Sportech, a leading betting-technology company, has announced its intention to seek shareholder approval to delist its shares from the London Stock Exchange's junior AIM market. This decision comes as a result of the considerable burdens associated with maintaining a public listing and the negative impact on net returns and future prospects due to the increasing volatility in market valuation.
Chairman Richard McGuire expressed regret at the circumstances necessitating this step, stating, "Despite delivering improved operational results, the substantial financial cost of maintaining a public listing, given our current scale, is adversely affecting our overall performance."
For the half-year ended June 30, Sportech reported a narrowed pretax loss of £304,000 ($378,997), compared to a loss of £802,000 for the same period in the previous year. Revenue rose from £12.6 million to £13.5 million during this period.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), which excludes exceptional and other one-off items, increased to £900,000 from £400,000.
Sportech plans to release a circular to shareholders outlining its delisting proposal and notice of a general meeting later this month.