2nd Interim Results -31/07/00
Sportech PLC
24 October 2000
SPORTECH PLC ('Sportech' or the 'Company')
UNAUDITED SECOND INTERIM RESULTS FOR
THE FOUR MONTHS ENDED 31 JULY 2000
Chairman's Statement
Introduction
On 27 June 2000 the Board announced that Rodime plc (since renamed Sportech plc)
had agreed to acquire Littlewoods Leisure from The Littlewoods Organisation plc.
The consideration for the acquisition was £161.8 million. Full details of the
acquisition together with the details of the financing of the acquisition, which
included a rights issue and subscription by Newby Manor Limited were included in
a document to shareholders dated 11 August 2000.
In that document, I informed shareholders that it was the intention of the Board
to change the accounting reference date of Rodime plc and Littlewoods Leisure to
31 December, with effect from 31 December 2000. Shareholders approved the
acquisition and financing arrangements for Littlewoods Leisure at the
extraordinary general meeting of Rodime plc held on 4 September 2000 and agreed
to change the name of the Company to Sportech plc.
The Listing Rules of the UK Listing Authority, require that Sportech plc must
prepare and publish a second interim report as a result of the change of
accounting reference date which extends the annual reporting period to fifteen
months. The Board believes that the most appropriate date for the second
interim report is 31 July 2000, a date before the acquisition of Littlewoods
Leisure was approved by shareholders.
Publication of the audited results of Sportech plc for the fifteen month period
ending 31 December 2000, including the results of Littlewoods Leisure with
effect from completion on 4 September 2000, is expected towards the end of the
first quarter of 2001.
Results
The loss before taxation for the period was $1,088,000. This loss reflected the
operating costs of the business offset by interest received on cash deposits,
which remained after the receipt of funds from the legal settlement by Seagate
Technology Inc. and after settlement of the outstanding loan obligations to the
Company's bankers earlier this year. Following the rights issue and
subscription and provision of finance from the Company's bankers as described in
the document to shareholders dated 11 August 2000, the Company has adequate
working capital for its present needs.
Future Prospects
Since 31 July 2000 the business and prospects of the Sportech group have been
transformed by the acquisition of Littlewoods Leisure. The new management team
of Sportech plc is currently reviewing the business and strategy of Littlewoods
Leisure and a more detailed commentary will be provided to shareholders when the
results for the period ending 31 December 2000 are announced.
M McIver
Chairman
24 October 2000
PROFIT AND LOSS ACCOUNT
for the four months ended 31 July 2000
4 months 4 months 6 months 12 months
ended 31 ended 31 ended 31 ended 30
July 2000 July 1999 March 2000 September
1999
$000 $000 $000 $000
(Unaudited) (Unaudited) (Audited) (Audited)
Continuing operations
Operating income - - 45,000 -
Administrative expenses (1,384) (202) (2,166) (1,000)
Operating (loss)/profit (1,384) (202) 42,834 (1,000)
Discharge of loan - - 6,400 -
Interest receivable 296 - 187 -
(Loss)/profit on ordinary
activities before taxation (1,088) (202) 49,421 (1,000)
Corporation tax credit/(expense) 322 - (6,752) -
Retained (loss)/profit for
the period (766) (202) 42,669 (1,000)
Per ordinary share (0.3c) (0.1c) 16.8c (0.4c)
Number of ordinary shares 254,274,885 254,274,885 254,274,885 254,274,885
BALANCE SHEET
as at 31 July 2000
31 July 2000 31 July 1999 31 March 2000 30 September
1999
$000 $000 $000 $000
(Unaudited) (Unaudited) (Audited) (Audited)
Fixed assets 38 - - -
Current assets
Debtors 68 56 222 49
Term bank deposits - - 15,500 -
Cash at bank 13,812 205 1,477 216
13,880 261 17,199 265
Creditors: amounts falling due
within one year (4,953) (783) (6,277) (503)
Net current assets/
(liabilities) 8,927 (522) 10,922 (238)
Total assets less
current liabilities 8,965 (522) 10,922 (238)
Creditors: amounts
falling due (700) (32,900) (1,891) (33,400)
after more than one year
Net assets/(liabilities) 8,265 (33,422) 9,031 (33,638)
Capital and reserves
Called up share capital 22,203 22,203 22,203 22,203
Share premium account 53,045 53,045 53,045 53,045
Profit and loss account (66,983) (108,670) (66,217) (108,886)
Shareholders' funds
(including non-equity
interests) 8,265 (33,122) 9,031 (33,638)
CASH FLOW STATEMENT
for the four months ended 31 July 2000
4 months 4 months 6 months 12 months
ended ended ended ended
31 July 31 July 31 March 30 September
2000 1999 2000 1999
$000 $000 $000 $000
(Unaudited) (Unaudited) (Audited) (Audited)
Net cash (outflow)/
inflow from
operating activities (631) (120) 43,351 (946)
Interest received 326 - 157 -
Corporation tax payments (2,392) - - -
Fixed asset additions (38) - - -
Cash (outflow)/inflow
before use of liquid
resources and financing (2,735) - 43,508 (946)
Management of liquid
resources
Term bank deposit 15,500 - (15,500) -
Financing
Issue of zero coupon
loan stock - - 500 1,000
Repayment of zero coupon
loan stock - - (27,500) -
Increase/(decrease) in cash 12,765 (120) 1,008 54
RECONCILIATION OF NET CASH FLOW MOVEMENT TO MOVEMENT IN NET FUNDS/(DEBT)
4 months 4 months 6 months 12 months
ended ended ended ended
31 July 31 July 31 March 30 September
2000 1999 2000 1999
$000 $000 $000 $000
Increase/(decrease) 12,765 (120) 1,008 54
In cash for the period
Issue of zero coupon
loan stock - - (500) (1,000)
Repayment of zero
coupon loan stock - - 27,500 -
Discharge of zero
coupon loan stock - - 6,400 -
Change in net funds/(debt)
in the period 12,765 (120) 34,408 (946)
Net funds/debt) at 31
March 2000 1,047 (33,081) (33,361) (32,415)
Net funds/(debt) at 31
July 2000 13,812 (33,201) (1,047) (33,36l)
Independent review report to Sportech Plc
Introduction
We have been instructed by the company to review the financial information set
out above and we have read the other information contained in the interim report
for any apparent misstatements or material inconsistencies with the financial
information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing Rules
of the Financial Services Authority require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board. A review consists primarily of making
enquiries of management and applying analytical procedures to the financial
information and underlying financial data and, based thereon, assessing whether
the accounting policies and presentation have been consistently applied unless
otherwise disclosed. A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in accordance with Auditing
Standards and therefore provides a lower level of assurance than an audit.
Accordingly we do not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications
that should be made to the financial information as presented for the four
months ended 31 July 2000.
PricewaterhouseCoopers
Chartered Accountants
Edinburgh
24 October 2000
Press enquiries:
David Ovens, Company Secretary (0131) 557 4114