Team17 Annual Report and Accounts 2019

Team17 Group PLC achieved significant financial expansion during the 2019 fiscal year, characterized by a 43% increase in revenue to £61.8 million and a 52% rise in operating profit to £19.0 million. This growth was underpinned by a successful business model that balances the incubation of internal intellectual property with the strategic partnership of independent developers. A notable driver of this performance was the company’s extensive back catalogue, which accounted for 71% of total revenue, demonstrating the long-term commercial viability of the firm’s portfolio of over 100 titles.

The company maintained a robust liquidity position, ending the year with £41.9 million in cash and cash equivalents and achieving an operating cash conversion rate of 103%. Profit after tax saw a substantial increase to £16.6 million, up from £7.2 million in the previous year, while basic earnings per share rose to 12.9 pence. These results were supported by a disciplined approach to capital allocation, including the capitalization of development costs and the adoption of IFRS 16 for lease accounting. The Board further strengthened its corporate governance framework through the appointment of new independent directors and the implementation of rigorous oversight committees to manage risks related to talent retention, technological shifts, and foreign exchange exposure.

Operating as a unified entity focused on video game development and publishing, the firm demonstrated resilience in its forward-looking assessments. Despite the emerging global uncertainty surrounding the COVID-19 pandemic, management and auditors confirmed the company’s status as a going concern. Stress tests incorporating severe downside scenarios, such as potential release delays and market demand fluctuations, indicated that the group possesses sufficient liquidity to sustain operations through mid-2021. This stability, coupled with the post-balance sheet acquisition of Yippee Entertainment Limited, positions the organization to continue its growth trajectory within the global interactive entertainment sector.