Sportech PLC - Board Changes & Strategic Review

RNS Number : 9663Q

Sportech PLC

18 September 2017

 

Sportech PLC - Board Changes & Strategic Review: 

18 September 2017

Sportech PLC ("the Company") announces that it is undertaking a comprehensive review of the business and the capital structure, with all options to optimise value for the benefit of shareholders under consideration.  

Ian Penrose, CEO and Mickey Kalifa, CFO have informed the Board of their intention to resign from their current roles. Ian will remain with Sportech until 31 December 2017. Mickey's resignation from the Board is effective as of today but he will remain with the company until 31 October 2017.  Ian and Mickey will assist in an orderly transition in the coming months.  Richard Cooper, currently Chair of the Audit Committee, will assume oversight of the finance function.

This follows a successful turnaround in the business under their leadership, in which the Company secured £97m gross receipt from its VAT litigation case, modernised and sold the Football Pools, repaid £65m of debt and returned £21m to shareholders with an anticipated substantial distribution to follow from the Group's £64m net current assets as at 30 June 2017.

The Company will provide an update on the strategic review and the future management structure with the Group's trading update on November 9, 2017.

Richard McGuire, non-executive Chairman of Sportech, commented: "We would like to thank Ian for the tremendous job he has performed at Sportech. He presided over the transformation of the Company from a UK focused business into a respected, fully licensed and regulated global gaming technology supplier and gambling operator in the US with a strong balance sheet".

"Mickey led a remarkable transformation in the company's financial strength as CFO and previously when Corporate Development Director, in prominently driving Sportech's 

global expansion. On behalf of the Board, I would like to thank him for his work over many years and wish him continued success in the future".

"As Chairman, I will be leading the strategic review process to ensure that the best path forward is delivered for shareholders".

Ian Penrose commented: "I have enjoyed my time at Sportech in which the company has enjoyed a transformational period from a rapidly, and many thought terminally, declining UK business with debts exceeding £112m and 5x leverage, into the business it is today. We stated two years ago, when the share price was 65p and we had £65m of debt that we would deliver growth in shareholder value. I am therefore delighted that we have delivered a £150m net turnaround in the financial position of the Group. This includes the return of £21m to shareholders, the elimination of the debt and the current substantial cash, resulting in a share price that has increased by around 50% over these two years. In addition, Sportech has a great North American based business with both organic and strong regulatory growth opportunities."

Mickey Kalifa, said: "I have been with Sportech for eight years and have thoroughly enjoyed my time at the company and driving the Group's successful financial turnaround. However, I believe it is time to move to the next stage of my career. I am very confident that Sportech will continue to deliver value for shareholders and customers alike."

For further information, please contact:

Sportech PLC	Tel: [phone]
Richard McGuire, Chairman Ian Penrose, Chief Executive
Brunswick Group LLP (Financial PR adviser to Sportech)	Tel: [phone] [e-mail]
Jonathan Glass, Stuart Donnelly

 

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