Annual Report and Accounts 2021

Frontier Developments achieved record financial results for the 2021 fiscal year, reporting £90.7 million in revenue and £19.9 million in operating profit. This performance underscores the efficacy of the company’s "Launch and Nurture" strategy, which prioritizes the long-term support of existing franchises through consistent updates and downloadable content rather than relying exclusively on new releases. By maintaining a balanced portfolio of owned intellectual property, such as Elite Dangerous and Planet Zoo, alongside licensed titles, the company has successfully generated sustainable, multi-year revenue streams.

Operational expansion remains a central pillar of the company’s growth trajectory. During the 2021 period, Frontier increased its headcount to over 600 employees and boosted research and development investment by 42% to £34.9 million. This investment supports a robust development roadmap, including upcoming sequels like Jurassic World Evolution 2 and new licensed projects with Formula 1 and Games Workshop. Furthermore, the company is scaling its Frontier Foundry third-party publishing label, with a strategic goal of achieving at least four releases annually from fiscal year 2023 onward to diversify its portfolio and mitigate the inherent risks of game development.

The company maintains a strong financial position, characterized by £42.4 million in cash reserves and net assets totaling £112.5 million. Independent auditors confirmed the accuracy of these financial statements, noting a robust internal control environment and affirming the company’s status as a going concern through November 2022. Despite the operational challenges posed by the COVID-19 pandemic, the company successfully navigated remote work transitions and maintained stable margins. Governance remains a priority, with executive compensation structures aligned to long-term shareholder interests and a commitment to transparent, performance-based management.