Shares in Keywords Studios PLC (AIM:KWS, OTC:KYYWF) fell almost 8% after meeting already-upgraded guidance as it fell victim to the indiscriminate and panic selling of equities prompted by worries over the banking sector.
No matter that Keywords’ revenues grew by 35% to €691mln year-on-year or that profit before tax rose 30% to €112mln for the 12 months ended December 31.
And little heed was paid to the fact the company, which provides support services for the games industry, exited 2022 with €81.8mln of cash, which was ahead of expectations.
Let’s face it, this probably wasn’t the best day to announce prelims with two more banks, Credit Suisse and France’s Societe Generale, adding to concerns over the sector.
The news sent the benchmark FTSE 100 plunging 3.2%, taking with it all and sundry.
Still, Peel Hunt believes there is value inherent in Keywords shares once the flap is over.
The broker repeated its ‘buy’ advice and £33 price target, noting: “The company expects robust demand for content generation over the coming years, and it believes its diversified client base, geographical reach, and focus on high-quality games positions it well despite some volatility in scheduling of some projects.”
Heading into the close Keywords shares were changing hands for £26.70, down £2.33.