While they always say that you never see a poor bookmaker, AIM-listed Betbrokers seems set to break the mould as the company seeks to secure more capital to cover client business. The company has been forced to turn down a number of bets of late due to inadequate funding to cover the positions in question.
The company floated on the AIM market in 2006 although it was a far from successful move with the value of the company since plummeting from £31 million to £1.5 million. The management of the group, which includes names such as Derek Tullett and Eddie Jordan, have admitted that the company needs an additional £1 million to £2 million to cover a number of bets which customers want to place. The group itself receives 60% of its business from bookmakers looking to ‘hedge off’ their exposure and the balance from large gamblers looking for the best prices. Interestingly the group has also admitted their average bet size has fallen from over £1,300 to just over £400 – something which does not bode well for the future.
The group maintain that the business is not in trouble but admit that without additional funding they will be severely restricted in the amount of new business they can take on.
