MasterMetals: Keywords Studios to benefit from a more settled console games market

April 14, 2015

Keywords Studios to benefit from a more settled console games market

Keywords Studios’ (LON:KWS) organic growth of more than 20% was augmented by contributions from a clutch of acquired companies in 2014.

The top line grew by 130% to €37.3mln from €16.2mln in 2013, while adjusted profit before tax doubled to €5.1mln from €2.5mln.

The group, which provides language, testing and localisation services to some of the game industry’s top developers, including Ubisoft, Zynga, Electronic Arts and Konami, has made a good start to the current year, ,” said Andrew Day, chief executive of Keywords, and is well-placed to delivery on the potential for high margin growth that it sees in its expanding markets.

“We expect to benefit in 2015 from a more settled console games market, the full year effects of acquisitions made during 2014 and continued growth both organically and through additional selective acquisitions, as we further consolidate our market leadership,” Day said.

The group ended the year with net cash of €11.0mln, down from €15.3mln at the end of 2014, after spending €8.9mln (net) on acquisitions and receiving €3.7mln (net) from a share placing.

"Those acquisitions are integrating well and we feel confident that the synergies already experienced between the business units will continue to build through 2015 and beyond, as we continue to identify and convert cross selling opportunities and leverage the expanded pool of talent across the group,” said Andrew Day, chief executive of Keywords.

The full-year dividend has been bumped up by 10% to 1.10p.

More to follow …