Rumours of a possible takeover of gambling outfit Sportech (SPO) appear to have died away. Chief executive Ian Penrose says he has considered approaches for the group, as well as disposing of its football pools division but, as yet, no deal has been struck. For now, Mr Penrose is taking a business-as-usual approach, but says he won't hesitate to take "the actions required to deliver value to shareholders".
Let's start at the top. The drop in group revenue last year was largely explained by a reduction in customers playing through the football pools business as it undergoes a significant restructuring. This dragged revenue there down 11 per cent to £33.8m. Extreme winter weather in Connecticut and a year-long closure of an important Jai-Alai sports venue for refurbishment then weighed on cash profit, bringing the total down to £23.1m from £24m.
There's no update yet on the possible £97m VAT refund from HM Revenue & Customs, either. An appeal hearing is scheduled for 7 and 8 April 2016.
Analysts at Peel Hunt expect adjusted pre-tax profit of £12.3m for 2016, giving EPS of 4.4p, compared with £11.1m and 4p in FY2015.
| SPORTECH (SPO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 50p | MARKET VALUE: | £103m | |
| TOUCH: | 50-52p | 12-MONTH HIGH: | 72p | LOW: 50p |
| DIVIDEND YIELD: | nil | PE RATIO: | 15 | |
| NET ASSET VALUE: | 61p* | NET DEBT: | 46% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 118 | 8.0 | -3.9 | nil |
| 2012 | 108 | 1.3 | 2.6 | nil |
| 2013 | 110 | 5.3 | 1.7 | nil |
| 2014 | 104 | -20.0 | -10.4 | nil |
| 2015 | 100 | 9.7 | 3.3 | nil |
| % change | -4 | - | - | - |
*Includes intangible assets of £163m, or 79p a share | ||||
