Sportech announces an update

Sportech announced in a pre-close update that 2020 adjusted EBITDA will be in line with management's expectations, adding that capital protection and net cash position have become more important measures in 2020.

The multinational betting technology company plans to announce the final results for fiscal 2020 on April 8, 2021, with year-end cash expected to surpass expectations at £ 10.2m ($ 14m).

Sportech also revealed that it had exited some companies and assets in 2020 and early 2021 in an effort to generate measurable returns for investors.

It will continue to complete the Global Tote deal with BetMakers and to transfer the Bump 50:50 business to Canadian Bank Note Limited, with both transactions expected to close in the first half of 2021.

Elsewhere, Sportech will continue to evaluate further investment prospects within the Connecticut Vaces business to support potential sports betting opportunities.

"The group has historically been dependent on live viewers at sporting events that are obviously heavily influenced by the global pandemic, so we took the necessary steps during this period to protect the group," said Sportech CEO Richard McGuire

"Sportech delivered KPIs in 2020 - namely generating cash from operating activities, reducing capital expenditure and ensuring a lower operating cost base in the future - resulting in only minor cash outflows since the COVID-19 outbreak.

"We look forward to seeing more updates when we release our results in April."

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