Sportech lauds slimmed profile to net £34m profits 

Sportech Plc has backed its ongoing transformation strategy and focus on cost management, as the London AIM-listed racing and wagering systems provider declared statutory profits of £34.6m today.

The much-improved bottom-line results see the firm reverse full-year losses of £12m recorded during 2020 trading. 

2021 developments saw Sportech complete the disposals of its Global Tote business to BetMakers –  Bump 50:50 business to Pollard Banknote – and the offload of its LEIDSA Dominican Republic lottery contract (recorded December 2021). Combined, the transactions generated the business a net cash aggregate of £47.4m.

Despite COVID-19 continuing to impact its venue clients for the majority of year trading, Sportech achieved a 32% increase in corporate revenues to £22.9m (FY2020: £17.3m).

The firm’s improved headline results were attributed to the strong recovery of its wagering unit which accounted for £19.5m of corporate revenues.  

Gross profits from operations stood at £11.4m, a figure that matched Sportech’s FY2021 cost sales which resulted in an outlay of £11.4m.

Improved cost management saw Sportech shrink its EBITDA losses to  £1.8m (FY2020: – £4m), a bottom line result that excluded the contribution of  LEIDSA Dominican Republic contract earnings of £600,000.

Of significance, during the second half of year trading the company changed its listing’s domicile from the LSE main market to the London AIM – a strategic directive to help its long-term capital structure.

CEO Andrew Lindley said: “2021 was a transitional year for the business with the completion of a significant amount of M&A and corporate actions to reduce the size of the business and de-risk our shareholders’ investments.

“The business, although now small in the context of a plc, is tidy and fit for growth. The two divisions are right-sized for their operations and 2022 brings with it an attendant opportunity to garner new value for the group and its shareholders.”


Parimatch streamlines leadership as Maksym Liashko takes on full CEO duties  XLMedia appoints media pro Marcus Rich as new Chairman

No Comments

No comments yet

Leave a Reply

Your email address will not be published. Required fields are marked *