Pools betting group Sportech fell over 50 percent following failure to secure buyer

Listed pools betting group Sportech provides technology to racing and betting companies around the world, as well as operating pool betting services. Last year, it sold its historic Football Pools business in a deal worth £83m (USD 115 M).

As disclosed by The Financial Times, Sportech put itself up for sale in October as part of a wider strategic review. But in a trading update on Wednesday, it said that all sale talks had ended as discussions with potential acquirers are “unlikely to result in an offer” for either the whole of the business or a substantial part of it that it could recommend to shareholders.

The company went further, adding that its review had also “identified a number of write-offs and restatements,” worth around in total £8m (USD 11 M) in total, mostly related to “accounting corrections”. It added that further auditing work was continuing which “may or may not lead to further impairments of a non-cash nature.”

In a profit warning, the company said adjusted earnings before interest, tax, depreciation and amortisation in 2017 were expected to be “below expectations” at around £6.5m (USD 9 M). In the year ended 31 December 2016, the company achieved adjusted ebitda of £23.8m (USD 33 M).

A report by Sky News on Tuesday night was the first indication of the impending writedowns.