AGM Trading Update and Board Changes
31 May 2022
('Sportech', the 'Company' or the 'Group')
AGM Trading Update and Board Changes
Sportech, an international betting and technology business, announces a trading update and Board changes ahead of its Annual General Meeting ('AGM') to be held at 10.30 a.m. today at Shakespeare Martineau, 6th Floor, 60 Gracechurch Street, London, EC3V 0HR.
For the first five months of the year trading has been in line with the Board's expectations. Sports betting continues to experience a high rate of growth and should see betting handle in the Group's Connecticut Venues come close to that of pari-mutuel for the full year. The pari-mutuel wagering and food and beverage trade continue to feel the effects of the COVID-19 pandemic, with trade remaining below the 2019 full year highs. Record online growth in pari-mutuel betting seen during the pandemic has receded slightly as the effects of new forms of online gambling in Connecticut has inevitably impacted the discretionary gambling dollar available to historic Sportech products. However, the introduction of sports betting has been very positive, and the Board are confident that the Company will achieve the projected overall improvement in the Venues business to support a positive Group EBITDA this year.
Andrew Lindley will step down from his role as Chief Executive Officer and therefore will not stand for re-election as a Director at the AGM today. Accordingly, the Company has withdrawn that proposed Resolution. Andrew will continue to support the Group in concluding various current initiatives in the coming months. The withdrawal of the Resolution does not affect the validity of any proxy votes already submitted in respect of the remaining resolutions to be proposed at the AGM. The numbering of all other proposed resolutions at the AGM remains unchanged.
The Board would like to thank Andrew for his professionalism and services to the Company during his tenure as the CEO.
Richard McGuire, current Non-Executive Chairman, has been appointed Executive Chairman, effective immediately. Mr McGuire shall receive no fixed compensation for the role, however it is anticipated he will participate in a performance only incentive, directly linked to significant Group value creation.
As announced 27 April 2022, the Group confirms that a payment of 7p per share has been made today to all registered shareholders on the register at 6 May 2022, the record date. The aggregate payment by the Group was £7,000,000.
Notice of Interim Results
The Group will release its interim results for the six months ended 30 June 2022 on 1 September 2022.
Richard McGuire, Executive Chairman
Clive Whiley, Non-Executive Director
Nicola Rowlands, Chief Financial Officer
Peel Hunt (Nominated Adviser & Broker)
Tel: +44 (0) 20 7418 8900
The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU No. 596/2014) (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Notes to Editors:
Sportech is a technology supplier and operator in the gambling market with two core businesses: A digital omni channel platform for gaming verticals including its own in-house lottery module as its B2B offering. In B2C, the Company operates Sports Bars and other venues in the State of Connecticut USA where it deploys its exclusive licence to offer pari-mutuel wagering in the State and a distribution agreement with the Connecticut Lottery Corporation to offer sports betting in the State. It also has the exclusive licence to operate pari-mutuel betting online in Connecticut, which it does under the MyWinners.com brand, and a general licence for pari-mutuel betting online across the USA.