Sportech interim posted

Regulated gambling technology supplier Sportech plc has posted its H1-2017 results, highlighting the following:

* Global expansion continued in Asia, Europe and the United States;
* Group had cash of GBP 76.2 million at 30 June 2017, and no bank debt following the cancellation of the bank facility, which totalled GBP 75 million;
* Successful VAT claim in the UK – final receipt of outstanding cash in March 2017 taking refund to GBP 97 million from HMRC;
* Returned GBP 21 million to shareholders through Tender Offer in March 2017;
* Following shareholder approval, Court process commenced to create approximately GBP 55 million of reserves to enable a substantial return to shareholders;
* Completion of GBP 83 million sale of The Football Pools announced on 26 June 2017;
* Total Group EBITDA from continuing operations down 5 percent y-o-y at GBP 3.9 million (2016: GBP 4.1 million);
* Revenue up 5 percent at 36.4 million;
* Adjusted profit before tax improved by GBP 1.5 million to GBP 1.1 million;
* Statutory loss before tax improved by GBP 700,000;
* Sportech Racing and Digital – EBITDA of GBP 3.9 million, down GBP 900,000 on a constant currency basis;
* Sportech Venues – EBITDA of GBP 1.7 million, on a constant currency, in line with last year;
* The Group generated approximately GBP 6 million in cash from the Football Pools during the period prior to disposal for a further GBP 83 million.

CEO Ian Penrose reported:

“2017 has seen the transformation of the Group continue.

“We were successful with the GBP 97 million VAT legal case in the Supreme Court; we modernised and sold the Football Pools for GBP 83 million; repaid over GBP 60 million in debt and returned GBP 21 million to shareholders with further substantial shareholder returns still to come from the GBP 76 million cash balance.

“Following significant investment into our technology and licensing, Sportech has now established a strategic base to grow our business globally through our unique regulated gaming business based in North America together with our expanding presence in Asia. We have transitioned our business away from the UK market which is encountering regulatory headwinds, and await with interest the Supreme Court’s decision in the US on the future of sports betting.

“With our strong balance sheet and cash balances, we have the resources to fund attractive growth opportunities, meet ongoing commitments and deliver substantial returns to shareholders.”

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