Team17 Group Annual Report and Accounts 2022

Key insights

7 takeaways

01
Team17 achieved a 52% revenue increase to £137.4 million and a 36% rise in adjusted EBITDA to £48.8 million during the 2022 fiscal year.See it on page 29
02
The company successfully integrated astragon Entertainment, The Label, and the Hell Let Loose IP, contributing to a profit after tax of £23.5 million.See it on page 37
03
A share placement generated £76.4 million in net proceeds, supporting a debt-free balance sheet with a total equity position of £287.4 million.See it on page 48
04
Owned and third-party intellectual property now accounts for 41% of total revenue, reflecting the group's diversified portfolio strategy.See it on page 14
05
The group maintains strong liquidity with 108% operating cash conversion and positive cash flow forecasts heading into 2023.See it on page 25
06
Corporate governance and sustainability efforts include the establishment of a new ESG Committee and a commitment to a net-zero strategy, with the digital division already achieving carbon neutrality.See it on page 13
07
The company is undergoing a leadership transition as the CEO moves to a non-executive role while maintaining a going concern status.See it on page 17

Summary

Team17 Group experienced a period of significant transformation and financial expansion during the 2022 fiscal year. The company achieved a 52% increase in total revenue, reaching £137.4 million, while adjusted EBITDA rose by 36% to £48.8 million. This growth was primarily driven by a dual strategy of organic development and targeted acquisitions, most notably the integration of astragon Entertainment, The Label, and the Hell Let Loose intellectual property. These strategic moves expanded the group’s operational footprint across the Games Label, simulation, and edutainment sectors, resulting in a profit after tax of £23.5 million and a robust, debt-free balance sheet.

The group’s financial health remains strong, characterized by 108% operating cash conversion and a total equity position of £287.4 million. Management successfully navigated a complex macroeconomic environment by leveraging a diversified portfolio of owned and third-party IP, which now accounts for 41% of total revenue. To support this growth, the company bolstered its capital structure through a share placement that generated £76.4 million in net proceeds, while simultaneously implementing performance-based compensation and share incentive schemes to ensure talent retention across its global workforce.

Corporate governance and sustainability remain central to the group’s long-term strategy. Adhering to the QCA Code, the board has established specialized committees, including a new ESG Committee, to oversee risk management and environmental initiatives. The company has committed to a net-zero strategy, achieving carbon neutrality for its digital division and expanding carbon-offsetting efforts across the wider group. As the company enters 2023, it maintains a going concern status supported by positive cash flow forecasts, even as it prepares for a leadership transition with the CEO moving to a non-executive role. The group continues to prioritize transparent reporting and rigorous internal financial controls to sustain its growth trajectory.