Sportech upbeat on earnings gain

SPORTECH, the football pools and horse racing group with operations in the UK and US, has reported an increase in full-year underlying earnings.

The London-based company with its UK operational base in Walton, Liverpool – the former Littlewoods business – said revenues rose from £107.7 to £110.3m and earnings before interest, tax, depreciation and amortisation (EBITDA) were up to £26m from £25.2m.

But operating profits were lower at £8.9m, down from £10.3m. The pre-tax figure was £5.2m, up from £1.3m which reflected higher finance charges in the prior year.

Chief executive Ian Penrose said: “The group has delivered a good set of results in a transformational year. We have strengthened the management team and board, invested cash of £22m in the group and completed a number of corporate transactions to increase our focus and operational capabilities.

“Our US-based businesses now account for 60% of group revenues, and we are particularly pleased with their strong profit growth, driven primarily by the technological investment in our core racing and digital business. Since the turn of the year, we have launched Connecticut’s only legal website for betting on horseracing and augmented our retail estate by opening a 10,000 sq ft innovative sports bar and betting venue in Connecticut. The first in a chain of similar venues is to be opened in California later this year.”