Ainsworth’s chairman says the drop was mainly due to temporary closures of venues and customers’ reduction in capital expenditure.
Australia.- Ainsworth Game Technology has reported that sales revenues dropped 36 per cent for its full-year 2020. Sales revenue for the slots machines manufacturer dropped to AU$149 million (US$106.3 million).
Chairman Danny Gladstone said: “”ith reduced trading in quarter four, the second half of the year contributed approximately 87 per cent of this decline, which is traditionally the strongest period.
“Our opportunities to operate and sell new machines were inhibited as customers temporarily closed venues and cut capital expenditure programs.”
Ainsworth’s profits in Australia were down to AU$0.4 million (US$285,408), as revenues fell 26 per cent year-on-year.
As a whole, the year ended with losses after taxes of AU$43m (US$30.6m). Ainsworth still has AU$26.5m in its pocket and a net debt position of AU$17.5m (US$12.4m) due to its acquisition of MTD assets in March.
Gladstone said: “MTD has performed resiliently and we remain confident that this acquisition will provide good returns over coming periods.”
Ainsworth managed to renegotiate current financing facilities. It also eliminated 107 positions globally and employees took voluntary pay cuts to save US$7.3m in costs.
Finally, the chairman announced the board has “has prudently decided to place the dividend policy on hold. We will retain this position until the current uncertainties in our markets become more predictable.”
As for the future, Levy anticipated 2021 will be a year of two distinct halves: “Half 1 will be about safety and security through the reopening phase; half 2 will be about recuperation and development as we enter the ‘new normal’ phase.”