Publishing its H1 2016 results (period ending 30 June), FTSE-listed betting technology provider Sportech Plc has reported a steady first half of the year, as the company sustained EBITDA at £11 million.
Sportech governance detailed that corporate performance had been in-line with expectations, following a tough H1 2015 comparative period.
The Liverpool based company would declare a statutory pre-tax profit decline of 66% to £2.7 million owing largely to 2015’s £8.1 million profit generated in the sale of its online gaming interests in New Jersey.
During the H1 period the company The UK Court of Appeal unanimously ruled in favour of the Group in the £97m Spot the Ball VAT refund case. The Group expects the outcome of HMRC’s direct appeal to the Supreme Court in Autumn 2016.
The VAT return has allowed Sportech governance to reduce its net-debt to £59 million, whilst boosting the firm’s cash balance to £36 million.
Sportech would update the market regarding its Football Pools division which generated EBITDA £7 million, in-line with management expectations. Sportech governance specified that discussions were ongoing the potential sale of the division.
Ian Penrose Chief Executive of Sportech PLC, commented on H1 2016 corporate performance
“I am pleased to report that the Group had a good first half and is trading in line with management’s expectations. We have reached a key stage in our development, as our US business makes progress in both existing and new markets around the world, and our Football Pools business has reached expected stability after a number of years of modernisation. “
“Overall, the Board is pleased with the strategic position that each of its divisions has secured, whilst recognising that each division will require further investment, ahead of anticipated revenue and profit benefits, to enable them to deliver their full potential. We look forward to delivering further progress in 2016 as we endeavour to return the Group to growth.”