Acquisition-hungry Sumo Group trading in line with expectations
By Josh White
Date: Wednesday 26 Jun 2019
(Sharecast News) - Video games and entertainment development company Sumo Group told shareholders that it was continuing to create "strong demand" for its services on Wednesday, as they gathered for the annual general meeting.
The AIM-traded firm claimed its "talented and highly skilled" workforce, its proprietary technologies and systems and its close relationships with some of the market's largest AAA games publishers gave it a "significant" competitive advantage, enabling its to leverage the increasing opportunities seen in the "fast-growing" global market.
Chairman Ken Beaty noted that in January, it acquired the work-for-hire studio Red Kite Games, which had worked with Sumo Digital for a number of years on a range of titles.
He told investors that Red Kite Games had performed in line with management expectations since acquisition.
That acquisition followed the addition of a studio in Newcastle - formerly CCP Games - in January last year, and 'The Chinese Room' in August.
"We remain acquisitive and have an active mergers and acquisitions pipeline," Beaty said.
"We continue to execute on our stated organic growth strategy and, given the fragmented nature of our market, are actively exploring opportunities to further accelerate expansion through acquisition.
"The group also opened a new studio in Leamington Spa, earlier this year, to focus on opportunities in mobile game development."
Beaty said he was "pleased" to report that the company was trading in line with current market expectations, and with its strengthening cash profile, it was "well positioned" to take advantage of the strong growth in the global video games market.
"The board is, therefore, confident about the outlook for group in the current financial year and beyond."
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