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

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Sportech (SPO)
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