28th Mar 2023 11:12
(Alliance News) - Team17 Group PLC on Tuesday said its long-time chief executive, Debbie Bestwick, will give up her post but remain on the board.
Bestwick will move to a non-executive role when a new CEO is appointed.
"We believe Ms Bestwick has been an instrumental part of the TM17 success, therefore it is pleasing to see that she will remain on the board, transiting to a non-executive role, to provide ongoing mentorship, support and guidance to the board and senior management," analysts at Shore Capital Markets said.
Bestwick was named co-CEO in 2009 and sole CEO in 2010. She has more than 30 years of experience in the games industry, the video game development company and publisher of educational entertainment apps for children said.
Analysts at Jefferies commented: "News that the CEO is to step down is likely to catch the attention of investors today. Debbie Bestwick's expertise is seen as a key asset for Team17 based on our conversations with investors and competitors. The group continues to execute well and shows resilience in a post-Covid world."
Team17 also reported annual results. Revenue jumped 52% to GBP137.4 million in 2022 from GBP90.5 million in 2021, but pretax profit slipped 1.4% to GBP28.7 million from GBP29.1 million. Team17 noted GBP9.2 million in one-off acquisition-related costs, up sharply from GBP1.6 million in 2021.
"The board remains mindful of the current global macro-economic pressures affecting all businesses but is focussed across the group on the areas that can be controlled and looks forward to continuing to deliver great gaming experiences for Team17's customers, and in turn delivering increased shareholder value," Team17 said.
Shares in the company fell 7.0% to 412.95 pence each in London on Tuesday morning. The stock has fallen 6.2% since the start of the year.
German bank Berenberg believes Team17's share price performance recently does not reflect its promising outlook or decent track record.
"While we understand the current cautiousness regarding consumer-focused businesses, we believe that the company has already demonstrated its ability to weather consumer volatility. With its back catalogue to be buoyed by eight late-2022 game releases in 2023, a strong slate of new titles, a slower pace of wage growth and vastly improved new console supply, we think that the situation is looking more promising," Berenberg said.
"Moreover, we continue to believe that the new operational structure put in place by CEO Debbie Bestwick in the past year will serve the firm well for its future as she transitions into a non-executive role once a suitable CEO replacement is found. We remain buyers."
By Eric Cunha, Alliance News news editor
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