14-11-2007 Auditor express concerns over Portlandbet's future

For the year ended 30 June 2007, the Australian betting firm reported a loss of over $3 million, as the income generated by the betting activities proved to be insufficient to cover the operating expenses, which were funded out of the company’s working capital.

Subsequent to the end of the financial year, Portlandbet raised cash assets of $2 million before costs. The directors of the company said the funds raised together with an improved financial performance should put the company in a position to meet its cash requirements during the next twelve months to the end of October 2008.

However, the foreseen improvement in financial performance includes a substantial increase in operating revenue and if the company does not achieve its budgeted revenue, it will most likely be required to raise further capital .

According to the company's auditor, these conditions give rise to a material uncertainty that casts significant doubt whether Portlandbet will continue as a going concern. Shares in Portlandbet's parent company Marginbet lost 55% of their value since floatation and were also suspended from trading for 3 days in October following a delay in presenting the financial accounts.