South African racing and sports betting operator Phumelela Gaming and Leisure is desperate to raise badly needed capital after reporting the worst results in the company’s 22-year history.

On Friday, Phumelela reported a net loss of R95.8m (US$6.5m) in the 12 months ending July 31, as compared to a R151.7m profit in the previous fiscal year. The company said the 12-month period was the “worst year since the business was first incorporated in 1997.”

The company’s revenue was down 7.6% year-on-year, with a 9.7% decline in its mainstay local betting business offsetting a modest gain in its much smaller international operations.

The company noted that its Betting World and Supabets operations had endured an “unusually high number” of customer-friendly football results that kept margins low, while South Africa’s depressed economy – including the 15% VAT imposed in April 2018 – kept a lid on punters’ discretionary spending.