My 1st post on Money am, so be gentle ;)

My main holding is SCi Entertainment, a former darling pre-bubble. It like many in early 2000 had a shocker of a profit warning, but has since grown up, knuckled under and generating cash.

Its recent history speaks for itself

30 Sep 2001 (GBP)
turnover 2.05m
pre tax profit -10.48m

30 Sep 2002 (GBP)
turnover 17.71m
pre tax profit 2.21m

30 Sep 2003 (GBP)
turnover 28.48m
pre tax profit 3.52m

Everything inline for 2004, although by my research 2004 H1 well ahead.

Single digit pe and loads of growth.

However, hardly any interest by the retail investor. In fact, this looks to be the 1st thread on Money am re SEG.

So why the cold shoulder for SEG, what am I missing?

not often that a company that is a t/o target dives to the depths .... story is that the company is worth bugger all and that is all they will get for it

Another short opportunity yet to come probably.

I totally agree, Greyhound. If there is a takeover, the price will be reduced anyway. If there is no takeover, the sp will crash. Win-win situation.

Made a small profit now...218p now...likely to go down further

Predicted rightly...down it goes...closed at 199p.

The rumour-mill continues: article in the FT today (not had time to look for details), as mentioned in MoneyAM's Press Roundup:

'Electronic Arts bid speculation lifts Sci Entertainment '

SEG going to slide down from now... 173p

Spot on

62p now...got it right.


SCI Entertainment terminates offer talks; forecasts opg loss for FY 2008 - AFX

LONDON (Thomson Financial) - SCI Entertainment Group PLC said it has terminated offer talks it has been holding since last September as it has concluded that it is unlikely a sale of the company at its full value will be achieved.

The company also said it now expects to report an operating loss for full year 2008 after it decided to move the release date of four titles into the fourth quarter. The most significant of these titles is the next Tomb Raider game, Tomb Raider: Underworld.

The group will now launch this game on six platforms rather than the previously planned three and it said that, although the delay will mean the company incurring a loss at full year, simultaneous multi-platform launches in the key buying period at Christmas time will bring the best value from these franchises over the long term.

SCI also commented on Christmas trading for 2007 which it said it was pleased with, particularly the performance of Kane and Lynch, which was launched on Nov 13 in the US and Nov 23 in Europe.

SCI also said Pony Friends, first launched in May 2007, has also continued to perform well with life-to-date sell through now exceeding 600,000 units on NDS alone.

As part of the decision to make these changes to the platform and release schedule, the company has reviewed the impact this may have on its working capital needs and said it has identified sources of additional working capital which may be required.

The group is also exploring and progressing certain commercial and strategic opportunities which emerged from the aborted offer talks.

tf.TFN-Europe_newsdesk@thomson.com

is this likely to recover at all in the coming weeks???

After forecasting a loss for 2008 what do you think?

Long term looks good, being shorted at the moment by EK. Undervalue.

From Times Online - February 29, 2008

Lara Croft developer SCI to cut 25% of staff as losses worsen - Robin Pagnamenta


SCI Entertainment, the developer behind gaming adventuress Lara Croft, will slash 25 per cent of its workforce as part of a revised strategy that could cost up to 75 million to implement after interim losses leapt by 78 per cent.

The computer games group now expects to make a loss for the full year after losses for the six months to December 31, 2007 slumped from 17.9 million to 81.4 million on sales down from 74.5 million to 73 million.

The loss widened mainly due to a 79.6 million charge which includes the cost of aborted projects, research and development on new projects and costs being booked as development instead of research.

SCI, now operating under new management since an extensive board clear out in January, said this morning it will scrap 14 of its ongoing projects to concentrate on its "cornerstone" games including Tomb Raider, Hitman and Championship Manager.

The company is currently in negotiations with its main lending bank, Lloyds TSB, to extend its 20 million overdraft facility, with the remainder of the new strategy costs to be financed through issuing new shares as well as seeking investment from third parties.

Last year, SCI was in talks about an outright sale of the business. Although these discussions did not result in a takeover of SCI, it is understood that some parties who previously engaged in discussions may be interested in investing in the group.

Phil Rogers, previously chief financial officer at SCI who was appointed chief executive in January, denied the group was in danger of breaching its banking covenants. He said: "We have a great relationship with our banks. That is not a risk I see right now."

In a statement this morning, Mr Rogers said: "As illustrated by today's interim results...our quality has slipped below acceptable standards and, through disappointing game development and working within an ineffective operating structure, we are failing to realise the commercial return our creative ability and our shareholders demand.

"Our infrastructure is too big and expensive for the scale of the business."

Mr Rogers said SCI's business will be refocused on game development in its studios, with production, branding and PR all working together "in one time zone", while its product testing facility will now be based in Canada. SCI said that while it is no longer in takeover talks, it would not rule out a deal in the future.

Shares in SCI fell by 14.2 per cent to 45.25p - a 93 per cent fall from a five-high of 615p in January 2006.

In January, SCI replaced its top management team after takeover talks last year collapsed.

Jane Cavanagh, chief executive, Bill Ennis, managing director of publishing and Rob Murray, in charge of studios, all left the business with immediate effect after chairman, Tim Ryan, spoke with SCI's top 20 investors who represented 50 per cent of the group.

I haven't seen many people playing Tomb Raider anymore...time has certainly change.

thought tomb raiders was an aphorsim for new investors in dud companies like SEO .... heaven forbid one should link SEG to that one!

Brother used to work for these going back a few years, when Eidos (remember them?!) were main competitors.... sorry to see their demise

is this the last bit of dicline,looks cheap from here any one

no, not cheap definitely considering its poor product line...read above.

so down to 5p or less in the coming weeks than

20-30p likely in the coming weeks.