Sportech PLC
28 June 2007
Sportech PLC (the 'Company')
AGM Statement
At today's Annual General Meeting of Sportech PLC, the UK's leading football
gaming business, Piers Pottinger, Chairman, will make the following statement.
'Good progress has been made in the first six months of the year. Trading is in
line with internal and market expectations and the Board enters the second half
of the financial year with confidence.
The Company's strategic review has been completed and implementation plans are
progressing well. Importantly, during the period, the company entered into an
agreement with Ladbrokes plc to acquire its Vernons branded football pools
business, a merger that will create a larger pools business with significant
customer and operational benefits. The matter has been referred by the Office of
Fair Trading to the Competition Commission and since April 2007, the Board has
been engaging with the Competition Commission and will continue to offer its
full support and co-operation during its consultation process. Sportech will
make a further announcement on the proposed acquisition once the Competition
Commission issues its decision, which is expected before the end of October
2007.
The Football Pools business continues to trade in line with expectations,
building upon the improvements made last year. The E-gaming business, comprising
online casino, poker, bingo and fixed odds games, is trading significantly ahead
of last year. This gives the Board confidence for the launch of the online
football business, commencing in August.
The Company is making significant progress on the three key foundation areas of
the business: product, technology and distribution.
Good progress is being made on product development, as we look to expand our
range of games to include content rich, football predictor and community
products. These developments are on budget and on time, with the initial launch
of the first new product anticipated for the beginning of the 2007/2008 football
season. Subsequent new products will be rolled out during the remaining nine
months of the season.
The recently signed technology and distribution partnerships with Orbis and
Scientific Games are maturing well and very real significant progress is being
made on the updating of the technology. The introduction of new back-end
technology to Sportech's operations is paramount to the success of the company
and the Board is delighted that the upgrade and integration is on time and on
budget. It is anticipated that the migration will initially commence in August,
with subsequent releases thereafter, and is expected to be completed in the
Spring of 2008.
The Company continues to explore both domestic distribution, and international
expansion opportunities, and is making good progress identifying potential
targets. Continued progress with product developments and technological
improvements remains key to facilitating many of the distribution opportunities
in order to broaden the customer base.
Sportech has successfully consolidated its operations into one building,
realising operational and communication benefits, and cost savings as a result.
The Company continues to make good progress in debt reduction and is committed
to strengthening its Balance Sheet.
We continue to make good progress following the completion of our strategic
review and look forward to the future with confidence.'
ENDS
For further information:
Sportech PLC
Ian Penrose, Chief Executive 0151 288 3561
Bell Pottinger Corporate & Financial
David Rydell / Emma Kent 0207 861 3232
This information is provided by RNS
The company news service from the London Stock Exchange
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