Sportech Plc has delivered better than anticipated 2020 financial performance, offsetting the COVID-19 headwinds severely impacting global horseracing events and fixtures.
Publishing its full-year 2020 results, the LSE-listed wagering and racing systems provider saw its group revenues fall to £20 million, down 41% on corresponding FY2019 results of £34 million.
“COVID-19 severely impacted the business resulting in a 28% decline in total retail betting handle versus 2019, mitigated to an extent by a 72% growth in online handle,” Sportech revealed in its performance breakdown.
Countering COVID-19 challenges during 2020, Sportech operated a group-wide efficiency programme, focusing the firm on growing its cash effective units, which in-turn resulted in the company increasing its cash balance to £17 million (FY2019: £13m).
In addition, Sportech underlined that it achieved its strategic priorities, including agreeing to sell its Global Tote Business to BetMakers and Bump 50:50 in-stadia wagering systems to the Canadian Banknote Company.
Combined with the disposal of its freehold property in New Haven (Connecticut), Sportech estimated that it will secure a £36 million cash contribution from its transactions.
Settling its FY2020 accounts, Sportech reported a better than anticipated adjusted EBITDA loss, maintained at £2.3 million (FY2019: +£1.9m).
Absorbing costs from its discontinued operations, Sportech recorded a statutory loss for the year of £12.8 million (2019: £14.5 million)
“Despite the challenging global environment, our performance in 2020 was better than initially forecast in March 2020, with Sportech delivering on key 2020 performance metrics, namely cash generation from operational activities, effective capex management, and delivery of a more efficient lower operational cost base going forward, resulting in only a modest cash outflow since the outbreak of COVID-19,” said Sportech CEO Richard McGuire.
“We continue to evaluate further investment prospects within the Connecticut Venues business to support potential expanded gaming opportunities. Management and personnel in our US headquarters in Connecticut remain fully motivated to be part of that state’s expanded gaming solution.”