Shares digital

The combination of a profit warning, the failure of a takeover bid and the admission fresh funding may be needed finally proved too much for the management team of video games maker SCI Entertainment (SEG) last week.

Founder and chief executive Jane Cavanagh, her husband and managing director Bill Ennis and fellow long-standing board member Rob Murphy all stepped down.

The news, coupled with new boss Phil Rogers’ promise of a root and branch review of the firm’s prospects, prompted the shares to soar from 45p to 65p, but this is still miles below the 12-month high of 520p achieved last summer.

SCI Entertainment blamed the delayed launch of four games, including the latest in the Tomb Raider series, for an unexpected plunge into the red this year.

Shares says: There is value here but remains highly speculative until fresh funding can be found.

by: Russ Mould