Empire Interactive has published a new financial report which reveals that the company made a pre-tax loss of GBP 2.5 million (1.74 million Euro) in the 15 month period ending March 31st, 2006.
Income was down from GBP 29.4 million (42.3 million Euro) during the previous 12 months to GBP 26.5 million (38.1 million Euro). In its report, Empire attributed the fall "to the postponement of the European release of Flat Out 2 until June 2006, as well as the company's delay in entering distribution agreements pending clarification as to the future of the group."
Total gross proft stood at GBP 13 million (18.7 million Euro), while operating expenses rose to GBP 15.4 million (22.2 million Euro). Despite the GBP 2.5 million pre-tax loss, the company posted a profit before tax of GBP 1.4 million (2.01 million Euro) for the last nine months of the period.
The report notes that Empire's board has been in discussions during the last six months "Which may or may not lead to an offer being made for the group. As a consequence of this process, a number of distribution agreements for some of the group's titles were delayed pending further clarity as to the future independence of the company."
However, "The board remains confident that the Company's financial prospects for the financial year 2007 will be positively impacted, once Flat Out 2 and other titles have been released into the market."