David Beckham’s eSports team Guild is staring down the barrel of £1.4 million liabilities before the end of September – with a current cash position of just £25,000.
However it has accounts receivable – money it is owed in the period – amounting to £1.52m.
Guild Esports PLC is co-owned by England legend Beckham. His former Manchester United manager Sir Alex Ferguson is famous for describing the decisive final stages of a season or game as ‘squeaky-bum time’ – and the phrase has now entered the dictionary.
Announcing the preliminary findings from an ongoing strategic review, listed Guild – described as a global gaming-focused media business – said it is “actively exploring a range of options to allow the company to meet its short-term liabilities as they fall due”.
Measures under consideration include securing additional funding, negotiating improved payment terms with creditors, and further cost reduction initiatives to conserve cash reserves.
It added: “The board is reviewing the strategic direction of the company, including the realisation of assets to generate cash or whether the company would be best served by being part of a larger group.”
The eSports team, which recently qualified for the Esports World Cup, reduced its loss before tax for the H1 2024 fiscal year by 21% to £1.8m. However, revenues and gross profit for the October 1st 2023 to March 31st 2024 period decreased to £2.1m and £1.39m, respectively.
It currently runs teams in Apex Legends, Call of Duty: Warzone, EA FC, Fortnite, Street Fighter, Sim racing (ESL R1), Tekken and Mobile Legends Bang Bang, the latter a partnership with R8 Esports.
A Dubai investor recently acquired 8.28% of Guild Esports voting shares.
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