The governance of London-listed industry betting and racing systems provider Sportech Plc has described the first half of 2017 as a ’transformational period’ for its business.
The company which continues to expand internationally, securing new betting systems contracts in Asia, Denmark and the USA (Connecticut) would report H1 2017 period corporate revenues of £36.4 million up 5% corresponding 2016’s £34.7 million.
Despite the firm’s revenue gains, Sportech would record an EBITDA decline of 5% to £3.9 million (H! 2016: £4.1 million), detailing that its key Racing & Digital division had been impacted by timing delays in system sales.
Closing its H1 2017 trading, Sportech governance would declare group statutory losses of £100,000 (H1 2016: £800,000).
However, Sportech governance remains positive of the firm’s future performance and outlook having won its £97 million VAT tax dispute against HMRC, combined with the completion of its long-awaited £83 million sale of its Football Pools division to UK private equity firm OpCapita (deal officially completed June 2017).
Updating investors, Sportech governance details that it has a cash position of £76.2 million as of 30 June 2017, which the firm can use to strengthen its operations and projects.
Speaking on H1 2017 corporate performance Ian Penrose, Chief Executive of Sportech PLC, said:
“2017 has seen the transformation of the Group continue. We were successful with the £97m VAT legal case in the Supreme Court, we modernised and sold the Football Pools for £83m, repaid over £60m in debt and returned £21m to shareholders with further substantial shareholder returns still to come from the £76m 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.”