Sportech announces FY 2020 pre-close update
Sportech has announced in a pre-close update that FY 2020 adjusted EBITDA will be in line with the board’s expectations, adding that capital preservation and net cash position became more crucial metrics in 2020.
The international betting technology business plans to announce its FY 2020 final results on 8 April 2021, with year end cash set to be ahead of expectations at £10.2m ($14m).
Sportech also revealed it has exited certain businesses and assets in 2020 and early 2021, in a bid to generate tangible investor returns.
It will continue to advance the Global Tote transaction with BetMakers, and the transition of the Bump 50:50 business to Canadian Bank Note Limited, with both transactions expected to close in H1 2021.
Elsewhere, Sportech will continue to evaluate further investment prospects within the Connecticut Venues business, to support potential sports betting opportunities.
“The group was historically dependent on live spectator attendance at sporting events, which were obviously heavily impacted by the global pandemic, and we therefore took the necessary actions over the period to safeguard the group,” said Sportech CEO Richard McGuire
“Sportech has delivered on key 2020 performance metrics – namely cash generation from operational activities, capex reductions and delivery of a lower operational cost base going forward – resulting in only a modest cash outflow since the outbreak of COVID-19.
“We look forward to providing a further update when we report our results in April.”
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