Key insights
7 takeaways · ~3 min read- 01The company returned to profitability in H2 FY24 with an adjusted EBITDA of £5.8 million, a significant recovery from the £4.0 million loss recorded in H1 FY23.See it on page 7
- 02Revenue declined 15% to £89.3 million as the company pivoted toward core creative management simulation (CMS) titles.See it on page 2
- 03Gross margin improved by 9 percentage points to 69%, driven by a 25% reduction in cost-of-sales to £28.0 million.See it on page 8
- 04Operating expenses were reduced by 9% to £65.3 million, supported by a 20% cut in annual operating costs following an organisational restructuring.See it on page 8
- 05The sale of RollerCoaster Tycoon 3 publishing rights generated a £4.9 million gain, helping to bolster the year-end cash balance to £29.5 million.See it on page 2
- 06Future growth is anchored by a pipeline featuring Planet Coaster 2, launching in autumn 2024, and a third Jurassic World game scheduled for FY26.See it on page 11
- 07Management maintains a revenue target of £88 million for FY25, supported by the ongoing strategic focus on the CMS portfolio.See it on page 14
Summary
The FY24 financial results demonstrate a strategic pivot toward core creative management simulation (CMS) titles, yielding a 15 % revenue decline to £89.3 million but an improved gross margin of 69 %. Cost‑of‑sales fell by 25 % to £28.0 million, while research and development spending dropped 12 % to £45.0 million, supporting a 9 pp increase in gross margin versus FY23. Operating expenses were trimmed by 9 % to £65.3 million, largely through a 20 % reduction in annual operating costs following an organisational review that re‑shaped teams and eliminated redundant functions. The sale of the RollerCoaster Tycoon 3 publishing rights generated a £4.9 million gain, contributing to an adjusted EBITDA of £0.9 million for the year and a return to profitability in H2, where adjusted EBITDA rose from a loss of £4.0 million (H1 FY23) to a profit of £5.8 million (H2 FY24). Cash balance increased from £28.3 million to £29.5 million, reflecting stronger cash flow generation.
Geographically the portfolio remains UK‑centric with releases across PC, PlayStation 5 and Xbox Series X/S platforms. The fiscal period covers FY24 (April 2023‑March 2024) and includes a detailed half‑year comparison. Methodology relies on adjusted EBITDA, excluding non‑cash items such as IAS 38 amortisation and impairment charges, restructuring costs, and share‑based payments. The report highlights a robust pipeline featuring Planet Coaster 2 (autumn 2024) and a third Jurassic World game slated for FY26, underpinning confidence in achieving £88 million revenue and profitability targets for FY25.
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