17 May 2016 07:00
17 May 2016
AGM Trading Update
Sportech PLC ("Sportech" or "the Group")
In advance of the Group's AGM at 10.00am today, Sportech PLC, one of the world's leading pool betting organisations, issues the following trading update for the period from 1 January 2016 to 16 May 2016.
Group Overview
The Group has seen a positive start to 2016, trading in line with management expectations, having made some significant operational improvements and seen a number of new customer wins.
On 4 May, we were pleased to announce that the Court of Appeal Judges ruled unanimously in our favour in the Group's appeal case relating to a £97m VAT repayment claim on the "Spot the Ball" game. Following this ruling, on 13 May, Her Majesty's Revenue and Customs ("HMRC") informed Sportech that it has asked the Court of Appeal for permission to appeal to the Supreme Court against the decision. Sportech has been advised that it should expect to hear whether HMRC have been granted the right to appeal by the Court of Appeal within two weeks.
Sportech Racing and Digital
Sportech Racing and Digital has had an encouraging period to date in 2016. The investment that has been made over recent years in upgrading our technology has brought in new business, and the opening of our office in Singapore has started to deliver results in a region where we have previously had few customers. We have just secured a new contract to deliver a full suite of wagering systems for the Macau Jockey Club, in addition to the recently announced new system sales in Malaysia and Vietnam. Furthermore, we have shipped over 400 new terminals to Tabcorp, our existing customer in Australia.
Operationally, our technology has been installed, and we opened for wagering at our two newest North American customers, Lone Star Park and Remington Park. In addition, our technology is now available across racetracks in the UK to process all Tote wagering, and we were pleased to operate at the Cheltenham Festival for the first time this year.
Bump 50:50 continues to make encouraging progress, growing its market share in the evolving area of providing technology for in-stadia electronic lotteries. Bump has added 7 new customers to its roster including the Jacksonville Jaguars (NFL), Dallas Stars (NHL) and San Diego Padres (MLB). Bump 50:50 remains on target to deliver profits in 2016 for the first time in its short existence.
Sportech Venues
It has been a solid start to the year for our Venues business, with progress in several areas. Of particular note, Internet wagering on MyWinners.com is up 17% compared to the same period last year, and we have seen significant improvements in food, beverage and wagering revenues at our flagship venue in Bradley, Connecticut. We will shortly be commencing the construction of our venue in Stamford, which will be the first sports bar, restaurant and wagering facility in that major city, close to the New York border. Our first venue in California opened in San Diego in January and we are currently experiencing an upturn in food, beverage and wagering revenues after a slow but steady start in establishing the new concept. Furthermore, our wagering business in the Netherlands has experienced growth for the first time in a number of years, with handle up 10% on the same period last year.
Football Pools
The Football Pools is performing in line with management's expectations. The modernisation project, which has been ongoing for a number of years, is on schedule to be completed within the next six weeks. The business is now well placed to take advantage of the significant technological and operational improvements made throughout this modernisation process as the business finally completes its shift from a paper based and operational orientated business to a marketing and technology driven sports gaming business. We launched The Football Pools App in March and intend to broaden our distribution into retail later this year.
Board Change
Peter Williams has informed the Board that he will not be standing for re-election as a Non-Executive Director at the Company's AGM today. As a consequence, Peter will leave the Board with effect from the AGM and the Company proposes that Resolution 3 will no longer be put to shareholders. We thank Peter for his counsel over the past 5 years and wish him well for the future.
AGM and Results
The 2016 Annual General Meeting will be held at the offices of Olswang LLP, 90 High Holborn, London, WC1V 6XX today at 10.00am.
The Group will announce its Interim Results on 24 August 2016.
- Ends -
For further information, please contact:
Sportech PLC 020 7268 2400
Ian R Penrose, Chief Executive
Mickey Kalifa, Chief Financial Officer
Brunswick Group LLP 020 7404 5959
Mike Smith and Stuart Donnelly
sportech@brunswickgroup.com
Investec Bank PLC 020 7597 4000
Patrick Robb
Henry Reast
Peel Hunt LLP 020 7418 8900
Dan Webster
Adrian Trimmings
George Sellars