StockMarketWire.com - Video game producer Sumo swung to a full-year profit and said it wasn't furloughing any employees as Covid-19 lockdown measures increase people's appetite for gaming.

Pre-tax profit for the year through December amounted to £7.4m, compared to a loss of £0.9m on-year. Revenue rose 27% to £49.0m.

Adjusted earnings before interest, tax, depreciation and amortisation rose 38% to £14.1m, which the company said represented a slight earnings beat.

'The group entered 2020 in great shape and global demand for our services remains strong,' chief executive Carl Cavers said.

'The video games market is forecast to grow at a 9% compound annual growth rate over the next three years and early indications show this increasing as Covid-19 lockdown measures affect our leisure activities.'

'Whilst March was challenging for the group operationally, as we transitioned to remote working, our people have risen to the challenge and are adapting well to their new working routines.'

'It is still too early to estimate accurately the financial impact of the pandemic on the group.'

'However, our low-risk business model, strong balance sheet and robust liquidity position, with £24.0m cash at 20 April, provide firm foundations on which to withstand the challenges.'

'I am pleased to report that we are not using any furloughing arrangements, nor do we expect or intend to do so.'




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