• 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.
  
  

• Profit before tax from continuing operations increased by 27% 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% to 49% over the last two years.

• Profit after tax for the year of £14.1m (2005: loss of £5.8m).


• Profit after tax from continuing operations increased to £7.6m (2005: loss of £1.7m).


• Net debt at year end reduced by £18.2m (17%) to £89.9m (2005: £108.1m).


• Appointment of new Finance Director and strengthening of management team.


• Business focused and cash generative with principal operations profitable and growth orientated and loss making
  operations eliminated:
  
  – Loss making Bet Direct sold for £12.5m in cash, generating a £10.6m profit on disposal before tax.
  
  – Termination of ITV contract.


• Total earnings per share of 2.38p (2005: loss per share of 0.97p). Continuing earnings per share of 1.28p (2005: loss per share of 0.29p).


• Strategic technology and distribution partnership announced with Scientific Games.


• e-Gaming technology supply partnership with Orbis.


• New brand for the football gaming business to be launched in late 2007.

• Profit after tax including gains from exceptional items of £11.5m (2005:£1.9m).


• Profit after tax from continuing operations increased by 25 per cent to £5m (2005: £4m) .


• Net debt at end June 2006 reduced by 18.4 per cent to £92.3m (June 2005:£113.1m).


• Strategic review continues
  
  
  –Loss making Bet Direct sold for £12.5m in cash.
  
  –Termination of ITV contract and closure of division .
  
• Business strategy refocused on core business of football-related gaming products plus bingo and online casino and poker.


• Littlewoods brand overhaul initiated – new brand to be launched prior to August 2007.


• Earnings per share of 1.95p (2005: 0.34p); earnings per share from continuing operations 0.86p (2005: 0.68p).

• Turnover increased by 50% to a record £497.0m (2003 restated: £330.4m), due to significant growth in Betting products, particularly on-line casino and poker.


• Operating profit before goodwill and exceptional restructuring costs was £16.7m (2003: £19.9m); after adjusting for the £3.2m one-off cost of a Football Pools marketing campaign, profit at this level was £19.9m, in line with last year. Operating profit was £6.3m (2003: £9.5m).


• Profit before tax, goodwill and exceptionals was £9.6m (2003: £13.3m). Loss before tax was £0.8m (2003: £3.5m profit).


• Net debt reduced by £1.9m to £112.8m.


• Earnings per share before amortisation of goodwill of 1.00p (2003: 1.49p). Basic EPS was a loss of 0.56p (2003: loss of 0.04p).


• Major business review completed in March 2005, which has refocused Group strategy and identified annualised employment cost savings of £2.4m, following one-off redundancy costs in 2005 of approximately £1.4m.


• Group’s growth strategy clearly focused on new media betting and gaming including the exclusive interactive gaming deal with ITV:
  
  – Important strategic position established in the new media betting and gaming market, delivering growth and continuous product development.
  
  – ITV and Sportech fully committed to further developing a joint vision for the future with current work focusing on several exciting opportunities including a night-time poker and soft casino games offer.


• Resilient Football Pools business continuing to deliver significant free cash flow.
  
  

• Turnover increased by 6.5% to a record< £207.9m (2002: £195.3m).


• Profit before tax, goodwill amortisation and non-operating exceptionals unchanged at £12.0m; profit before tax £3.5m (2002: £4.6m).


• Operating profit before goodwill amortisation at £18.6m (2002: £20.2m) impacted by costs associated with the development of the Group and lower horse racing betting margins. Operating profit £9.5m (2002: £11.4m).


• Operating cash flow increased to £18.6m (2002: £18.1m).


• Net debt reduced by £6.6m to £114.7m.


• Strong cash flow from Football Pools, supporting increased investment in content delivery and new distribution channels, particularly television.


• Continued progress in development of gaming partnership with ITV:

– delivery of customer account registration technology and initial games on the ITVi service in late 2003;

– exclusive contract with ITV commenced in March 2004; and

– expansion of gaming and betting services underway, with joint consumer launch targeted for Summer 2004.


• Earnings per share (EPS) before amortisation of goodwill of 1.49p (2002: 1.97p). Basic EPS was a loss of 0.04p (2002: profit of 0.49p).

• Profit before tax, amortisation of goodwill and exceptionals increased 69% to £14.0m (2001: £8.3m).


• Profit before tax was £4.6m (2001: loss of £0.6m).


• Turnover increased by 7% to £195.3m (2001: £183.3m).


• Earnings per share, before amortisation of goodwill, increased to 1.97 pence (2001: 1.05 pence). Basic EPS was 0.49 pence (2001: loss of 0.45 pence).


• Operating cashflow increased to £18.1m (2001: £15.7m).

• The football pools business performed strongly with operating profits at £23.2m. There was further stabilisation of the main pools competition that saw average revenues down by 17% compared to the prior year, a lower rate of decline than experienced in previous years.
  
  The business continues to evolve and now more than 68% of entries are gathered by direct methods such as telephone and electronic hand held terminals. Revenues from these direct methods were down just 10.5% compared to the previous year.

• Turnover over the 15 month period under review of £63.0m was comprised entirely of Littlewoods Leisure turnover for the 16 week period post acquisition.


• The operating profit of £25.0m shown under continuing operations reflects the £27.8m settlement from Seagate, less administrative and legal costs. Profit before taxation is further enhanced by the £3.9m discount on redemption of outstanding loan stock.


• Basic EPS increased to 4.79 pence from a loss of 0.29 pence in 1999.

• Adjusted profit before tax* from continuing operations increased by 50% to £7.8m (2007: £5.2m).



• Adjusted earnings per share from continuing operations of 5.5p (2007: 6.1p, adjusted following share consolidation).



• Net debt reduced by £3.2m to £83.3m (31 December 2007: £86.5m)..



• Gross win revenues increased by £8.1m (28%) to £36.6m.

OPERATIONAL HIGHLIGHTS

• Integration of Vernons is ahead of schedule and the business is trading well, delivering operational and financial synergies which have exceeded management’s initial forecasts.



• Global marketing and distribution agreement signed with 888 Holdings Plc (“888”) to promote Sportech’s football pools business and other e-Gaming businesses to the UK and worldwide customer base of both companies.



• Launch of The New Football Pools brand with full-scale relaunch of the football pools business on schedule for the new football season this month.



• New and enhanced products being launched, including Premier 10, Footy 15, online Spot the Ball, private leagues and a community based, online football predictor website.



• Technology and distribution partnerships with Scientific Games and Orbis are delivering significant benefits and the upgrade and integration of the technology suite is on schedule to be initially introduced in August.



• Appointment of Will Muirhead as Managing Director of footballpools.com.



• Media and online deals with the Daily Mirror, FootyMad, FourFourTwo and enhancements to Paypoint contract to significantly extend the potential customer numbers through new distribution channels. Further media deals are expected shortly.

* Adjusted profit before tax is profit before taxation, amortisation of acquired intangibles, exceptional costs and other non-cash finance costs .

• Profit before tax for the six months ended 30 June 2007 of £5.2m (2006: £6.1m) is in line with the Board's expectations and reflects the implementation of the Company's turnaround strategy.


• Net debt at end of June 2007 reduced to £87.0m (December 2006: £89.9m): the second half will be impacted by recent rises in interest rate costs.


• Significant progress made on the three major foundations for recovery: products, technology and distribution.


• Enhanced and new products launched - Premier 10, Fantasy Football, predictor games and fixed odds games. Relaunch of Spot the Ball on target for 2008.


• Significant progress made upgrading back-end technology systems following technology and distribution partnership with Scientific Games and e-Gaming technology supply partnership with Orbis.


• Earnings per share from continuing operations of 0.61p (2006: 0.86p).


• Appointment of Jon Holmes as non-executive director; strengthened management team with appointment of Christian Heap, Head of International Development.


• Preliminary clearance received from the Competition Commission for the acquisition of Vernons.
  
  
  

• Profit after tax including gains from exceptional items of £11.5m (2005:£1.9m).
• Profit after tax from continuing operations increased by 25 per cent to £5m (2005: £4m).
• Net debt at end June 2006 reduced by 18.4 per cent to £92.3m (June 2005:£113.1m).
• Strategic review continues
  
  –Loss making Bet Direct sold for £12.5m in cash.
  
  –Termination of ITV contract and closure of division.
• Business strategy refocused on core business of football-related gaming products plus bingo and online casino and poker .
• Littlewoods brand overhaul initiated – new brand to be launched prior to August 2007.
• Earnings per share of 1.95p (2005: 0.34p); earnings per share from continuing operations 0.86p (2005: 0.68p).
  
  

• Turnover of £254.3m in line with last year (2004: £254.5m) with 3% revenue growth in the Betting business offset by the 15% Football Pools revenue decline.
• Operating profit, pre-restructuring costs, 3% lower at £9.1m (2004: £9.4m). Operating profit of £6.6m (2004: £9.1m).
• Profit before tax and restructuring costs of £5.2m (2004: £6.0m). Profit before tax £2.7m (2004: £5.7m).
• Executive team significantly strengthened with appointment of Ian Penrose as Chief Executive.
• Business strategy focused on two core profit generating Divisions: Betting and Football Pools.
• Cost base significantly reduced across Divisions, delivering annualised employment cost savings of £2.7m.
• Good progress in development and integration of Betting products:
  
  –Launch of betdirectcasino.com and betdirectpoker.com.
  
  –Introduction of mobile sports book.
  
  –Further strengthening of content on ITV.
  
  –Littlewoodspoker.com successfully linked to first mainstream television poker programme (ITV Celebrity Poker).
  
• Commercial negotiations with ITV are underway, aimed at improving the ITVi service and establishing a mutually beneficial financial framework.
• Earnings per share of 0.34p (2004: 0.67p).
  
  

• 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).

• Profit before tax* up 30% to £6.1m (2002: £4.7m).
• Turnover up 10% to £106.3m (2002: £96.7m) with a 34% increase in Betting turnover.
• Soft Gaming operating profit* up 9% to £10.7m (2002: £9.8m) after increased revenue expenditure of £2.4m (2002: £1.1m) on Interactive and Retail Developments to drive future growth.
• Betting operating loss* of £1.8m (2002: £1.0m) due to poor horse racing results, as experienced by the industry generally, and increased marketing.
• Earnings per share* up 16% at 0.73p (2002: 0.63p).
• Net debt reduced by £6.3m to £119.0m (2002: £125.3m).
  
  

• Turnover up 6% to £96.7m (2001: £91.3m).
• Profit before tax, amortisation of goodwill and restructuring costs increased 44% to £5.6m (2001: £3.9m).
• Earnings per share before amortisation of goodwill 46% ahead at 0.63p (2001: 0.43p).

• Group turnover £91.3m.
• Operating profit after amortisation of goodwill and net interest payable £8.6m.
• Earnings per share before amortisation of goodwill at 0.46p.