London-listed racing and wagering systems supplier Sportech Plc has published its full-year 2018 results, detailing a year of corporate adjustments as the company continues to pursue its US growth prospects.
Updating the market, Sportech records a 4% decline in corporate revenues to £64 million (FY2017: £66 million) having detailed last November that expected sales contracts did not materialise.
Despite its revenue setbacks, the group maintains confidence in its US growth strategy, reporting an 18% increase in adjusted 2018 EBITDA to £8 million (prior to sports betting investments) (FY2017: £6.7 million).
Fulfilling its stateside mandate, during the course of 2018 Sportech governance undertook a strategic reduction in group size, incurring a number of costs closing down its European wagering assets and London Office.
Closing 2018 accounts, Sportech governance records an operating loss of £2.4 million (FY2017: £23 million), with the company reporting a current cash balance of £14.7 million (2017: £15.9 million).
Last November, Sportech announced the departure of Andrew Gaughan as Group CEO, with his duties replaced on an Interim basis by Chairman Richard McGuire and New CFO Thomas Hearne.
Richard McGuire, Executive Chairman of Sportech, said: “The Group enters 2019 with a renewed impetus to drive operational efficiency across all business divisions and deliver enhanced customer experience. Growth opportunities exist with the launch of new betting products and features and a resolute progress towards a future in US sports betting across both our business and our consumer-facing divisions. The acquisition of the Lot.to Systems platform and talent show a clear focus on developing digital initiatives further, which supports our continued evolution to deliver growth and drive operational efficiency.”