SPS Sportsoft Limited has recorded a £4.1 million (Ksh638 million) loss in the year ended December 2020, following squabbles with the Kenyan government that led to the closure of Sportpesa Kenya.
SPS Sportsoft is the company offering technology support services to SportPesa betting firms. In 2019, Pevans East Africa, the holding company for Sportpesa Kenya, closed shop after a Ksh15 billion tax dispute with the government. 96 percent of SPS revenue used to come from Pevans, before it ceased operations.
SPS revenues have dipped by 91.3 percent to £1.48 million (Ksh230 million) from £17 million (Ksh2.6 billion).
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As it stands, the liabilities outweigh the assets, including cash at hand, a situation that threatens to sink the company registered in the UK.
SPS is fully owned by Sportpesa Global Holdings Limited (SPGHL), whose shareholding is common with that of Pevans.
In 2020, SPS paid Kenya Revenue Authority (KRA) withholding taxes of £21,957 (Ksh3.4 million)as compared to £2.06 million (Ksh320.8 million in 2019.
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“The company will have sufficient funds, through organic cash flows from operating activities and in downside cases funding from its ultimate parent company, SPGHL which in turn will obtain support from its shareholders, to meet its liabilities as they fall due for that period. Based on these indications the directors believe that it remains appropriate to prepare the financial statements on a going concern basis,” SPS said.
Sportpesa resumed operations in Kenya in November 2019, however, this time under a new company, Milestone Games Limited.
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