Sportech Share Discussion Threads

[stephen1946] 16/11/2017 08:17

alternatively, that 29p might represent most of the incentive to buy. avoid.

[noujay] 16/11/2017 08:03

That's a cracking payout and who knows with a decent sale might well be a great result here

[runthejoules] 16/11/2017 07:42

29p per share. Blimey. Wish I'd bought more!

[nod] 10/11/2017 22:22

Interesting events over at NYX in Canada and USA.SPO still holds 1% of NYX (SPOs holding was originally 4%).SPO also has a contract payment with NYX based on sales of its jointly developed leading software in States outside New Jersey. However, such sales require new Gaming regulation to be approved in those States.A few days ago Scientific Gaming made a full offer for NYX to the value of USD 631 million.This values SPO's holding at USD 6.3mSPO acquired Sportech Racing from SG a few years back. After which SG held 10% of SPO and two seats on the SPO Board.Along came William Hill yesterday to blackmail Scientific Gaming with demands, otherwise WH will block SG's acquisition of NYX.WH will own 31% of NYX after its convertibles are converted into ordinary shares so that it can vote against (or for) the takeover.Today NYX filed a claim against WH - full text can be read on the NYX ticker."NYX also announced that it has filed an action in the Chancery Division of the Superior Court of New Jersey, Atlantic County against William Hill Steeplechase Limited and William Hill Plc (together, "William Hill") and certain of William Hill's officers and directors.  NYX alleges that its shareholder William Hill has engaged in wrongful conduct in violation of the New Jersey Antitrust Act in attempting to block the Acquisition, which will bring great benefits to the nascent regulated sports betting industry. The complaint seeks injunctive relief, treble damages and attorney's fees for violations of the New Jersey Antitrust Act, and also alleges tortious interference with economic advantage, and tortious interference with contract, and seeks punitive damages. "

[van zandt] 09/11/2017 14:28

Nod, thanks.
I dare say you are right and of course we do need a sense humour with this lot over the years.
as ever regards
VZ

[nod] 08/11/2017 20:11

VZ, I suppose SPO has made this little statement to apply pressure on interested parties. 'If you don't offer a good price, and soon, then we are going to give away a chunk of our cash to shareholders.'

[van zandt] 08/11/2017 15:32

If SPO return cash to existing share holders what effect will it have on the buy out price?
as ever regards
VZ

[nod] 07/11/2017 02:53

London-listed gambling company Sportech is inviting offers for the company after it reported a jump in revenue.

The figures

Revenue in the year to date has reached £54.7m, marking an increase of 5.8 per cent. For the third quarter the increase was six per cent.

The group's activities are split into two areas: racing and digital, and venues. In racing and digital, a sports raffle product called Bump 50:50 increased revenue by 41.5 per cent in the third quarter compared to last year.

Meanwhile revenue from the group's venues operations doubled to £1.2m in the third quarter.

Why it's interesting

Following approaches from unnamed potential buyers, Sportech has instigated a strategic review and is now going into the due diligence process with the interested parties. The company also invited any other parties interested in acquiring it to contact its adviser.

The potential sale is unlikely to surprise investors in a gambling industry which is in the process of consolidating. Major player GVC last week sold its Turkish business, leaving the way clear to acquire a rival.

Ian Penrose, Sportech's chief executive, and its CFO, Mickey Kalifa, are both leaving the business in December, it added, with no replacements planned.

Much of Sportech's revenue growth came from the fast-growing Bump 50:50 product. The raffle app is used by several major sporting events in the US including the NFL and NBA. Half the takings are shared among punters and half goes to charities.

The group said it was focusing on expanding the range of its partnerships for Bump 50:50 across Canada and the US.

But Sportech also noted its racing and digital business had felt the impact of hurricane season, which affected some clients' operations in Puerto Rico.

Meanwhile, the group's venues business, which operates betting boutiques as well as sports bars with gambling facilities, was bolstered by the opening of a new sports bar in Stamford, Connecticut in June.

What Sportech said

"The group has continued to trade well in the first few weeks of the current quarter and the outcome for the full year remains in line with board expectations," said Richard McGuire, non-executive Chairman of Sportech.

"During the coming weeks, we expect to provide a further update on the proposed distribution to shareholders and, at the appropriate time, provide further comments relating to the ongoing formal sale process. Our financial position remains robust, and will benefit further from annualised cost savings of at least £2m."

[nod] 07/11/2017 02:51

Lucy,

It took SPO several years to achieve an acceptable price for The Football Pools. It could be the same again. They are not in a situation where they must sell. It's like putting your house up for sale. If you don't get an acceptable offer you don't sell (unless you have to).

[lucyp00p] 06/11/2017 19:24

So why sell it now?

[nod] 06/11/2017 11:54

The problem with RNS notices every hours is that we may miss important news ...Trading update today looks very good"Sportech is pleased to announce a trading update for the three-month period from 1 July 2017 to 30 September 2017 along with an update on progress of the Company's Strategic Review and Formal Sale Process.Q3 2017 TRADING UPDATERevenuesThe Group is pleased to report that: -- Q3 Revenue increased by 7.6% to GBP18.3m (Q3 2016: GBP17.0m) -- Year to date revenue increased by 5.8% to GBP54.7m (YTD 2016: GBP51.7m) -- Bump 50:50, the sports raffle product, increased revenues by 41.5% in Q3, vs Q3 2016, following further signings -- Other Racing and Digital revenues increased by 8.1% during the quarter vs Q3 2016 -- The addition of the new Stamford sports bar and restaurant doubled the Venues' food and beverage revenues to GBP1.2m in Q3 over the same quarter last year -- Q3 Venues total revenue increased by 6.0% during the quarter vs Q3 2016

[nod] 03/11/2017 08:33

Yes, easier to value now.

[trentendboy] 03/11/2017 08:22

The upside of the court case is that it is now a clean company to take over - no more uncertainties so prices can not be calculated.

We just have to hope that more than one buyer is interested.

[nod] 02/11/2017 20:01

finkie, PER is around 15.5PEG Ratio is 0.16A PEG below 1.00 indicates undervalued. A lowly 0.16 reflects the uncertainty about SPO's future

[nod] 02/11/2017 18:47

VZ, UK Gov would have no difficulty paying compound interest on overpayments. Its Budget Deficit today is around £15 Billion compared with over £100 Billion in 2010. It could easily afford to return compound interest of a few Billion over a few years as the cases were heard.If UK Gov needs to increase its coffers it should be taxing the overseas corporates that pay little or no tax on their UK profits: Amazon, Microsoft, Apple, Starbucks, etc.

[van zandt] 02/11/2017 14:25

Nod,
Back in July I wrote below. while the Supreme Court may have done a disservice, but, if their Lordships had ruled for the compound interest the potential cost to the exchequer could have been ruinous for the UK with all the other claims coming out of the 'woodwork'.

An appeal to the EU Court is still possible.

The ruling does not really effect the current situation of Sportech PLC, what may well have a bigger effect is this weeks Government out for consultations of FOBs with the other bookies. SPOs has very limited exposure to FOBs in comparison, so SPO could be nice safeguarding move away.


"van zandt - 06 Jul 2017 - 16:27:27 - 2332 of 2436

Nod, you are correct the case is complicated, and has been made political, if Their Lordships kick for the long grass: - EU Law direction wait for years for a hearing slot it will serve its purpose also byway of long delay.

Then if their Lordships are minded to apply UK Law and ignore EU Law resulting in a win for Littlewoods/Sportech but only partial, say with the compound interest refused but interest as paid allowed to stand. Is then open to appeal to the EU Court.

Either scenario would be a political win for the Government of the day.

Think for a moment if Their Lordships granted the compound interest claim against HMRC, what would the cost be to the UK Treasury Dept and the British tax payer?

Can the judgement be given against HMRC that does not run the risk of a huge number of other claims of a similar nature then arising from others who may feel aggrieved?
As always regards,
VZ"

[nod] 01/11/2017 18:31

The share price fall today is way overdone. The compound interest claim is not part of the core business. It would have been a potential windfall, but only if Littlewoods had won its claim.I think the Supreme Court has done the public a disservice. This decision encourages HMRC to drag out future claims against it for as long as it can, knowing that it can make use of the money it holds. HMRC punishes late payers by applying fines and high rates of interest. The same payment calculations should be applied in reverse, in all cases of incorrectly demanded overpayments.

[finkie] 01/11/2017 11:58

Shame and a poor decision by the courts SPO cant be half right and this has wheels within wheels feeling as HMRC are on the other side.

[o1dsmokie] 01/11/2017 10:45

o1dsmokie
25 Oct '17 - 09:54 - 2420 of 2431 0 0 Edit
I wonder if there is concern about the VAT
.............

Uhuh!

[o1dsmokie] 31/10/2017 12:56

Ta Nod, presumably that also is the reason that the huge vol of shares being bought doesn`t show in the LSE trade info.?

[finkie] 31/10/2017 12:11

Nod what is the pe ratio of the ftse currently trying to find on google is a waste of time tbh.....

[nod] 31/10/2017 11:38

old1, the company is not allowed to say much when the takeover rule takes over.

[o1dsmokie] 31/10/2017 08:56

Oh should I be on the Rodime board

hahahahahahh

Still lost, there seems no sense at all in what is going on, the bod might at least
give a clue to we lesser mortals?

[nod] 30/10/2017 22:18

Sand Grove Capital has popped up from nowhere and now owns 4.84%I assume some of the trading is off-marketAbout Sand Grove Capital ManagementSand Grove Capital Management LLP is a London based alternative investment fund manager that was founded in November 2014 by Simon Davies. The firm employs an Event Driven strategy with a focus on Europe and seeks to achieve absolute returns by pursuing a flexible value biased style with disciplined risk controls, exploiting idiosyncratic opportunities across the capital structure.Simon Davies was previously Head of the Event Driven division at Cheyne Capital, a business he managed from 2009. In total Simon has over 20 years of experience investing across asset classes allocating opportunistically to loans, bonds, CDS, equity and equity derivative securities. Simon is joined at Sand Grove by a team of senior members that he has previously worked with.

[nod] 30/10/2017 19:42

Are you on the right board?