Sportech FY 2023 Annual Report and Accounts Released
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.
