Ainsworth's head of game design departs
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Ainsworth has announced that Scott Clarebrough, General Manager Strategy and Development, will leave the company. Alongside the strong 2015 result from competitor Aristocrat announced today, the news prompted an 11% fall in Ainsworth's shares.
We'll publish a full review of Aristocrat's 2015 result later this week. For its part, however, Ainsworth told us that Scott Clarebrough has wanted to resign for some time so his decision doesnt't come as a surprise to the company.
He began working at Ainsworth in 2007 and so played a big part in the development of the company's very successful A560 cabinet, released in 2010. He also led the development of the company's latest cabinet, the A600, as well as overseeing the recent expansion of the game development team.
Ainsworth began selling the A600 a few months ago and the completion of this project, along with the additional travel required to help manage the US-based engineers and game developers once the company's new Las Vegas headquarters opens next year, apparently convinced Scott Clarebrough and the company that now was the time for him to move on. He will remain with the company for the next twelve months before officially departing.
One of Ainsworth's strengths has been its ability to produce games that punters like playing. This is also a major part of our investment case, so the fall in the share price is understandable.
However, it is in the nature of business that key employees move on and, while we don't want to downplay Scott Clarebrough's contribution to the company's successes, game development is a team effort. As such, with the company having expanded its game design and product development team in recent times, it remains in a good position to generate increased revenue and earnings in coming years.
Ainsworth's shares have fallen 18% since Ainsworth enters new market with Nova on 19 Nov 15 (Buy — $2.85). BUY.
Note: Our Growth Portfolio owns shares in Ainsworth. You can find out about investing directly in Intelligent Investor and InvestSMART portfolios by clicking here.
Disclosure: The author Jon Mills owns shares in Ainsworth.
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