SPORTECH POSTS STRONG RESULTS
Friday August 26,2011 : Adjusted pre-tax profit up 28 percent
British gambling firm Sportech PLC announced its H1 Interim results for the six months ended June 30, 2011 this week.
Results include a six month contribution from the company's October 2010 acquisition of Sportech Racing formerly Scientific Games Racing.
Key performance indicators include:
– Revenues of GBP 57.4 million (2010: GBP28.6 million), up 100 percent
– EBITDA up 35 percent to GBP 12.4 million (2010: GBP 9.2 million)
– Adjusted profit before tax up 28 percent to GBP 7.4 million (2010: GBP 5.8 million)
– Profit before tax up to GBP 3.7 million (2010: loss of GBP 5.9 million)
– Adjusted earnings per share of 2.6p (2010: 2.9p) on larger share base
– Earnings per share of 1.2p (2010: loss of 4.0p)
– Total net bank debt reduced by 10 percent to GBP 65.2 million (31 December 2010: GBP 72.2 million)
Strategic and operational highlights over the period show sound positioning for the future with the broadening of distribution and modernisation of the company's Football Pools yielding:
– Agreements signed with Jennings, Better and Chisholm betting shops as well as Ladbrokes.com to make products available online
– International distribution agreements with both Centrebet in Australia and Phumelela Gold in South Africa for a suite of pools products
Sportech's acquisition of Scientific Games Racing in October 2010, renamed Sportech Racing, has seen an interactive division established to focus on the regulated online horseracing market with new contracts in Illinois and Puerto Rico.
The company is in the process of transitioning its various e-Gaming business to the Playtech platform with Vernons Casino and Vernons Poker soft launched on the the new portal in August 2011. Littlewoods Casino, Poker and Bingo are scheduled to make the move within the second half of the year.
Ian Penrose, Chief Executive, Sportech PLC, said: "We are pleased with the Group's performance during the first half of 2011. Having successfully integrated Sportech Racing, we are focused on the continued development of our existing Group activities.
“The Group has produced a strong improvement in EBITDA performance, generated strong cash flows and reduced its net bank debt by 10 percent in six months, reflecting the current and longer term growth potential of the business."
In related news, the firm announced the appointment of David McKeith as an independent non-executive director with immediate effect.
A chartered accountant retired from Pricewaterhouse Coopers LLP, McKeith will in addition become the Chairman of the Group's Audit Committee.
