Sportech (SPO)

Sportech SPO Logo

Provides and operates technology solutions for some of the world’s best-known gaming companies, sports teams, horse and greyhound racetracks, as well as owning and operating its own gaming venues.

6-Nov-2017 – 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.

24-Apr-2018 – 65p – £120.6m – PER 27.1

Final Results For The 12 Months To End December 2017 – Revenues flat with profit from continuing operations up from £0.7m to £1.5m.

Might be OK but the numbers here are just too complicated for me. I am going to, rightly or wrongly, put it on my Avoid list for now.

24-May-2018 – 83.4p – £155.8m – PER 32.3

AGM Statement – Not sure what they’re trying to say here.

Mentioned this previously, this is just too complicated for me. Already on my Avoid list, I am now going to cease coverage altogether.

PPPR Session Banner