Video games developer Sumo Group (SUMO:AIM) said it has continued to perform well since reporting results in April, generating a strong pipeline of new business.
The shares traded 1% higher at 198p and have gained 33% over the last three months.
As reported on 25 Mach the company has a high degree of earnings visibility on contracted or near-contracted revenue of around 71%.
NEW LAUNCH
The most recent video game launch on 12 June called Little Orpheus came out of the company’s award-winning studio The Chinese Room and was made available on the Apple Arcade platform.
The game recounts the adventures of Soviet cosmonaut Ivan Ivanovich during his three years below the Earth’s crust and is reported to have received ‘very positive feedback’.
Commenting on the lockdown, the company confirmed its developers are continuing to work effectively from home with similar productivity to that achieved in the office.
There are no plans to reopen the offices in the short-term while the firm is exploring its options of how and when to reopen later in the year.
ACCELERATED EXPANSION
While lockdown has slowed down the recruitment of new talent, it hasn’t dented the group’s acquisitive ambitions. On 15 May Lab24 was purchased for a cash consideration of £0.6 million which strengthens Sumo’s presence in the talent hot spot of Leamington Spa as well as introducing new client relationships.
Lab24 holds an exclusive license to use the World Snooker brand and was the sole developer of the Snooker 19 game for all major consoles and PC. Other titles include Football Manager Touch 18, Sonic Mania and Fishing Sim World.
The company said it was pleased with its progress in the current financial year with trading ‘comfortably in line with market expectations.’ Analysts have pencilled in 16% growth in revenues to £57 million and pre-tax profit up 25% to £9.3 million.
