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 Tuesday, 14 January, 2003, 12:53 GMT
Beckham game firm under threat
Image from David Beckham soccer publicity material
The Beckham game is a Rage bestseller
The software company that makes the David Beckham Soccer Game could be on the brink of collapse.

Trading in shares has been suspended for computer games firm Rage Software after the Bank of Scotland withdrew a 6m overdraft facility.

The Liverpool-based firm employs more than 150 people in the UK and their futures are now uncertain.

Rage directors are now looking at options to try to save the company.

Shares fall

The Bank of Scotland has withdrawn the company`s overdraft facility despite experts predicting the firm would be able to turn last year`s 10m loss into a profit of more than 1m in the current financial year.

If the group cannot find a new overdraft facility the company could find itself in adminstration.

It was hoped bumper sales of the Beckham game would boost sales, but the company's shares fell by 67% on Monday within seven minutes of Rage announced the overdraft had been cancelled.

Shortly before the London stock market closed on Monday, Rage issued a short statement that alarmed investors.

It said: "The company regrets to announce that following a review by its bankers, the group's banking facilities have been discontinued."

Within minutes the share price had fallen from 0.65 pence to 0.32 pence and the firm asked the stock exchange to suspend trading in its shares.

Beckham bestseller

The Beckham game had generated revenues of 4.2m over the year to the end of June, helping Rage's turnover jump to 12.2m compared with 5.7m the previous year.

Pre-tax losses were cut from 17.1m in 2001 to 16.1m.

When it reported the figures in October, Rage said it was looking forward to a boost in trading over the coming Christmas through sales of the Beckham game and a new game based on the Rocky films.

The firm had also signed up former SAS soldier turned writer Andy McNab to develop a military action game.

At the time Rage said it was "in a better position than ever to return to profitability in the short term".


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See also:

13 Jan 03 | Business
09 Jan 03 | Technology
20 Nov 02 | Business
21 Oct 02 | Business
28 Mar 01 | Entertainment
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