Speaking at Sportech Plc’s annual general meeting (AGM), company Executive Chairman Richard McGuire has updated investors on the firm’s ongoing corporate transformation strategy seeking to deliver ‘longer-term profitability’.
McGuire currently leads Sportech, following the departure of former Chief Executive Andrew Gaughan last November, as the LSE listed racing systems supplier detailed that it would miss 2018 corporate expectations due to ‘expected contract sales not materialising’.
Citing a number ‘US realignment costs’, Sportech governance would book a 2.4 million loss for full-year 2018 trading.
Leadership changes see McGuire takeover Sportech’s blanket US growth strategy, which saw the technology group offload its European assets during the course of 2018.
“The Group has made progress during 2019 implementing the strategy to drive long term profitability (as set out on 21 March 2019 in our full year results for the year ending 31 December 2018) and we continue to trade in line with Board expectations”, McGuire details to Sportech investors.
McGuire maintains Sportech’s long term prospects of leading the US market in racing systems provisions and in-stadia and Tote wagering services, as part of a market in which the company holds an active presence in 37 states.
“In Tote Services, we continue to secure new and extend various existing client contracts across all geographies and also maintain a focus on enhancing the system capability and innovation. Sportech’s Quantum Tote software recorded a successful Kentucky Derby day when processing almost 100 million betting transactions via more than 13,000 points of sale across the US and recording a 14% growth in Sportech’s own retail internet volume” – McGuire adds.
Enhancing the firm’s US drive, McGuire and Sportech’s executive team are currently revising the ‘fixed cost base of certain properties’, seeking to optimise profitability and efficiencies across the firm’s divisions in the short to medium term range.
“At Bump 50:50 our developers continue to devise system enhancements providing clients greater control over the management of their raffle programs, delivering efficient customer service demands, and improved cost management. Bump continues to pursue opportunities and strategies in both US professional and collegiate sports, while seeking to expand its global reach. With legal requirements for mobile and online raffles becoming more accessible in new jurisdictions Bump continues to focus on this initiative to deliver incremental cost-effective returns.
“It is an incredibly busy time for the Company. We have a dedicated and experienced management team and workforce. Together, we remain committed to improving Sportech’s capabilities to clients; enhancing our product range and driving efficiencies across every division to position the Group for efficient sustainable growth.