Sportech bullish on growth after ‘significantly’ cutting costs in FY2022

2022 figures, where Sportech reported 'strong' results
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In a message to shareholders, Sportech has outlined its ambitions for 2023 following its recent ‘strong’ operational performance across the board.

Publishing a pre-closing update of FY2022, the lottery and betting technology firm has highlighted its healthy GGR and solid growth in F&B revenues as reasons for optimism.

Furthermore, the group noted a ‘significant’ reduction in operational costs which has aided expectations that FY2022 adjusted EBITDA will be reported ‘ahead of market consensus’.

2022 proved to be a significant year in many aspects for Sportech as other notable moves included the $14.5m sale of its Leidsa lottery contract to Inspired Entertainment.

There were also a couple of notable departures from the firm including CEO Andrew Lindley and CFO Nicola Rowlands.

“The group continues to evolve and deliver new growth opportunities,” said Richard McGuire, Executive Chairman. “We are strengthening relationships with our betting partners and aggressively reshaping non-operational costs to align with group scale.

“The outlook for 2023 and beyond is very positive. We will continue to discuss the future business structure with key shareholders to ensure alignment with the Board on objectives and direction for the divisions and group.”

Additionally, Sportech maintains that year-end net cash ‘remains healthy’, giving potential to return further capital to shareholders in H1 2023 (2022: 7p of cash per share was returned to shareholders).

The 2022 Preliminary Results are slated for release in April.