Sportech ‘transformation’ continues as finances rise in H1
Sportech has reported year-on-year growth across a number of key financials for the six months to June 30, with chief executive Ian Penrose saying the results are proof of the company’s ongoing “transformation”.
Revenue in the first half came in at £36.4m (€39.5m/$46.6m), up by 5% on the £34.7m posted in the same period last year.
Although earnings before interest, tax, depreciation and amortisation dropped by 5% to €2.9m, Sportech said that adjusted profit before tax improved from a loss of £400,000 in the first half of 2016 to a positive figure of £1.1m this year.
Similarly, statutory loss before tax decreased from £800,000 to £100,000, while adjusted earnings per share stood at 0.5p, compared to a loss of 0.1p last year.
In addition, Sportech ended the six-month period with adjusted net cash of £76.2m, compared to total debt of £59.8m at the same point in 2016.
“2017 has seen the transformation of the group continue,” Penrose said.
“We were successful with the £97m VAT legal case in the Supreme Court, we modernised and sold the Football Pools for £83m, repaid over £60m in debt and returned £21m to shareholders with further substantial shareholder returns still to come from the £76m cash balance.
“Following significant investment into our technology and licensing, Sportech has now established a strategic base to grow our business globally through our unique regulated gaming business based in North America together with our expanding presence in Asia.
“We have transitioned our business away from the UK market, which is encountering regulatory headwinds, and await with interest the Supreme Court’s decision in the US on the future of sports betting.
“With our strong balance sheet and cash balances, we have the resources to fund attractive growth opportunities, meet ongoing commitments and deliver substantial returns to shareholders.”
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