Galleon Holdings admitted to the group on that a recent increase of activity had not had the anticipated improvement on its working capital position, putting increased pressure on the company's cash reserves.

The group said all funding options are being considered to improve the working capital position but "significant risk" remains going forward.

Towards the end of November the group warned investors that its cash flow position was increasingly under pressure.

In January, the company launched two games, but to date these have fallen short of management expectations in both sales and cash flow generated.

In a statement the group said: "Every measure is being taken to manage costs and whilst the company continues to update the games and seeks new commercialisation opportunities, its cash position is coming under increased pressure.

"All funding options are being considered to improve the working capital position but significant risk remains going forward. A further announcement will be made in due course."

The share price tumbled 47% to 1.12p by 14:10.

NR

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