Sportech PLC Final Results 5074W - ADVFN

SPO Sportech Plc

Sportec, an international betting and technology company, will announce the final achievements of the year ending on December 31, 2022.

Actual reported continuous business 2022 2021 currency GBP'000 GBP'00 2021 Revenue GBP'000 26, 004 22, 942 25, 608 --------------------------------------------------------------------------- -------------------------------------------------- -Metal profit 14. 599 (1. 783) (1. 641) -------------------------------------------------------------------------- -------- Tax (99) (3. 358) N/A --------------------------------------------------------- -------------------------------------------------------------------------------------------------------, ------------------------------------------------ ③ 7, 420 21, 912 N/A ----------------------------------------------------------------------- ------------------------- ④ Sales and operating income

1. After adjustment, EBITDA does not include the costs (individual disclosure items) and other benefits that the management should add. reference. See Note 1 in this release.

2. Include individual disclosure items

3. After adjustment, cash excludes customer balance as of December 31, 2022. As of March 31, 2023, the cache after adjustment is 8. 5 million pounds.

-Sistan business performanc e-Stronged revenue growth +2%increased £ 26 millio n-gross profit +11%increase £ 15 millio n-After adjustment, EBITDA turned to 1. 6 million pounds (1. 8 million pounds in 2021 (in 2021) )

-The cash after deducting the customer balance at the end of 2022 is 74 million English pounds (2021: 21. 9 million British pounds) -Sponds of £ 2022 (7 pounds per share).

Success of 2 million Canadian dollars following the disposal o f-2021.

-Alike the lottery contract in the latter half of 2021, the remaining scheme assets were sold to Inspired Entertainment in February 2023 for 500, 000 British pounds (plus 500, 000 pounds of Continzzi Performance and Out).

-The cash after adjustment as of March 31, 2023 is £ 8. 5 million.

-Rofty is 2%up 2%, 26 million British pounds, and steady growth.

-The performance has been adjusted to the surplus of 1. 6 million British pounds after adjustment (2021: £ 1. 8 million).

-The statement after the end of the year, as described above, has further sold no n-core assets, and has received more than £ 1 million after a commission related to the sale of 50:50 in 2021 and the incentive deduction.

-Corporate: In fiscal 2022, the Company continued to return capital to investors through a dividend of 7 million English pounds (7 pends per share). The dividend for fiscal 2023 will be announced before the Annual Shareholders General Assembly scheduled for May 30, 2023. All corporate costs will continue to be reviewed to improve team efficiency and capital retention.

-The body: Despite the newly introduced competitive betting products such as Irotaly, Ikashino, and Sports Betting, conventional Parisimi Tewel's handling volume has decreased by 4. 7%from the previous year, and the core business division of the group is strong. Achieved achievements. Throughout the year, the group focused on investing in a strong foundation to expand the opportunity to provide sports betting to retail customers.

-Sports Betting in August 2021 Sportec agreed to become a Sports Betting product for the Connecticut Lotary Corporation (CLC) in most areas of Connecticut. Through the sportec venue, the annual retail gambling total handling of $ 98. 7 million was a phenomenal number, and Sportec received a part of the network revenue.

-Digital: In recent years, the company has launched two online betting sites in the United States, all of which have increased their profits. We are currently considering additional opportunities for these sites.

-PLC Board of Directors: The Board of Directors was reorganized after several retired people appeared in the fiscal year to match the company's evolving strategy.

-The Strategy Board of Directors is emphasized in providing further capital returns to shareholders by providing further corporate opportunities, significantly reducing corporate costs, and evaluating important growth opportunities based on team core skills. Is placed.

Sportech's Chairman Richard McGaia said:

"2022 is the year of integration and progress, and the team is excited about the potential of 2023. Investment to grow the US sports betting industry is starting to achieve results. Capital return is in May.

Summary presentation can be viewed on our website https: // www. SportechPlc. Com/Investors/Results/.

Management is responding to meetings with analysts and investors from time to time. The request is made through peel hunt. < SPAN> -Trado: Despite the new introduction of competitors such as Irotary, Ikashino, and Sports Betting, the traditional Parismi Tewel's handling has decreased by 4. 7%yea r-o n-year, and the core business of the group The department has achieved strong performance. Throughout the year, the group focused on investing in a strong foundation to expand the opportunity to provide sports betting to retail customers.

-Sports Betting in August 2021 Sportec agreed to become a Sports Betting product for the Connecticut Lotary Corporation (CLC) in most areas of Connecticut. Through the sportec venue, the annual retail gambling total handling of $ 98. 7 million was a phenomenal number, and Sportec received a part of the network revenue.

-PLC Board of Directors: The Board of Directors was reorganized after several retired people appeared during the year to match the company's evolving strategy.

Sportech's Chairman Richard McGaia said:

Summary presentation can be viewed on our website https: // www. SportechPlc. Com/Investors/Results/.

Management is responding to meetings with analysts and investors from time to time. The request is made through peel hunt. -The body: Despite the newly introduced competitive betting products such as Irotaly, Ikashino, and Sports Betting, conventional Parisimi Tewel's handling volume has decreased by 4. 7%from the previous year, and the core business division of the group is strong. Achieved achievements. Throughout the year, the group focused on investing in a strong foundation to expand the opportunity to provide sports betting to retail customers.

-PLC Board of Directors: The Board of Directors was reorganized after several retired people appeared in the fiscal year to match the company's evolving strategy.

Sportech's Chairman Richard McGaia said:

Summary presentation can be viewed on our website https: // www. SportechPlc. Com/Investors/Results/.

Management is responding to meetings with analysts and investors from time to time. The request is made through peel hunt.

Sportech PLC RICHARD MCGUIRE, EXECUTIVE CHAIRMAN IR@Sportech. αa Nomad σ τ: +George Seller / Andrew Clark / Larit Bose

Description of future prospects This communication includes descriptions on future outlook. These descriptions are described in many parts of this release, especially our achievements, financial status, fluidity, prospects, growth, strategies, and our businesses on our businesses, and our expectations. Includes descriptions of our executives, directors, and employees. These descriptions about the future outlook include all items that are not historic facts. Due to its nature, these descriptions include risks and uncertainty, and the results and developments may vary greatly from the expected events and situations. This description of the future outlook reflects the available knowledge and information as of this release date. Except for legal or regulated obligations (including market abuse regulations (596/2014)), we do not have to update or modify the descriptions of future forecasts. Any content of this announcement should not be interpreted as a profit prediction. The Company and its directors are not responsible for any third party in connection with this presentation, except in the case of the British law.

Note to editors

Sportec has two major businesses in the gaming market. First, the company operates a sports bar and other gambling stations in Connecticat, USA, and has obtained exclusive licenses to provide Parici Chewel gambling. In addition, the company has a sales contract with Connecticut State Lottery Corporation to provide retail sports betting services. Second, Sportec offers online games through two independent business lines. Mywinners. com is operated in Connecticut based on exclusive licenses that provide mal t-well online gambling, and 123bet. com offers a mult i-well online gambling in the United States.

2022 is the year of integration and progress

After the sale of some businesses and the transition to the alternative investment market (AIM), the group achieved management stability and growth in 2022.

The introduction of the sports betting product suite in the second half of 2021 required significant capital expenditures, but venue operators, including sports betting, are experiencing a period of positive change with busier operations and accommodating new patrons. Although Omicron's growth was impacted in early 2022, food and beverage revenues remained strong and the retail division's focus on sports betting was a key differentiator in the company's business.

The business relationship with the Connecticut Lottery Corporation (CLC) continues to strengthen, with a more robust agreement moving forward to capitalize on the early success of sports betting across the state. One unprofitable venue was closed and a number of leases were expanded to meet demand and secure profitable real estate.

The UK-based digital technology team executes and delivers traditional and digital solutions for major clients, and since the end of the year, the team has added assets and transitioned to Inspiration Entertainment.

Focus on efficient use of cash and accurate measurement of fund returns remain key metrics. The introduction of our sports betting product suite in the second half of 2021 required obvious capital investments to secure our position with the leading betting holder, the Connecticut Lottery Corporation (CLC). Additionally, as sports betting continues to move into the entertainment category state by state, the entire United States remains a land of new opportunities in the gaming sector. As a participant with a significant USP in its business, Sportec has the ability to capitalize on direct opportunities in Connecticut and to channel its skills towards other opportunities that may arise in other parts of the United States. Accordingly, there will be an increased focus on operational efficiency and service to ensure the value of this USP is maximized.

The introduction of sports betting to our Connecticut business and to successfully grow it across all our locations has required significant focus and operational planning, and this opportunity will continue to be a key part of our business plans in 2023 and beyond. The addition of this additional betting product to the existing Pari-Mutuel product suite has clearly increased consumer traffic, leading to increased F& B revenue and a proportionate decrease in Pari-Mutuel's cost base as costs are allocated pro rata between F& B, Pari Mutuel and sports betting.

Food and beverage revenues in 2022 performed well, despite the negative impact of Omicron's growth in the first few months: up 46% to GBP 34 million (2021: GBP 27 million). As 2022 was the first year of sports betting, a comparison of sports betting handle is not a useful indicator. However, it is noteworthy that early progress was made, with first quarter 2023 volumes up 18% compared to first quarter 2022 and 39% in the first quarter.

The sports betting offering in the retail division was the main difference in operational focus for the year. The sports betting retail division generated an impressive revenue of $98. 7 million across eight licensed locations in this first year. This is mainly due to 40% of gross management being accumulator bets, which are correspondingly higher risk and therefore have higher potential profit margins.

While Major League Baseball topped the charts, the importance of American Football (NFL and NCAAF) remains evident in both sports betting and F& B demand. Football is not yet a major sport in the United States, but the major European leagues are seeing increased volume. Our book suffered a slight loss as our retail clients backed Argentina to win the World Cup and France as the top team in Europe. That said, attendance for the US games was very strong in the sports bar and F& B saw impressive growth.

Our business relationship with CLC continues to strengthen, and we have advanced a new agreement with them, providing further commitments to capitalize on the early success of sports betting across the state.

During 2022, we closed underserved locations and extended certain leases to meet demand and secure profitable properties. A key lease in New Haven was extended until February 2024, but operations are expected to relocate from this property to new locations in the region to sustain growth in betting handle. Additionally, it is in the process of evaluating two new locations that would offer its suite of gambling and sports betting products to more retail consumers in Connecticut, thereby creating a blueprint for a future landing model for the business.

The U K-based digital technology team has executed and provided a contract digital solution to clients as part of the lottery contract received in late 2021. After the end of the year, the team transferred to the inspired entertainment with additional assets at 500. 000 British pounds. This transfer has reduced costs and eventually improves the group's caching flow in 2023.

The group completed several lawsuits in California the year, withdrawing from this historic initiative. The tax position on the processing of 4. 6 million pounds in the 2016 financial statements in the spo t-th e-ball added tax refund is still unclear. The Company paid the amount during the dispute to freeze interest, but the director continues to question whether this amount should be ultimately paid. Director waits for the final assessment of HMRC, and then examines whether further measures are appropriate.

The 2022 dividend has reduced the Group's cash position to a margin level so that we can explore more organic investment opportunities for gaming initiatives.

As the group shifts to 2023, profits and profitability return to the front as an important indicator. The processing of the ol d-fashioned problems that had influenced the business was completed, making it a simpler business with a clear strategy in line with the interests of the stakeholders. By getting out of COVID's throat and gaining sports betting in Connecticut for one year, the future outlook for 2023 can be shown to some extent after a long absence.

In the first quarter of 2023, it has achieved reassuring achievements as early as possible, and the good treatment and growth of new sports products are attracting attention.

Sports facility by category

Sportech Bennews (hereinafter referred to as "Venus") offers legal bets through two different types of businesses throughout Connecticut.

First, the venue offers horse racing, grayhound racing, and hig h-aligned betting on the Internet and in the venue based on exclusive and permanent licenses. Second, it offers sports betting based on a distributio n-type contract with Connecticut Lottery Corporation.

There are two types: sports bar/ restaurant and betting shop (OTB). The sports bar/ restaurant provides mainstream leisur e-based experiences, and betting is an exciting additional attraction for customers. The Ofoft Rack Betting Shop (OTB) also provides snacks and other products, but specializes in retail game operations.

1. After adjustment, the amount after the adjustment is excluding the costs (individual disclosure items) and other benefits that the management should add. reference. Note 1 and 2 of this release

Trends of the current term

Connecticut has three licensed sportsbooks, Machan Casino, which handles duel duel and Kings draw, and CLC contracts with Rush Street Interactive and most retail stores. It offers a Sugar House Sports Book distributed to.

Sportsbetting is a feature of 2022, focusing, and sportec site has increased the number of staff to manage additional regulations, schedules and execution requirements. This year was the first year when Sportsbetting began in Connecticut, and it was a learning curve for all participants in the state.

Sportech facilities offer a variety of sports betting products in eight facilities that have commercial contracts with CLC, and have a small share of online sports betting.

Sports Betting has recorded a remarkable growth of $ 98. 7 million (up about 9. 42 %) from the group's eight sports betting sites. American sports have monopolized "action", led by baseball, American football and basketball. At the end of the year, in January and February, it increased by 33%to 2022, respectively, to 18%, and sports betting continued to increase significantly. < SPAN> There are two types: sports bar/ restaurant and betting shop (OTB). The sports bar/ restaurant provides mainstream leisur e-based experiences, and betting is an exciting additional attraction for customers. The Ofoft Rack Betting Shop (OTB) also provides snacks and other products, but specializes in retail game operations.

1. After adjustment, the amount after the adjustment is excluding the costs (individual disclosure items) and other benefits that the management should add. reference. Note 1 and 2 of this release

Trends of the current term

Connecticut has three licensed sportsbooks, Machan Casino, which handles duel duel and Kings draw, and CLC contracts with Rush Street Interactive and most retail stores. It offers a Sugar House Sports Book distributed to.

The CLC is the only licens e-like ricensy that has been allowed to provide retail gambling throughout the state. The two casinos are limited to facilities in the casino. All three have a license for online sports betting (one online skin each), and the casino has a license to provide ICASINO.

Sportsbetting is a highlight of 2022, focusing, and has increased the number of staff to manage additional regulations, schedules and execution requirements. This year was the first year when Sportsbetting began in Connecticut, and it was a learning curve for all participants in the state.

Sportech facilities offer a variety of sports betting products in eight facilities that have commercial contracts with CLC, and have a small share of online sports betting.

Sports Betting has recorded a remarkable growth of $ 98. 7 million (up about 9. 42 %) from the group's eight sports betting sites. American sports have monopolized "action", led by baseball, American football and basketball. At the end of the year, in January and February, it increased by 33%to 2022, respectively, to 18%, and sports betting continued to increase significantly. There are two types: sports bar/ restaurant and betting shop (OTB). The sports bar/ restaurant provides mainstream leisur e-based experiences, and betting is an exciting additional attraction for customers. The Ofoft Rack Betting Shop (OTB) also provides snacks and other products, but specializes in retail game operations.

1. After adjustment, the amount after the adjustment is excluding the costs (individual disclosure items) and other benefits that the management should add. reference. Note 1 and 2 of this release

Trends of the current term

Connecticut has three licensed sportsbooks, Machan Casino, which handles duel duel and Kings draw, and CLC contracts with Rush Street Interactive and most retail stores. It offers a Sugar House Sports Book distributed to.

Sportech facilities offer a variety of sports betting products in eight facilities that have commercial contracts with CLC, and have a small share of online sports betting.

Sports Betting has recorded a remarkable growth of $ 98. 7 million (up about 9. 42 %) from the group's eight sports betting sites. American sports have monopolized "action", led by baseball, American football and basketball. At the end of the year, in January and February, it increased by 33%to 2022, respectively, to 18%, and sports betting continued to increase significantly.

The Paralyt i-Jelle handling volume has been steadily maintained among the intensifying gaming dollars, which is only 4 or 7 % yea r-o n-year. No n-returned elements (online and telecom) account for 25 and 4 % of the total handling volume in 2022, exceeding the Bell in 2019, 18 and 9 %.

Sports Betting offers powerful verticals that gain new support at the venue. In this way, Sports Betting has used existing products with new sales and the existing cos t-based with new income to strengthen the overall management.

The 2023 plan includes an improved Paris Mutuel website, which provides more marketing opportunities and closely managed online customer base. In addition, the group is working with a sports betting partner to promote retail customer relations management initiative.

Gaining profits from sports and their fans is clearly a chance for the venue business, and we continue to rebuild our business accordingly.

The management team optimizes the combination of format and location of each facility to further strengthen the sports betting market and incorporate it without impairing the interests of Paris Mewelberting. Developed.

We believe that there are signs of the most promising improvements in bars and restaurants that are responding to sports sports and providing a live game experience that is close to live.

Management has developed a retail and experience business to enter the sports betting market without impairing the profit of Betting, the main source of ear-mutuel. This approach enhances the ability to capture the opportunities for the Sports Betting Market and optimizes the combination of the site format.

Sportec Digital is composed of two small businesses focusing on digital.

The first was a B2C trading business for the United States called 123bet. com, a white label client of the current racing and digital business. In 2019, 123bet. com was i n-house, and has been operated with experienced management and strict marketing budgets since then. 123bet. com is a small scale and continues to grow. We believe that we have renewed the services provided by 123bet. com and are ready to proceed to the next growth stage.

The second business in 2022 is a B2 B-based B2B business in Chester in the UK, providing services to the market on the unique lottery management platform.

Fixed currency building GBP'00 2022 2021 Service income 1.

1. After adjustment, the amount after the adjustment is excluding the costs (individual disclosure items) and other benefits that the management should add. reference. See Note 1 and Note 2 of this release

The Cheste r-based Lot. to Systems team has provided valuable R & D support for various sportech businesses, including the global tote and Lotary category. Their contributions improved the ability and profile of these business lines, resulting in improvement of customer products, bringing many contracts, and ultimately sold several business lines in 2021.

In 2022, he accidentally delivered online lottery products during the Leidsa lottery contract in the latter half of 2021. The success of the delivery of this product shows expertise and commitment to providing hig h-quality solutions that meet customer needs.

Movement after the end of the year

After selling important operating businesses in 2021 and providing online platforms as successful, Sportech sold some assets of Lot Two Systems Limited and transferred the group to inspirational entertainment. Is decided. The sale amount is 05 million EC pounds (other than this, the £ 05 million pound was recorded as an unidentified accidental income). This decision was made in early 2023.

Sportech is optimistic about the future of 123bet. com. We believe that this business line has a strong potential, and we will report the results in the retail business.

There is no doubt that pandemic (global trends) has been tested to our organizations in recent years, but Sportec employees are professionals who work with incredible passion and purpose, and the Board of Directors. We continue to be stimulated by their dedicated attitude to improve in all fields.

2022 was the year of the integration within the group and the redefined growth opportunity. In the venue business, sports betting has been raising the profits of F & Amp; B, while the group has responded to new customers who are eager to experience live gaming.

The culture that emphasizes the accountability and ownership of 2020 in 2020 is flourishing as the entire team promotes entrepreneurs for customer service and growth opportunities.

The outline of the strategic goal of 2023 is as follows:

1. Evaluate and execute additional corporate opportunities. 2. Significantly reduce corporate costs. 3. Evaluate and execute growth opportunities across the gaming division. 4. Return additional capital to shareholders.

Income Statement - Details

2022 2021 (1) 2021 Service Revenue 20. 587 20. 547 22. 928 Sports Fund Board 1. 974 280 313 F & B Revenue 3, 443 2, 115 2, 366 Total Revenue 26, 004 22, 942 25, 608 Cost of Sales (11, 847) (11, 489) (12, 83)- ---- -------------------------------------- 4. 453 12. 773 Selling, General and Administrative Expenses (386) (276) (315) ------------------------------ ------------------------------ ------------------------------- Contribution 13. 771 11. 177 12. 457 Contribution Margin % 53. 599 (1. 783) (1. 641) --------------- Separate disclosure (657) (1. 101) Other income 120 4. 101 Non-cash items: Stock option expense (334) Amortization (1. 366) (982) Write-down of software (252) (129) Repayment of acquired intangible assets (29) (509) Reversal of impairment of property, plant and equipment 190 Goodwill (335) (517) - Total non-cash items (1. 974) (1. 619)

1. Adjusted loss before income taxes from continuing operations is the sum of adjusted EBITDA, stock option expense, depreciation, amortization (excluding amortization of acquired intangible assets), and certain finance expenses (see Note 1 for reconciliation).

2. Adjusted operating expenses exclude depreciation, amortization, impairment losses, stock option expense, other income and specifically disclosed items.

Income from continuing operations

2022 2021 2021 2021 Betting revenue 19. 116 19. 515 21. 835 Sports betting commission 1. 115 2------------------------------- Total Sportec Venues 24.

Revenue from continuing operations increased 2% at constant exchange rates. Growth in F& B and sports betting offset the decline in betting revenue. As a result of one more venue closure in 2022, the venue business now operates nine venues. Digital revenue was primarily supported by improved performance in the online pari-mutuel business.

Adjusted EBITDA - continuing operations

Constant GBP'000 Reporting currency 2022 2021 2021 Sportec Venues 4. 046 1. 620 1. 595 Sportec Digital (307) (579) (612) Central Costs (2. 140) (2. 824) (2. 624) ------ ------ ---------- Adjusted EBITDA 1.

Significant improvement in Adjusted EBITDA, turning from a loss of GBP(1. 783) thousand in 2021, including an investment of GBP260. 000 in sports betting representing lobbying costs, to a profit of GBP. 599 thousand. In the Venue business, a strong first year of sports betting commissioning combined with a post-COVID recovery in F& B products more than offset the decline in pari-mutuel revenues. Digital saw a narrower deficit due to CRM-driven growth in the online business, 123. bet. Central expenses were also significantly reduced.

Retrospectively received GBP 1, 229, 000 from the 50:50 bump business (GBP 1, 013, 000 excluding fees) and other COVID-related income of GBP 170, 000. 000 and other CARES Act-related income for the Global Tote business.

2022 2021 2021 2021 Betting revenue 19. 116 19. 515 21. 835 Sports betting commission 1. 115 2------------------------------- Total Sportec Venues 24.

2022 2021 Notes Notes Notes GBP000 GBP000 Included in operating expenses: Contract announcement and other losses arising from exit from California operations (120) 91 Expenses and restructuring charges (1) 414 625 Corporate expenses 57 21 Ballpoint Expenses related to VAT refund-10 Contract settlement (2) 304- Expenses related to exit of Group interest in India 2 13 Expenses related to transition of Group's principal market to AIM-341 657 1, 101 ---------------- ---------------- Discontinued operations included in operating expenses 11-371 Total included in operating expenses 657 1. 472 ------------------------ ------------------------------------------------------ -------------------------------------------------------------------------------------------------- --

1. Layoff and restructuring charges relate to settlement payments in lieu of termination notice to former directors.

2. The settlement concerns the Group's withdrawal from a royalty agreement relating to branding at its Connecticut locations, which required the payment of a termination fee and is in the Group's long-term financial interest.

The Team Lease matter in California was finally resolved during the year, avoiding further litigation and bringing these matters to a close in accordance with their previous provisions.

2022 2021 2021 2021 Betting revenue 19. 116 19. 515 21. 835 Sports betting commission 1. 115 2------------------------------- Total Sportec Venues 24.

Adjusted EBITDA - continuing operations 1. 599 (1. 783)

Adjusted EBITDA - discontinued operations 1. 183 6. 879 -------------------------------------------------------------------------

Adjusted EBITDA Total 2. 096

Lease expenses, including interest (1. 357) (1. 512) --------- ---------

EBITDA less lease expenses1:

Capitalized software (196) (1, 012)

Property, plant and equipment, net of proceeds from disposals (147) (582)

Excluding specific items and other income, net (657) 76

Working capital (3, 398) (2, 418)

Taxes and interest (paid)/ (7. (7, 000)-share acquisition costs-(35. 880)

Adjusted EBITDA - continuing operations 1. 599 (1. 783)

(The totals table above have been rounded to the nearest thousand pounds to reconcile with closing cash)

Net cash outflow for the year (excluding movements in customer balances) was 14. 491k.

Significant outflows related to distributions to shareholders, with dividends of £7, 000, 000.

The business recorded EBITDA in continuing operations, which improved year-on-year.

Following the recording of significant business provisions in 2021, capitalised software and PPE investments decreased in continuing operations in 2022. The Premise business introduced a significant new product line in the second half of 2021 and expanded this during 2022, which required additional working capital during the period.

Consolidated income statement

Year end December 31, 2022

2 26. 004 22. 942 Cost of sales3 (11. 847) (11. 489) ----------------------------------------- - Profit equivalent 14. 453 Selling, general and administrative expenses3 (386) (386) (386) (386) (386) (386) (386) (386) (386) (386) 276) ----------------------------------- Levies 13. 771 11. 177 Operating expenses3 (14. 803) (15. 680) Other income 10 120 4, 101 Operating loss (912) (402) Financial expenses 8 (254) (305) Financial income 8 232 461 Loss before tax from continuing operations (934) (246) Loss before tax from continuing operations 9 (79) (192) ------------------------------------------------------------------- Loss for the period - continuing operations (1. 013 (438) Gain after tax from business interruption 11 (g) 1. 183 35. 001 ------------------------------------------------------------------ -- -- -- -- -- -- -- (1) (1, 0) (1, 0) (1, 0) (1, 0) P (0, 3) Gain after tax from business interruption P 12 (a) 1. 2p 20. See Note 1 for a reconciliation of the statutory performance positions above to the adjusted performance measures used by the Board to evaluate the division.

Information system consolidated status

As of December 31, 2022

Note 2022 2021 2021 GBP000 GBP000 Former income 170 34. 563 Other comprehensive profit: Mathematical calculation difference-186 170 18 and Loss Change Difference-Continuing Business 1. 047 (617) Foreign exchange conversion differenc e-Non-continuation projects- (550) decrease: Reduced profit to overseas business sale income 11 (3. 373) --------------047 (4. 540) Profit / (cost) Total 1: Comprehensive profit 1.

Connected balance sheet

As of December 31, 2022

2022 2021 Remarks GBP000 GBP GBP000 Fixed Assets Renen 13 87 604 Intangible Fixed Assets 14 6. 939 6. 357 Wearing Fixed Assets 15 4. 522 4. 261 Others 4. 261 and 60 rights assets 18 177 Inport tax assets 19 158 --------------- Total assets 16. 037 ---------------------------------------------------------------------- Fluid assets 11. 278 ---------------------------------------------------------------------- 736) Countr y-t o-rate (unpaid bonus) 11 (E) (216) -Leasing debt 24 (1. 155 (923) Fluid tax debt 9- (4. 73. 5 billion yen) Flow liabilities (14. 322) - -------- Non-current operate 3. 457 9. 919 ---------- Fixed debt lease debt 24 (6. 200) (6. 091) Deferable tax debt 19- (43) Total debt (6. 200) (6. 134) 200 (6. 134) --------- Total debt (14. 135) (20. 456) ------------------------------------------------------- -Total capital 14.

About the real situation

Business year < SPAN> Information system consolidated status ended on December 31, 2022

As of December 31, 2022

Note 2022 2021 2021 GBP000 GBP000 Former income 170 34. 563 Other comprehensive profit: Mathematical calculation difference-186 170 18 and Loss Change Difference-Continuing Business 1. 047 (617) Foreign exchange conversion differenc e-Non-continuation projects- (550) decrease: Reduced profit to overseas business sale income 11 (3. 373) --------------047 (4. 540) Profit / (cost) Total 1: Comprehensive profit 1.

Connected balance sheet

As of December 31, 2022

About the real situation

Consolidated status of business year information systems that ended on December 31, 2022

As of December 31, 2022

Note 2022 2021 2021 GBP000 GBP000 Former income 170 34. 563 Other comprehensive profit: Mathematical calculation difference-186 170 18 and Loss Change Difference-Continuing Business 1. 047 (617) Foreign exchange conversion differenc e-Non-continuation projects- (550) decrease: Reduced profit to overseas business sale income 11 (3. 373) --------------047 (4. 540) Profit / (cost) Total 1: Comprehensive profit 1.

Connected balance sheet

As of December 31, 2022

2022 2021 Remarks GBP000 GBP GBP000 Fixed Assets Renen 13 87 604 Intangible Fixed Assets 14 6. 939 6. 357 Wearing Fixed Assets 15 4. 522 4. 261 Others 4. 261 and 60 rights assets 18 177 Inport tax assets 19 158 --------------- Total assets 16. 037 ---------------------------------------------------------------------- Fluid assets 11. 278 ---------------------------------------------------------------------- 736) Countr y-t o-rate (unpaid bonus) 11 (E) (216) -Leasing debt 24 (1. 155 (923) Fluid tax debt 9- (4. 73. 5 billion yen) Flow liabilities (14. 322) - -------- Non-current operate 3. 457 9. 919 ---------- Fixed debt lease debt 24 (6. 200) (6. 091) Deferable tax debt 19- (43) Total debt (6. 200) (6. 134) 200 (6. 134) --------- Total debt (14. 135) (20. 456) ------------------------------------------------------- -Total capital 14.

About the real situation

Business year ended on December 31, 2022

Other reserves Inspecice Shaden Reduction Reduction Reservoir Total Funds and other foreign exchange reserves total Differences in exchange generated in the year ---- 1. 047-1. 047 Other total items ----------------------------------------------------------------------------------- ------------------------------------------------------------ ------------------------------------------------------047 170 1. 217 ----------------------------------------------------------------------------- ------------------------------------------------------------------------------ ------------------------------------------------ ----------------------------- ---------------------------------------- --------- As of December 31, 2022 1.

Business year ended on December 31, 2021

Other Preparation Funds Foreign Foreign Exchange Ordinance Reduction Preparatory Funds and other foreign exchange reserves Total Fund shares in tota l-186 --186 Confirmation benefit ) (4. 540)-(4. 540) Other comprehensive profit items-952 (4. 540) (766) (4. 354) ----------------------------------------------------------------------------- -------------------------------------------------------- ----------------- Comprehensive profit items-952 (4. 540) 33. 797 30. 209 ------------------------------------------------------------------------ ------------------------------------------------------- ---------------------------------------------------------------------- ----------------------------------------------------------------------------- Shade - (10. 312) - --0.

Capital Reduction (35. 862) - - - 35. 862 - fees in relation to capital reduction - - - (66) (66) fees in relation to the share of Buy - - - - (314) (314)) 888 -(35. 500) (35. 500) Total transactions with owners (36. 750) (9. 424)-10. 628 (35. 546) ------------------------------------------- ------------------------------------------------------------------------------------------ did ------------ (5. 337) ------------------------------- ----------------------------------------------- ---------------------------------------------------------------------------------------- did -------------------------------------------------- ------------------------

Consolidated statement o f ca f l o ws

For the year ended on December 31 2022 & amp; lt; Pan & amp; gt; Capital Reduction (35. 862) - - - 35. 862 - Fees in relation to capital reduction - - - (66) (66) in relation to the share of the Bu y-Back - - - (314) (314) market share (888) 888-(35. 500) (35. 500) Total transactions with owners (36. 750) (9. 424)-10. 628 (35. 546) ------------------------------------------ ------------------------------------------------------ --------------------------------- 36, 750) (9, 424) 952 (4, 540) 44, 425 (5, 337) ------------------------------------------- ------------------------------------------------- ------------------------------------------------------------------------------------------ held -------------------------------------------------- ------------------------------- ------------------- -------------------------

Consolidated statement o f ca f l o ws

2022 年 12 月 31 日終了した事業年度において、、、 (35. 862) - - - - 35. 862 - 減資関連する手数手数 - - - (66) (66) 自己の取得に関連手数料料 - - - (314) (314) (35. 500) 所有とのの取引取引 (36. 750) (9. 424) - - 10. 750) (9. 424) - 10. 628 (35. 546) ----------------------------------------- ------------------------------------------------------------------------------------------ held ----------) 952 (4. 540) 44. 425 (5. 337) ------------------------- ------------------------------------------------ ------------------------------------------------------------------------------------------ held --------------------------------------------------- ----------------------------------------------------------------------------- held

連結 キャッシュ フロー フロー 計算

2022 年 12 月 31 日終了した事業事業

Cash and cash equivalents provided by operating activities (before individual disclosure) 29 119 511 Tax refunds 9 - 1. 442 Taxes paid 9 (5. 083) (1. 029 -----) --------- Cash and cash equivalents provided by operating activities (before individual disclosure) (4. 964) 924 Cash and cash equivalents provided by operating activities (before individual disclosure) 10 - 2. 964 924 Net cash and cash equivalents provided by operating activities 10 - 2. 483 Net cash and cash equivalents provided by investing activities 4 (1. 457) (2. 407) --------- Net cash and cash equivalents provided by operating activities (6. 421) 1. 000 --------- Net cash and cash equivalents provided by investing activities Sports Haven Disposal of Bump 50:50, net of cash allocation and transaction costs - 4. 193 Disposal of LEIDSA contract, net of cash allocation and transaction costs - 4. 644 Disposal of Global Tote, net of cash allocation and transaction costs - 9. 417 Proceeds from sale of intangible assets 14 - 150 Investment in intangible assets 14 (196) (1. 012) 012 Acquisition of property, plant and equipment 15 (147) (582) ---- ----- --------- Cash flows from investing activities (343) 39.

These financial statements have been approved and authorised for issue by the Board of Directors on 17 April 2023 and have been signed on behalf of the Board by the following person:

Company Registration Number: SC069140

Notes to the financial statements

December 2022 Year ended March 31

All accounting policies applied in the Preliminary Cal ite match the accounting policy applied in complete financial statements that have not yet been published. The provisional calculation of the year, which ended on December 31, 2022, was approved by the Board of Directors on April 17, 2023. The financial information described in this presentation does not constitut the statutory financial statements of the year that ended on December 31, 2022 and December 31, 2021 in the meaning of Article 435 of the 2006 Corporation Law. Excerpted from financial statements. The auditor reported these financial statements and issued an infinite report that does not include a statement based on Article 498 of the 2006 Company Law.

Financial report

Sportech PLC (hereinafter referred to as the "Company") is a company based in the UK and is listed on the London Stock Exchange Alternative Investment Market (AIM). Our registrations are Collins House, Latland Square, Edinburgh, Midrosian, and Scotland EH1 2AA. As of December 31, 2022, and the end of the month, the consolidated financial statements of the period are composed of our company, subsidiaries, joint ventures, and related companies (hereinafter collectively referred to as the "Group"). We sold our Group's GLOBAL TOTE business on June 17, 2021, sold our Group 50:50 (BUMP 50:50) on June 2, 2021, and on December 31, 2022. Until the Leidsa supply contract was sold, the main activities of the Group were the provisions of Perme Tewel Betting (B2C) and the Betting Technology Solutions (B2B). After the discount, the group continued to provide Permutuelbetting (B2C) and lottery technology (B2B).

Glo w-dedgeon gonzant

The Board of Directors concluded that it is reasonable to make a continuous company in principle in creating financial statements. This is based on the reasonable forecast that the group has sufficient resources to continue the business for at least 12 months from the signature date of the financial statements. As of December 31, 2022, the Group has 7. 4 million pounds of unusable cash, and there is no debt for the business.

The Board of Directors created predictions up to December 2024 based on the detailed budget approved by the board of directors in 2023.

The predictions used in the group analysis of the business survival include both the base line scenario and the downside scenario. The downside hypothesis has been a fairly pessimistic assumption that, for example, it remains flat, not the continuation of the growth trajectory of the online handle, and that the contribution of sports betting is significantly reduced. It also considers the impact of the depreciation of the dollar.

With both the base line scenario and the downside scenario forecasts, directors rationally anticipated that the company and the team had sufficient management resources in the business survival for the time being.

For this reason, the Board of Directors continues to adopt a baseline in creating financial statements.

Management comments

All accounting policies applied in this Preliminary Cal it the same match with the accounting policy that has not yet been published. The provisional calculation of the year, which ended on December 31, 2022, was approved by the Board of Directors on April 17, 2023. The financial information described in this presentation does not make up the statutory financial statements in December and December 2022, 2021 in Article 435 of the 2006 Corporation Act, but excerpt from these financial statements. be. The auditor reported these financial statements and submitted an infinite report that does not include a statement based on Article 498 of the 2006 Company Law.

1. After adjustment, performance indicators

The Board of Directors evaluates the performance of the operating segment based on the indicator of EBITDA after adjustment. This indicator excludes the costs (individual disclosure items) and other interests that the management should be added to. In addition, stock option costs are excluded because they are not directly related to segment performance. Group's cash position is managed by the Central Financial Team, and interest is not distributed to the department. This indicators are the most reliable indicators of each trading department because they are the closest similar value to the cache generated from the basic transactions, excluding the impact of individual disclosure items and driving capital. I will. The prediction used in the < SPAN> group's business survival ability includes both the bassline scenario and the downside scenario. The downside hypothesis has been a fairly pessimistic assumption that, for example, it remains flat, not the continuation of the growth trajectory of the online handle, and that the contribution of sports betting is significantly reduced. It also considers the impact of the depreciation of the dollar.

With both the base line scenario and the downside scenario forecasts, directors rationally anticipated that the company and the team had sufficient management resources in the business survival for the time being.

For this reason, the Board of Directors continues to adopt a baseline in creating financial statements.

Management comments

All accounting policies applied in this Preliminary Cal it the same match with the accounting policy that has not yet been published. The provisional calculation of the year, which ended on December 31, 2022, was approved by the Board of Directors on April 17, 2023. The financial information described in this presentation does not make up the statutory financial statements in December and December 2022, 2021 in Article 435 of the 2006 Corporation Act, but excerpt from these financial statements. be. The auditor reported these financial statements and submitted an infinite report that does not include a statement based on Article 498 of the 2006 Company Law.

1. After adjustment, performance indicators

The Board of Directors evaluates the performance of the operating segment based on the indicator of EBITDA after adjustment. This indicator excludes the costs (individual disclosure items) and other interests that the management should be added to. In addition, stock option costs are excluded because they are not directly related to segment performance. Group's cash position is managed by the Central Financial Team, and interest is not distributed to the department. This indicators are the most reliable indicators of each trading department because they are the closest similar value to the cache generated from the basic transactions, excluding the impact of individual disclosure items and driving capital. I will. The predictions used in the group analysis of the business survival include both the base line scenario and the downside scenario. The downside hypothesis has been a fairly pessimistic assumption that, for example, it remains flat, not the continuation of the growth trajectory of the online handle, and that the contribution of sports betting is significantly reduced. It also considers the impact of the depreciation of the dollar.

For this reason, the Board of Directors continues to adopt a baseline in creating financial statements.

Management comments

1. After adjustment, performance indicators

After adjustment, EBITDA is not an indicator of the International Financial Report Standards (IFRS), but it may not be comparable to the numerical values used elsewhere, but for comparison with other gaming companies, analyst community It is widely used by management to evaluate the fundamental performance.

The adjustment table of the afte r-operating cost and the afte r-adjustment of the performance indicators used in the statutory report is as follows:

Note 2022 2021 Continuing Business GBP000 GBP000 Income statement base Operating expenses (14. 803) (15. 680) Return: Depreciation and depreciation costs 15. 216 982 Depreciation expenses (excluding acquired intangible assets) 1492 509 Goodwill cost reduction 13 517 --The fixed asset impairment reduction 15 (190) (335) Tellal fixed asset disposal 15. 172) (12. 960) ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -

After adjustment, ebitDa is calculated as follows:

2022 2021 Continuing Project GBP000 GBP sales 26. 004 22. 942 Sales cost (11. 847) (11. 489) -------------- (22. 157 Marketing) 11. --------------- Contribution 13. 771 11. 177 After adjustment (12. 172) (12. 700) --- -------------- After adjustment EBITDA 1.

After the adjustment reported in 2021, EBITDA contained an investment of £ 260. 000 in sports betting, so the total EBITDA was pounds after adjusting in 2021 (1. 783). This is adjusted to provide clarity and consistency and provide "favorability for similar things".

After adjustment, the profit / (loss) is also a afte r-adjustment performance indicator used by the group. This is the view of the management that is the closest substitute for cash generation of basic performance, and the expenses for stock options, depreciation, and intangible assets are used by using the afte r-adjustment EBITDA, which is defined above. (Excluding those caused by the acquisition of a company), and the specific financial costs are removed. As a result, the profit before the adjustment tax is calculated, and the estimated adjustment amount is applied to the profit before the adjustment tax. The adjustment tax amount excludes the tax effect of the income statement that is not included in the profit before the adjustment tax.

2022 2021 Continuing operations: GBP000 GBP000 Adjusted EBITDA 1. 216 (982) Depreciation and amortisation (excluding amortisation of acquired intangible assets) (252) (8) 230 (130) -------- -------- Adjusted profit/(loss) before tax (99) (3. 358) Adjusted profit/(loss) before tax (79) 551 -------- -- ------ Adjusted profit/(loss) after tax (178) (2. 807) -------- -------- Notes 2022 2021 Income/loss from discontinued operations: GBP000 GBP000 Adjusted EBITDA 11 1. 183 6. 88 Depreciation and amortisation 11 - (221) Depreciation and amortisation 11 - (151) Net finance costs 11 - - 54 ------- -------- Adjusted profit before tax 1. 183 6. 561 Tax - (1. 693) ------ -------- Adjusted profit after tax 1. 183 4. 868 ------- -------- 2. Sector Report 2022 Sportec Sportec Sportec Corporate Digital Venue Expenses Group GBP000 GBP000 GBP000 GBP000 Sports betting service revenue - 1. 974 - 1. 974 Food and beverage sales revenue - 3. 443 - 3. 443 Service revenue 1. 471 19. 116 - 20. 587 --------- --------- ---------- Total revenue 1. 471 24. 533 - 26. 004 Cost of sales (944) (10. 903) - (11. 847) --------- --------- -------- --------- Gross profit 527 13. 630 - 14. 157 Selling, general and administrative expenses 4 (390) - (386) --------- ------ --- --------- --------- Contribution to sales 531 13. 240 - 13.

Facilities and equipment (continuing operations) 5 142 - 147 --------- --------- --------- --------- --------- Facilities and equipment (continuing operations) 5 142 - 147 --------- --------- --------- --------- --------- Facilities and equipment (continuing operations) 5 142 - 147 --------- --------- --------- --------- --------- Facilities and equipment (continuing operations)

2021 Sportec Sportec Sportec Corporate Digital Venue Expenses Group GBP000 GBP000 GBP000 GBP000 Sports betting service revenue - 280 - 280 Food and beverage sales revenue - 2. 115 - 2. 115 Service revenue --- -------- ---------- ---------- --------- Total revenue 1. 969 - 11. 453 Marketing and distribution costs (76) (200) - (276) --------- --------- --------- --------- --------- Contribution 408 10. 769 - 11. 177 Adjusted operating expenses (Note 1) (987) (9. 149) (2. 564) (12. 700) --------- --------- --------- ------- -- Adjusted EBITDA (before sports betting adjustments) (579) 1. 523) Investment in sports betting - (260) - (260) --------- --------- --------- --------- Adjusted EBITDA (579) 1. 783) Stock option expense - - (334) (334) Depreciation and amortization (10) (950) (22) (982) Amortization, excluding amortization of acquired intangible assets (97) - (32) (129) --------- --------- --------- --------- Segment profit before amortization of acquired intangible assets (686) 410 (2. 952 (3. 228) Amortization of acquired intangible assets (509) - - (509) Reversal of impairment loss on property, plant and equipment - 335 - 335 Specific items (165) (84) (852) (1. 101) Other income 100 4.

Geographical information 2b Geographical information Sales revenue from external customers Sales revenue from external customers Discontinued operations Continuing operations Non-current assets 2022 2021 2022 2021 2021 GBP000 GBP000 GBP000 GBP70 GBP00 GBP00 GBP00 GBP00 GBP00 GBP00 GBP0 02 1. Cost of sales 10. 208 10. 205 Consumables F& amp; B 1. 144 818 Betting and gaming liabilities and licences 125 98 Maintenance and licence expenses Sales of 263 Rpa Cost of sales of 263 Rpa 86 67 ------- ------- Total cost of sales 11, 489 ------- ------- Marketing and distribution costs Marketing 368 253 Vehicle expenses 18 23 Total marketing and distribution costs 386 276 ------- ------- Operating expenses Personnel expenses - gross, excluding stock option expense 6, 323 6, 661 Reduction in capitalized amounts (171) (165) ------- ------- ------- Personnel expenses - net 6. 152 6, 496 Property expenses 2, 688 2, 581 IT & amp; communications expenses 628 457 Professional fees and licenses 1.

Compan y-wide costs 57 21 Spots The Balls Related to the Value Tax Refund s-10 Contract Payment (2) 30 4-Expenses related to the withdrawal from the group in India 23 From the Group to AIM Expenses related to the transition of --341 657 1. 101 --------------------------------- Total items included in the cost 657 1: In the balance sheet of the balance sheet for corporate taxes, etc., which was refunded from STB in 2016, unpaid interest 24 150 8 24 150 --------- ---------- Net item listed in category 681 1.

1. Personal reduction and business restructuring costs are related to the reconciliation for the former director.

2. One of the contract settlements is about the fact that the group left during the current term from the royalty contract related to the brand name of the Connecticut State. This required the payment of the contract cancellation fee.

The outline of the cache leak due to the items disclosed individually is as follows:

2022 2021 GBP000 GBP000 ------------------------------------------------------------------------ ------------------------------------------------------- ------- Continuous business-Cash outflow due to individual disclosed items: Contract preparation and other losses (688) -The withdrawal from the California Project (304) -Apgravity reduction (304) Reference expenses (414) (625) Spots related to the added value tax refund of the spots the ball- (37) Expenses related to the corporate business (49) (71) Related to AIM transition of the group- (341) Costs related to leasing to the group Nolco, California- (785) expenses related to the withdrawal of the group in India (2) (13) --------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Cash outflow-Continuing business (net amount) (1. 457 △ 1. 872 Cash out due to unpaptial disclosure-Non-continuous project (net amount)-△ 535 ------------------------------------------------------------------------------------------------ -------------------------------------------- ---------------------- Cash out with individual disclosure items-Total △ 1.

Number of monthly employees including executive officers (ful l-time conversion):

Important

2022 2021 2022 2021 2021 GBP000 GBP000 GBP000 Wage and salary 5.

In the above table, the previous year's approved bonuses in FY2021 were included, and bonuses on December 31, 2021 were excluded for completing the disposal of the sale for sale. The amount of 2021 in the above table

7. Audit reward

The following remuneration paid to the consolidated financial statements during the current period includes the following: < SPAN>

2022 2021 2022 2021 2021 GBP000 GBP000 GBP000 Wage and salary 5.

7. Audit reward

The following remuneration paid to the consolidated financial statements during the current period includes the following: important

2022 2021 2022 2021 2021 GBP000 GBP000 GBP000 Wage and salary 5.

The outline of the cache leak due to the items disclosed individually is as follows:

7. Audit reward

The following remuneration paid to the consolidated financial statements during the current period includes the following:

2022 2021 GBP000 GBP000 Audit fees 258 264 Corporate finance services 55 Other assurance services 15 18 --------------------------------- 8. Continuing operations: GBP000 GBP000 GBP000 Finance expenses: Taxes payable and interest paid (24) (150) Interest on lease obligations (Note 24) (230) (155) Financial assets and financial liabilities--Finance expenses expressed in foreign currencies (254) (305) Finance income:

For the purpose of calculating the alternative performance indicators in Note 1, the following amounts are excluded from the amounts above:

Continuing operations: 2022 2021 GBP000 GBP000 Exchange gains on monetary assets and liabilities denominated in foreign currencies 232 436 Taxes payable and interest paid (24) (150) 208 286 ------------------------------- - 9. Taxation

Taxes from the Group's continuing and discontinued operations include:

178 ------- ------------------------2022 2021 Notes GBP000 GBP000 Total tax expense from continuing operations 79 192 Total tax expense from discontinued operations 11-986 ------------- ---------- Total tax expense 79 1.

The tax expense on the Group's profit (loss) before tax differs from the theoretical amount that would arise if the weighted average tax rate applied to the profit (loss) of consolidated companies were used as follows:

2022 2021 Note: GBP000 GBP000 Future profit 169 34. 563 Tax burden Total 79 1. 178 -------------------------- Tax effects: -In income for tax that does not occur in taxation, income is not taxed 201 (5. 282) -Conditions for ove r-yea r-Tax (150) 6-Adjustment of ove r-yea r-deferred tax (15) 1 3-Effect of tax change- 68 9-Excessive Fiscal yea r-Tax (150) 6-Adjustment of ove r-yea r-deferred tax (15) 13 282) - Foreign taxes are not include d-68 9-Adjustment of ove r-yea r-current tax (150) 6-Regarding the year Adjustmen t-deferred tax (15) 1 3-Effect of tax rate change - (4) -Prevant tax not recognized during the current fiscal yea r-31 9-Exposed tax that was not included in the past- (2. 62 8-Recognized in the past Correction of deferred tax --- tax data ----------- Tax cost 79 1.

As of December 31, 2022 and as of December 31, 2021, the deferred tax assets are not recognized in the US business, as the reliable collection of future profit in the future is inadequate. The US Federal Tax rate will not be changed from the current 21 %.

These financial statements indicate that the UK corporate tax rate has been changed from 19 % to 25 % based on the established laws and regulations.

The tax position on the handling of the profit of the 4. 6 million British pounds included in the 2016 financial statements for the Ball VAT refund point is still unclear. Directors still believe that this amount is doubtful, wait for the final decision of HMRC assessment, and will consider whether further measures are appropriate. In this regard, the accidental assets have not been recorded.

Metropolitan flow tax (asset) / Breakdown of debt is as follows:

2022 2021 GBP000 GBP000 As of January 1st 4. 718 3. 258 Cost Interpretation of Income statements-Continuing project 153 239 Current in profit and loss calculation (105) -1. 1. 442 Payment in the current period-Distributed business*-(904) Transfer to debt-related assets-December 31st foreign exchange profit (16) (3) (228) 4. 718- ----------------------------------- (228 ) 4. 718 ----------------------------------------------------------------------- -----------------

* It is about the Riza contract. Other holiday business paid for 20, 00 0-English pounds.

10. Other income

Other income recognized in the income statement during the current term are as follows:

2022 2021 Notes GBP000 GBP000 Early contract termination settlement - 100 CARES Act receivable - continuing operations 120 1. 426 Gain on disposal of sports shelter - 2. 575 -------- 4, 101 CARES Act credit income - continuing operations 11C 170 1, 057 ---------------------------------------------------------------------------------------------------------------- 1, 057

ACT CARES credits were received in consideration of the impact on team operations of the Covid-19 restrictions imposed in the United States. All amounts were received in cash during the period or in February 2023. The early contract termination settlement is expected to be received early in the second quarter of 2022.

11. Interconnection of operations and assets held for sale

11α) On 28 April 2021, the Group sold a property in New Haven, Connecticut, known as "Sports Haven", for gross proceeds of GBP 4, 346k (US$ 6, 000k). The asset was classified as held for sale on 31 December 2020 and was part of the Sportec Venues division. The asset was leased back for 18 months to 31 October 2022, then extended until February 2024 at a rent of GBP 36K (US$ 50K) per month. On the sale, a lease liability of GBP 633K and a royalty of GBP 169K were recognised.

11b) On 2 June 2021, the Group completed the disposal of Bump 50:50, a 50:50 lottery split. In addition to the consideration received during 2021, the team received further consideration following the 50:50 bump in March 2023, achieving revenue recognition in the year ending 31 December 2022. The total proceeds received of GBP 1, 229k were recognised in the income statement under 'Discontinued operations', resulting in a net gain of GBP 1, 013k.

Profits and cash flows from hit products for the current period are as follows:

Prices 2022 2021 Bump (Worldwide) Inc: GBP000 GBP000 ----------------------------------------------------- --------------- ----- --------------------------------------------------------------------------------- Shares (216) (487) --- ----------------------------------------------------------------------------------------------------------------------- ------- ---- ------------------------------------------------------------------------------------------------------------- ------------------------- --------------------------------------------------------------------

Profit before tax 1. 013 401 tax, excluding tax resulting from the disposal ------------------------------------------------------------------------ ----------------------------------------------- ----- ----------------------------------------- ------------------------------------------------------------------------------------------ hel d-the cost cost) 11e 1. 013 3. 805 ------------------------------------ --------------------------------------------------- ------------------------------------------------- ---------------------------------------------------- --------- ------------------------------------------------- ------------------------------------------------------------------------------------------ held ----------------------------------------------- ------------------------------------------------------------------------------------------ held ------------------------------------------------- ------------------------------------------------

11c) 2021 年 6 月 17 日当グループはスポルテック・レーシングの一部でもありでもあり、、 2020 年 12 月 31 日売却目的売却売却総額総額れれたグローバル・・ K ポンド、これにには 2021 年 7 月受領ししたしたしたししポンドのに支払いにににに加え、ににする超過超過超過をををををを超過超過をををを超過超過超過するするするするするするするするをするするするをするするするするするするするするするする運転の決済がれる。さらに、さらにさらに、さらにさらに、さらにさらにさらにさらにさらにさらにさらにさらにさらにさらにさらにさらにさらにさらにさらに。。コードコードををコードをコードコードコードコードをコードコード売却益売却益売却益売却益売却益売却益売却益売却益売却益売却益売却益売却益売却益売却益売却益たたたたたたたたたたたたたたたた。たたたたたたたたたたたた

当は、処分の期間期間期間期間期間期間期間期間期間期間期間しししがが、これこれこれこれこれこれこれこれはこれこれは 2023

グローバル トート から の 当期 利益 および キャッシュ フロー は 以下 の 通り である である ：

Period ended June 17 2022 2021 Global Tote Group: GBP000 GBP000 ---------------------------------------------------------------------------------- ----------------------------------------------- -------- ---------------------------------------------------------------------------- held expenses- (8. 140) ------------------------------------------ ------------------------------------------------------------------------------------------ held ----------------------------------------------------- ------------------------------------------------------------------------------------------ held ----------------------------------------------- -(24) ------------------------------------------- ------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ held ------------------------------------------------------- ------------------------------------------------------------------------------------------ held ----------------------------------------------- ------------------------------------------------ ----------------------- -------------------------------- ------------------------------------------------- ---------------------------------------------- Clean cash flow from Operating activities-1. 944 Clean Cash Flows (used) Investment Activities- (930) Net Cash Flow (used in funding activities)-(160) ----------------- ------------------------------------------------ ---------------------------------------------------- -------------- pure e

11D) SPORTech lotteries, llc から 当期 利益 および キャッシュ は は 以下 とおり である である ： ：

Note 2022 2021 Sportech Lotteries, LLC: GBP000 GBP000 ---------------------------------------------------- --------------------- -------------------------- --- ----------- ---------------------------------------------------- ------------------------------------------------- -- ------------------------------------------------ ------------------------ ------ ------- ------- Adjusted EBITDA-2. 451 Depreciation and amortization-(372) Gain on disposal of property, plant and equipment-47 --------------------------- ----- ------------------------------------- ------------- -------------------------------------------- -2, 126 Tax, excluding taxes arising from the disposal-(791) ---------- --------------------------- ------------------------------------- ----------------- ----- ----- ------------------------------ Cost of disposal) 11E-7. 769 ------------------------------------------------- -------------------------------------------------- --------------------------- -------- ----- --------- ------------------------------------- ------------- ------------------------------------ -------- ------ ------------------- ------ Net cash flow from operating activities-1. 068 net cash flow (used) investing activities-(429) ------------------------------------ ----------- --------------------------------- ------ ------------------- Cash Inflow-639 --------------------------- -------------------------------------------------- ---------- --------------------------- ------- -----

11e) The summary of 処分益 accompanying each business suspension is as follows:

Global Sportech Tote Group Bump Group (Worldwide) Lotteries Inc. LLC Total Note GBP000 GBP000 GBP000 -------------------------------------------- ------------------------------------- ---------- ----- -------------------------------------------------- ------------------------ Cash 170 1, 229-1, 399 Cash 170 1, 229-1, 399 -------------------------------------------------- ----------------------------- 非电影事年の処分 170 1, 013-1, 183 税金 ------- -------------------------------------------------- ----------------------- 非电影事年の通生処分 170 1, 01

処分质是下载, 元団 employees and 元 employees' bonus 216K pounds are included.

11f) Summary of cash receipts and cash receipts is as follows:

Global SportTech Tote Group Bump (Worldwide) Lotteries Inc. LLC Total Note GBP000 GBP000 GBP000 -------------------------------------------- ---------------------------------------------- ------ ------------------------------------------------------------------------------------------ held ----------------------------------------------------- --- The cash received and the collectors were purely paid during the period 170 1. 229-1. 399 ----------------------------------------------- ------------------------------------------------- ---------------------------------------------- ------ ---- --------------

11g) Earning/(loss) agreement for the period included in the results account state:

NOTE 2022 2021 GBP000 GBP000 ----------------------------------------- ----------------------- Tote 11C 170 21, 691 Bump 11b 1, 013 4, 206 SportTech Lotteries, LLC 11D-9, 104 ---- ------------------------------------------------ 1, 183 35, 001 ----------------------------------------------- -

12. E rn i n gs/(loss) per s ha re

基本 的 1 株当たり 利益/(損失) は 親会社 の 株主 資本 に 帰属 する 利益 利益 数 で 除し て の さ。。。

継続継続合計合計継続継続 2022 2022 2022 2021 2021 2021 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000

希薄化後株当たり利益は、効果効果効果されれれれれたと、、。。。。ののの所有所有所有所有所有所有所有所有所有所有所有所有所有所有所有所有所有所有所有所有所有所有所有所有所有所有所有者にする損失がある場合には希薄化後後株当たり株当たりは計算れない。。。

Continuing no n-continuous total continuous no n-continuous total 2022 2022 2022 2021 GBP000 GBP000 GBP000 GBP000 GBP 200 profits to the owner 84, 31, 31, 785 169. 785 169. 785 Number of punched potential shares (1, 0) p 1 , 2P 0, 2p N/a n/a n/a n/a ----------------------------------------------------------------- ------------------------------------------- Total number of potential shares 100, 000 100, 000 100, 000 100, 000 169. 785 169. 785 169. 785 -------------------------------------------------------------------------------------- ------------------------------------ Net income per share (loss) (1, 0) P 1, 2p 0, 2p (0, 3) p 20, 6p 20, 3p ------------------------------------------------------------------ ----------------------------------------------- ------------------------------------------------------ -------------- 1 Net income per share (loss) (1, 0) p 1, 2p 0, 2p (0, 3) p 20, 6p 20, 3p

The number of potential thinning shares, which was not considered in the previous fiscal year, was unlimited. VCP expired on December 31, 2022, and no shares that could be diminished.

After adjustment, the EPS is calculated by excluding the afte r-tax loss (defined in Note 1) that belongs to the Company's owner (defined in Note 1) by the weight average number of shares of ordinary shares issued during the current period.

785 (1. 7) p (1. 7) P after sponsening EPS (after sparse) 169. 785 (1. 7) p

1 3. Asteni

The founding goodwill was caused by the acquisition of Lot. to Systems Limited in February 2019 (currently part of Sportech Digital). Goodwill is due to employee knowledge and expertise.

The movement of the goodwill of this group is as follows:

2022 2021 GBP000 GBP000 Acquisition as of January 1st 604 604 604 As of December 31st, acquisition price 604 604 604 As of January 1s t-Mainment of impairment 51 7-As of December 31st, it acquisition costs 51 7-Book Price 87 60

In accordance with the request of IAS No. 36, an impairment test was conducted on December 31, 2022.

The recovery value of Mitsubishi Mitsubishi UFJ Morgan Stanley Securities was determined based on the use value calculation. The main prerequisites for calculating the use value are as follows:

On February 3, Lot. to Systems Limited received a 500, 00 0-lede pound as the first price of business and asset disposal to Inspired Gaming LTD. These assets were developed internally, and their development periods were recorded during the past period.

The relocation value to the wel l-acquired goodwill is 6004, 000 pounds, which is 1, 016, 000 pounds, combined with an inaccadial of 4. 12 million British pounds. In other words, an impairment loss of £ 517, 000 is required to reduce intangible assets to the market price.

14. Read more

2022 Software License Total GBP000 GBP000 Acquisition as of January 1, 2022 4. 466 Cumulative disposal as of January 1, 2022 3. 592 914 4. 506 Trucks Continue-Continued Project 277 4 281 Control Business 2-2 As of December 31, 2022, as of December 31, 789, 789 Foreign exchange difference (247) 838 591 During the current stage fluctuation 0 671 671, 2022 As of December 31, 2022, the exchange rate difference (247) 1, 509 1, 262 Book value as of December 31, 2022 652 6, 287 6, 939

Of the assets that were asseted during the current term in the continuous business, 196 Chido Pounds occurred from the asset of labor costs for development costs (165 Chie Pounds in FY2021). Amitatives are included in operating costs.

The Group has a permanent license to provide an ou t-o f-race gambling in the US Connecticut for the Racecourse Division. As of the report of this asset, the book value of the assets is 6, 287 Chei Pounds ($ 7, 569 thousand, 2021: £ 5, 569, $ 7, 569). Since this license is permanent, the book value of the assets is not amortized, and the economic service life available for assets is indefinite.

As of December 31, 2022, an impairment test was conducted as obliged in IAS No. 36. The impairment test includes other assets used only to generate cash flows on the CGU site, and the total amount is 15, 814 Chie pounds, 19. 039 thousand (including license transfer prices) (2021: 12, 680: 12, 680: 12, 680: 12, 680: 12, 680: 12, 680: 12, 680: 12, 680 Chihide Pound, 17. 088 thousand dollars).

The collected value of assets is determined based on the use value calculation. The main prerequisites that are the basis for calculating usage are as follows:

- EBITDA forecast assumes a year-on-year decline of 2. 8% in core business activities over the next five years, with a permanent decline of 2%.

- Online and sports betting revenues are forecast to grow by 2% in perpetuity (the 10-year contract with CLC is assumed to be renewed in perpetuity).

- Capital expenditure is included in cash flows in line with industry standard management's best estimate of reinvestment in the type of retail stores currently under consideration. And

- We have used an after-tax discount rate of 13. 9% (2021: 13. 5%), which represents a weighted average market-based cost of capital appropriate for Sportec Venues MRO.

The above assumptions are those that management considers to be the most likely trading performance of the CGU, taking into account historical experience and knowledge of the future trading environment.

As a result of impairment testing, the recoverable amount of these assets is considered to be GBP 17, 726 thousand (USD 21, 340 thousand) and no impairment was identified (2021: no impairment).

The following assumptions are reasonable negative cases for sensitivity purposes, where the carrying value of the trading assets of the business is reduced to GBP12. 946k and the margin to carrying value is GBP266k.

- Core betting volumes fall by 4% instead of 2% from 2023 to 2025 - No F& B revenue growth - Online and sports betting revenue growth halves to 1% - All other costs remain flat. Software licences 2021 Total expenses 000 GBP000 GBP As at 1 January 2021 5. 353 5. 696 11. 049 Additions from continuing operations 165 - 165 Additions from discontinued operations 23 - 2925 December 76 5. 473 Current expenses from continuing operations 603 35 638 Current expenses from discontinued operations 151 - 151 Disposals (756) - (756) As at 31 December 2021 3. 592 917 2016 As at 2 January 2020 Difference - 71 71 Disposals (247) - (247) As at 31 December 2021 Foreign exchange gain (loss) (247) 838 591 December 31, 2021 Net book value 737 5.

15. Retained earnings, retained earnings and legal reserve

Improvement of land leaseholds 2022 assets and land leasehold land and construction machine tool equipment buildings Total 000 GBP000 GBP000 GBP costs as of January 1, 2022 8. 393 502 3. 159 + 35 147 Subcretment (193) - (374) - (374) - (374) (567) As of December 31, 2022 8. 200 505 3. 333 36 12. 508-8. 149 Current Fiscal Cost s-2319 cases (from 40) --- (190) Vegetables (119) - (119) - (119) - (119) 315) - (434) As of December 31, 2022 4. 959 Foreign exchange conversion difference as of January 1, 2022 54 (472) 333 1 (84) During the current fiscal year 44 7-1 -1 3 --- 2022 As of December 31, exchange exchange difference 495 (469) 380 1 407 Foreign exchange rate as of December 31, 2022 4.

Depreciation costs and tangible fixed assets loss are included in operating expenses.

Return in the impairment

Assets at the sports bar venue in Stanford, USA, USA have been impaired in the past period. Based on a new regulation on sports betting at the venue at the end of October 2021, management examined whether to return the previous asset impairment based on the commercial results of the venue. Modeling was performed to calculate the value of assets in the venue. When calculating the use value, the following main premise:

-There is the expiration of the lease period in June 2026, and the contract destruction clause in May 2025 will not be activated, and transactions at the venue will be continuously continued (this is the destruction of the contract in June 2020. It is a reverse on the premise that it will occur). Reflecting this, as a result of the r e-livery debt was r e-measured, the lease debt increased by £ 283 million, and the corresponding use assets increased (see Note 16 and 24).

-The accounting of all business premise that leads to profits and costs is accounting in the same way as the entire establishment.

-The capital spending is $ 60, 000 per year until 2025, and then $ 40, 000 per year. and

-Tax discount rate of 13. 9 % (2021: 13. 5 %) is used, which indicates the weighted average market capital cost suitable for the Sportech Benu MDT.

As a result of the discount cache flow calculation under the above premise, the recovery amount of these assets was 4, 071 Chiei pounds, and as the return of the impairment of the 190, 00 0-led pound, it was recorded in the profit and loss statement as a operating expenses. 。

In the second half of the year, there were no other assets, factories and equipment indicators.

2021 年リース 2021 年リース 2021 年リース 2021 年リース 2021 年リース改善資産および有形固定資産土地および有形固定資産土地および有形固定資産土地および有形固定資産土地および有形固定資産土地および有形固定資産土地および有形固定 Asset building total buildings total building Total building Total building as of January 1, 2002 8. 393 3. 022 3. 553 31 14. Depreciation cost- (2. 879) - (64) (2. 943) As of December 31, 2021 8. 393 502 3. 598 1 12. 494 Cumulative depreciation as of January 1, 2021 4, 567 Continuing Fiscal Current Procedure 195 19 234-448 USE Current Fellary Expense s-No n-continuous Busines s-221 --221 Defigned Return (335) --- (335) 2021 Linking as of January 1, 2021 122 (1. 752) --- (1. 752). 672) 195-- (355) Fluctuation rate (68) 1 138 1 72 arrangement s-199 - 199 Exchange as of December 31 54 (472) 333 1 (84) N E T B OK A Targer as of December 31, 2021 3, 807 29 423 2 4, 261

16. Right assets

2022 Vehicles, parts, parts, parts and parts Type GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 Costs as of January 1, 2022 8. 963 additions 65 2-652 Removed (102) -4, 217 7 37 4, 261 Fellary expenses 765 5 12 782 Reference (85) - (85) As of December 31, 2022 4, 897 12 49 4, 958 Swap difference on January 1, 2022 (42) (1) (2) (45) Fluctuation rate 520 4 8 532 Swap difference on December 31, 2022 478 3 6 487 2022 December 31, 222 NE T B OK AM O U NT 5, 012 20 5, 042

The fluctuation of the current stage is about extension of existing leasing agreements for sports and shelter sites.

2021 Land and Equipment Building Vehicle and Equipment Total GBP000 GBP000 GBP000 Cost 2021 January 1, 6. 941 29 53 7. 023 Added 1. 24 0-1. 240 Lease s-6 Review 60 96 96 2022 2022 122222222222222 Month 31st 8. 881 29 53 8. 963 Department of depreciation Cumulative amount January 1, 2021 5. 907 Fellary expenses 519 5 10 534 Leasing period R e-evaluation difference (2. 231) - (2. 231) Sale purpose holding Transfer 512 1-December 31st 5121-4. 261 Foreign exchange price as of January 1, 2021 20 (1) (2) 17 Due to the current fiscal year (62) - (62) As of December 31, 2022 Foreign exchange rate (42) (1) (2) (45) As of December 31, 2022, the current fiscal year variable 4.

Depreciation costs are included in operating expenses.

Re-evaluation of lease assumption-break clause

In the fiscal year ending on December 31, 2020, the management was exercised as a break clause in Stanford Sports Bar in Connecticut in the United States, and that the site was given in May 2025.

Following the new regulations implemented at the end of October 2021, sports and betting at the venue became possible, and management will continue to operate the venue until at least the end of leasing in May 2035. I think. As a result, the lease debt was r e-measured in the year ended on December 31, 2021, and the number of 2. 835 Chiei pounds (see Note 24) increased, and the use of rights assets increased in response to this.

The increase in the use of the rights assets of the rights to be used by 2. 835 Tei Ponds should all be recognized as an increase in cost, but the 2. 231 Chie Pound was offset as the depreciation of the depreciation, and only 604 Chie Pound was recognized as an increase in cost. In the fiscal year ended on December 31, 2020, the r e-evaluation of the lease period reduced the assets used by 2. 231 1, 000 pounds, so that it should be recognized as a decrease in cost, as an increase in the depreciation of depreciation. This is to be displayed so that the correct numbers of the financial results and the cumulative depreciation are reported. This does not affect the net book value of the usage assets or the profits of the current period. The management is adjusted on December 31, 2021, instead of the overall impact, instead of modifying the cost of the fiscal year that ended on December 31, 2020. In the end of the year, the depreciation cumulative amount of £ 231, 000 was returned, and the excess £ 604, 000 pounds were correctly recognized as cost increase.

The management reviewed the assumptions of the Demorable Article for the impairment indicators of the U. S. Stanford Sports Bar Lease in Connecticut in the United States. The book value was believed to be backed by the cache flow in the future, and as a result, no further impairment was recognized. See Note 15 for details of the prerequisites of the reserve.

During the current fiscal year, no sign of impairment was confirmed for other use assets.

The detailed disclosure of the wreath is described in Note 24.

17. Note on overseas investment

The group has invested in 50 % in San Diego's sports bar Striders as part of the S & Amp; s; s Venues California, LLC joint venture. Striders is a food and beverage facility with betting facilities in California. Transaction started in February 2017, and the transaction ended in December 2019. The group's debt in the joint venture was liquidated, and the legal procedure to resolve the joint venture was completed in 2022.

18. Sales receivables and other claims

2022 2021 GBP000 GBP Others 177 158 Other receivables 177 158 1. 112 781 Others 491 480 231 27. 5%decrease, Others 1. 978 1. 750 Sales receivables and other receivables 2.

The fair value of sales and other claims is not different from the above book value.

The fluctuations of the fiscal impairment for the current term are as follows:

2022 2021 GBP000 GBP000 As of January 1s t-111 Costs for Income statements - -No n-continuous project s-use of reserves - (111) Transfer to sale purposes - -As of December 31- -

The book value of the sales receivables and other claims is displayed in the following currencies:

2022 2021 GBP000 GBP000 British Pound 104 233 US dollars 1.

Sales that have not exceeded three months are considered not impaired. As of December 31, 2022, 48. 000 British pounds (2021: £ 1021: 1020, 000 pounds) have been overdue for more than three months, but they have not been impaired. Management also believes that these claims can be collected in full.

19.

The end of the tax public section is the tax public section.

Answering Machines 2022 2021 NOTE GBP000 GBP000 N ET TAX ASSE 1 Janua Ry (43) et 31 de C E M B E R-15 15 (43) Set s-15 15 - Current Liabilities- --Non Current --- (43) - 15 15 15 (43)

Tax debt

Other temporary difference GBP000 total GBP000 A T January 1, 2021 (90) (90) Collection in the continuous project 58 (43).

2022 2021 GBP000 GBP000 GBP000 F At I S H D Goo DS 146 124 146 124

The cost of inventories (food and beverages inventories), which was recognized as expenses and included in the cost of sales, was £ 1, 147 million (2021: £ 818 million). Food and drink inventories are included in the finished product. As of December 31, 2022, no impairment for inventory assets has been recorded (2021: GBPPNIL).

21. Cash and cash equivalent

Cash and shor t-term deposits 7. 420 21. 912 Customer fund 22. 391 455 7. 811 22. 367

The air is not air.

Cash balance 391 (2021: 455 Chie Pound) is held on behalf of customers for specific online and telephone betting activities (the amount deposited through Telefonbetting in the United States is held separately. It is done). The corresponding debt is included in the business and other debt (see Note 22).

Elim Poon - Journalist, Creative Writer

Last modified: 27.08.2024

Sportech PLC Final Results · a year ago |. By Sportech PLC, Continuing Discontinued, Liabilities - -, Amortisation -. | ADVFN W Sportech PLC 18 April. The sale was for GBP million (a further GBPm being an unrecognised, contingent performance earnout). This decision was made early in -- Strong operational performance. -- Stable revenue growth +2% to GBP million. -- Gross profit +11% to GBP million. -- Adjusted EBITDA returned to.

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