Video game developer and publisher Codemasters was pitched to the Stockopedia Investment Club on 7th April 2020. With a lockdown in place and the economy in turmoil, one of the first sectors to see a boost from the unusual conditions was the video games industry. The shares were bought at 270.40p and they currently trade at 400.00p. NB - CDM is from our archive of several pitches made earlier in the year. In future, stock pitches will be published immediately after meetings.



Codemasters Group Holdings plc: a mid-cap growth stock offering exposure to the burgeoning video gaming and e-sports industries.

  • Bull Points: Strong niche position in "racing" games, strong brand connections, multiple growth levers, becoming more profitable, Covid beneficiary.
  • Bear Points: Potentially over-reliant on the success of a few games, competitive market, shares could be expensive, CEO and CFO both sold shares in January 2020.


  • About the Stock: Codemasters is AIM listed and classified in the Technology sector. It develops and publishes video games that are either bought by consumers from retail outlets or digitally via games platforms. It currently trades at 400.00p per share and has an EMS of 3k.
  • Opportunity Type: This is a Mid Cap with a £629.5 million market cap and is classified as Adventurous on the RiskRatings spectrum. The StockRank is 74, with quality and momentum being the strongest factors - qualifying it as a High Flyer.

Business & Model

  • Company History: Thirty year track record as one of Britain's best known video games developers, specialising in high quality racing games. Founded in 1986, based in Warwickshire and floated on AIM in June 2018.
  • It manages four main games franchises, including ‘DiRT™, GRID™, Project CARS and F1®. Earlier this year it won the right to develop and publish games and e-sports tournaments under the FIA World Rally Championship brand (coming in 2023). It also has a growing back catalogue of ~15 profitable titles plus many others. It is growing well organically but has made acquisitions and intends to make more.
  • Business Model: Codemasters owns the IP to DiRT, GRID and Project CARS and licences the IP to F1. It has teams of developers introducing new versions of the games, often annually. Distribution to traditional retailers is handled through a…

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