Sumo Group ends year in line as it seeks more acquistions

(Sharecast News) - Video games and entertainment creative services provider Sumo Group said on Wednesday that it expects its final results for 2019 to be at least in line with market expectations.
The AIM-traded company said a number of "significant" contracts were secured towards the end of the year, which underpinned its financial forecasts for the 12 months ahead.

It said that as at 31 December, it had positive cash balances of £12.9m and employed 766 people, which was an increase of 174 from its headcount at the end of 2018.

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

"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."

Cavers said the firm's appetite to deliver further sustainable growth remained "strong", adding that it was continuing to explore opportunities, both in the UK and overseas, to acquire businesses which showed a "strong cultural fit" with the group, and based in "desirable" locations.

"In November, we announced that Tencent Holdings had acquired a near 10% shareholding in the group from Perwyn Bidco UK," he added.

"We are delighted by this investment and look forward to exploring development opportunities with Tencent going forward."

Cavers also said the board was seeing many "exciting opportunities" to deliver more growth in its core markets, served by Sumo Digital and Atomhawk, adding he was "very pleased" with the progress the business was making.

"The board looks forward to announcing the final results on 1 April and providing shareholders with a full update on the group's progress."

At 1305 GMT, shares in Sumo Group were up 2.07% at 197p.