Inspired Gaming Group confirms sale of pub games business

Inspired Gaming Group (IGG) has today confirmed the sale of its pub gaming business to a subsidiary of Danoptra, the group which owns Gamestec, a rival gaming machine operator.

Financial details of the sale, which had been long expected, were not disclosed.

The smoking ban's impact on AWP income has been considerable in the last year and IGG had effectively been looking to exit the pub sector since March this year when it announced to the stock market that it was reviewing the business.

It officially announced its intention to exit the pub market in May.

IGG's pub division was only created last year and was headed by ex-Laurel Pub Company executive Paul Marsh.

"The effect of the withdrawal will be to allow the group to focus capital allocation and management time on profitable markets in the UK," said IGG chairman Russell Hoyle.

Danoptra said the deal included around 30,000 pub-installed gaming machines and taking on approximately 850 staff from IGG.

News of the disposal came as IGG announced its results for the 28 weeks to April 12, 2008, with turnover of £40.8m, down 7.6 per cent, and pre-tax profits of £535,000, versus a £1.95m loss in the same period in 2007.

The group also announced a share placing aimed at raising £40m, with proceeds to fund cash costs arising from the pub sector exit, repay debt and provide capital for "significant near-term growth opportunities in the continuing operations".