Betting technology group Sportech saw its revenues drop during the first half of 2020, down to £20.2m from £33m the previous year.
After making what it described as a “good start” this year, the coronavirus pandemic which prompted a profit warning had a major adverse impact due to the group’s reliance on sporting events to generate revenue. Gross profit was down to £14.4m (H1 2019: £23m) while losses before tax were £10.7m, compared to £2.5m a year ago.
Sportech stated that its focus on operational efficiency and cash generation and online growth during the period helped see the group’s net cash position reduced by a “relatively modest” £1.4m from the end of February 2020, ending the period with a net cash position of £9.6m.
Richard McGuire, CEO of Sportech, said: "2019 marked a year of operational improvement and a serious motivation to strengthen digital capabilities. 2020 began well, however, as a business primarily dependent on sporting events taking place, the impact of Covid-19 clearly affected performance.
“The group enhanced and diversified its client base further through record new and extended client agreements during the period, providing a realistic prospect for incremental growth in 2021. The board's focus remains absolute in creating tangible long-term value for shareholders.”
