NEWS
SOURCE: Press Release
Financial Highlights
* Profit before tax from continuing operations increased by 27 percent to £11.6m (2006: £9.1m)
* Earnings per share from continuing operations of 12.8p (2006: 12.8p, adjusted following share consolidation)
* Net debt (excluding deferred consideration for Vernons pools business ('Vernons')) reduced to £86.5m (2006: £89.9m). Including the fair value of deferred consideration payable to Ladbrokes in December 2008 and December 2009, net debt amounts to £92m
* Successful Placing and Open Offer raising over £41.4m to part fund acquisition of Vernons and provide additional working capital for investment in enlarged Group
* Re-negotiated banking facilities with improved interest rate margins, covenants and repayment terms, providing a more appropriate platform for growth
* Reduction in gearing ratio by over a third, from 77 percent to 49 percent over the last two years
Operational Highlights
* Acquisition of Vernons - which is trading well and being successfully integrated, delivering operational and financial synergies
* Enhanced new products launched including Premier 10, Fantasy Football, predictor games, fixed odds games and relaunch of Spot the Ball
* Significant progress in the upgrade of technology and distribution channels following partnerships with Scientific Games and Orbis
* Signing of a data and marketing agreement to become official licensees of the Premier League and Football Leagues and official partners of Scottish equivalents
* Launch of The New Football Pools brand with full-scale relaunch of the football pools business on target for August 2008
Ian Penrose, Chief Executive of Sportech, said today: "This has been another year of significant progress for the Company, not leastthe realisation of our primary acquisition target, Vernons, acquired at the endof 2007."
"The Vernons business is being successfully integrated and has givenfurther impetus to the ongoing transformation of the business."
"We are focusingon our core football pools business as the platform to develop into a marketleading sport, leisure and gaming business with international reach and havemade significant progress, through investment in products, technology anddistribution, to achieve this objective."
"The rebranding of the football pools, as The New Football Pools has alreadybeen introduced online and remains on target for a full launch across the entirefootball gaming business in August 2008. We look forward with confidence to thefuture."