Revenues reach £49m at listed games developer

Revenues at Sheffield and Nottingham-based video games developer Sumo Group have risen 26% from £38.7m in 2018 to £49m in 2019.

The business, which has today published its final results for the year ended 31 December 2019, says its figures are slightly ahead of market expectations.

Its results also include pre-tax profits of £7.4m compared to a £0.9m loss the previous year. Adjusted EBITDA rose to £14.1m from £10.2m, an increase of 37.5%.

Over the same period the company saw its staff headcount rise 29% to 766 (2018: 592). Its acquisition of Red Kite Games in January 2019 added 27 people and extended the Group’s engineering and code support services.

The firm’s capacity has expanded with the opening of new studios in Leamington Spa – focusing on mobile games –  and in Warrington. In total the Group now comprises 10 studios in three countries, compared to seven studios in 2018.

Carl Cavers, chief executive officer of Sumo Group, said: “The Group entered 2020 in great shape and global demand for our services remains strong.

“The video games market is forecast to grow at 9% CAGR over the next three years and early indications show this increasing as COVID-19 “lockdown” measures affect our leisure activities.

“Whilst March was challenging for the Group operationally, as we transitioned to remote working, our people have risen to the challenge and are adapting well to their new working routines.

“It is still too early to estimate accurately the financial impact of the pandemic on the Group. However, our low-risk business model, strong balance sheet and robust liquidity position, with £24m cash (net cash £14m) at 20 April 2020, provide firm foundations on which to withstand the challenges.

“I am pleased to report we are not using any furloughing arrangements, nor do we expect or intend to do so.”