Silver Heritage asks to halt trading after $9.9m loss

By Harrison Sayers

Silver Heritage Group has requested a trading halt from the Australian Securities Exchange (ASX), as the operator's half-year $9.9m loss left its liabilities exceeding its current assets by $8.8m.

The trading halt was requested by the integrated resort operator, pending the “release of an announcement," with normal trading set to resume on Wednesday or when the announcement is made.

Along with the trading halt, the company also announced its half-year results.

Revenues from ordinary activities increased by 40% to $11.3m, with the Tiger Palace Resort commencing operations part-explaining the rise.

However, the increased revenue was unable to prevent the half-year loss, as “additional costs and depreciation associated with Tiger Palace Resort commencing operations” took their toll.

Losses were exacerbated by a $1.2m impairment of assets, caused by unused Inspired Gaming Group and Betstone EGM software licences.

An independent auditor’s review, undertaken by Grant Thornton, said: “The group incurred a net loss of $9,938,000 during the half year ended 30 June 2018 and, as of that date, the group's current liabilities exceeded its current assets by $8,842,000.

“A material uncertainty exists that may cast significant doubt on the group's ability to continue as a going concern.”

Silver Heritage claims to be resolving the situation by “raising capital, although it is still finalising the details of how that will be achieved."

Directors of the company remain confident that they will raise the required capital as a result of discussions with bondholders.

In a note regarding its financial statements, Silver Heritage said: “The Directors believe that the group will be able to continue as a going concern.”

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