Sportech sells Football Pools, reveals profit hike
Pools operator Sportech has announced that it has sold its UK Football Pools business for £83 million (€96.7 million/$102 million) and that in 2016 the company saw annual profits before tax treble to reach £30.7 million, up from £9.7 million in 2015.
Sportech said it has entered into a deal which will see FP Acquisitions Limited, a newly incorporated private limited company controlled by funds advised by OpCapita, acquire its Football Pools business for £83 million.
The company also said EBITDA for 2016 was up 3% to £23.8 million, from £23.1 million for the previous year, and that it planned to return capital to shareholders by way of a tender offer for approximately £20 million of Sportech ordinary shares, representing a buyback of around 10%.
Ian Penrose, chief executive of Sportech PLC, said: “This has been a transformational year. We have moved into a strong net cash position and have today announced details of a return of capital to shareholders.
“We have also announced the sale of our Football Pools business for £83 million, following a highly successful modernisation programme.
“The Group is now in a strong position and more focused to take advantage of the strategic positioning of its predominantly US based businesses. We look forward to delivering further progress in 2017.”
Related article: Sportech hands directorial role to Gaughan