Sportech (SPO) has won one battle with the UK Supreme Court and is waiting on another crucial verdict from its US equivalent. The gaming technology company banked £3.1m from HM Revenue & Customs in March, bringing its total VAT reclaim on the Spot the Ball game to £97m, after the UK's most senior judges refused HMRC permission to appeal. Regulatory headwinds have prompted Sportech to transition its business away from the UK, but it is still waiting on a decision from the US Supreme Court on expanding the remit for sports betting.
A delay to contracted sales of its tote systems caused group revenue at constant currency to fall by 7 per cent. Cash profits in the racing and digital division declined by £0.9m to £3.9m.
Analysts called these results “lacklustre” but pointed out a few positives. Bump, which provides in-stadium electronic lotteries to professional sports teams, now serves 48 teams. Playwin, Sportech’s partner in India, commenced betting operations, while a new flagship sports bar opened in Connecticut, in partnership with Bobby Valentine."
Analysts at Peel hunt expect pre-tax profits of £3.5m for the year to December 2017, giving EPS of 1.3p, down from £13.8m and 5p in 2016.
| SPORTECH (SPO) | ||||
| ORD PRICE: | 97p | MARKET VALUE: | £180m | |
| TOUCH: | 97-97.25p | 12-MONTH HIGH: | 109p | LOW: 60p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 4 | |
| NET ASSET VALUE: | 66p* | NET CASH: | £76.2m | |
| Half-year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 (restated) | 34.7 | -0.8 | -0.5 | nil |
| 2017 | 36.4 | -0.1 | -0.1 | nil |
| % change | +5 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of £26.4m or 14p per share | ||||
