Sumo Group in Sheffield cheers 'extraordinary year' as revenues lift 40 per cent

Video game developer Sumo Group has reported a 40 per cent rise in its revenue in the year ended December 31, 2020, as it outperformed market expectations for the year.

Carl Cavers, CEO of Sumo Digital.

Revenue rose to £68.9m in 2020 from £49m the previous year. While gross profit was up 31.5 per cent £23.9m to £31.5m.

However, the Sheffield-based firm reported a lowering in pre-tax profit from £7.4m to £900,000. This was largely down to costs associated with its acquisition of West Coast US games developer Pipeworks. Sumo acquired Pipeworks in October 2020.

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Total headcount increased to 1,043 at the year end, up from 766 the previous year, despite pandemic restrictions. This included an aggregate of 163 people who joined through the acquisition of Pipeworks and Lab42, which Sumo acquired in May 2020.

Carl Cavers, CEO of Sumo Group, said: "2020 has been an extraordinary year for us in so many ways. Our people have responded brilliantly to the pandemic restrictions, delivering many fantastic games and winning some incredible awards, including two BAFTAs.

"We also completed a major acquisition in the US and generated financial results ahead of everyone's expectations.

"Achieving 3 Star Accreditation in the Best Companies Survey, announced in February 2021, was a massive achievement for the Group but we won't rest on our laurels.

"Attracting and retaining the best talent lie at the heart of our future growth plans and we will continue adapting and improving to make Sumo Group the best place to work in video games.

"The year ahead is packed with even more exciting opportunities for our talent to shine, and we are excited about the launch of Secret Mode, our new publishing business, announced earlier this month.

"Our focus remains on delivering further strong growth organically and by acquisition, and the pipeline of opportunities remains strong. We have an enviable level of visibility on development fees in 2021 and, with our markets continuing to perform strongly, are increasingly confident about the future of the business."

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