Strong cash flow and reduced debt boosts Sportech

21st Jul 2011 13:13

Sportech's shares advanced 2% higher after the pools and tote gaming operator said it had generated strong cash flow and reduced debt during the six months ended 30 June.During the period, Sportech said its net bank debt has been reduced by a further 10% or £7m to approximately £65.2m and added that it "anticipates a continuing reduction in net debt throughout the second half of the year."Also, Sportech said its earnings before interest, taxes, depreciation and amortisation (EBITDA), rose more than 30% compared to last year, reflecting the acquisition of Sportech Racing in October 2010. It said EBITDA was in line with market expectations. "The group has produced a strong improvement in EBITDA performance and generated strong cash flow, which we believe reflects the current and longer term growth potential of the business," the company's head Ian Penrose said.Shares of the company were up 2.5% at 41.1p in afternoon trading in London.AR