04 July 2024

Sportech Ltd

(‘Sportech’ or the ‘Group’)

FY 2023 Annual Report Results

Sportech, an international betting and hospitality business is pleased to release its Annual Report and Accounts for the financial year ended 31 December 2023 (‘FY 2023’). These can be located on the Sportech website and on JP Jenkins Sportech site: www.sportechplc.com/investors/results/ www.jpjenkins.com/company/Sportech/

Performance Overview

Despite inflationary challenges, Sportech delivered a healthy performance in 2023, producing strong operational results in line with management expectations Gross Betting handle recorded in the Groups Connecticut Venues business was stable at US$201.5 million with 50.6% of this handle from the recently introduced Sports Betting agreement and the balance from the Groups long term core Tote retail betting. The average annual betting handle per retail location remains an impressive c $20 million. Sportech continues to establish new business partnerships, building on its solid foundation, ensuring a stable and prosperous future for shareholders and stakeholders.

FY ’23 Financial Overview

Revenue                      £26.5m          (2022 £26.3m (restated))

Gross Profit                £14.1m          (2022 £14.2m (restated))

Adjusted EBITDA1     £1.6m            (2022 £ 1.6m )

Loss before Tax         £(0.8)m         (2022 £(0.9)m)

Cash2                          £3.8m             (2022 £ 7.4m )

1 Adjusted EBITDA includes exceptional items
2 Excludes customer balances, note £3.9m returned to shareholders in FY’23
Figures combine continuing and discontinued operations

Potential Assets Sale

Following the financial year, an independent party approached the Company, expressing interest in acquiring certain significant Group assets. While no binding offer has yet been agreed, any potential offer is expected to include a mix of immediate cash and deferred, non-contingent payments. The negotiations have progressed significantly, although shareholders should note there is no certainty that a binding offer will be presented, nor agreed. Shareholders will be promptly updated as developments unfold regarding this prospective transaction

Corporate Initiatives

Numerous corporate initiatives were evaluated and executed during the year including a share consolidation providing liquidity to smaller investors and a return of capital to shareholders. In aggregate a £3.9 million was returned to shareholders in 2023, taking the total returned to £46.4 million since 2021. In 2023, Sportech executed several key corporate initiatives, including a delisting from AIM; a share consolidation aimed at providing liquidity to smaller investors and a capital return to shareholders. £3.9 million of capital was returned to shareholders in 2023, bringing the total returned since 2021 to £46.4 million. These actions are anticipated to significantly reduce Group operating costs moving forward.

Financial Position

The Groups net cash position remains strong at approximately £3.8m at 31 December 2023 (c. 39 pence per share). The Group anticipates returning further capital to shareholders in 2024 and will update shareholders at earliest opportunity.

About Sportech: Sportech is an international betting and hospitality business, known for its innovative solutions in the sports betting industry. With a strong presence across multiple locations, Sportech is committed to providing exceptional service and cutting-edge technology to its customers.

For More Information:

Richard McGuire – Chairman, Sportech Ltd.

Email: [email protected]

Websites: www.sportechplc.com www.jpjenkins.com/company/sportech/

Note: This press release is for informational purposes and may include forward-looking statements that involve risks and uncertainties.

29^th May 2024

Sportech Ltd

(‘Sportech’ or the ‘Group’)

FY 2023 Results pre-announcement

Sportech, an international betting and hospitality business is pleased to announce a pre-close trading update in respect of the financial year ended 31 December 2023 (‘FY 2023’).

Performance Overview Despite inflationary challenges, Sportech delivered a robust performance in 2023, anticipating strong operational results in line with FY 2022 (FY 2022 Revenue: £26.3m, Adjusted EBITDA: £1.6m).   The total betting handle at the Group’s Connecticut Venues business is expected to remain steady at US$201 million, evenly split between sports betting and pari-mutuel products. The average annual betting handle per retail location remains impressive at approximately US$20 million.

Corporate Initiatives In 2023, Sportech executed several key corporate initiatives, including a delisting from AIM; a share consolidation aimed at providing liquidity to smaller investors and a capital return to shareholders. £3.9 million of capital was returned to shareholders in 2023, bringing the total returned since 2021 to £46.4 million. These actions are anticipated to significantly reduce Group operating costs moving forward.

Financial Position The Groups net cash position remains strong at approximately £3.8m at 31 December 2023 (39 pence per share) , offering the potential for further capital returns to shareholders this year.

Looking Ahead  The Group expects to release audited Full Year 2023 Annual Report and Financial Results on July 5^th 2024.

Sportech continues to establish new business partnerships, building on its solid foundation, ensuring a stable and prosperous future for shareholders and stakeholders.

 

About Sportech:

Sportech is an international betting and hospitality business, known for its innovative solutions in the sports betting industry. With a strong presence across multiple locations, Sportech is committed to providing exceptional service and cutting-edge technology to its customers.

 

For More Information:

Richard McGuire – Chairman, Sportech Ltd.

Email: [email protected]

Websites:  www.sportechplc.com   www.jpjenkins.com/company/sportech/

End of Release

Note: This press release is for informational purposes and may include forward-looking statements that involve risks and uncertainties.

Sportech’s 9 Winners Venues along with its online & mobile wagering platform at MyWinners.com, and two Bobby V’s Restaurant & Sports Bar locations delivered the ultimate Kentucky Derby day excitement on May 4.

Throughout the Connecticut estate, customers placed over 200,000 wagers during the day driving betting handle to more than $2.5m.  Standing room only crowds cheered on their favorite horses in the 150^th run for the roses but only one horse could be declared the winner – Mystik Dan.

Sportech’s Executive Chairman Richard McGuire commented, “It was a thrilling race that came down to the wire and showed once again why Kentucky Derby is widely regarded as the premier race in the United States.  Customers who backed the 18-1 longshot Mystik Dan were ecstatic whilst collecting their winnings throughout our various locations.  In addition to the high level of excitement in our retail locations, our online and mobile channels performed well, recording an 11% increase in activity.”

All Winners and Bobby V’s locations will feature the second and third legs of the Triple Crown on Saturday, May 18 when the Preakness Stakes takes center stage and on Saturday, June 8 for the Belmont Stakes at Saratoga.

In the days leading up to Super Bowl Sunday, Sportech Venues became a hub of sports betting excitement as the passion of NFL fans could be felt in our venues across Connecticut.
The Super Bowl was a showdown between the 49ers and Chiefs, and despite the Chiefs’ status as reigning champions, they went into the game as a marginal betting underdog.
For the Big Game itself, our staff processed over 25,500 bets worth in excess of $2.1 million, with an average bet size of $84 per fan, which were handled by our staff on location and lodged with Fanatics Sportsbook.

Despite the Chiefs underdog status, we saw considerable betting support for them as they game drew in, and as Patrick Mahomes threw a thrilling game-winning touchdown it meant that Sportech took a slight loss for the day. Not only was the victory sweet for the Chiefs fans, but also for the numerous Sportech customers who walked away with winnings from their teams victory.

“Super Bowl is always a great time for us,” remarked Paul Dionne, VP of Marketing at Sportech Venues. “Seeing our patrons come together, celebrating wins at our locations, and having so much fun, is testament to the vibrant culture we’re fostering.”

A significant uptick was also seen at Sportech’s leading Food and Beverage venues in Stamford and Windsor Locks, where fans converged to witness the Super Bowl live. This resulted in a notable 13% increase in F&B sales on the day, with the vibrant atmosphere and collective cheers for successful bets enhancing the overall experience.

While condolences were extended to the 49ers fans, congratulations were abundant for the Chiefs on their victory. The entire Sportech team is now looking forward to the next American football season, committed to delivering unparalleled sports betting experiences to their patrons.

As the calendar turns towards the NCAAB championship, known as “March Madness”, Sportech remains focused on exploring growth opportunities within Connecticut’s dynamic sports betting landscape.

The company is also preparing to share its FY2023 trading update with the market and investors in late March, promising further insights into its operations and future plans.

For media inquiries, please contact: [email protected]

About Sportech Venues:
Sportech Venues is a leading provider of innovative sports and gaming entertainment experiences, offering state-of-the-art sports betting and tote betting solutions across Connecticut, USA. With a commitment to excellence, Sportech continues to enhance the fan experience and drive growth in the dynamic world of sports and horse racing wagering.