25th Mar 2020 09:14
(Alliance News) - Keywords Studios PLC on Wednesday said it is unable to give any future financial guidance, but the firm achieved double-digit growth in 2019.
Keywords, which provides services to video game makers, was meant to report 2019 results on Tuesday next week. However, the UK Financial Conduct Authority asked earlier this week for a two-week moratorium amid the market volatility caused by Covid-19.
The company expects revenue for 2019 to have risen 30% to EUR326 million, increasing 15% organically. Adjusted pretax profit is estimated to have climbed 8% to EUR41 million.
Keywords said 2020 trading started in line with expectations with only minimal impact from Covid-19 in January and February, mainly in China. These operations are now back at near full operations.
There has since been higher demand for some services, and Keywords said demand is likely to outstrip the company's ability to fulfil customer needs.
Keywords said it is impossible to see how the situation will play out, meaning it cannot give any guidance for 2020 at this time. It has a "strong" balance sheet but will be preserving cash by stopping all non-essential spending.
Chief Executive Andrew Day said: "The incredible efforts being made by our teams across the world in supporting their colleagues in reacting to the extraordinarily fast-moving events is truly heart-warming. It is encouraging to see our clients turning to us for support in these difficult times and our teams are responding with extreme agility to support them whilst rapidly implementing our own contingency plans.
"Whilst we do expect disruption to the provision of our services due to the Covid-19 pandemic, we anticipate the underlying drivers of growth across the video games market to remain intact, whilst games companies also look to enhance their resilience across their production arrangements."
"There will be some further challenges ahead, but we are well-financed, with a global footprint, a unique position in a resilient market and a strong team to manage the business through these difficult times and emerge in a robust position to deliver on the pent up demand across our client base," Day added.
Shares were down 5.2% on Wednesday morning in London at 1,273.00 pence each.
By George Collard; [email protected]
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