Overview

Sportech PLC aims to be the pre-eminent supplier of gaming products to the home, where it already enjoys a unique distribution capability and extensive customer base. It will capitalise on the significant growth potential of the Soft Gaming market presented by the development of new media channels, by building on the strength of the famous Littlewoods Gaming brand and its diverse and flexible product range.

Highlights

• Turnover of £254.5m (2003: £157.8m) reflecting significant growth in Internet casino products. Casino stakes are now accounted for on a gross cash basis to ensure consistency with the rest of our Betting business, and comparatives have been restated accordingly.
• Operating profit* increased by 3% to £9.2m (2003: £8.9m).
• Profit before tax* increased by 7% to £5.9m (2003: £5.5m).
• Resilient Football Pools performance, generating operating profit* of £12.9m (2003: £13.0m).
• Improved Betting business performance, with overall operating loss* of £1.0m (2003: loss of £1.6m), reflecting strong growth in gross gaming win (up 74%) across sports betting and casino products.
• Major relaunch of Football Pools with £4.0m advertising campaign to coincide with start of football season.
• Raft of interactive gaming launched on ITV, major new games including ‘X Factor’ and major ITV launch planned for October 2004.
• Earnings per share* of 0.71p (2003: 0.67p).
• Net debt at £114.8m reduced by £4.2m (2003: £119.0m).

*before amortisation of goodwill and exceptional items.