Global lockdowns lead to soaring demand for Sumo's video games

The Sheffield-based firm, which makes games for Microsoft, Sega and Sony, delivered 279 project milestones and launched or announced 12 games in 2020, including five Own-IP games.

The group said it is performing in line with expectations in the year to date.

Sumo Group now has four divisions: Sumo Digital, Pipeworks, Atomhawk and the recently created publishing division, Secret Mode.

It will tell shareholders at today's AGM that all divisions are trading well and it is encouraged by the early progress achieved at Secret Mode, which is reviewing a considerable number of internally and externally sourced titles.

The pipeline of new business development opportunities is worth over £500m, a significant increase on the £429m figure announced in March.

Sumo said it was pleased with the reception its new game, Hood, has received. It said the game is a dark re-imagining of the Robin Hood legend.

The firm said that it was also delighted that its Little Orpheus game was awarded the Apple Design Award for "Delight and Fun" for its platforming, storytelling, music and for bringing console-like experience to an accessible game.

Sumo will tell shareholders that it is very pleased with the progress that the group is making and that trading in theyear to date is in line with expectations and it is well positioned to take advantage of the strong growth in the global video games market.

Analyst Olivia Honychurch at Liberum said: "We believe Sumo can deliver strong growth in 2021 as it benefits from an increasing demand for new gaming content, as new generating consoles and game streaming continue to roll-out.

"Whilst the core contracted-fees business model leaves little room for upgrades, these could come from accretive deals as well as the greater financial upside afforded by the self-publishing division."