UK-based entertainment and online gambling firm Sportech, intends to ask for shareholder validation to remove its shares from London’s junior Alternative Investment Market (AIM) because of the large burden of sustaining its listing. Additionally, beside this revelation, the firm also reported its profit for the first half of the year ended June 30, which displayed a significantly reduced pre-tax loss due to bigger income.
Maintaining a public listing negatively affects net returns and future prospects:
Commenting on the decision, Richard McGuire, chairman of Sportech, said: “Despite delivering improving operational results announced today, the substantial financial cost associated with maintaining a public listing, given our current scale, and the increasing volatility in the market valuation is adversely impacting net returns and future prospects. Regrettably, in light of these circumstances, we find it necessary to take the difficult but pragmatic step of proposing delisting from the AIM market today.”
Loss before tax:
However, the aforementioned pre-tax loss for the first half of 2023 was 304,000 pounds, which is approximately $378,997, on income of GBP13.5 million, compared to the loss of GBP802,000 for the same period in 2022 on a profit of GBP12.6 million. Additionally, adjusted income prior to interest, taxes, depreciation and amortization, one of the firm’s most cherished metrics that removes outstanding and other “one-off items” increased to GBP900,000 from GBP400,000.
Furthermore, the firm intents to issue a circular to shareholders in the second half of this month where details of its delisting plan and a note from a general meeting will be provided.
Sportech, previously known as Rodime PLC, is a global betting technology business and a trusted name in the global gaming industry with an international footprint, a strong leadership team and a commitment to sustainable, responsible business practices. Spanning B2B and B2C, Sportech clients range from major gaming companies to charitable foundations running raffles at sporting events, to fans placing a wager at one of their venues or via their digital web and mobile wagering platforms.
Additionally, during 2008, the company entered into a strategic partnership with 888sport, which further replaced Cryptologic as the company’s software provider. During 2016 the firm revealed that income before tax reached £13.8 million, compared to £11.8 million in 2015. Also, during the same year, it won a long-lasting battle with His Majesty’s Revenue and Customs (HMRC) over VAT repayments of £97 million on one its games.
What’s more, during March 2017, it reported that “it would give back £20 million to shareholders by way of a Tender Offer to buy back shares.”
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