The group agreed a revised sale price of $ 6 million for its New Haven property, $ 675,000 less than previously agreed
PLC () saw its shares decline after its disposal program hit a small bump in the road.
The betting technology business announced that the previously announced conditional sale of the group’s property in New Haven, Connecticut, has been renegotiated for $ 6.75 million. The new retail price is $ 6 million.
The company said in its 2020 Pre-Close Trade Statement that Adjusted Adjusted Earnings (EBITDA) for the full year is expected to be in line with Board of Directors expectations. The Group’s cash position at the end of 2020 was slightly better than expected at around £ 10.2m.
Sportech is continuing to advance the Global Tote deal with BetMakers and is also advancing the transition of the Bump 50:50 business to Canadian Bank Note Limited. Both transactions are expected to close in the first half of this year and, along with the sale of the Connecticut property, should raise £ 36.1 million for the company.
“The group has historically been reliant on the participation of live viewers in sporting events that appear to have been badly affected by the global pandemic. Therefore, we took the necessary steps to protect the group during the reporting period. Sportech has provided key performance metrics for 2020 – namely, generating cash from operations, reducing investments and providing a lower operational cost base for the future – which has resulted in little cash outflow since the COVID-19.2 outbreak, revealed Richard McGuire, chief executive officer of Sportech, in the statement.
“Following the corporate activities announced in recent months, the corporate structure and business will adjust in fiscal year 2021. We will continue to focus on our US headquarters in Connecticut, where management and staff remain fully motivated, in addition to our Connecticut games part of the expanded US gaming solution to be neighbors, “he added.
Broker Peel Hunt repeated his buy recommendation after updating Sportech with a price target of 40p.
In a previous announcement, it had found that following the outsourcing of various businesses for sale, the balance sheet shows cash at 24p per share.
Sportech stock is currently trading at 30p, down 7.1%.
“Management works with shareholders to evaluate the optimal use of capital. Adding the potential for ROI to shareholders to the option value of the Connecticut Sports Betting Opportunity supports our reiteration of our Buy recommendation and our 40p price target, ”it said.
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