Strong H1 sees Sportech laud its ‘profits first’ identity
Sportech Plc has outlined its transformed organisation that is refocused on delivering a stronger balance sheet performance and profits for investors.
Publishing its first interim results as a London AIM listed enterprise, Sportech registered group revenues to £13.5 million up 70% on corresponding 2020 results of £7.9 million.
Period growth was attributed to Sportech’s 11 US Venue subsidiaries that registered a 70% uplift in revenues to £11.5 million (H12020: £6.7m).
Sportech lauded its venue performance, achieving growth despite facing COVID-19 restrictions on its food-&-beverages offering, as revenue performance was just 1% down on 2019 comparatives.
Further performance highlights saw Sportech lottery subsidiary register a 75% increase in revenues to £1.9 million (H12020: £1.1m) – as unit performance was buoyed by the integration of new Lot.to systems.
H1 trading saw Sportech divest its Global Tote business to BetMakers Australia (deal £30m) alongside the sale of its Bump 50:50 in-stadia wagering solution to Canadian Banknote.
Sportech H1 results presented no figures on corporate costs, however the company disclosed that period sales costs had amounted to £6.3 million.
A further costs disclosure noted that Sportech maintains a tax provision of £4.6 million (excluding interest) due as settlement for its 2016 Sport the Ball HMRC refund.
Sportech noted its profit after tax for discontinued operations, which was £23 million, helping deliver total net profit for the period to £23.9m, an increase of £34 million year-on-year.
CEO Richard McGuire commented: “The first half of 2021 marked a notably successful period of restructuring as Sportech completed business disposals, secured the move to the AIM market and built further on the online revenue gains from 2020.
“In recent weeks we also secured shareholder support for a proposed capital reduction and a significant capital return to shareholders and were delighted to announce a 10-year business relationship with the Connecticut Lottery Corporation to support their sports betting initiative.
“Shareholder funds during H1 almost doubled to £48.5m, we have no debt and significant cash to deliver on our shareholder and investment commitments.”