Sumo Share Discussion Threads

[fastbuck] 27/12/2017 09:04

Surely FDEV isn't a fair comparison as they moved into developing their own games/IP whilst SUMO is a developer of games and artwork services for the AAA gaming companies much like Keyworks Solutions KWS which in my opinion has a very high rating for a buy and build business. That was my reason for taking an initial position in SUMO

[phowdo] 21/12/2017 09:30

staverly, it's certainly no FDEV.

Its more an old school type developer where the publishers held all the power.

[hydrus] 21/12/2017 09:29

Stavely tend to agree

[igbertsponk] 21/12/2017 09:25

My view is look at who they're doing business with - long term relationships with the biggest and best. And great opportunities to mop up smaller companies (there are over 2,000 UK games companies!) and grow a big business.

[hydrus] 21/12/2017 09:08

Thanks igbert looks like I was wrong on borrowings. That will clearly help reduce costs. Still direct costs were £20m and revenue only £24m last year. Therefore heavily loss making without the tax relief (as the costs are before operating expense, amortisation etc)What are your overall thoughts on the company?

[igbertsponk] 21/12/2017 08:57

Tax relief fine for the medium term apparently. Tories and Labour both realise that what they get in payroll taxes more than compensates for the video game tax relief. So both committed to it for a good while.
Don't think you're right about debt - see page 89 of prospectus which shows no debt and £7m of cash.

[hydrus] 21/12/2017 08:50

Interested in others views but from a quick read of the admission document it's not appealing to me. They were loss making in 2016 and that's despite a circa £5m benefit from video game tax relief. Also they seem to be planning (if I've understood this correctly) to pay off about £29m of debt but they have more than £50m if borrowings so they will still have interest costs.Where would they be without the tax relief?!

[igbertsponk] 21/12/2017 08:23

Nice premium to 100p IPO price. No wonder the main owner didn't totally sell out!
I expect this will get lots of press and be in a load of New Year's tips. An easy company to write about for lazy tipsters.

[igbertsponk] 21/12/2017 08:19

!FOLLOWFEED
Sumo Group - IPO 21/12/17.
UK based games developer
Website