Sportech hit by development costs and racing results

Pools group Sportech reported flat profits of £12m (€17.54) in 2003 as its betting arm saw losses rise.

Turnover was up 7% to £208m while betting losses rose to £3.1m (€4.55m) from £2m (€2.94m).

Its football pools business held a steady operating profit of £25.6m (€37.62m).

Pre-tax profits fell to £3.5m (€5.14m) against £4.6m (€6.76m) in 2002.

The company blamed development costs and lower horse race betting margins for the disappointing returns.

Looking forward, the company announced that it planned to reduce its reliance on horse racing and increase its share of the football, rugby, cricket and golf betting markets.

Sportech said it expected this sports' betting division to be profitable by 2005.