12 May 2011 07:00
Sportech PLC ("Sportech" or "the Group")
AGM and Interim Management Statement
At today's Annual General Meeting of Sportech PLC, one of the world's leading suppliers and operators of pool/tote betting, Roger Withers, Non-Executive Chairman, will make the following statement:
"Trading for the current financial year has started well and we are pleased to report that the Group is performing in line with the Board's expectations. The Group is highly cash generative, and continues to focus on debt reduction whilst investing in selective business development opportunities.
Sportech continues to make good progress with the integration of Scientific Games Racing (now renamed "Sportech Racing") into the Group. As detailed in the Annual Report and Accounts issued on 24 March 2011, an Interactive Products and Services division was recently established to focus on the global online racing market. This division will augment Sportech's leading offline market position where the company processes over £8.0 billion of bets annually.
We are already seeing the benefits of establishing this division, and I am pleased to report that we have been awarded the contract to provide interactive products and services to Balmoral Racing Club and Maywood Trotting Association, Illinois, USA, where they operate two year-round harness racetracks and an off track betting network. These services, which will commence in June, will include an online wagering platform, interactive voice response betting system, technical support and customer service, as well as a full service marketing and player rewards component. We will look to add further contracts in due course.
The $1.5m refurbishment programme to improve Sportech Racing's retail betting venues in Connecticut, together with operational enhancements, commenced in January 2011. This has proceeded to plan and within budget, and is nearing completion. We have already seen a positive contribution from this initiative, most notably at The Kentucky Derby and Oaks race days at Churchill Downs which were run on 6 and 7 May 2011, and we are pleased to report that wagering volumes ("handle") in Connecticut exceeded $4.6million, the highest level since the comparable days in 2008 and a 6.5% increase on 2010.
The Football Pools business is performing in line with management's expectations. The recently announced deals to extend the distribution of the suite of football pools products will further strengthen the business. These deals include distribution onto Ladbrokes.com and into bookmaking shops in the UK with Jennings, Better and Chisholms, together with the reciprocal football pools sharing agreements with Phumelela Gold in South Africa, which is expected to commence in August 2011. Combining these with the significant strides made in extending the opportunities to play the Classic Pools game and thereby increase the average spend per player is expected to produce tangible benefits in the second half of this year.
Our e-Gaming business continues to trade in line with our expectations, whilst we also focus on the impending transfer of our customers and products to Playtech gaming software. This will commence next month, and continue through to the final quarter of the year as we transition our various product offerings to a single platform, single wallet approach.
The Group has made good progress during the period and the Board looks forward to the future with confidence.'
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For further information, please contact:
Sportech PLC 020 7268 2400
Ian R Penrose, Chief Executive
Steve Cunliffe, Finance Director
Pelham Bell Pottinger 020 7861 3232
David Rydell / Emma Kent / Rosanne Perry