The board of Sportech Plc remains confident that, in its pre-close 2020 trading statement, it will deliver its full-year 2020 EBITDA results in line with corporate expectations. The company also indicated that it has retained its operational efficiencies across its core business verticals, despite persistent COVID-19 headwinds.
Sportech focused its 2020 strategy on capital preservation and strengthening the company’s net cash position in the face of unprecedented trading challenges.
Ahead of prior expectations
As a consequence, the provider of wagering and racing systems stated that its final cash balance for the group-year will be retained at $14 m ahead of prior expectations.
In 2021, Sportech shifted its focus to complete BetMakers‘ approved $56 million purchase, merging with the ASX-listed company to create a new ‘Global Tote.’
Sportech has chosen to exit all non-core business units in support of its BetMakers transaction. The decision has seen the company enter into ‘conditional agreements’ to sell its wagering venues in Connecticut and Bump 50:50 wagering solution in-stadium.
Sale of assets
Sportech expects the sale of its assets to be finalised during H1 trading, with the company accumulating from the transactions a projected net cash sum of $49.3m.
CEO Richard McGuire explained: “Sportech has delivered on key 2020 performance metrics – namely cash generation from operational activities, capex reductions and delivery of a lower operational cost base going forward – resulting in only a modest cash outflow since the outbreak of COVID-19.
“Following corporate activity announced in recent months, the group structure and business will adjust during FY 2021. We remain focused on our US headquarters in Connecticut where management and personnel remain fully motivated to be part of the States’ expanded gaming solution alongside our Connecticut gaming neighbours. We look forward to providing a further update when we report our results in April.”