AGM and Interim Management Statement

RNS Number : 0536D

Sportech PLC

10 May 2012

 



Sportech PLC ("Sportech" or "the Group")

AGM and Interim Management Statement

Roger Withers, Non-executive Chairman of Sportech PLC, one of the world's leading suppliers and operators of pool and tote gaming, will make the following statement at the Group's AGM later this morning:

"Trading for the current financial year has started well and we are pleased to report that the Group is performing in line with the Board's expectations with operational progress being made in all areas of our business.

The Group remains highly cash generative and continues to focus on debt reduction whilst investing in selective business development opportunities. Net bank debt in the four months to 30 April 2012 has decreased by £4.2m to £55.0m, following the £13.0m reduction in 2011. As previously reported, the Group anticipates refinancing its bank facilities this summer and good progress is being made to this end.

We continue to make solid advances with Sportech Racing, our predominantly North American based gaming business, following its acquisition 19 months ago. In 2011, our retail betting venues and telephone betting business in Connecticut significantly outperformed the industry following an investment programme with enhanced management, reinvigorated customer offering and updated facilities. This outperformance continues in 2012, with betting handle (turnover) up 4.5% on last year, which is double the industry average. The highlight of the racing calendar in North America, the Kentucky Derby, took place last Saturday. The total betting turnover at our venues for that day of $4.0m set an all time high for the Connecticut operation and was up 11% on the previous year.

Trading in our Tote Services division remains encouraging and continued progress is being made in our Interactive Products and Services division, with further contracts to provide interactive tote services to racetracks, expected shortly.

The Football Pools business is performing in line with management expectations. Increasing the number of Classic Football Pools competitions in 2011 has continued to deliver enhanced customer and revenue benefits in 2012. A further expansion of our distribution network has been achieved with a retail distribution agreement with Stan James.

Following the migration of our Littlewoods Casino and Poker business to the Playtech platform and the launch of Vernons Casino and Poker in Q4 2011, we are pleased to report that our e-Gaming business has started the year well, with gross win revenue continuing to be up over 30% year on year following a period of customer recruitment onto this new platform. Our remaining e-Gaming activities, primarily bingo, will transfer onto the Playtech platform later this year as we transition our various product offerings to a single platform, single wallet approach.

We are now able to confirm that a date has been set for the Group's VAT claim to be heard at the First Tier Tax Tribunal in the week commencing 8 October 2012.

The Group continues to prepare for the forthcoming anticipated regulatory change in the key international jurisdictions in which the Group trades and accordingly, we believe Sportech will be ideally positioned to benefit from the opportunities that these changes will deliver.  We look forward to the future with confidence."

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For further information, please contact:

Sportech PLC                                                                                            020 7268 2400

Ian R Penrose, Chief Executive

Steve Cunliffe, Finance Director

Pelham Bell Pottinger                                                                                 020 7861 3232                                   

David Rydell / Emma Kent / Rosanne Perry

 

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