Sportech eyes US expansion as company returns to profit in 2015

FTSE listed football pools and betting technology operator Sportech Plc has reported that preliminary full-year 2015 results (period ending: 31 December) have been in-line with corporate expectations as the firm recorded £23 million in EBITDA earnings (FY 2014: £24 million).

Following FY 2014 losses of £20 million dues to non-cash impairments attached to its Football Pools product, Sportech governance was pleased to announce that the company had posted 2015 statutory profits of £9.7 million.

Finishing 2015, Sportech maintained core metric performance in-line with 2014 as it recorded group revenues of £100.2 million (FY 2014: £104 million)

Updating the market, Sportech governance noted that 2015 had been a year of operational reform and restructure, as the company invested in its technology assets to further expand in the US market.

The company further updated that its Football Pools product was nearing the completion of modernisation programme

Ian Penrose, Chief Executive of Sportech PLC, said:

“The Group has reached an important stage in its development, as our US business makes continued progress on many fronts, and our UK Football Pools business arrives at the inflection point of expected stability after years of modernisation. Overall, the Board is pleased with the strategic position that each of its divisions has secured but recognises that each division will also require further investment, ahead of anticipated revenue and profit benefits, to better enable them to deliver their full potential.

We have invested substantial time into developing our activities and licensing position in the US. During the year, we sold our iGaming interest in New Jersey, realising a threefold return on our investment after only three months of operation.

We continue to evaluate opportunities to deliver the full potential of our divisions whilst ensuring we maintain prudent financial ratios. In this regard, over the past twelve months we have considered approaches for the Group as well as for The Football Pools. Despite this, we have remained focused on our operations and we will continue to investigate any proposals that recognise the value of the inherent potential of these businesses. We look forward to moving into a year of growth in 2016.”