UK betting firm Sportech has failed to find a buyer, and the group's share prices plunged by more than 50% as a result.
Sportech has been looking for a buyer since last October, hoping to help the struggling betting brand. Unfortunately for Sportech, the company was unable to get a bite, despite having detailed discussions with outside groups. The reaction to the announcement was severe and negative for the financial outlook of Sportech, as shares fell from 77.8p to 37.5p, down 51.8% from the day prior.
The reaction wasn't exclusively related to the failure to find a buyer, but also because of the fact that Sportech is expected to report lower than expected earnings of £6.5 million from last year.
Sportech recently appointed a new CEO in Andrew Gaughan, who is expected to bring some stability to the helm. The group also says that this year's performance won't be hurt by past issues, which will have a positive impact on financials.