Probability (PBTY) - 52.5p

Probability will be a new company to many readers and is involved in mobile gambling technology and services. It will soon release results for the year ended March 31, 2009 and these will demonstrate continued progress.

The company was only founded in 2004, but Probability is ambitious and aims to be the global leader in mobile phone gaming services.

Its business model is to attract high volume, low stakes revenue and the average bet size is currently under a pound. The minimum bet is 10p or 50p per six tickets for bingo.

However, there is a VIP service, the Private Room at LadyLuck’s, and overall approximately 70per cent of profits are generated from 10per cent of customers.

The company works with a number of partners and aims to work alongside other industry players rather than in competition with them.

Probability is able to provide some attractive content in conjunction with creative partners or licensors.

For example, in January 2009 a deal was struck with Hasbro which enables games based upon Connect Four, Trivial Pursuit, Battleship and Subbuteo to be marketed.

Only last week an agreement was entered into with Dragonfish, a division of 888 Holdings, to develop and execute opportunities for mobile gaming and mobile lottery services in China, South America and Central America.

A Q4 trading update, relating to January to March 2009, was released on April 29. Unaud-ited Net Gaming Revenues were £1.13m, bringing total Net Gaming Revenues for the financial year ended March 31, 2009 to £5.06m. This represents an increase of around 60per cent on the previous year. During the quarter 49,506 new customers were registered, which took the number registered during the financial year to 248,667.

Overall it is difficult to fault the company’s track record to date and although further improvement in performance is necessary to justify a higher share price, this growth seems to be on the cards.

As the company itself is well aware, there have been sharp fluctuations in long term forecasts for the mobile gaming industry. The technology is finally in place for real progress to be made and Probability appears to be working alongside top quality partners with the ability to drive increasing customer activity. Final results are likely to be released towards the end of July and the odds are weighted towards news of further growth on the horizon. On balance, it is worth buying ahead of the results.

WARNING: Opinions expressed are the writers’ judgments at the time of writing. The information does not constitute a personal recommendation and readers should seek professional advice as to the suitability of the investments.