Sportech confident of 2017 targets as company begins to hear suitors

Presenting its Q3 2017 trading update (period ending 30 September), London-listed betting systems provider, Sportech Plc has detailed a strong continued momentum for its operations and services, as the company prepares to review initial bids for its outright sale.

Driven by the growth of its ‘Racing & Digital’ division and international venue assets, Sportech would record a Q3 2017 group revenue increase of 7.6% to £18.3 million (Q3 2016: £17.0 million).

Updating the market, Sportech governance is confident of hitting its full-year 2017 corporate expectations, as the company details year-to-date group revenues of £54.7 million.

Detailing corporate highlights, Sportech governance noted the significant uptake of its ‘Bump 50:50’, US and Canada the in-stadia sports raffle product, which recorded increased revenues by 41.5% in Q3, vs Q3 2016, following further partnership signings.

Sportech continues to expand its footprint within US racing, the company stated a strong opening to its enlarged Stamford Connecticut Sports Bar venue.

Updating investors on its planned corporate sale (formal process triggered 19 October), Sportech governance detailed that it has begun to provide potential suitors of the company with access to due diligence information.

Richard McGuire, Non-Executive Chairman of Sportech, commented on the trading update: “The Group has continued to trade well in the first few weeks of the current quarter and the outcome for the full year remains in line with Board expectations. During the coming weeks, we expect to provide a further update on the proposed distribution to shareholders and, at the appropriate time, provide further comments relating to the ongoing Formal Sale Process. Our financial position remains robust, and will benefit further from annualised cost savings of at least £2 million.”

In its trading update, Sportech governance highlighted the firm’s strengthened cash-position, which at present stands at £68 million, with the company holding no long-term liabilities.

Sportech governance aims to conclude opening acquisition discussions by the end of the year, with the company seeking to update stakeholders in January 2018.