Losses increase at The Weather Lottery
THE Weather Lottery has posted annual losses of almost £800,000 but is expecting trading to improve following actions taken by the business.
TWL is looking to offload its online sports gambling operation FC Betz, which ran up losses of around £400,000, after the company eliminated club sponsorship expenses and reduced consultancy costs.
The company, which helps clubs, charities and societies raise funds for projects and developments, also revealed it is to take legal action against the vendors of a five-a-side soccer centre in Nottingham.
TWL was hoping to refurbish the facility it bought in Nottingham after it claimed the vendors offered to pay for part of the upgrade. However, TWL claims the conditions have not been met.
Costs associated with a fraud and theft case against two former TWL employees, including its former chief executive Keith Milhench, hit the results by more than £100,000.
TWL posted a small profit in its core lottery business, while its Devilfish online gaming business made a loss of £149,000 for the year.
Chairman Lord Razzall acknowledged that TWL had posted a much increased loss on the previous year’s £77,000 and said it had been a “difficult year” for the company.
But he said the business was in positive shape going forward.
He said TWL “considers that the steps it has taken in these accounts will assist in improved trading for the company which it hopes will be reflected in the half year figures to 31 January 2012. These half-year figures are expected to show much reduced losses.”
Turnover increased by 9.1% to £1.34m.
TWL has changed its head office and registered office from Doncaster to Hagley, near Stourbridge in the West Midlands.
