London-listed betting and racing systems provider Sportech Plc has detailed its corporate recovery plan, following a tough 2017 in which the company restructured its operations having undertaken strategic review and cost reduction programme.
Publishing its full-year 2017 results, Sportech governance declares corporate losses of £23 million, as company trading was impacted by a number of high-cost write-downs.
In its full-year report, Sportech sustained group revenues of £66 million (FY 2016: £64 million), combined with an adjusted corporate EBITDA of £6.7 million (FY 2016: £8.5 million).
The firm’s declining performance has led to a suspension of Sportech’s ‘formal sales process’, as corporate governance declared that it could not find a ‘material offer’ to recommend to shareholders.
Moving forward, Sportech governance has chosen to accelerate its US growth strategy, under the guidance of its strategic review. The company has revised ‘onerous contracts or potential bad debts’ held within its US contracts and joint ventures in California and Connecticut.
Focusing on US growth, Sportech is set to migrate its executive management team from London to Toronto, supported by US operations centres.
Updating investors, Sportech CEO Andrew Gaughan commented on 2017 full-year results:
“2017 was a year of material change for Sportech and 2018 is shaping up to be one of significant opportunity.
“Our recurring revenue in our racing and digital business is further being enhanced by additional sales opportunities and commingling along with the growth in our Bump 50-50 business. We have an enhanced platform for growth in our venues division. Both should see benefit from a liberalisation of sports wagering in the US.”
Source: SBC News
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