Thursday, March 3, 2016 : SPORTECH PUBLISHES 2015 RESULTS
Final results chime with corporate predictions.
Sportech plc has released its 2015 numbers, revealing that in selling its New Jersey online gambling interests after just three months it realised a threefold return on its original investment.
Group highlights flagged by management include:
* Overall results in line with expectations with EBITDA of GBP 23.1 million – down on 2014's GBP 24 million;
* Group revenue down 4 percent at GBP 100.2 million;
* Statutory loss lower at GBP 9.7 million (2014: GBP 20 million);
* On a constant currency basis, revenue declined by 6 percent and EBITDA declined by 5 percent;
* Net debt reduced by 10 percent to GBP57.7 million;
* A pipeline of new international customers attracted by the company's investments in technology;
* Expansion into providing lottery products for professional sports teams;
* Football Pools division nearing completion of modernisation programme;
* Expansion of venues strategy into California
* Disposal of online interests in New Jersey for a pre-tax gain of GBP 8.1 million;
* GBP 97 million VAT refund appeal to be held in Court of Appeal on 7/8 April this year.
Ian Penrose, CEO, said:
"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."