1 Nov 2017 10:27
For immediate release | 1 November 2017 |
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION
Sportech PLC
("Sportech" or the "Company")
Update re Compound Interest Claim
Supreme Court rules taxpayers not entitled to compound interest on repayments of overpaid VAT
Sportech PLC notes that the Supreme Court has today ruled in favour of HM Revenue & Customs ("HMRC") and against Littlewoods Limited and others in respect of the latter's claim for compound interest on repayment of overpaid VAT.
In December 2016, Sportech won its eight-year legal process to reclaim £97m of VAT overpayments. In 2009, Sportech had also submitted a claim to the High Court that could entitle it to receive compound interest rather than simple interest on the amount of overpaid VAT. Appeals were also submitted to the Tax Tribunal. The compound interest claim and Tribunal appeals have been on hold pending today's Supreme Court ruling in this precedent case.
The Board of Sportech is disappointed by today's judgment. The Board and its advisers will review the detail of the judgment to consider its impact on Sportech's High Court claim and Tribunal appeals, and will update shareholders in due course.
Richard McGuire, Chairman of Sportech, commented: "Whilst this Supreme Court ruling is disappointing from the perspective of our own compound interest claim, it does not affect the operational progress at the Company, our growth opportunities or our ongoing strategic review.
"Following preliminary approaches to acquire the Company, we initiated a Formal Sales Process in October and, having signed several non-disclosure agreements to date, we will be engaging further with interested parties in the coming weeks. We will provide an update on this process within a scheduled trading update on Monday."
The Company's trading update, along with a progress update on its strategic review, will be announced on Monday 6 November 2017.
- Ends -
Contacts:
Sportech PLC | Tel: +44 (0) 20 7268 2400 |
Richard McGuire, Non-Executive Chairman Ian Penrose, Chief Executive Officer
| |
Canaccord Genuity Limited (Financial adviser to Sportech) | |
Chris Robinson | Tel: +44(0) 20 7523 8000 |
Miles Cox | |
Mike Kogan | Tel: +1 416 869 7368 |
Peel Hunt LLP | Tel: +44 (0) 20 7418 8900 |
(Corporate broker to Sportech) Dan Webster George Sellar | |
Buchanan | Tel: +44 (0) 20 7466 5000 |
(Financial PR adviser to Sportech) Henry Harrison-Topham Mark Court Jamie Hooper
| sportech@buchanan.uk.com |
Notes to Editors:
About Sportech
Sportech PLC provides and operates technology solutions for some of the world's best-known gaming companies, sports teams, horse and greyhound racetracks, as well as owning and operating its own gaming venues in Connecticut, USA and the Netherlands under exclusive licences.
The Company a leading global pari-mutuel betting technology company focusing on highly regulated markets worldwide. It has more than 27,000 betting terminals deployed to 400 clients across 37 countries including those in the USA, where it operates under 26 licenses across 37 States and processes approximately US$11 billion of bets annually. The Company has invested over US$50 million in developing its technology services to clients and the successful expansion of its leading US gaming Venues in the last five years, resulting in its proprietary Quantum™ product being the most widely deployed pari-mutuel betting system globally.
Sportech is an international company, listed on the London Stock Exchange.