Sportech maximises cash position ahead of BetMakers takeover
The board of Sportech Plc has stated confidence that the LSE firm will deliver its full-year 2020 EBITDA results in line with corporate expectations.
Issuing a pre-close 2020 trading statement, Sportech noted that despite enduring COVID-19 headwinds the company maintained its operational efficiencies across its core business verticals.
Meeting unprecedented headwinds, Sportech focused 2020 trading on capital preservation and strengthening of the firm’s net cash position.
As a result, the LSE wagering and racing systems provider stated that its group-year end cash balance will be maintained at £10.2 million ahead of previous expectations.
Entering 2021, Sportech has shifted its focus to complete its approved $56 million buyout by BetMakers, merging with the ASX-listed company to form a new ‘Global Tote’.
Supporting this transaction, Sportech has chosen to exit all non-core business units. The decision has seen the company enter ‘conditional agreements’ to sell its Connecticut wagering venues, as well as in-stadia wagering solution Bump 50:50.
Sportech anticipates the sale of its assets to be completed during H1 trading, with the company generating projected net cash sum of £36 million from the transactions.
“Sportech has delivered on key 2020 performance metrics – namely cash generation from operational activities, capex reductions and delivery of a lower operational cost base going forward – resulting in only a modest cash outflow since the outbreak of COVID-19,” said Richard McGuire, Chief Executive Officer of Sportech.
“Following corporate activity announced in recent months, the Group structure and business will adjust during FY 2021. We remain focused on our US headquarters in Connecticut where management and personnel remain fully motivated to be part of the States’ expanded gaming solution alongside our Connecticut gaming neighbours. We look forward to providing a further update when we report our results in April.”
Source: SBC News
