22nd Jan 2020 09:35
(Alliance News) - Video game developer Sumo Group PLC on Wednesday said annual results will at least be in line with market expectations following a "busy and successful year".
Sheffield-based Sumo, the developer behind the popular Forza motor racing series games, added that towards the end of 2019 it secured a number of "significant contracts".
Chief Executive Carl Cavers said: "2019 was another busy and successful year for Sumo Group and one in which we generated strong growth across all areas of the business.
"The board is pleased to report that a number of significant contracts were secured towards the end of 2019 which underpin the group's financial forecasts for the year ahead."
During 2019, the company acquired Red Kite Games Ltd for a total consideration of GBP2 million. Red Kite is a work-for-hire studio which provides engineering and code support services to the video games industry.
In November, the company reported Chinese technology conglomerate Tencent Holdings Ltd took just shy of a 10% stake in the firm. Tencent acquired 15.0 million shares in the company which were previously held by private equity firm Perwyn Bidco Ltd.
Cavers added on Wednesday: "We are delighted by this investment and look forward to exploring development opportunities with Tencent going forward."
Sumo will report full-year results on April 1. Shares were 3.6% higher at 199.87 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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