Sportech Share Discussion Threads

[trentendboy] 13/3/2014 12:32

Indeed - he would not buy if he were not expecting progress

[nod] 13/3/2014 11:27

Cliff Baty sending the right message buying 33k shares at 89p

[trentendboy] 11/3/2014 19:51

Nice finish. Internal leak.....VAT rebate is ours....

[nod] 11/3/2014 18:49

Re the significant free shares to staff, I would have liked SPO to openly inform shareholders what the specific targets are"subject to continued employment and to the extent total shareholder return and earnings per share targets are achieved."The above does not tell shareholders their eps targets.

[nod] 09/3/2014 22:15

When I thought about the Ian Hogg announcement I wondered if SPO were discussing the sale of football pools to raise cash for US growth. It would explain why Ian Hogg announced he would leave at the end of this year. Pools operations has been his baby since he came to SPO. The US have their own operations people in place. He may oversee them but it is probably a redundant role.While Pools is a cash cow it has some value to others. But it is a sunset business - even online pools and new football related online games has not turned around its steady decline in customers. As the old customers stop playing either involuntarily or voluntarily there are not enough new customers to replace them and the business shrinks. Do you keep it until it has no value or sell it when it has some value?

[trentendboy] 09/3/2014 16:55

I agree with all of that except the pools bit. It is a cash cow and nobody could manage it better. Better to keep milking it and the turn around has been impressive

One reason I bought a lot of these was that pools was declining more solely that believe was priced in and the decline as almost stopped

US business and monopoly positions is worth a lot IMO. Will look to buy more once the vat deal is settled.

[nod] 09/3/2014 02:43

Although the PER is 18 - and that may seem a bit high - it is partly due to SPO's investments in the USA. Their focus has been on US growth rather than US profits.Also, SPO's US licences are valuable and would justify a higher than normal PE. Its exclusive licensing position in Connecticut is valuable. It's gaming licences in other States are valuable. The share price rose well from January 2013 after the acquisition of ebet in the US and news of the exclusive Connecticut licence. I think the combination of these factors justifies a higher than average PE. I don't think a VAT win is priced in. A win would see the share price rise sharply and stay there. A loss would see it fall sharply but a fall may only be temporary as the fundamentals are looking pretty good and a PE of between 15 and 18 is not outrageous given SPO's US position.SPO could sell the football pools business and focus on growing the US facing businesses.

[trentendboy] 08/3/2014 07:37

Cannot disagree. Good IC update.

[nod] 08/3/2014 01:32

Sportech tax decision dueGaming group Sportech (SPO) awaits a final decision on its five-year dispute with the taxman over a £95m rebate next month. Last March the judgement went in Sportech's favour, but an appeal by HMRC means a resolution is not due until April. When we asked if the cash windfall could prompt a maiden dividend for shareholders, chief executive Ian Penrose would only stress that there are "a number of options on the table".Sportech made three-fifths of its sales in North America last year, and this share is only like to grow. The group has launched the only legal website for horsebetting in Connecticut since the year-end, and its exclusive licensing position in the US state has also allowed it to open a flagship sports bar and betting venue – a move it hopes to replicate this year in California.These developments should offset the company's flailing UK football pools business, which will be "modernised" after reporting a 4 per cent decline in revenues in 2013. Improved customer retention, increased spend per head and more cross-selling opportunities are the main strategies with which management hopes to stabilise the division.Brokerage Investec expects pre-tax profits of £14.4m this year, giving EPS of 5.1p – flat on the respective 2013 figures of £14.5m and 5.3p.IC view:The group's forward PE ratio of 18 factors in a positive outcome from the tax dispute. If that is not forthcoming, the shares may be overvalued, given that the company is still finding its feet in the US and looking to stabilise its pools business. Hold.Last IC view: Hold, 87p, 22 Aug 2013

[scrapman] 06/3/2014 08:17

Nod , perhaps there is going to be a significant ammount of "overseas activity" maybe the septics ar planning a TO ,

and to avoid any mixed messages of him announcing later they are seeing it a prudent move to get the news out sooner

aimho

[nod] 05/3/2014 23:42

Ian Hogg is obviously leaving on amicable terms if he is staying to the end of the year. Not sure why SPO would announce it so far off. He and Penrose go back a long time.

[trentendboy] 05/3/2014 11:58

Sportech has confirmed that Ian Hogg, chief operating officer of its consumer-facing business, has decided to leave the company as a result of the reduction of activity in the UK following the sale of the loss-making Vernons online gaming business last year.

Hogg was appointed to the Sportech board in October 2010, taking up the role of COO of the company's consumer-facing business, where was responsible for the development of Sportech's football pools business and all e-Gaming operations.

Prior to joining Sportech, he served as a founding shareholder and managing director of UK retail betting operator Better between 2005 and 2009, which he built up to an estate of 44 shops and then merged with the Jennings betting shop chain.

From 1998 to 2004, he was the director of online at Arena Leisure and was seconded for 18 months as managing director of At The Races. He was also chairman of the Fox Poker Club until its sale to Genting.

In its results for 2013 released this morning, Sportech said that as consequence of the increase in the company's activities overseas and the reduction of activity in the UK following the sale of the loss-making Vernons brand to NetPlay TV last October, Hogg has decided to leave the group.

He is expected to step down at, or before, the end of the year for personal reasons as he does not wish to increase his duties overseas, the company said.

Following the disposal of its e-Gaming business, Sportech has refocused management and finalised a new divisional structure, establishing three key divisions; Sportech Racing and Digital, Sportech Venues, and UK Football Pools.

Sportech Racing and Digital combines the former Sportech Racing, Sportech Interactive Products and Services and also eBet, in order to create one cohesive, larger division to provide all terrestrial, online and mobile betting technology products to its customers. This division is managed by Andrew Gaughan.

The Sportech Venues business, operating Connecticut's exclusive betting operations in retail venues, on the telephone and now online at MyWinners.com, is led by Ted Taylor, while the company's UK Football Pools business is led by Conleth Byrne.

[trentendboy] 05/3/2014 08:05

Decent but not spectacular - might see a small sell off but otherwise things moving ahead nicely. Relatively small pools drop is useful to protect those revenues.

They have to look to reduce the debt though - the VAT money would be most welcome

[miss ann thrope] 05/3/2014 07:39

lol
looks like Henderson sprang a leak then?

[nod] 05/3/2014 07:35

Yes, I think so too. It's good to see the new businesses growing at a faster rate than the declining pools business, so there is net growth in both revenue and EBITDA. Although the football pools business has been declining for the past 15 years it is still a cash cow and highly profitable. The cash from pools funds the new businesses.Good also that the new businesses are profitable, suggesting prudent investments in the USA.

[miss ann thrope] 05/3/2014 07:20

Decent results.

[nod] 04/3/2014 22:06

Henderson meanwhile increased its shares by 3% (perhaps those of UBS) and reduced its CFDs "Disclosure is due to an increase in our ordinary equity line from 14% to 17% and a decrease in our CFD line form 7% to 4%."A big exposure to SPO by Henderson - they must be confident in results.

[trentendboy] 03/3/2014 23:12

Price holding up nicely given these sales.

News on the VAT will see a quick 20% increase if not more.

Someone picking these up so looking fine at the moment

[nod] 03/3/2014 22:40

UBS sold again. Now below 3%. They held 7.45% so quite a large sale. They must be expecting disappointing results.

[trentendboy] 02/3/2014 09:32

153 is a decent target

[nod] 02/3/2014 02:08

Investors will be looking for an update from Sportech, the football pools and international gaming group, on its VAT claim against HM Revenue & Customs (HMRC) when it reports on Wednesday.Talks with third parties to explore the possibility of ­securing "insurance" against its £95m VAT refund claim against HMRC ended recently although the company said it remains confident in its arguments in the case and a successful outcome of the appeal. Stockbroker Panmure Gordon has a buy recommendation and 153p target price on the shares which last week closed at 89.25p.

[nod] 13/2/2014 17:39

Re the RNS about Lorne Weil. It's interesting he has stayed on as a director of SPO after Scientific Games Corp sold their stake. He was CEO and chairman at SGC for 22 years, only retiring last year, leaving it as a multi-billion dollar company. He has huge knowledge, experience and connections in the USA market so let's hope he stays with us a few more years.

[nod] 08/2/2014 01:50

Perhaps Henderson has structured their shares and CFDs so they have a hedge should UTT rule against SPO. I don't think a negative ruling would do permanent damage to the share price but it could well take a temporary hit as shorters step in.The more likely outcome is a 4th ruling in SPO's favour and the shares may then spike up until profit-taking steps in.