Keywords Studios PLC (LON:KWS) has revealed a 55% increase in group revenue to €58mln in 2015 as its acquisitive growth strategy continued to build momentum.
The video games development outsourcing group told investors that gross margins improved to 37.6% in the twelve months to December 31 2015, from 34% the year before.
Adjusted pre-tax profit rose by 57% to €8mln from €5.1mln in 2014, while adjusted earnings per share had grown by 49% to 12.71 cents.
Net cash holdings at the end of the year amounted to €17.3mln, and the group said its total dividend for 2016 would increase by 10% to 1.21p per share.
"2015 has been another year of strong progress in delivering against the ambitious strategy we set out at the time of the Group's flotation in 2013, both organically and by acquisition,” said chief executive Andrew Day.
Keywords made four acquisitions in the year, but also highlighted that it had seen strong like-for-like growth of around 20%.
Importantly, Keywords highlighted that games developers were increasingly using more of its services. During 2015 the number of Keyword’s clients using three or more group services increased by 70%.
In 2016 so far, the group has agreed a strategic outsourcing deal with Ankama SAS, which essentially sees Keywords acquire a team of ‘live support’ staff and set up a new base in Manila where starting with Ankama it intends to grow operations to service others clients.
It has also acquired China based art creation group Mindwalk Studios, Beijing.
The company highlighted that across the whole business the trading performance for the first two months of the current financial results were in line with the board’s expectations.
Day added: "The current year has started well with the group trading in line with the board's expectations and the recent acquisitions of Ankama and Mindwalk have both strengthened our customer service and art creation services and brought a strong presence in the Philippines and China, respectively.
“The video games market continues to grow strongly, at around 8% per annum.
“The complexity of taking ever more sophisticated games to market in multiple geographies and on multiple platforms, means developers and producers are increasingly seeking to outsource elements of their game production and live operations support.
“Keywords is well placed to take advantage of these trends without dependence on any individual game.
"We expect to make further progress during 2016 with continued organic momentum in the business, as well as realising further synergies, benefiting from the full year effect of our 2015 acquisitions and from the acquisitions of Ankama and Mindwalk in 2016.”
Day highlighted that Keywords is still actively reviewing a number of further acquisitions which have the potential to complement the group’s strong organic growth.