to complete this restructuring, and with the support afforded by all stakeholders, the directors are confident of the future.”