Ahead of today’s AGM, Sportech Plc has issued a trading update, informing investors of further COVID-19 pandemic impacts and countermeasures undertaken by the LSE-listed wagering technology group.
Updating investors, Sportech explained that it has implemented its pandemic cost-saving measures announced during March trading, based on its forecast scenario that global sporting events would be curtailed through to the end of June 2020.
Based on the actions undertaken, Sportech’s board anticipates net cash contributions to be £8.9 million at the end of interim trading.
As previously forecasted, Sportech stated that pandemic impacts have hit all areas of its business during Q2 trading following the suspension of the global racing calendar.
Despite interruptions to its day-to-day activities, Sportech has shifted focus to its commercial capacity in which the company has agreed new deals and extended contracts with US clients TVG New Jersey, Emerald Downs, Monmouth Park, and Borgata Casino.
Meanwhile, in the UK, Sportech secured the lead international pool systems supplier contract for the revamped UK Tote Group, leading the development of the combined global ‘Superpool’ with Ascot Racecourse and the Hong Kong Jockey Club.
Further client wins have seen Sportech secure a new technology agreement with the Macau Horseracing Company, in which it will upgrade its entire racetrack provisions to its Quantum systems and wagering platforms.
As global sports resume, Sportech underlined that it continues to trade with a ‘determined vigilance of its cost base’, helping manage staggered reopenings of their business channels.
Richard McGuire, Group CEO of Sportech, said: “Despite the unprecedented challenges that have affected us all, I have been humbled and impressed by the universal willingness of Sportech colleagues to support our clients, support our business and support each other.
“The delivery of critical client projects and the securing of a significant number of new contracts in the midst of this global pandemic is testament to the resilience of the Sportech team and highlights the integrity of our people and the Group’s digital strategy progression.
“Challenges obviously remain, especially as our business resumption timetable is governed by external factors. However, as a group, we have no debt, a stable balance sheet and we intend to emerge from this pandemic operationally and technologically stronger.”