Galasys says legal costs will hit full year profit

Galasys said on Thursday that reported profit and earnings for the full year are likely to take a hit from certain one-off costs relating to the ongoing litigation over changes to its board, but the underlying performance should be in line with market expectations.

In a trading update for the year ended 31 December, Galasys said that if legal costs are ruled by the courts to be for the account of the company, profits for the year could be below market expectations. In a worst case scenario, they could fall materially short, the company said.

Galasys has been taken to court by two former directors who objected to having been removed from the board in October.

The provider of ticketing systems and solutions to the amusement park industry in Asia said it won a number of significant new contracts in the period, the two most recent deals being in Malaysia and China. These have a combined value of around £290,000.

Galasys is providing the ticketing system for the Tropical Island Waterpark in Kuala Terengganu in Malaysia and the E-ticketing and membership solutions to the Oriental Pearl and TV Tower in Pudong, China.

Chief executive Sean Seah said: “I am pleased that we have been able to complete another successful year with a strong financial and operating performance.

“We have continued to grow the business throughout 2015 and, with these latest contract wins, we now provide our solutions and services to over 170 amusement parks across China and South East Asia, compared to 60 sites at the time of our admission to AIM in May 2014.”

At 1030 GMT, Galasys shares were down 5.5% to 15.60p.