Growth to slow at Sportech

20th Nov 2009 00:38

Football pools firm Sportech expects profits to grow again this year but not at the rate previously anticipated.The traditional 'direct to home' side of the football pools business has remained resilient but the online version, while it has been attracting more registered customers, has seen weaker trading than expected. The board is confident this is a temporary blip, however.The group is engaged in discussions with its lenders to increase the flexibility of its borrowing arrangements; in particular, it is seeking the amendment of the leverage covenant, one of three covenants on its bank loan.The group expects it will take some non-cash accounting write offs this year in respect of the carrying value of a number of assets. This should lead to a substantial reduction in this year's and future tax charges, which is expected to offset significantly the softer than expected trading currently being experienced.