Sumo Group says demand for video games appears to have grown during lockdown

Sumo Group, the award-winning provider of creative and development services to the video games and entertainment industries, has announced its final results for the year ended December 31 2019, which are slightly ahead of market expectations.

This follows the announcement on March 25 when Sumo Group confirmed that it would comply with the FCA's request that all listed companies observe a moratorium on the publication of preliminary financial statements for at least two weeks and postpone the announcement of the group's final results which was scheduled for 1 April 2020.

Full year revenue was £49.0m, a 26.6m per cent increase on the year before.

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.

"The business continued to press ahead throughout this disruption and our earnings visibility on contracted or near contracted development fees for FY20 has increased further in the last few weeks to approximately 73%.

"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 £24.0m cash (net cash £14.0m) at 20 April 2020, provide firm foundations on which to withstand the challenges. I am pleased to report that we are not using any furloughing arrangements, nor do we expect or intend to do so.

"Whilst there will inevitably be some impact from the pandemic on the group's performance in FY20, the directors remain confident in the group's strategy and its ability to continue delivering strong returns for stakeholders in the longer term."

Sumo Digital is one of the UK's largest independent developers of video games, with studios in Sheffield, Newcastle, Nottingham, Leamington Spa, Warrington and Pune, India. The business has acquired two studios since IPO, which operate under their own names, BAFTA award-winning The Chinese Room in Brighton and Red Kite Games in Leeds.

Editor’s note: first and foremost - and rarely have I written down these words with more sincerity - I hope this finds you well.

Almost certainly you are here because you value the quality and the integrity of the journalism produced by The Yorkshire Post’s journalists - almost all of which live alongside you in Yorkshire, spending the wages they earn with Yorkshire businesses - who last year took this title to the industry watchdog’s Most Trusted Newspaper in Britain accolade.

And that is why I must make an urgent request of you: as advertising revenue declines, your support becomes evermore crucial to the maintenance of the journalistic standards expected of The Yorkshire Post. If you can, safely, please buy a paper or take up a subscription. We want to continue to make you proud of Yorkshire’s National Newspaper but we are going to need your help.

Postal subscription copies can be ordered by calling 0330 4030066 or by emailing [email protected]. Vouchers, to be exchanged at retail sales outlets - our newsagents need you, too - can be subscribed to by contacting subscriptions on 0330 1235950 or by visiting www.localsubsplus.co.uk where you should select The Yorkshire Post from the list of titles available.

If you want to help right now, download our tablet app from the App / Play Stores. Every contribution you make helps to provide this county with the best regional journalism in the country.

Sincerely. Thank you.

James Mitchinson

Editor