The Sportech Group saw revenue heavily impacted by Covid-enforced closures in 2020, but made progress in ongoing restructuring and online-focused efforts.
The company recorded £45.7m in overall revenue for the full year to 31 December 2020, a 29% drop on 2019. Continuing operations saw a larger 41% decline to £20m as Covid-19 impacted trading, whilst revenue from discontinued businesses fell 17% to £25.8m.
In the period Sportech executed agreements to sell its Global Tote Business to BetMakers Technology Group; it’s Bump 50:50 vertical to an undisclosed entity; and dispose of a freehold property in New Haven, Connecticut.
The sales are estimated to provide new cash of £36.1m upon completion, with all three expected to close in H1 2021.
The organisational streamlining procedures will enable Sportech to focus more readily on its core operations, including an online vertical that saw rapid growth in 2020. The group’s retail online betting handle grew by 72% in the year, whilst retail handle fell 28% due to Covid-enforced venue closures.
Sportech CEO, Richard McGuire commented:
“Despite the challenging global environment, our performance in 2020 was better than initially forecast in March 2020, with Sportech delivering on key 2020 performance metrics, namely cash generation from operational activities, effective capex management, and delivery of a more efficient lower operational cost base going forward, resulting in only a modest cash outflow since the outbreak of COVID-19.”
Looking forward the company is aiming to leverage its newfound streamlined operational structure to deliver strong shareholder capital returns, and continue to push for inclusion in Connecticut’s gaming expansion plans.