Sumo Digital reports sharp rise in revenue
Video game developer Sumo Digital has reported a 27% growth in revenue in its first results since floating on the London Stock Exchange.
The company, which employs over 400 staff across its three studios in Sheffield, Nottingham and Pune in India, has reported revenue of £30.6m for the year to December 31 2017, up 27% from £24.1m in 2016.
However, pre-tax losses deepened to £28.0m, compared to £2.1m in 2016, as the company wrote down the value of old contracts.
Adjusted pre-tax profit, which also excluded IPO fees, jumped 42% to £7.5m.
Sumo, which has worked on titles such as Forza Motorsport 7, Little Big Planet 3 and Sonic All Star Racing, acquired Gateshead-based Atomhawk last summer and said its results were "well ahead of the board's expectations".
Carl Cavers, chief executive of Sumo Group, said: "The new financial year ending 31 December 2018 has started strongly. Whilst it is still early in the year, the board already expects to deliver full year results slightly ahead of market expectations. We are continuing to see strong demand for the group's services and are well placed to take advantage of the considerable opportunities.
"We expect to continue our organic growth and are also keen to accelerate this by acquiring suitable, complementary businesses. My board colleagues and I are confident about the outlook for the group in the year ahead."