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Sportech has posted its interim management statement
Tuesday May 13,2014 : SPORTECH ISSUES I.M.S.
Betting company is on track to meet expectations.
Sportech plc, a publicly listed UK online and land betting group, has posted its interim management statement for the period from 1 January 2014 to date.
Highlights of the statement include:
* Overall trading remains in line with expectations despite the severe winter weather in the North East of the United States impacting the Venues business. In the first four months of the year, there were 237 race cancellations compared to 74 in 2013 and 27 in 2012 with a consequential impact on business performance.
* Bank debt has been refinanced on improved terms and extended to August 2018. The new GBP 80 million multi-currency, revolving credit facility has been agreed with the Royal Bank of Scotland plc, Barclays Bank plc and Bank of Scotland plc.
* Continued advances in key strategic initiatives in the United States, including:
The launch of a new $4 million flagship sports bar, restaurant and betting venue in Bradley, Connecticut.
Approvals won for a sports bar, restaurant and betting venue in downtown San Diego, California.
"MyWinners" mobile betting application launched in Connecticut and available in the Apple App Store on iTunes.
* Football Pools modernisation continued with over 7,000 new players acquired since the beginning of 2014.
* Trading in Sportech's technology betting business, Sportech Racing and Digital, remains in line with expectations, helped by a robust performance from a Dominican Republic customer. During the period Sportech successfully completed the operational delivery of prior year system sales to Danske Spil and Penn National Gaming, and negotiations with new clients are continuing.
Management reports that the appeal case relating to a GBP 95 million VAT repayment claim on Sportech's "Spot the Ball" game was heard by the Upper Tribunal on 29 April, 30 April and 2 May 2014.
The claim, which includes simple interest, was successfully determined in the group's favour by the First-tier Tax Tribunal in March 2013. The group has been advised to expect a decision from the Upper Tribunal by late summer this year and remains confident of a successful outcome.
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