Keywords Studios PLC (LON:KWS) is anticipating pre-tax profit growth of over 60% in the first half of the year as the firm’s numerous acquisitions began to contribute to its balance sheet.
The AIM-listed technical services firm, with a focus on the video gaming industry, said in a trading update that it expected adjusted pre-tax profits to be €15.9mln, a 66% increase on the same period a year ago, while revenues were forecast to grow 72% to €109.9mln.
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Keywords said the result had been achieved despite the incorporation of VMC, a historically lower margin business it acquired in October 2017, and weakness of the US dollar against the Euro.
The group added that it was expecting a “strong second half performance” and that the full year performance would be in line with current market expectations.
The 11 acquisitions made in 2017, as well as the 7 acquisitions made since the start of 2018, were all performing in line with expectations.
Andrew Day, Keywords’ chief executive, said that “significant investments” made by the firm in expanding its facilities and senior and mid-level management would support “organic growth in the second half and beyond”.
He added: "With the benefits of a full six months contribution from first half acquisitions, a strengthening dollar, a healthy pipeline of activity and expanded capacity to deliver it, we anticipate a strong second half performance in line with current market expectations for the full year."
Keywords expects to release its results for the first half of the year in mid-September.