Sportech swings to loss in 2017
Sportech swung to an annual loss after it again wrote down the value of its assets, while its performance so far in 2018 was below its expectations.
Pre-tax losses amounted to £23.2m, compared to a profit of £63.6m in 2016.
The current board recognises stakeholder concern regarding previous investment venture returns and a track record of impairing investments,’ chairman Richard McGuire said. Given an absence of an investment strategy in early 2017, to provide tangible growth opportunities, the board elected to return capital to shareholders thus de-risking investor capital.’
McGuire said continuing with a UK-based management team wasn’t appropriate following the sale of the group’s Football Pools business. Following the announced decisions by UK-based senior executives to leave the now US-focused group, a cost reduction exercise commenced to streamline the UK cost base,’ he said.’I am pleased to report that the board has executed on this plan and has reduced the UK corporate cost base significantly going forward.’