Sportech Plc released a Trading Update ahead of today’s AGM, reminding investors about more COVID-19 pandemic impacts and countermeasures pursued by the LSE-listed wagering technology group.
Updating investors, Sportech explained that it had implemented its announced pandemic cost-saving measures during March trading, based on its forecast scenario that global sporting events would be curtailed through the end of June 2020.
Based on the activities performed, Sportech ‘s board anticipates total cash contributions at the conclusion of interim trading to be £8.9 million.
As predicted earlier, after the suspension of the global racing calendar, Sportech stated that pandemic impacts had hit all areas of its business during Q2 trading.
Despite interruptions in its day-to-day operations, Sportech has shifted emphasis to its commercial potential where the company has decided on new deals and expanded contracts with TVG New Jersey, Emerald Downs, Monmouth Park, and Borgata Casino, the US clients.
Meanwhile, Sportech secured the leading foreign supplier of pool systems in the UK for the revamped UK Tote Group, leading the creation of the regional hybrid ‘Superpool’ with Ascot Racecourse and the Hong Kong Jockey Club.
Recent customer wins have seen Sportech sign a new technology deal with the Macau Horseracing Company to update its entire racetrack arrangements to its Quantum systems and wagering platforms.
As global sports returns, Sportech pointed out that it continues to trade with ‘determined vigilance of its cost base’ to better handle phased reopenings of its market networks.
Sportech group chief executive Richard McGuire said: “Despite the unprecedented challenges that have affected us all, I have been humbled and impressed by the universal willingness of Sportech colleagues to support our clients, support our business and support each other.
“The delivery of critical client projects and the securing of a significant number of new contracts in the midst of this global pandemic is testament to the resilience of the Sportech team and highlights the integrity of our people and the Group’s digital strategy progression.
“Challenges obviously remain, especially as our business resumption timetable is governed by external factors. However, as a group, we have no debt, a stable balance sheet and we intend to emerge from this pandemic operationally and technologically stronger.”