Just one company to report on today.
Sportech (SPO) – 101.25p – £187.9m – PER 40.1
Trading Update For The 3 Month Period 1-Jul-2017 To 30-Sep-2017 – Q3 Revenue up 7.6% to £18.3m (£17m last time) – YTD Revenue up 5.8% to £54.7m. As highlighted in August “certain pari-mutuel technology and hardware sales anticipated during the year may be delayed to 2018”. There is an intent to “make a further, and significant, distribution to shareholders this year”, from the capital reserve which is circa £55.6m (30% of Mkt Cap). The outlook is in-line.
On a PER of 40.1 the market may have been expecting more here – Perhaps the significant distribution will be significant enough. Although they could probably could get away with a 20% Special Dividend, I question it’s worth here at this price.
Not much here to excite me here this morning.