Sumo, Sheffield gaming firm, ups revenue 41% to £69m

Sheffield-based video gaming firm Sumo Group plc said on Wednesday its revenue rose 40.7% to £68.9 million in the year ended December 31, 2020.

Sumo said 24% of the revenue growth was organic and 16% was due to acquisitions.

Statutory profit before tax fell to £900,000 from £7.4 million.

Sumo said the lower statutory profit was stated “after charging an amount of £7.3m arising on the acquisition of Pipeworks consisting of the £2.7m fair value loss on contingent consideration, £1.7m of amortisation of customer contracts and customer relationships and £2.9m of transactions costs on that acquisition.”

Sumo Group’s shares have soared around 120% over the past 12 months to give it a stock market value of around £600 million.

Sumo Digital, the group’s primary business, is one of the UK’s largest independent developers of AAA-rated video games, with studios in Sheffield, Newcastle, Nottingham, Leamington Spa, Warrington and Pune, India.

Sumo Group CEO Carl Cavers 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.”

About the Author

Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.