Keywords Studios PLC - Change to full year results date & COVID-19 update
Change to full year results date and COVID-19 update
Delay to full year results due to
The original reporting date fell within the two-week moratorium recommended by both bodies and the Group will, therefore, report no earlier than
In line with the announcement on
Given the delay to the audited full year results and the increased uncertainty created by the spread of COVID-19, the Group today provides an update on its operational response, current trading and outlook and the Group's liquidity.
COVID-19 response, current trading and outlook
Trading in 2020 started in line with market expectations for the full year, with only minimal impact from COVID-19 in the first two months, due principally to the short-term disruption in
Our first priority during this period is the health and wellbeing of our people and we follow the health and safety recommendations of the local and national authorities in every location we work in across the 21 countries in which we have operations. Drawing on our experiences of territories that are further progressed in dealing with the crisis such as
Since February, our support teams in each location have worked tirelessly and have so far converted some 4,500 people to work from home arrangements, and in consultation with our clients, we are continuing to make preparations to move more of our production staff to this model. There has clearly been some short-term disruption involved in these logistics, with some of our service lines and locations affected more than others, but overall we are pleased with how both staff and clients have coped with these challenges.
We are also currently seeing an increase in the demand for certain services, as existing and new clients look to us for support during this challenging time and as they reappraise their production arrangements. We are making efforts to satisfy their requests subject to our own near-term resource constraints, as we prioritise the wellbeing of our people. It looks likely that demand will outstrip our ability to fulfil it in the near term and we hope to benefit from pent up demand once our operating environment normalizes.
Operating within the global video games market and with seven service lines delivered from 59 studios across 21 countries, coupled with our ability to deliver the majority of our services from work from home arrangements, means we are able to offer clients a high degree of resilience to the varying cycles of the spread of the virus in different locations. However, the situation is changing rapidly, and it is difficult to foresee the impact on our clients and the further threats and opportunities that may await us. As such, the Board does not believe it is prudent to provide guidance on the potential full year outcome for FY20 at this time.
Thanks to the robustness of the Group's model, the growth characteristics of our end markets and the strength of our market position, the Board is confident of being well positioned for growth and the long-term success of the business.
Balance sheet and liquidity
The Group has a strong balance sheet with net debt (excluding IFRS 16 leases) as at
Given the current environment, the Group has taken steps to preserve cash by a close focus on costs and eliminating discretionary expenditure, reducing working capital and delaying certain capital projects.
"Our first priority is to do all we can to responsibly support the global efforts to control the spread of COVID-19, and to safeguard our employees, our clients' teams and our communities.
"The incredible efforts being made by our teams across the world in supporting their colleagues in reacting to the extraordinarily fast-moving events is truly heartwarming. It is encouraging to see our clients turning to us for support in these difficult times and our teams are responding with extreme agility to support them whilst rapidly implementing our own contingency plans.
"Whilst we do expect disruption to the provision of our services due to the COVID-19 pandemic, we anticipate the underlying drivers of growth across the video games market to remain intact, whilst games companies also look to enhance their resilience across their production arrangements.
"There will be some further challenges ahead, but we are well financed, with a global footprint, a unique position in a resilient market and a strong team to manage the business through these difficult times and emerge in a robust position to deliver on the pent up demand across our client base."
* Organic Revenue growth is calculated by adjusting the prior year revenues, adding pre-acquisition revenues for the corresponding period of ownership in the current year results, and applying the 2018 foreign exchange rates in both years.
** the Group reports Adjusted Profit Before Tax before acquisition and integration expenses, share option charges, amortisation of intangibles, non-controlling interests and foreign currency gains or losses.
*** EBITDA comprises profit before taxation, adding back depreciation, amortisation, both interest income and expense, and exchange gains and losses. Adjusted EBITDA is also before acquisition and integration expenses, share option charges and non-controlling interests.
For further information, please contact:
| || |
+353 190 22 730
Numis (Financial Adviser)
020 7260 1000
020 3128 8100
This information is provided by RNS, the news service of the
Quick facts: Keywords Studios PLC
Market Cap: £12.79 m
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...FOR OUR FULL DISCLAIMER CLICK HERE