Betting technology group Sportech has issued a potential profit warning as its business is hit by the coronavirus outbreak.
Betting companies have suffered immensely in recent days as shares across the globe have plummeted due to the cancellations of nearly all sports fixtures in all continents. However, virtual sports operators are likely to continue operations as they are less affected.
Sportech said: “Trading in the early months of 2020 started satisfactorily, but in recent days, given the group’s reliance on sporting events to generate revenue, trading has been impacted by global sporting authorities and governments postponing or cancelling sporting events owing to the pandemic.”
The company said it expects trading to continue to be “materially impacted.” However, given the current uncertainty, the board of directors said it does not believe it appropriate to "provide financial guidance for FY20 at this stage.”
Despite this, the company said it has a stable balance sheet of £11m cash at the end of February and no outstanding debt.
The group added that considering the loss of sports matches until the end of June 2020, it estimated a reduction of £3.5m in the group’s cash position. The company is expected to release its FY2019 on March 19, where profits are expected to be up on 2018 takings.
