Half Year Results
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon publication of this announcement, this inside information is considered to be in the public domain.
15 September 2026
everplay group plc
("everplay", the "Group" or the "Company")
Half Year Results
· Resilient H1 revenue performance ahead of major title launches in H2
· Strong start to H2, with new titles Hell Let Loose: Vietnam and Wardogs performing well ahead of expectations
· FY 2026 results expected to be materially ahead of current market expectations
everplay, a leading global independent ("indie") developer and publisher of premium video games, working simulation games and children's edutainment apps, is pleased to announce its unaudited results for the six months ended 30 June 2026 ("H1 2026", "half" or "period").
Mikkel Weider, Group Chief Executive Officer of everplay, commented:
"It is a pleasure for me to present everplay's half year results. Our back catalogue posted another resilient performance in a half in which there were no major new releases, underpinning the solid foundations upon which everplay is built.
"At the same time, the teams have been laser focused on preparing for our key releases in the second half. We have entered the period with real momentum, and feel confident in materially exceeding market expectations for the full year. I am pleased to share that our major new releases, including Hell Let Loose: Vietnam and Wardogs, are performing well ahead of our expectations, breaking many sales and player number records. I am also delighted to say that we have exercised our option to increase our shareholding in Super Media Group, owners of Bulkhead - the team behind Wardogs. We have long admired this team, and we are thrilled to further strengthen our relationship and support them on their journey.
"I'd really like to thank everyone at everplay and our partners for their hard work and dedication so far this year, and welcome everyone who has joined the Group, including Jon Rissik as Chief Growth Officer. With a strong balance sheet, resilient catalogue, growing portfolio of first-party IP and innovative third-party games, we are well positioned to deliver accelerated growth."
Financial summary
Unaudited six months ended 30 June 2026
Unaudited six months ended 30 June 2025
% change
Revenue
£66.9m
£72.4m
(8)%
Gross Profit
£23.9m
£33.7m
(29)%
Gross Profit Margin
35.7%
46.5%
Adjusted EBITDA1
£9.2m
£19.2m
(52)%
Adjusted EBITDA margin
13.7%
26.5%
Profit Before Tax
£1.6m
£14.3m
(89)%
Adjusted Profit Before Tax
£8.8m
£19.7m
(55)%
Basic Earnings per Share ("EPS")
(0.4)p
7.4p
Adjusted EPS1
3.7p
10.5p
(65)%
Operating Cash Conversion2
128%
94%
Cash and cash equivalents
£57.1m
£59.5m
(4)%
· Group revenue of £66.9 million, down 8% (H1 2025: £72.4 million), or 5% excluding the impact of the strategic exit from Astragon's low-margin physical distribution activities, reflecting the phasing of major FY 2026 releases into H2.
· Back catalogue revenues remained robust, rising modestly to £64.3 million (H1 2025: £63.5 million), with contributions from more than 150 titles, demonstrating the breadth and longevity of the Group's portfolio, underpinning the strong foundations of the Group
· Adjusted EBITDA of £9.2 million (H1 2025: £19.2 million), reflecting lower revenues and investment ahead of the major H2 release programme.
· Increased investment in the pipeline, with capitalised development expenditure up 14% to £16.4 million (H1 2025 £14.3 million), across 20% more titles than the prior period, of which 65% related to first-party IP (H1 2025: 59%).
· Strong balance sheet maintained, with £57.1m of cash and cash equivalents at the period end (H1 2025: £59.5 million), providing capacity to fund organic growth initiatives and selective M&A.
Operational summary
· Team17 delivered a resilient back catalogue performance, alongside four new titles launched, including Lumentale: Memories of Trey, Sintopia, Wardrum and Rogue Point. Team17 was also named Indie Publisher of the Year at the MCV/DEVELOP Awards.
· StoryToys revenues grew by 43%, with active subscribers up 22% to 408k, and total downloads of over 18 million. 394 app updates were released across multiple titles, including LEGO® Bluey, LEGO® DUPLO® Disney, LEGO® DUPLO® World and Disney Coloring World. LEGO® Bluey delivered a strong performance, including winning Best Mobile Game at the Kidscreen Awards 2026 and Best Licensed Video Game Project at the Bologna Licensing Awards.
· Astragon released two smaller new titles: Ranger's Path: National Park Simulator into PC Early Access and Underground Garage. Efforts continue to improve performance, with operations refocused on its core IPs.
· Rissik joined everplay as Chief Growth Officer, overseeing new growth opportunities across the Group. Most recently serving as CEO of Dovetail Games, Jon brings more than 25 years' experience in gaming franchise and lifecycle management.
· Since the period end the Group has exercised its option to increase its stake in Super Media Group, owners of Wardogs developer Bulkhead, to 28%, further strengthening their partnership within the exciting first-person shooter genre.
Interim dividend
· The Board has declared an interim ordinary dividend of 1.1 pence per share payable on 23 October 2026 to those shareholders on the register as at 25 September 2026. The ex-dividend date is 24 September 2026.
Outlook
· Strong start to H2 2026 trading, supported by record sales generated from Hell Let Loose: Vietnam and Wardogs, alongside continued resilience from the Group's back catalogue.
· Further new title releases expected in H2 2026, providing additional opportunities to drive growth through the remainder of the year.
· The Board now expects FY 2026 revenue and adjusted EBITDA to be materially ahead of current market expectations3, with adjusted EBITDA margin expected to be broadly in line with FY 2025.
· Capitalised development expenditure for FY 2026 in a range of £35-40 million (FY 2025: £33.2 million), reflecting a 15% increase in the number of titles in development, and in a similar range for FY 2027. Approximately two-thirds of this expenditure relates to first-party IP.
1 Adjusted EBITDA reflects the EBITDA of the Group, without the impact of acquisition-related costs which vary year on year based on acquisition activity. In addition, it includes the impact of amortisation and impairment of development costs, publishing rights and IP licences, as this reflects the primary costs incurred by the Group in generating revenue. Full disclosures on earnings adjustments can be found in the Alternative Performance Measures section of the Group Financial Review
2 Operating cash conversion is defined as cash generated from operating activities adjusted to add back payments made to satisfy pre-acquisition liabilities recognised under IFRS 3 "Business Combinations", divided by earnings before interest, tax, depreciation and amortisation ("EBITDA")
3 Company-compiled consensus shows FY26 revenues of £175.2 million and adjusted EBITDA of £50.7 million.
Analyst and institutional investor webcast
A presentation for analysts and institutional investors will be held on Tuesday, 15 September 2026 at 8.30 a.m. BST. To register for this event please contact Vigo Consulting on:
Retail investor webcast
A webcast for retail investors will be held on Tuesday, 15 September 2026 at 10.00 a.m. BST. The presentation will be hosted on the Engage Investor platform. Questions can be submitted pre-event or at any time during the live presentation. Investors can sign up for free via the following link: https://engageinvestor.news/EVPL_IP26
Enquiries:
everplay group plc
Mikkel Weider, Group Chief Executive Officer
Rashid Varachia, Group Chief Financial Officer and Chief Operating Officer
James Targett, Group Investor Relations Director
Peel Hunt (Nominated Advisor and Joint Corporate Broker)
Neil Patel / Benjamin Cryer / Kate Bannatyne
+44 (0)20 7418 8900
Jefferies International Limited (Joint Corporate Broker)
Philip Noblet / Will Brown
+44 (0)20 7029 8000
Vigo Consulting (Financial Public Relations)
Jeremy Garcia / Fiona Hetherington / Safia Colebrook
+44 (0)20 7390 0233
About everplay group plc
everplay group plc is an award-winning and leading global indie games label developer and publisher of premium video games and apps, comprising three distinct divisions: Team17, Astragon and StoryToys. Team17 is a games developer, publisher and creative partner for indie developers around the world, known for iconic IP such as Hell Let Loose, Worms, Wardogs, Dredge and Overcooked!. Astragon is a leading games publisher, developer and distributor of sophisticated working simulation games, including Construction Simulator and Police Simulator, targeting a broad audience from young enthusiasts to technical experts and casual gamers. StoryToys is a world-class developer and publisher of educational entertainment apps, bringing the world's most popular characters, worlds and stories to life for children under the age of eight, with apps including Disney Colouring World and LEGO® Bluey.
Visit www.everplaygroupplc.com for more information or follow us on LinkedIn: everplay group plc
Operational review
Introduction
The Group has been exceptionally busy during the period, preparing for major new title launches in the second half of the year from its largest franchises including Hell Let Loose and Bus Simulator, as well as a new title, Wardogs, with strategic partners Bulkhead. However, there has also been a steady flow of new high-quality content, with the launch of four new third-party titles from Team17, a brand new first-party IP from Astragon, as well as very strong growth from StoryToys. The continued performance of the back catalogue in the period again shows the strength and breadth of everplay's broad portfolio and the teams' lifecycle management capabilities, sustaining robust sales of the Group's titles for many years after their original launch.
The softer performance in the half compared to the prior period reflects the timing of the new release schedule in FY 2026, with larger titles in the second half, together with the timing of investment and other costs ahead of the associated revenue contribution. However, the Group is on track to deliver a record second half performance, returning to strong growth and a sharp improvement in margins, supported and corroborated by the very strong revenue performance from titles released so far in August and September.
During the period, the Group also continued to strengthen its organisational structure, with a focus on increasing efficiency, enabling greater collaboration across the Group and building a scalable platform to support future growth.
Strategic Update
The Group has continued to make good progress against its core strategic priorities, namely:
· building long term first-party IP roadmaps;
· discovering & nurturing innovative new third-party games;
· maintaining disciplined cost control; and
· driving organic & inorganic growth.
One brand new first-party IP was launched during the half (Ranger's Path: National Park Simulator from Astragon). Since the period end, two new instalments of best-selling existing franchises have been launched (Hell Let Loose: Vietnam and Bus Simulator 27), while a further four have also been announced. Investing in established first-party franchises provides greater visibility around new releases, supports higher-margin revenues and creates opportunities for sustained lifecycle revenues through additional content and continued back catalogue sales. This approach is proven to generate attractive returns on development investment over the life of a title.
In the Group's third-party games catalogue, Lumentale: Memories of Trey proved a highlight for Team17 in H1 2026, and post-period end Wardogs, the Group's first title with first-person shooter ("FPS") specialist Bulkhead, has performed ahead of expectations, breaking sales and player-number records, providing an encouraging start to this strategic partnership. The pipeline for third-party games remains strong, with a broad range of innovative content in development.
Capitalised development costs increased 14% during the period and are expected to rise further in the second half as the pipeline expands. Forecast FY 2026 capitalised development expenditure will cover a 15% increase in games in development, with first-party titles accounting for around two thirds of total investment. Importantly, this increase is managed within a disciplined capital allocation framework. Average spend per title in FY 2026 is expected to be broadly flat on FY 2025 levels, driven entirely by higher spend on first-party titles. This trend is expected to continue, reflecting the Group's deliberate allocation of more capital towards proven franchises with established communities and greater visibility over potential returns.
Organic growth remains a key priority and the Group has taken further steps during the half to strengthen the organisation, support future growth, drive synergies and unlock greater value from future acquisitions. Jon Rissik has joined everplay as Chief Growth Officer, bringing more than 25 years' experience across media, publishing and games. Jon has held senior leadership roles at Electronic Arts and Codemasters, most recently serving as CEO of Dovetail Games, where he led its development from a company of around 30 employees into one of the industry's leading simulation game publishers. As Chief Growth Officer, Jon will work across the Group to help identify new opportunities, support the businesses as they continue to grow, and strengthen the capabilities underpinning Team17, StoryToys and Astragon.
Further investments were also made in central functions, including People & Culture, Finance, IT and M&A as part of the move towards a more scaled service offering from the centre, so as to drive efficiencies across the Group and enable the business units to stay agile and nimble. The reorganisation of Team17 into three portfolio pillars, each focused on specific areas of the market and designed to deepen category expertise and improve portfolio management, has progressed well.
The Group continues to realise value from previous acquisitions, including through the release of DLC for Heroes of Hammerwatch II in July 2026. Selective M&A remains an important component of the Group's long-term growth strategy, supported by its strong balance sheet and disciplined approach to capital allocation. Since the period end, the Group has exercised its option, the terms of which were agreed at the time of the first subscription, to increase its stake in Super Media Group, owners of Wardogs developer Bulkhead, to 28% from 20% for £2 million. Following the hugely successful recent release of Wardogs, this has been a highly attractive investment and the Group is excited to further expand its partnership with Bulkhead within the FPS genre.
Divisional Review
Team17
Revenues declined 16% in the half to £41.1 million (H1 2025: £49.3 million) on the back of the very strong performance from new releases in the comparative period and the phasing of releases in FY 2026.
Four titles were launched during H1 2026, with Lumentale: Memories of Trey delivering a particularly encouraging performance and receiving a positive response from the Monster Collector role playing game audience. Team17 also launched Sintopia, Wardrum and Rogue Point in Early Access. While these titles were positively received, the aggregate contribution from H1 new releases was below the prior period, which benefitted from the launch of the hugely successful Date Everything!.
Back catalogue revenue remained resilient, declining by 5% compared with the prior period, with strong contributions from the Overcooked! franchise, Golf With Your Friends, Worms W.M.D and Hell Let Loose. Team17 continued to extend the reach and lifecycle of its existing portfolio through new platform launches and additional content. Worms W.M.D launched on Amazon GameNight and Overcooked! All You Can Eat on Netflix, while The Survivalists and Nice Day for Fishing were released on Epic. New DLC was also released across a number of titles, including The Survivalists: Frostbite Fortress and Blasphemous 2: The Third Sin.
During the period, Team17 was named Indie Publisher of the Year at the MCV/DEVELOP Awards, recognising the strength of its development partnerships, publishing capabilities and long-standing position within the independent games market.
Pleasingly, initial trading during the second half of the year has been very strong. August saw the full release of Rogue Point and the tenth anniversary of the BAFTA-winning Overcooked! franchise, which has now attracted more than 100 million players across Steam, Xbox, PlayStation, Nintendo Switch and Netflix Games.
In August 2026, Worms Galactic Tactics, the latest instalment in Team17's original and iconic Worms franchise, was announced at Gamescom. The game is expected to be released in 2027.
The main event in August was the much-anticipated full release of Hell Let Loose: Vietnam, which, despite some technical issues affecting the first weeks of review scores, generated record month one sales for the Group, attracting peak CCUs over 65,000 and achieving the number one position on Steam's global best-sellers chart. This record was broken again in September by the Early Access release of Wardogs, Team17's first title with strategic partner Bulkhead. Initial sales have been outstanding, selling over 1 million copies on day one, with peak CCUs since launch of over 400,000. New releases still to come in the second half include Silver Pines, What Goes Up and Hokko Spaces.
StoryToys
StoryToys posted an excellent revenue performance in the half, up 43% to £15.9 million (H1 2025: £11.1 million). Total downloads exceeded 18 million over the prior period, active subscribers increased 22% to 408k (H1 2025: 331k), and monthly average users peaking at 9.3 million during the H1 2026.
While no new apps were launched in the period, StoryToys released 394 app updates across multiple titles (H1 2025: 335), including new play packs for LEGO® Bluey, three new franchises for LEGO® DUPLO® Disney (featuring Disney The Little Mermaid and Tangled, and Pixar Toy Story), new play packs for LEGO® DUPLO® World, and new colouring pages for Disney Coloring World (Hoppers and Toy Story 5). My Very Hungry Caterpillar+ was also released on Apple Arcade.
LEGO® Bluey made a strong revenue contribution in the half, and received several industry accolades, winning Best Mobile Game at the Kidscreen Awards 2026 and Best Licensed Video Game Project at the Bologna Licensing Awards. It was also a finalist for Best Licensed Interactive or Digital Product at the Licensing International Excellence Awards 2026. The Bluey Apple Arcade "Ultimate Playdate" campaign also brought Bluey colouring content to Disney Coloring World+, exclusively on Apple Arcade.
StoryToys has continued to release new content in the second half, including the School play pack for LEGO® Bluey, Tracks & Ramps for LEGO® DUPLO® World, and "George Gets a Hearing Aid" content for LEGO® DUPLO® Peppa Pig. StoryToys' partnership with Netflix continues successfully, with My Very Hungry Caterpillar now live on Netflix Playground, along with additional play packs launching for LEGO® DUPLO® World Netflix.
Astragon
Revenues declined 20% in the half to £9.7 million (H1 2025: £12.0 million), principally reflecting the Group's exit from Astragon's physical distribution business during FY 2025. Excluding physical distribution, revenue fell 6%.
The majority of sales were delivered by the back catalogue, which was supported by five paid-for DLCs, special editions and the release of Police Simulator: Patrol Officers on Nintendo Switch 2. Construction Simulator joined Xbox Game Pass during the period, further extending the franchise's reach and introducing the title to new players. The strength of Astragon's franchises was acknowledged when Weltenbauer, the developer of Construction Simulator and Firefighting Simulator: Ignite, in which Astragon has a 25% stake, was awarded Studio of the Year at the German Computer Game Awards 2026.
During H1 2026, a new brand was added to the portfolio with the release of Ranger's Path: National Park Simulator into PC Early Access. Underground Garage was also released on PC. While these were smaller title launches, sales performance did not reach internal expectations. As a result of the performance, re-organisation initiatives have been completed during the half year.
The second half of the year is packed with new content. It has got off to a good start with the launch in September of Bus Simulator 27, a new title from the major Bus Simulator franchise, set in the Mediterranean and featuring the Solaris brand for the first time. Despite some early issues, the title is making a solid revenue contribution. Firefighting Simulator: Ignite released the Motor Vehicle Accident DLC and Vehicle Rescue Edition in July, as well as joining PlayStation Plus. The second half of 2026 will also see the full release of Seafarer: The Ship Sim.
The Early Access release of Construction Simulator: Evolution has been announced, building on the established franchise with new construction equipment, including Volvo machinery, expanded manual construction activities, demolition mechanics and a range of additional gameplay features. The next instalment of the best-selling Police Simulator franchise was revealed at Gamescom in August, for a PC and Console release in 2027.
Group Financial Review
Revenue
Group revenue decreased by 8% to £66.9 million in H1 2026 (H1 2025: £72.4 million), partly reflecting lower physical distribution revenue following the Group's exit from Astragon's physical distribution activities during FY 2025, together with a lower contribution from new releases. Excluding the impact from the exit of Astragon's physical distribution activities, Group revenue decreased by 5%.
The back catalogue delivered a solid performance, increasing by 1% to £64.3 million (H1 2025: £63.5 million), with contributions from over 150 titles. Revenues from new releases decreased to £2.7 million (H1 2025: £8.9 million), reflecting a softer performance against the very strong comparative contribution from Date Everything! in H1 2025 and the heavy weighting of the Group's major FY 2026 releases towards the second half.
Revenues from first-party IP declined 18% to £20.5 million (H1 2025: £25.1 million), representing 31% of Group revenues (H1 2025: 35%). This principally reflected the inclusion of platform deals in H1 2025, and the focus on new content, including the release of Hell Let Loose: Vietnam, in H2 2026. However, the original Hell Let Loose title, along with Golf With Your Friends and Police Simulator: Patrol Officers all continued to make solid contributions during the period. Third-party revenues were broadly stable at £46.4 million (H1 2025: £47.2 million), supported by strong contributions from Overcooked!, Dredge, Disney Coloring World and LEGO® DUPLO® World.
By division, Team17 revenues fell by 16% to £41.3 million (H1 2025: £49.3 million); Astragon revenues declined 20% to £9.7 million (H1 2025: £12.0 million), moderating to a 6% decline excluding physical distribution sales; and StoryToys revenues increased 43% to £15.9 million (H1 2025: £11.1 million).
Gross profit and margin
Group gross profit decreased by 29% to £23.9 million (H1 2025: £33.7 million), with gross margin falling by 10.9 percentage points to 35.7%. The principal driver of the reduction in gross margin was higher amortisation of capitalised development costs, along with some lower margin back catalogue revenues linked to lower first-party revenues, platform deals recognised in H1 2025 and the timing of royalty payments. Capitalised development cost amortisation increased to £11.6 million (H1 2025: £7.1 million), related primarily to titles released over the previous 12 months. This included a title impairment charge of £1.9 million (H1 2025: nil) related to a small number of titles.
Expensed development costs also increased as a percentage of revenue to 8% (H1 2025: 5%), reflecting continued investment in back catalogue content and expenditure associated with the StoryToys Netflix partnership. These increases were partially offset by lower royalty costs, which represented 29.5% of revenue (H1 2025: 30.5%), and lower physical cost of sales following the exit from Astragon's physical distribution activities.
The Group expects a significant improvement in gross margin during H2 2026 as revenue from the major second-half releases is recognised. For the year as a whole, gross margin is expected to be within the recent historical range.
Administrative expenses and profitability
Total administrative expenses increased by 9% to £22.3 million (H1 2025: £20.4 million), predominantly reflecting higher staff costs, associated with the strengthening and centralisation of certain Group functions, and marketing investment ahead of major new title launches in H2 2026.
Administrative expenses include £6.2 million of acquisition-related adjustments, as set out in the Alternative Performance Measures table below (H1 2025: £5.7 million). The increase principally reflects IP acquisitions completed during FY 2025.
Alternative Performance Measures
Adjusted EBITDA
Adjusted Profit After Tax
H1 26
H1 25
H1 26
H1 25
£'000
£'000
£'000
£'000
Profit before Tax
1,589
14,310
1,589
14,310
Development cost amortisation eliminated through FV adjustments
(193)
(432)
(193)
(432)
Share based compensation
797
106
797
106
Restructuring costs
383
-
383
-
Acquisition related costs & adjustments
Amortisation of acquired intangible1 assets
6,206
5,565
6,206
5,565
Acquisition-related costs
4
-
4
-
Earn out fair value
0
119
-
119
Adjusted profit before tax
8,785
19,668
8,785
19,668
Finance income and costs net of acquisition related costs and adjustments
(142)
(1,142)
n/a
n/a
Depreciation and loss on disposal of tangible assets and software
487
602
n/a
n/a
Amortisation of other intangible assets
50
67
n/a
n/a
Adjusted EBITDA
9,180
19,195
Taxation (net of impacts on adjustments)
(3,472)
(4,615)
Adjusted profit after tax
5,314
15,053
Adjusted basic EPS (p)
3.7
10.5
1Acquired intangibles are defined as those that arise directly from M&A activity and include the asset classes Brands, Acquired Apps and Customer and Developer Relationships
The combination of lower gross profit and higher administrative expenses resulted in significant, but expected, operating deleverage during the first half. Operating profit decreased to £1.7 million (H1 2025: £13.4 million). Adjusted EBITDA decreased by 53% to £9.2 million (H1 2025: £19.2 million), with adjusted EBITDA margin reducing by 12.7 percentage points to 13.7% (H1 2025: 26.5%). This reflects the aforementioned phasing of revenue and investment between H1 and H2. Following the major releases in the second half and the anticipated improvement in gross margin, the Group expects adjusted EBITDA margin for FY 2026 to be broadly in line with FY 2025.
Net finance income decreased to £0.1 million (H1 2025: £1.1 million), reflecting lower average cash balances following acquisition activity during the preceding 12 months, lower interest rates and foreign exchange movements. Profit before tax was £1.6 million (H1 2025: £14.3 million), while adjusted profit before tax was £8.8 million (H1 2025: £19.7 million).
Taxation and earnings per share
The tax charge for the period was £2.2 million (H1 2025: £3.7 million), resulting in a loss after tax of £0.6 million (H1 2025: profit of £10.6 million). The tax charge includes a £1.3 million prior-year adjustment relating to the correction of an item originating in FY 2021.
Adjusted taxation was £3.5 million (H1 2025: £4.6 million), representing an adjusted effective tax rate of 39.5% (H1 2025: 23.5%), or approximately 25% excluding the prior-year adjustment. Adjusted profit after tax was £5.3 million (H1 2025: £15.1 million).
Basic earnings per share were (0.4) pence (H1 2025: 7.4 pence). Adjusted earnings per share, which adds back share-based compensation costs and acquisition-related costs and adjustments, was 3.7 pence (H1 2025: 10.5 pence).
Cash flow and development investment
The Group remained highly cash generative, with operating cash conversion of 128% (H1 2025: 94%) and net cash inflow from operations of £27.8 million (H1 2025: £26.0 million).
Capitalised development expenditure increased by 14% to £16.4 million (H1 2025: £14.3 million), comprising £11.1 million at Team17 (H1 2025: £7.7 million), £4.7 million at Astragon (H1 2025: £4.9 million) and £0.8 million at StoryToys (H1 2025: £1.7 million). This expenditure was spread across 20% more titles than in H1 2025, with first-party IP representing 65% of capitalised development spend (H1 2025: 59%), consistent with the Group's strategy of allocating a greater proportion of investment towards owned IP and established franchises.
After capitalised development expenditure and dividends of £2.7 million, cash and cash equivalents at the period end were £57.1 million (H1 2025: £59.4 million), leaving the Group well-funded to execute its organic and inorganic growth strategy.
Outlook
The Group's performance during the second half to date has been ahead of expectations, following the releases of Hell Let Loose: Vietnam, Wardogs and Bus Simulator 27. Back catalogue performance has also remained resilient. The Group expects to release at least four other new titles during the second half.
Therefore, the Board now expects FY 2026 revenue and adjusted EBITDA to be materially ahead of current market expectations, with the adjusted EBITDA margin broadly in line with FY 2025.
Capitalised development expenditure for FY 2026 is expected to be in a range of £35-40 million, compared to £33 million in FY 2025, and be in a similar range for FY 2027. In FY 2026, this reflects a 15% increase in the number of titles in development, with approximately two thirds of this expenditure relating to first-party IP.
The Board remains confident in the Group's prospects, supported by a strong balance sheet, a broad and healthy new release pipeline, a unique and consistent back catalogue and a growing portfolio of first-party IP, creating a strong foundation for sustainable growth and long-term shareholder value creation.
Condensed Consolidated Income Statement
Unaudited
Six months ended
30 June
2026
Unaudited
Six months ended
30 June
2025
Note
£'000
£'000
Revenue
4
66,915
72,357
Cost of sales
(43,059)
(38,694)
Gross profit
23,856
33,663
Gross profit %
35.7%
46.5%
Administrative expenses
(22,259)
(20,385)
Other income
76
135
Operating profit
1,673
13,413
Share of net (loss) of associates accounted for using the equity method
(226)
(245)
Finance income
725
1,236
Finance cost
(583)
(94)
Profit before tax
1,589
14,310
Taxation
(2,172)
(3,681)
(Loss)/Profit for the period
(583)
10,629
Basic (loss)/earnings per share
6
(0.4) pence
7.4 pence
Diluted (loss)/earnings per share
6
(0.4) pence
7.4 pence
Basic adjusted earnings per share
6
3.7 pence
10.5 pence
Diluted adjusted earnings per share
6
3.7 pence
10.4 pence
All results relate to continuing activities.
Condensed Consolidated Statement of Comprehensive Income
Unaudited
Six months ended
30 June
2026
£'000
Unaudited
Six months ended
30 June
2025
£'000
(Loss)/Profit for the period
(583)
10,629
Items which might be potentially reclassified to profit or loss:
Exchange difference on translation of foreign operations
(1,457)
3,410
Total comprehensive (expense)/income for the period
(2,040)
14,039
Condensed Consolidated Statement of Financial Position
Unaudited
30 June 2026
Unaudited
(Restated)* 30 June 2025
Audited
31 December
2025
Note
£'000
£'000
£'000
ASSETS
Non-current assets
Investments in associates
3,405
788
3,195
Intangible fixed assets
7
223,445
213,325
227,897
Property, plant and equipment
996
1,116
1,035
Right of use assets
1,617
2,205
1,737
Deferred tax assets
1,352
430
733
230,815
217,864
234,597
Current assets
Trade and other receivables
32,225
34,128
44,295
Current tax assets
1,967
2,116
1,673
Inventories
374
1,457
478
Cash and cash equivalents
57,086
59,445
51,870
91,652
97,146
98,316
Total assets
322,467
315,010
332,913
EQUITY AND LIABILITIES
Equity
Share capital
1,458
1,458
1,458
Share premium
137,572
137,572
137,572
Merger reserve
(153,822)
(153,822)
(153,822)
Currency translation reserve
4,196
3,022
5,653
Other reserves
159,296
159,296
159,296
Retained earnings
137,940
129,198
140,798
Total equity
286,640
276,724
290,955
Non-current liabilities
Lease liabilities
1,055
1,861
1,449
Provisions
111
145
104
Deferred tax liabilities
4,748
6,373
5,563
Total non-current liabilities
5,914
8,379
7,116
Current liabilities
Trade and other payables
28,604
28,850
34,191
Current tax liabilities
540
292
-
Lease liabilities
769
765
651
Total current liabilities
29,913
29,907
34,842
Total liabilities
35,827
38,286
41,958
Total equity and liabilities
322,467
315,010
332,913
Condensed Consolidated Statement of Changes in Equity
Share capital
Share premium
Merger
Reserve
Currency translation reserve
Other
reserves
Retained earnings
Total
Six months to 30 June 2025
Note
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Balance at
1 January 2025 (audited)
1,458
137,572
(153,822)
(388)
159,296
118,450
262,566
Profit for the period
-
-
-
-
-
10,629
10,629
Other comprehensive income for the period
-
-
-
3,410
-
-
3,410
Transactions with owners
Share-based compensation
-
-
-
-
-
119
119
Total transactions with owners (restated)
-
-
-
-
-
119
119
Balance at
30 June 2025 (unaudited)
1,458
137,572
(153,822)
3,022
159,296
129,198
276,724
Six months to 31 December 2025
Balance at
1 July 2025 (unaudited)
1,458
137,572
(153,822)
3,022
159,296
129,198
276,724
Profit for the period
-
-
-
-
-
16,611
16,611
Other comprehensive income for the period
-
-
-
2,631
-
-
2,631
Transactions with owners
Share-based compensation
-
-
-
-
-
319
319
Dividends paid
(5,330)
(5,330)
Total transactions with owners
-
-
-
-
(5,011)
(5,011)
Balance at
31 December 2025 (audited)
1,458
137,572
(153,822)
5,653
159,296
140,798
290,955
Six months to 30 June 2026
Balance at
1 January 2026 (audited)
1,458
137,572
(153,822)
5,653
159,296
140,798
290,955
Loss for the period
-
-
-
-
-
(583)
(583)
Other comprehensive expense
-
-
-
(1,457)
-
-
(1,457)
Transactions with owners
Purchase of own shares
-
-
-
-
-
(301)
(301)
Share-based compensation
-
-
-
-
-
764
764
Dividends paid
-
-
-
-
-
(2,738)
(2,738)
Total transactions with owners
-
-
-
-
-
(2,275)
(2,275)
Balance at
30 June 2026 (unaudited)
1,458
137,572
(153,822)
4,196
159,296
137,940
286,640
Condensed Consolidated Statement of Cash Flows
Unaudited
Six months ended
30 June 2026
Unaudited
Six months ended
30 June 2025 (Restated)*
Note
£'000
£'000
Operating activities
Profit before tax
1,589
14,310
Adjustments for:
Depreciation of property, plant and equipment
181
274
Depreciation of right-of-use assets
306
328
Amortisation of intangible fixed assets
7
17,633
13,819
Impairment of intangible fixed assets
1,863
-
(Profit)/loss on disposal of intangible assets
(507)
(1)
Share of loss of associates
(80)
245
Fair value adjustment to derivatives
234
-
Share-based compensation
783
119
Finance income
(725)
(1,236)
Financial expenses
289
94
Decrease in trade and other receivables
12,015
9,343
(Decrease) in trade and other payables
(5,900)
(11,026)
Decrease/(increase) in inventory
99
(334)
Increase in provisions
8
18
Cash generated from operating activities
27,788
25,953
Tax paid
(3,298)
(7,158)
Net cash inflow from operating activities
24,490
18,795
Cash flow from investing activities
Purchase of property, plant and equipment
(141)
(303)
Purchase of Intellectual Property
7
-
(6,000)
Purchase of other intangibles
-
(2,238)
Proceeds from sale of intangible assets
969
-
Capitalisation of development costs
7
(16,368)
(14,345)
Interest received
725
843
Net cash outflow from investing activities
(14,815)
(22,043)
Cash flow from financing activities
Interest paid
(800)
(94)
Payments for purchase of own shares
(437)
-
Dividends paid
(2,738)
-
Repayment of lease liabilities
(460)
(333)
Net cash outflow from financing activities
(4,435)
(427)
Net increase/(decrease) in cash and cash equivalents
5,240
(3,675)
Cash and cash equivalents at beginning of period
51,870
62,877
Effect of exchange rates on cash and cash equivalents
(24)
243
Cash and cash equivalents at end of period
57,086
59,445
Notes to the Condensed Consolidated Interim Financial Statements
1. Nature of operations and general information
everplay group plc and its subsidiaries (The Group) are a global games label, creative partner and developer of independent ("indie"), premium video games and developer and publisher of educational entertainment ("edutainment") apps for children and a leading working simulation games developer and publisher.
2. Basis of preparation
These condensed consolidated interim financial statements have been prepared in accordance with the AIM rules and UK adopted IAS 34 "Interim Financial Reporting". The condensed consolidated interim financial statements for the 6 months ended 30 June 2026 should be read in conjunction with the financial statements of everplay group plc for the year ended 31 December 2025 (the "Prior year financial statements") which includes the financial results of the Group prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 ('IFRS') and the applicable legal requirements of the Companies Act 2006.
The report of the auditors for the prior year financial statements for the year ended 31 December 2025 was unqualified, did not contain an emphasis of matter paragraph and did not include a statement under Section 498 of the Companies Act 2006. The Group's condensed consolidated interim financial statements are not audited and do not constitute statutory financial statements as defined in Section 434 of the Companies Act 2006. These condensed consolidated interim financial statements were approved for issue on 15 September 2026.
Going concern
Management has produced forecasts that have also been sensitised to reflect plausible downside scenarios which have been reviewed by the directors. These demonstrate the Group is forecast to generate profits and cash in the year ending 31 December 2026 and beyond and that the Group has sufficient cash reserves to enable the Group to meet its obligations as they fall due for a period of at least 12 months from the release of these results.
As such, the directors are satisfied that the Group has adequate resources to continue to operate for the foreseeable future. For this reason they continue to adopt the going concern basis for preparing this interim report.
Accounting policies
The Group's principal accounting policies used in preparing this information are as stated on pages 76 to 84 of the prior year financial statements. There has been no change to any accounting policy from the date of the prior year financial statements.
Prior Year Restatement
During the prior year the group reassessed its treatment applied to IP licences containing minimum guarantee payments. Full details of this restatement are stated on page 84 of the prior year financial statements. The comparative results as at 30 June 2025 have been restated as follows:
Statement of Financial Position (Extract)
30 June 2025
Increase/(Decrease)
30 June 2025 (Restated)
Intangible fixed assets
209,152
4,173
213,325
Trade and other receivables
36,630
(2,502)
34,128
Trade and other payables
(27,179)
(1,671)
(28,850)
Statement of Cash Flows (Extract)
30 June 2025
Increase/(Decrease)
30 June 2025 (Restated)
Amortisation of intangible fixed assets
13,082
737
13,819
(Decrease) in trade and other payables
(11,076)
50
(11,026)
Purchase of other intangibles
(1,451)
(787)
(2,238)
3. Segmental information
The Group has three different operating segments within the business which are as follows:
· Games Label - Developing and publishing video games for the digital and physical market
· Simulation - Developing and publishing simulation games for the digital and physical market
· Edutainment - Developing educational entertainment apps for children
The chief operating decision maker ("CODM") of the Group is considered to be the group executive directors. The CODM reviews the Group's internal reporting in order to assess performance and allocate resources. The CODM determines the operating segments based on these reports and on the internal reporting structure.
The CODM considered the aggregation criteria set out within IFRS 8 "Operating Segments" where two or more operating segments can be combined for reporting purposes so long as aggregation provides financial statement users with information to evaluate the business and the environment in which it operates.
After assessing these criteria, the CODM deems it appropriate for all three operating segments to be aggregated and reported as a single segment. Each segment develops and publishes games and apps using own and third party IP through similar distribution methods with similar margins in the same regulatory environments. Therefore all figures reported in these results are reported as a single aggregated reporting segment.
4. Revenue
Whilst the CODM considers there to be only one reportable segment, the Company's portfolio of games is split between internal IP (those based on IP owned by the Group) and third-party IP incurring royalties. Therefore to aid the readers' understanding of our results, the split of revenue from these two categories is shown below:
Revenue by First Party/Third Party IP:
Unaudited
Six months ended
30 June 2026
Unaudited
Six months ended
30 June 2025
£'000
£'000
First Party IP
20,488
25,103
Third Party IP
46,427
47,254
66,915
72,357
The Group does not provide any information on the geographical location of sales as the majority of revenue is through third-party distribution platforms which are responsible for the data of consumers.
5. Alternative Performance Measures
Adjusted EBITDA
Adjusted Profit after Tax
Unaudited
Six months ended
30 June 2026
Unaudited
Six months ended
30 June 2025
Unaudited
Six months ended
30 June 2026
Unaudited
Six months ended
30 June 2025
Profit before Tax
1,589
14,310
1,589
14,310
Development cost amortisation eliminated through FV adjustments
(193)
(432)
(193)
(432)
Share based compensation
797
106
797
106
Amortisation on acquired intangible assets
6,206
5,565
6,206
5,565
Acquisition related costs
3
-
3
-
Restructuring costs
383
-
383
-
Earn out fair value
-
119
-
119
Adjusted profit before tax
8,785
19,668
8,785
19,668
Finance income and costs net of acquisition related costs and adjustments
(142)
(1,142)
n/a
n/a
Depreciation and loss on disposal of tangible assets
487
602
n/a
n/a
Amortisation of software
50
67
n/a
n/a
Adjusted EBITDA
9,180
19,195
-
-
Taxation (net of impacts on adjustments)
-
-
(3,472)
(4,615)
Adjusted Profit after Tax
-
-
5,313
15,053
Adjusted basic EPS
-
-
3.7
10.5
6. Earnings per share
The calculation of the basic earnings per share is based on the profits attributable to the shareholders of everplay group plc divided by the weighted average number of shares in issue. The weighted average number of shares takes into account treasury shares held by the Team17 Employee Benefit Trust. The diluted earnings per share uses the same calculation however the number of shares in issue is adjusted to include shares considered to be dilutive under the treasury stock method. An option is considered to be dilutive when the total proceeds per option is less than the average share price for the period.
Unaudited
Six months ended
30 June 2026
Unaudited
Six months ended
30 June 2025
(Loss)/Profit for the period £'000
(583)
10,629
Weighted average number of shares
143,941,130
143,992,626
Weighted average diluted number of shares
144,898,158
144,407,029
Basic earnings per share (pence)
(0.4)
7.4
Diluted earnings per share (pence)
(0.4)
7.4
The calculation of adjusted earnings per share is based on the profit attributable to shareholders as shown in the Statement of Comprehensive Income plus additional costs added back during the period as shown in note 5. The weighted average diluted number of shares includes share options considered to be dilutive under the treasury stock method as described above.
Unaudited
Six months ended
30 June 2026
Unaudited
Six months ended
30 June 2025
Adjusted profit for the period £'000
5,313
15,053
Weighted average number of shares
143,941,130
143,992,626
Weighted average diluted number of shares
144,898,158
144,407,029
Adjusted basic earnings per share (pence)
3.7
10.5
Adjusted diluted earnings per share (pence)
3.7
10.4
7. Intangibles
Development costs
£'000
Brands
£'000
Acquired Apps £'000
Customer and Developer Relationships
£'000
Publishing rights
£'000
IP Licenses (Restated)
£'000
Other Intangibles £'000
Goodwill
£'000
Total
£'000
Cost
At 1 January 2025 (audited)
106,267
80,484
35,488
5,104
2,000
7,413
972
104,537
342,265
Additions
14,305
6,000
-
-
1,388
-
63
-
21,756
Translation on foreign operations
1,085
91
1,178
(444)
-
(644)
32
77
1,375
At 30 June 2025 (Restated) (unaudited)
121,657
86,575
36,666
4,660
3,388
6,769
1,067
104,614
365,396
Additions
18,937
3,399
-
-
2,661
1,606
1
-
26,604
Disposals
-
-
-
-
-
(578)
-
-
(578)
Translation on foreign operations
892
122
764
88
-
249
24
1,689
3,828
At 31 December 2025 (audited)
141,486
90,096
37,430
4,748
6,049
8,046
1,092
106,303
395,250
Additions
16,368
-
-
-
-
602
-
-
16,970
Disposals
(462)
-
-
-
-
-
-
-
(462)
Translation on foreign operations
(618)
(75)
(453)
81
-
(102)
(11)
(419)
(1,597)
At 30 June 2026 (unaudited)
156,774
90,021
36,977
4,829
6,049
8,546
1,081
105,884
410,161
Amortisation
At 1 January 2025 (audited)
65,630
29,071
14,737
5,104
256
2,121
849
22,223
139,991
Charge for the period
7,059
3,118
2,447
-
391
737
67
-
13,819
Translation on foreign operations
320
23
528
(444)
-
(262)
28
(1,932)
(1,739)
At 30 June 2025 (Restated) (unaudited)
73,009
32,212
17,712
4,660
647
2,596
944
20,291
152,071
Charge for the period
7,105
3,596
2,536
-
726
862
69
-
14,894
Impairment
(259)
-
-
-
-
-
-
-
(259)
Disposals
-
-
-
-
-
(578)
-
-
(578)
Translation on foreign operations
267
19
371
88
-
72
25
383
1,225
At 31 December 2025 (audited)
80,122
35,827
20,619
4,748
1,373
2,952
1,038
20,674
167,353
Charge for the period
9,690
3,679
2,526
-
745
943
50
-
17,633
Impairment
1,863
-
-
-
-
-
-
-
1,863
Translation on foreign operations
(231)
(17)
(268)
81
-
(43)
(9)
354
(133)
At 30 June 2026 (unaudited)
91,444
39,489
22,877
4,829
2,118
3,852
1,079
21,028
186,716
Net Book Value
At 30 June 2026 (unaudited)
65,330
50,532
14,100
-
3,931
4,694
2
84,856
223,445
At 31 December 2025 (audited)
61,364
54,269
16,811
-
4,676
5,094
54
85,629
227,897
8. Share Capital
Unaudited
Six months ended
30 June 2026
Unaudited
Six months ended
30 June 2025
Audited
Year ended
31 December 2025
£'000
£'000
£'000
Authorised, allotted, called up and fully paid
145,848,677 (30 June and 31 December 2025: 145,848,677) ordinary shares of 1p each
1,458
1,458
1,458
1,458
1,458
1,458
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