Sportech PLC Plans De-listing from AIM Market
Sportech PLC, a US-focused gambling operator with operations in Connecticut and online gaming offerings, has announced its intention to de-list from the AIM market in London.
The company cited significant financial and non-financial burdens associated with maintaining a public listing. Additionally, Sportech reported a narrowed half-year loss and highlighted its focus on improving margins.
De-listing from AIM Market
Sportech PLC has revealed its intention to de-list from the AIM market in London due to the substantial financial and non-financial costs associated with maintaining a public listing. The move aims to alleviate these burdens and enhance net returns and future prospects for the company.
Sportech reported a pre-tax loss from continuing operations of GBP 304,000 for the six months ending June 30, compared to GBP 802,000 in the previous year. The company’s revenue increased by 7.7% to GBP 13.5 million from GBP 12.6 million, attributed to a focus on improving margins. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) also rose to GBP 900,000 from GBP 400,000.
As of June 30, Sportech had GBP 7.8 million in cash, excluding customer balances, which increased from GBP 7.4 million on December 31. However, the company’s cash position decreased to GBP 3.6 million by the end of August due to a GBP 3.5 million return of capital to shareholders.
Sportech will seek shareholders’ approval to cancel its shares from AIM and re-register as a private limited company. Following cancellation, shareholders will be provided with a third-party matched bargain facility to facilitate buying and selling of shares.
Richard McGuire, Executive Chair of Sportech, expressed the necessity of the de-listing decision, citing the financial costs of maintaining a public listing given the company’s scale and the market’s increasing volatility. He described the move as a pragmatic step to address these challenges.
Sportech PLC’s decision to de-list from the AIM market reflects the company’s strategic approach to mitigate financial and operational burdens. Despite this move, Sportech reported improved financial performance, indicating its commitment to enhancing margins and overall profitability. The company’s focus on addressing costs and pursuing pragmatic steps is expected to shape its future prospects in the industry.