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Best of the Best’s success attracts takeover interest
Shares in competitions firm Best of the Best (BOTB:AIM) leapt 51% to £12.25 on 15 June after earnings per share more than doubled in the year to 30 April and it proposed a 20p per share special dividend.
Two days later the stock soared even further, hitting a high of £16.28 after the business put itself up for sale after receiving potential takeover interest.
At the time of writing the share price had settled down to £14.99, equating to a 329% share price gain so far this year.
The company had already moved away from its lower margin, capital intensive real estate operation of 26 sites at shopping centres and airports to exclusively online sales of its ‘Dream Car’ and ‘Lifestyle’ competitions before the coronavirus pandemic.
‘Our digital-only model gives us more flexibility and focus, as well as efficiency and cost savings, combined with ever increasing confidence in our accelerating online marketing investment,’ says chief executive William Hindmarch.
The firm raised earnings guidance in late January and again in March as it gained customers, particularly mobile users. Thanks to the absence of sporting events during lockdown online betting and competitions have attracted even more players in the last two months.