Sheffield videogames developer Sumo Group boosted by significant contracts

Games developer Sumo Group expects its final results for the year ended December 31, 2019, in line with market expectations as it secured a number of significant contracts towards the end of the year.
By The Newsroom
Published 22nd Jan 2020, 08:24 BST
Carl Cavers, CEO of Sumo Group.Carl Cavers, CEO of Sumo Group.
Carl Cavers, CEO of Sumo Group.

The contracts secured towards the tail end of last year underpin Sumo’s financial forecasts for the year ahead.

Sheffield-based Sumo said it had positive cash balances of £12.9m and employed 766 people, an increase of 174 from the figure at the previous year end.

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Carl Cavers, CEO of Sumo Group, said: “2019 was another busy and successful year for Sumo Group and one in which we generated strong growth across all areas of the business.

“We acquired Red Kite Games, opened new studios in Leamington Spa and Warrington and relocated the Red Kite Games studio from Huddersfield to the talent hot-spot of central Leeds.

“Five studios have been added to the Group since IPO and we now operate globally from 10 studios across the UK, India and Canada.

“Our appetite to deliver further sustainable growth remains strong and we continue to explore opportunities, both in the UK and overseas, to acquire businesses which show a strong cultural fit with our Group and are based in desirable locations.”

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“In November, we announced that Tencent Holdings had acquired a near 10 per cent shareholding in the Group from Perwyn Bidco. We are delighted by this investment and look forward to exploring development opportunities with Tencent going forward.”

“We are seeing many exciting opportunities to deliver more growth in our core markets, served by Sumo Digital and Atomhawk, and I am very pleased with the progress the business is making.”

Sumo has studios in Sheffield, Newcastle, Nottingham, Leeds, Leamington Spa and Pune, India.

Red Kite Games agreed a 10 year lease for studio space in Leeds city centre. It agreed to move into the 4th and 5th floors of Park Row House in the city centre.

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The office deal will see the business take 12,500 sq ft of office space at the Grade II listed building.

Red Kite was founded in 2012 by ex-Rockstar Games developer Simon Iwaniszak. The business provides a range of services to global partners on titles across mobile, console and PC.

In January, Red Kite was acquired by Sheffield-based Sumo Group.

Related topics:SheffieldLeedsIndia