Southam-based Codemasters, the award winning British video game developer and publisher specialising in racing games, has announced trading in the second half of the year remains strong.
The Company anticipates reporting FY20 revenues of approximately £76 million, with adjusted EBITDA comfortably ahead of expectations at around £18.1 million, including a loss of around £0.9m from the purchase of London-based Slightly Mad Studios, which it acquired in November 2019.
The company has no debt and as at 31 March 2020 had gross cash of c.£25.5 million.
The company has said that the COVID-19 pandemic has affected the sales mix, particularly in the last few weeks of the financial year.
The shift to digital delivery has accelerated greatly, which has contributed to higher margins, with traditional retail and box sales impacted, exacerbated by the closure of the majority of game retailers.
Codemasters continued to deliver on its business development initiatives and signed a number of agreements during the second half of the year. Minor delays associated with concluding certain of these agreements means that the majority of the revenue from them will be recognised in the new financial year.
In line with government guidelines all the company’s teams are working from home but it says that productivity and the performance of its systems and processes has been extremely reassuring to date. Slightly Mad Studios already operated a fully remote working model. The Company does not expect to see any material disruption or loss of efficiency as a consequence of this change.