REG - Everplay Group plc - Unaudited Final Results 2025
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RNS Number : 7774X Everplay Group plc 24 March 2026
24 March 2026
everplay group plc
("everplay" or the "Group")
Unaudited Final Results for the year ended 31 December 2025
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 final results for the year ended 31
December 2025 ("FY 2025").
· Double-digit profit growth and strong margin expansion supported by
growth in new release revenues and successful platform partnerships
· Continued progress against strategic priorities, including new
first-party IP releases, and acquisitions of IP and back catalogue publishing
rights
· New release line up and strengthened organisation to support FY 2026
outlook and beyond
FY 2025 financial highlights
Unaudited twelve months ended Audited twelve months ended change
31 December 2025 31 December 2024
Revenue £166.0m £166.6m (0)%
Gross Profit £76.3m £69.4m 10%
Gross Profit Margin 46.0% 41.6% 4.4pts
Adjusted EBITDA(1) £48.5m £43.5m 11%
Adjusted EBITDA margin 29.2% 26.1% 3.1pts
Profit Before Tax £36.6m £25.3m 44%
Adjusted Profit Before Tax £48.5m £43.4m 12%
Adjusted EPS(1) 25.7p 24.1p 7%
Operating Cash Conversion(2) 89% 97% (8)pts
Cash and cash equivalents £51.9m £62.9m (17)%
· Revenue flat year on prior year following decision to exit astragon's
low margin physical distribution, contributing to a significant increase in
gross margin. Excluding physical distribution, Group revenue increased by 5%
· Strong performance from new releases, with revenues up 80%
· While the back catalogue performance did not match the exceptionally
high levels of FY2024, it delivered double-digit revenue growth on FY 2023,
and accounted for 75% of total revenues
· Year-end cash balance of £51.9m, reflecting solid underlying cash
generation, offset by acquisition-related spend and higher development costs
· The Board has declared a final ordinary dividend of 1.9 pence per
share which, including the 1.0 pence interim dividend, takes the total
dividend for FY2025 to 2.9 pence per share (FY 2024: 2.7 pence)
FY 2025 operational highlights
· 11 new titles released across multiple platforms and genres, most
notably Date Everything!, SWORN, Firefighting Simulator: Ignite and LEGO®
Bluey™
· New partnerships entered with Netflix Games, Apple Arcade, Amazon
Game Night and Nintendo Switch 2
· Acquisition of minority stake in Super Media Group, initiating a
strategic partnership with first-person shooter specialists Bulkhead
· Acquisition of the rights and assets of the Hammerwatch franchise and
several IPs from Bearded Brothers
· Secured the long-term publishing rights to seven previously published
titles, including Operation: Tango, Heavenly Bodies and Spiritfall
· Mikkel Weider appointed as Group Chief Executive Officer, formally
joining the Board in January 2026
Divisional highlights
· Team17 total sales increased 8%, with 20 million units sold, reaching
a record £106 million
o Six new games drove a 700%-plus increase in new release revenues, further
strengthening the portfolio
o Date Everything! launched successfully with over 750k players added since
launch
o 16 DLCs were released during the year, along with nine existing games on
new platforms
· astragon revenue declined 33% in part following the decision to exit
low-margin direct physical game distribution. Excluding physical distribution
revenues, astragon revenue decreased by 18%
o Two new titles were released during the year (Firefighting Simulator:
Ignite, and new first-party IP brand Seafarer: The Ship Sim), along with two
existing titles on new platforms and 11 paid DLCs. Although new releases and
the back catalogue performed below expectations, by aligning investment in new
content, operations and talent around astragon's most popular and scalable
franchises, a considerably improved performance is expected for FY 2026
o Acquisition of new simulation IP: Storage Hunter Simulator
· StoryToys produced an outstanding year, with total revenues up 25% to
£30.4 million, supported by one new app launch and 740 app updates
o LEGO® Bluey passed one million downloads in its first month and became
the number one Kids iPad app for a while in 117 countries
o StoryToys hit 376k active subscribers, with peak monthly active users of
12.9m, reaching 286 million lifetime downloads
o Major new Netflix Games partnership, including release of LEGO® DUPLO®
World® Netflix and Barbie Color Creations Netflix, along with three launches
on Apple Arcade Greats
Outlook
· The Group has made a good start to FY 2026 and has an exciting
pipeline of at least 15 new games and apps expected to launch during the year.
The line-up includes at least five first-party IPs, including the
much-anticipated Hell Let Loose: Vietnam (currently with over half a million
Wishlists on Steam alone) and Golf With Your Friends 2, as well as major new
launches from astragon's established IP portfolio. The line-up also features a
varied and high-quality slate of third-party titles, including Wardogs, in
collaboration with first-person shooter specialists Bulkhead
· The Board is confident that the Group is well-positioned to deliver
another year of profitable growth in FY 2026, as well as continued growth over
the medium to long term, and expects the Group to achieve FY 2026 results in
line with current market expectations(3). The phasing of costs in H1
associated with larger releases due towards the end of H1 and into H2 is
expected to result in a H2 weighting of aEBITDA delivery
Mikkel Weider, Group Chief Executive Officer of everplay, commented:
"My first three months at everplay have been hugely exciting and reinforced my
confidence in the Group's long-term potential. FY 2025 again showed the
benefit of the Group's portfolio strategy. The teams have worked exceptionally
hard to deliver an impressive double-digit profit growth, and I thank them all
for their dedicated commitment.
"FY 2026 has one of the busiest and highest quality new release line-ups in
several years, packed with first-party IP and exciting third-party titles such
as Wardogs. Combined with the new partnerships and acquisitions made in the
previous year, I am confident that we are on track for a strong FY 2026."
( )
(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 £173.6 million and
adjusted EBITDA of £50.5 million.
Analyst and institutional investor webcast
A webcast for analysts and institutional investors will be held on Tuesday, 24
March 2026 at 8.30 a.m. GMT. To register for this event please contact Vigo
Consulting on everplay@vigoconsulting.com.
Retail investor webcast
A webcast for retail investors will be held on Friday, 27 March 2026 at 1.00
p.m. GMT. The presentation will be hosted on the Investor Meet Company
platform. Questions can be submitted at any time during the live presentation.
Investors can sign up via the following link:
https://www.investormeetcompany.com/everplay-group-plc/register-investor
(https://www.investormeetcompany.com/everplay-group-plc/register-investor)
Enquiries
everplay group plc ir@everplaygroupplc.com (mailto:ir@everplaygroupplc.com)
Mikkel Weider, Chief Executive Officer
Rashid Varachia, Chief Financial Officer and Chief Operating Officer
James Targett, Group Investor Relations Director
Peel Hunt (Nominated Advisor and Joint Corporate Broker) +44 (0)20 7418 8900
Neil Patel / Benjamin Cryer / Kate Bannatyne
Jefferies International Limited (Joint Corporate Broker) +44 (0)20 7029 8000
Philip Noblet / Will Brown
Vigo Consulting (Financial Public Relations) +44 (0)20 7390 0233
Jeremy Garcia / Fiona Hetherington / Safia Colebrook
everplay@vigoconsulting.com (mailto:everplaygroup@vigoconsulting.com)
About everplay group plc
everplay group plc (formerly Team17 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
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 (http://www.everplaygroupplc.com/) for more
information or follow us on LinkedIn: everplay group plc
(http://www.linkedin.com/company/everplay-group-plc)
Strategic and operating review
Twelve months ago, the Group set out a clear commitment: to return everplay to
its roots, delivering a diverse portfolio of quality games against a
disciplined strategy centred on our indie heritage. Against this, 2025 was a
year of strong operational, strategic and financial progress.
The Group's strategy remains founded on four core principles:
· building long-term first-party IP roadmaps;
· continuing to partner with third-party developers to discover and
nurture innovative new games;
· disciplined cost control; and
· driving both organic and inorganic growth
The result of this clear strategic focus has been a significant improvement in
the performance of new releases this year, along with the most exciting and
high-quality new release pipeline since the IPO, reaffirming everplay's
commitment to excellence.
The successful launches of new titles from across our three divisions in 2025
has been a particular highlight, including Date Everything!, LEGO® Bluey and
Firefighting Simulator: Ignite, which not only broaden the Group's portfolio,
but also reinforce its long-standing reputation for delivering original,
engaging games. This success has reignited the passion across the Group's
teams and united each different label under the recently created everplay
umbrella brand. The Group's back catalogue continues to perform well, with our
teams developing new content to increase gamers' delight and long-term
engagement.
For FY 2025, the Group generated revenues of £166.0 million (FY 2024: £166.6
million), gross profit of £76.3 million (FY 2024: £69.4 million) and
adjusted EBITDA of £48.5 million (FY 2024: £43.5 million). The year closed
with a strong balance sheet, including £51.9 million of cash and cash
equivalents (31 December 2024: £62.9 million) having acquired the Hammerwatch
franchise, five IPs from Bearded Brothers, taken a minority stake in Super
Media Group (initiating a strategic partnership with Bulkhead to develop
first-person shooter games), and acquired publishing rights to seven titles,
securing additional back-catalogue revenues. Together these fulfilled a key
strategic priority to continually mitigate the unpredictability of future new
games.
The Group's financial progress also reflects a strategic focus on
higher-margin, more sustainable activities, and the exit from low-margin
physical packaged goods distribution within astragon. The Group has signed
multiple partnership agreements with a number of gaming platforms, including
Netflix and Amazon, enabling us to reach more consumers globally.
2025 was a pivotal year for strengthening the skillset of the organisation.
This ongoing focus has been supported by key senior hires who bring
outstanding capability and deep games industry experience. In November 2025,
Mikkel Weider was appointed as Group Chief Executive Officer, joining formally
in January 2026. Mikkel is a highly accomplished gaming executive with a
proven track record in delivering both organic and acquisitive growth. In
November 2025, Harley Homewood returned to Team17 as General Manager. With
over 25 years of leadership across sales, marketing, and publishing, Harley
has already played a key role in driving investment in the portfolio, leading
the acquisition of the Hammerwatch IP along with the publishing rights of
previously released titles.
Alongside this, Andrew McDonald was appointed as Group General Counsel and
Lowri Eastgate as Group People and Culture Director. Both Andrew and Lowri
have strong gaming backgrounds, having previously worked at Jagex. everplay
now has exceptional gaming experience across both the senior leadership team
and Board of Directors, providing the foundations to further accelerate growth
with a unified vision and culture.
The indie games market continues to thrive, with record levels of new titles
released in 2025. The global gaming market was estimated at US$197 billion in
2025 and is estimated to grow a further 16% by 2028(1). Against this backdrop,
the Group's combination of new releases and a resilient back catalogue remains
a powerful differentiator. In 2025, the back catalogue contributed 75% of
Group revenue, significantly de-risking our exposure to an increasingly
crowded marketplace. This strong financial base ensures the Group's success is
not solely dependent on its latest releases.
Divisional review
Team17
Team17 delivered a strong operational and financial performance in FY 2025,
selling over 20 million units, with total sales up 8% to £106 million. The
team launched six new games, along with nine existing games on new platforms,
supporting a seven-fold increase in new release revenues versus 2024. Date
Everything! was the breakout performer, adding over 750k players since launch.
Other notable successes included SWORN, Nice Day for Fishing and Goblin
Cleanup. The improvement in quality of new releases was evidenced by an
average Steam positive review score of 87%, compared to 61% for new releases
in 2024. Revenues were supported by growth in both first- and third-party IP,
with first-party IP contributing to 30% of total revenues. While back
catalogue revenue did not match the exceptionally high levels of 2024, it
delivered over 20% growth compared to 2023, with key contributors including
Hell Let Loose, the Overcooked! franchise and Dredge. 16 DLCs were also
released during the year as the Group actively managed the back catalogue.
The quality and breadth of Team17's IP enabled expansion to new platforms and
devices in 2025, tapping into new audiences and demographics. Worms Across The
Worlds launched on Apple Arcade, an exclusive version of Overcooked! 2
launched on Nintendo's Switch 2, while new partnerships with both Netflix and
Amazon Game Night will see several games available on these platforms in 2026.
The back catalogue was bolstered by the acquisition of the Hammerwatch
franchise, along with the publishing rights for seven previously launched
titles. In August, the development of Hell Let Loose: Vietnam, the exciting
next instalment of the best-selling franchise, was announced at Gamescom. The
launch video generated around 17 million views and was the seventh
most-wishlisted game of the convention. In December the Group announced that
Team17 will partner with Bulkhead, via everplay's minority stake in Super
Media Group, to publish Wardogs - a high-quality, Unreal Engine 5 All Out
Warfare multiplayer FPS - planned for Early Access release on PC in 2026.
2026 is gearing up to be a very exciting year, with at least ten new games
scheduled for launch, and with larger titles weighted to H2, including
first-party titles Hell Let Loose: Vietnam and Golf With Your Friends 2. As
well as games on Amazon Game Night, 2026 will also see the first Team17 games
features on Netflix Games. The performance of the division will also benefit
from the creation of more focused and agile publishing subunits, each doubling
down on core strengths to better serve their audiences, improving go-to-market
execution and game performance.
astragon
2025 was a more challenging year for astragon, with revenues down 33% to
£29.5 million. During the year, the Group took the strategic decision to exit
astragon's direct physical game distribution business. This activity added
complexity to astragon's operations, generated only low-margin revenue and
introduced an additional exposure to the success of external titles. Excluding
this, astragon's underlying revenue decline narrowed to 18%. This was a
disappointing performance, with both new releases and the back catalogue
underperforming expectations. However, by aligning investment in new content,
operations and talent around astragon's most popular and scalable franchises,
a considerably improved performance is expected for FY 2026.
The quality of astragon's first-party IP portfolio, which now accounts for 83%
of astragon sales (FY 2024: 70%), was strengthened by two new releases, taking
the number of first-party IPs to seven. In September, astragon released the
award-winning Firefighting Simulator: Ignite - the latest instalment of the
hugely popular franchise - and October saw the early access release of a
brand-new IP: Seafarer: The Ship Sim. In addition, astragon continued to
support its live games, delivering major expansions, season passes, and
regular content updates to sustain engagement and revenue across the
catalogue. This included 11 paid DLCs, the release of Railroads Online and
Police Simulator: Patrol Officers on new platforms and various platform
agreements on PlayStation Plus and Xbox Game Pass.
2026 is set to be an eventful year, supported by more new IPs, franchise
evolution and long-term brand building. A brand new IP, Ranger's Path:
National Park Simulator was released in Early Access in March, with players
embarking on a park ranger journey. The next instalment of the popular Bus
Simulator franchise will follow later in the year, set in the Mediterranean
and featuring the Solaris brand for the first time, along with other major new
launches from astragon's established IP portfolio yet to be announced.
StoryToys
StoryToys had another outstanding year, with total revenues up 25% to £30.4
million and peak monthly active users of 12.9 million during the year.
Lifetime downloads reached 286 million, while further growth in active
subscriber numbers (to over 376,000) continues to increase revenue visibility.
In total, StoryToys released 740 app updates in FY 2025, an increase of 40% on
the prior year, across 13 apps and seven platforms, including the introduction
of Star Wars as a license in Disney Coloring World.
A highlight of the year was the launch of the brand-new app LEGO® Bluey in
August, bringing together the globally iconic Bluey brand with StoryToys'
first LEGO® app with system bricks, appealing to a broader children's
audience. The launch was highly successful, exceeding one million downloads in
its first month and becoming the number one Kids iPad app in 117 countries, as
well as the number one iPad app overall in 24 countries, including the US and
UK. 2025 also saw the development of a strategic partnership with Netflix
Games, featuring LEGO® DUPLO® World® Netflix and Barbie™ Color Creations
Netflix.
FY 2026 has got off to a strong start, with lifetime downloads surpassing the
300 million mark during the first quarter. Plenty of exciting new content is
planned, including new apps and a new label, focusing on older kids and
families.
Group Financial review
Performance Overview
Despite a softer performance from astragon, the Group's revenue performance
again showed the benefit of everplay's portfolio strategy. The Group delivered
mid-single digit underlying revenue growth, driven by a marked improvement in
the performance of new releases in addition to new license agreements with
platforms including Netflix Games and Amazon Game Night. Improved gross
margins, lower impairments and ongoing tight cost controls all contributed to
a significant improvement in adjusted EBITDA margin. This, along with the
higher underlying revenues, contributed to a 44% rise in earnings, with
profits before tax of £36.6 million (FY 2024: £25.3 million).
Revenue
Group revenues were flat on prior year levels at £166.0 million (FY 2024:
£166.6 million). Excluding revenues from astragon's physical distribution
business which the Group exited during the year, revenues increased 5%. Team17
contributed £106.4 million, up 8% on the prior year (FY 2024: £98.6
million), whilst StoryToys had another outstanding year, with revenues up 25%
to £30.4 million (FY 2024: £24.3 million). astragon faced a more challenging
year, with revenues down 33% to £29.5 million (FY 2024: £43.8 million).
Excluding the physical distribution business, astragon's revenues fell by 18%.
The Group enjoyed a good level of success with its new releases, with revenues
up 80% compared to the previous year at £41.1 million (FY 2024: £22.9
million). The stand-out success of the year was Team17's Date Everything!,
with strong performances also from SWORN and Nice Day for Fishing, as well as
LEGO® Bluey™ from StoryToys. The commercial success of these titles was
reflected in their reviews, which averaged 84% positive on Steam.
The Group's dependable back catalogue enjoyed another solid year, accounting
for 75% of Group revenues, in line with its average contribution over the last
five years. While revenues did decline 13% to £124.9 million versus the prior
year (FY 2024: £143.8 million), this was on the back of the exceptionally
strong 27% growth in FY 2024. Compared to FY 2023, the back catalogue
delivered double-digit growth. Strong performers included the Overcooked!
franchise, Hell Let Loose, Dredge, Construction Simulator and LEGO® DUPLO®
World. The success of new releases during FY 2025 will continue to support the
back catalogue in the coming years.
Overall, first-party IP revenues declined 9% to £56.1 million (FY 2024:
£61.5 million) reflecting a softer performance at astragon. Performance at
Team17 was firmer, up 2%, supported by Hell Let Loose and Golf With Your
Friends, both of which remain in the Group's top 10 selling titles.
First-party IP revenues accounted for 34% of revenues, modestly lower than the
37% in FY 2024, though this is expected to rise in FY 2026 due to the new
release pipeline. Third-party game revenues grew 4% to £109.9 million (FY
2024: £105.1 million), led by the Overcooked! franchise, Date Everything!,
Dredge and LEGO® DUPLO® World.
Gross Profit
Gross profit in the year rose 9.9% to £76.3 million (FY 2024: £69.4
million). Gross margin increased sharply by 4.4% to 46.0% (FY 2024: 41.6%),
predominantly due to the exit from astragon's physical distribution business
and no material title impairments, along with lower royalty payments,
partially offset by higher expensed development costs.
As usual, a full review was undertaken of the value of intangible assets held
on the balance sheet which included both released games with a residual net
book value as well as games in development yet to be released. An immaterial
net title impairment credit was taken for the year, compared to a £4.7
million charge in FY 2024.
Royalty payments were lower year on year, accounting for 28.6% of sales (FY
2024: 29.9%), due to a more favourable sales mix at Team17 and a higher
weighting of StoryToys revenues, which carry lower royalty levels.
Capitalised development costs in the year increased to £33.2 million (FY
2024: £25.0 million) of which £17.7 million (FY 2024: £12.1 million)
related to Team17, £11.7 million (FY 2024: £9.6 million) to astragon and
£3.8 million (FY 2024: £3.0 million) to StoryToys. The increase reflects a
significant increase in investment in first-party IP titles, in line with the
Group's core strategy to increase the weighting of first-party IP revenues.
After the release of two first-party IP titles in FY 2025 (Firefighting
Simulator: Ignite and Seafarer: The Ship Sim), 10 further projects remain
under development. As a result of the capitalisation and development cost
amortisation charges, capitalised development costs on the balance sheet at
the end of the Period stood at £61.4 million (FY 2024: £40.6 million).
Development cost amortisation charges were £14.2 million for the year (FY
2024: £13.5 million). Expensed development costs increased modestly during
the year, driven by the launch of titles onto new platforms within
subscription services.
Administrative Expenses
Total administrative expenses in the year decreased 9% to £41.6 million (FY
2024: £45.6 million). The decrease was primarily due to the £4.6 million
impairment of goodwill and customer and developer relations relating to the US
business (The Label Inc.) taken in FY 2024. Acquisition-related adjustments,
costs and amortisation fell modestly to £12.1 million (FY 2024: £13.9
million).
Staff costs within administrative expenses decreased 11% in the year,
predominantly reflecting lower payments from the earn-out programme.
Depreciation and amortisation were flat at £13.0 million (FY 2024: £12.9
million). Marketing costs were also broadly flat. Other costs in aggregate saw
modest increases as a percentage of sales compared with the prior year. Total
headcount for the Group at 31 December 2025 was 397 (31 December 2024: 344),
due in large part to new hires at StoryToys to support new apps and platform
partnerships.
Alternative Performance Measures ("APMs")
The Directors believe that the reported APMs provide meaningful performance
information to aid the understanding of the underlying business trading
performance and profitability. Although these are not GAAP measures as defined
by IFRS, they have been applied to provide an accurate comparison as well as
provide readers of the financial statements a clear understanding of the
underlying profitability of the business and more consistent comparisons over
time. A breakdown of the adjusting factors is provided in the table below:
Adjusted EBITDA Adjusted Profit After Tax
FY25 FY24 FY25 FY24
£'000 £'000 £'000 £'000
(Loss)/Profit before Tax 36,588 25,323 36,588 25,323
Development cost amortisation eliminated through FV adjustments (805) (1,469) (805) (1,469)
Goodwill and acquired intangible(1) impairment 4,563 4,563
Share based compensation 473 1,008 473 1,008
Restructuring costs 112 n/a 112 n/a
Acquisition related costs & adjustments
Amortisation of acquired intangible(1) assets 11,697 11,529 11,697 11,529
Acquisition-related costs 404 2,334 404 2,334
Earn out fair value 84 84
Interest & FX on contingent consideration 7 7
Adjusted profit before tax 48,469 43,379 48,469 43,379
Finance income and costs net of acquisition related costs and adjustments (1,241) (1,196) n/a n/a
Depreciation and gain/loss on disposal of tangible assets and software 1,112 1,276 n/a n/a
Amortisation of other intangible assets 136 90 n/a n/a
Adjusted EBITDA 48,475 43,549
Taxation (net of impacts on adjustments) (11,419) (8,747)
Adjusted profit after tax 37,050 34,632
Adjusted basic EPS (p) 25.7 24.1
( )
(1)Acquired 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
Adjusted EBITDA reflects the EBITDA of the Group in a steady state, 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 licenses, as this
reflects the primary costs incurred by the Group in generating revenue.
Restructuring costs are excluded as one-off in nature and not reflective of
the underlying performance of the Group.
Adjusted profit before tax reflects the profitability of the Group, adjusted
for the previously-outlined acquisition-related costs. In the prior year, this
was also adjusted for the goodwill impairment which is not a recurring cost to
the Group.
Share-based compensation charges of £0.5 million (FY 2024: £1.0 million)
relate to options that were granted to the Executive and Non-Executive
Directors, the senior leadership team and other members of the team under a
variety of schemes which will be satisfied by shares held in the Employee
Benefit Trust ("EBT").
Acquisition-related adjustments created a net cost in the period of £0.4
million (FY 2024: £2.4 million), relating to one-off costs directly
associated with the acquisitions made during the year, primarily the
acquisition of the Hammerwatch IP and minority stake in Super Media Group.
Finance costs relating to contingent consideration were nil (FY 2024: £0.1
million).
Adjusted EBITDA
Adjusted EBITDA, adjusting for the items outlined in the APM table above,
increased 11.3% to £48.5 million, reflecting the solid underlying revenue
growth and underlying margin improvements.
Profit Before Tax
Profit before tax for the year was £36.6 million, compared to £25.3 million
in the prior year. Net finance income was £1.2 million, in line with the
prior year (FY 2024: £1.2 million), reflecting more active cash management
despite a lower year-end cash position. Adjusted profit before tax, adjusting
for the items outlined in the APMs table above, increased 11.8% to £48.5
million (FY 2024: £43.4 million). The tax charge for the year was £9.3
million (FY 2024: £5.1 million). The effective tax rate for the year was
25.5% (FY 2024: 20.3%).
Earnings Per Share ("EPS")
Basic EPS rose 35% to 18.9 pence (FY 2024: 14.0 pence), reflecting higher
pre-tax profits offset by a higher tax charge. Basic adjusted EPS, reflecting
the APM adjustments noted above and calculated using the adjusted profit after
tax increased 7% to 25.7 pence (FY 2024: 24.1 pence).
Statement of Financial Position
The Group remains firmly cash generative with an operating cash conversion of
89% (FY 2024: 97%), and a net inflow of cash from operations of £43.8 million
(FY 2024: £52.7 million). The reduction compared to the previous year relates
to higher cash tax payments and movements in net working capital. These gave
rise to a £7.9 million outflow in the period (FY 2024: £1.6 million), made
up primarily of a £0.8 million increase in trade and other receivables (FY
2024: £8.4 million), together with a decrease in trade and other payables
balance of £7.7 million (FY 2024: £7.0 million increase). This increase in
trading balances is due to material licence revenue recognised in the fourth
quarter, the recognition of previously deferred revenue, and payments from the
earn-out programme, offset by lower third party distribution sales in the
final quarter compared to the same period in the prior year.
After the £33.2 million investment in capitalised development costs,
acquisition-related expenditure of £11.4 million, publishing rights purchases
of £4.0 million, and the commencement of dividend payments in FY 2025 (£5.3
million), there was an overall net decrease in cash and cash equivalents to
£51.9 million (FY 2024: £62.9 million) which includes £2.6 million (FY
2024: £2.7 million) held in the EBT.
The EBT remains an important fund established at IPO to support employee share
awards and incentivise team members across the Group. All UK and EU employees
across the Group continue to be awarded share options on joining, noting that
the use of the EBT avoids the issue of new shares to satisfy these and other
employee share awards.
Goodwill and intangible assets now total £227.9 million (FY 2024: £202.3
million). As at 31 December 2025, the net book value of goodwill was £85.6
million (FY 202: £82.3 million). The value of the Group's brands now stands
at £54.3 million (FY 2024: £51.4 million) following the acquisitions of
the Hammerwatch IP and collection of IP from Bearded Brothers, and
accounting for the annual brand amortisation charge. The current net book
value of capitalised development costs at year end stands at £61.4 million
(FY 2024: £40.6 million).
Share Issues
As at 31 December 2025, the Group's issued share capital comprised 145,848,677
ordinary shares of £0.01 each (FY 2024: 145,848,677).
A total of 149,837 (FY 2024: 317,970) share options were issued during the
year to the Executive Directors with a three-year vesting period with
performance criteria, 349,805 (FY 2024: 317,774) share options were issued to
other employees across the Group also with a similar three-year vesting period
and performance criteria, while 87,957 share options were issued to
Non-Executive Directors as part of a new Share Option Plan (FY 2024: 61,648).
The Group has extended the use of its Long-Term Incentive Plan with
performance criteria across its senior divisional leadership team. everplay
continues to administer an All-Employee Share Incentive Plan ("SIP") which is
a UK employee SIP with matching shares open to all UK employees and which
continues to be well supported.
Outlook
The Group has made a good start to FY 2026, supported by sustained momentum
from the festive season and solid back catalogue sales. So far this year,
Team17 has launched Rogue Point in Early Access. The Group has an exciting
pipeline of at least 15 new games and apps expected to a launch during the
year, including at least five first-party IP titles: including the highly
anticipated Hell Let Loose: Vietnam and Golf With Your Friends 2, as well as
major new launches from astragon's established IP portfolio. Other announced
third-party releases include Wardogs, in collaboration with first-person
shooter specialists Bulkhead, Silver Pines, Wardrum, Skinwalker and Sintopia.
The Group is well positioned to leverage the new platform partnerships, IP
acquisitions and publishing rights secured during FY 2025. It will also
continue to leverage its exceptional lifecycle management capabilities to
drive a robust performance across the back catalogue.
The Board is confident that the Group is well-positioned to deliver another
year of profitable growth in FY 2026 and expects the Group to achieve results
in line with current market expectations(2). As the majority of the larger
releases this year are expected in H2, aEBITDA delivery is expected to be H2
weighted.
The Group remains well positioned for continued growth over the medium to long
term. It will make further progress against its strategic priorities to
accelerate growth alongside improving profitability, with an elevated focus on
its first-party IP, evergreen franchises and improved returns. The Group will
continue to leverage its strong balance sheet and strengthened organisation to
explore M&A opportunities that can accelerate its strategy.
(1) Newzoo forecasts, February 2026
(2) Company-compiled consensus shows FY26 revenues of £173.6 million and
adjusted EBITDA of £50.5 million.
Unaudited Consolidated Statement of Profit or Loss
For the Year Ended 31 December 2025
Note Year ended Year ended 31 December 2024
31 December
£'000
2025
£'000
Revenue 4 165,995 166,624
Cost of sales (89,673) (97,250)
Gross profit 76,322 69,374
Other income 415 140
Administrative expenses (41,561) (45,567)
Operating profit 5 35,176 23,947
Finance income 2,028 1,695
Finance costs (787) (507)
Share of net profit of associates accounted for using the equity method 171 188
Profit before tax 36,588 25,323
Taxation 6 (9,348) (5,133)
Profit for the year 27,240 20,190
Earnings per share 18.9 14.0
- Basic (pence)
14.0
- Diluted (pence) 18.8
Unaudited Consolidated Statement of Comprehensive Income
For the Year Ended 31 December 2025
Year ended Year ended
31 December 2025 31 December
£'000 2024
£'000
Profit for the year 27,240 20,190
Other comprehensive income/(expense):
Items that may be reclassified to profit or loss:
Exchange Gain/(loss) on translation of foreign operations 6,041 (5,149)
Total other comprehensive income 6,041 (5,149)
Total comprehensive income for the year 33,281 15,041
Unaudited Consolidated Statement of Financial Position
As at 31 December 2025
Note As at As at As at
31 December 31 December 31 December
2025 2024 (Restated)* 2023 (Restated)*
£'000 £'000 £'000
Assets
Non-current assets
Goodwill 8 85,629 82,314 86,244
Other intangible assets 8 142,268 119,960 130,270
Investments accounted for using the equity method 3,195 969 867
Property, plant and equipment 1,035 1,080 1,440
Right-of-use assets 1,737 2,499 3,172
Deferred tax assets 733 624 -
Total non-current assets 234,597 207,446 221,993
Current assets
Inventories 478 1,082 960
Trade and other receivables 44,295 42,205 36,746
Current tax assets 1,673 - -
Cash and cash equivalents 9 51,870 62,877 42,824
Total current assets 98,316 106,164 80,530
Total assets 332,913 313,610 302,523
Equity and liabilities
Equity attributable to owners of the parent
Share capital 1,458 1,458 1,458
Share premium 137,572 137,572 137,572
Retained earnings 140,798 118,450 97,514
Other reserves 11,127 5,086 10,235
Total equity 290,955 262,566 246,779
Non-current liabilities
Lease liabilities 1,449 2,227 2,889
Provisions 104 127 113
Deferred tax liabilities 5,563 6,281 8,386
Total non-current liabilities 7,116 8,635 11,388
Current liabilities
Trade and other payables 34,191 40,003 40,282
Current tax liabilities - 1,714 3,391
Lease liabilities 651 692 683
Total current liabilities 34,842 42,409 44,356
Total liabilities 41,958 51,044 55,744
Total equity and liabilities 332,913 313,610 302,523
*See Note 2 for details of restatement.
Unaudited Consolidated Statement of Changes in Equity
For the Year Ended 31 December 2025
Note Share Share premium account £'000 Retained Other reserves Total
capital earnings £'000 Equity
£'000 £'000 £'000
At 1 January 2024 1,458 137,572 97,514 10,235 246,779
Comprehensive income
Profit for the year - - 20,190 - 20,190
Other comprehensive expense for the year - - - (5,149) (5,149)
Total comprehensive income - - 20,190 (5,149) 15,041
Transactions with owners
Share based compensation - - 1,008 - 1,008
Purchase of own shares - - (262) - (262)
Total transactions with owners - - 746 - 746
At 31 December 2024 1,458 137,572 118,450 5,086 262,566
Comprehensive income
Profit for the year - - 27,240 - 27,240
Other comprehensive expense for the year - - - 6,041 6,041
Total comprehensive income - - 27,240 6,041 33,281
Transactions with owners
Share based compensation - - 438 - 438
Dividends paid - - (5,330) - (5,330)
Total transactions with owners - - (4,892) - (4,892)
At 31 December 2025 1,458 137,572 140,798 11,127 290,955
Unaudited Consolidated Statement of Cashflows
For the Year Ended 31 December 2025
Note Year ended Year ended
31 December 31 December
2025 2024 (Restated)*
£'000 £'000
Cash generated from operations 10 57,710 59,949
Income taxes paid (13,930) (7,238)
Net cash inflow from operating activities 43,780 52,711
Cash flows from investing activities
Payment for investment in Super Media Group (2,000) -
Payments for brands (9,399) (7,000)
Payments for other intangibles (4,627) (1,438)
Payments for property, plant and equipment (465) (323)
Payments for capitalised development costs 8 (33,242) (24,962)
Proceeds from termination of lease agreement 237 -
Proceeds from sale of intangible assets - 400
Dividends from associates - 213
Interest received 1,639 1,528
Net cash outflow from investing activities (47,857) (31,582)
Cash flows from financing activities
Interest paid (787) (188)
Principal elements of lease payments (884) (583)
Dividends paid to owners of everplay group plc (5,330) -
Net cash outflow from financing activities (7,001) (771)
Net (decrease)/increase in cash and cash equivalents (11,078) 20,358
Cash and cash equivalents at beginning of year 62,877 42,824
Effect of exchange rates on cash and cash equivalents 71 (305)
Cash and cash equivalents at end of year 9 51,870 62,877
*See Note 2 for details of restatement.
Notes to the consolidated financial statements
For the Year Ended 31 December 2025
1. General information
The principal activity of everplay group plc (the "Company") is that of a
holding company and the principal activity of the Company and its subsidiaries
(together, the "Group") is the development and publishing of independent
("indie") premium video games and development of educational entertainment
apps for children and a leading working simulation games developer and
publisher.
2. Basis of preparation
The preliminary results for the year ended 31 December 2025 are unaudited. The
financial information set out in this announcement does not constitute the
Group's financial statements for the year ended 31 December 2025 as defined by
Section 434 of the Companies Act. This financial information has been prepared
in accordance with international accounting standards in conformity with the
requirements of the Companies Act 2006. It has been prepared on the historical
cost basis, except for those items which are measured at fair value.
This financial information should be read in conjunction with the financial
statements of Team17 Group plc for the year ended 31 December 2024 (the
"prior year financial statement"), which are available from the Registrar of
Companies. The prior year financial statements which were prepared in
accordance with UK adopted international accounting standards (UK IFRS) and
the applicable legal requirements of the Companies Act 2006. The
auditors, PricewaterhouseCoopers LLP, reported on those accounts and their
report was unqualified, did not contain an emphasis of matter paragraph and
did not contain any statement under Section 498 (2) or (3) of the Companies
Act 2006.
The Group's financial statements for the year ended 31 December 2025 will be
finalised on the basis of the financial information presented by the Directors
in these preliminary results and will be delivered to the Registrar of
Companies following the Annual General Meeting of everplay group plc.
Accounting policies
The Group's principal accounting policies used in preparing this information
are as stated on pages 70 to 78 of the prior year financial statements. There
have been no changes to accounting policies implemented since the date of the
prior year financial statements except as disclosed below:
Adoption of new and revised standards
There are a number of standards and interpretations issued by the
International Accounting Standards Board that are effective for financial
statements after this reporting period. The following have not been adopted by
the Group in preparing the consolidated financial statements for the year
ended 31 December 2025:
· IFRS 18 - Presentation and Disclosure in Financial Statements
· FRS 19 - Subsidiaries without Public Accountability: Disclosures
· Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial
Instruments: Disclosures
· Amendments to IFRS 7 relating to classification and measurement
in contracts referencing nature-dependent electricity.
The Group will adopt IFRS 18 Presentation and Disclosure in Financial
Statements when it becomes effective for annual reporting periods beginning on
or after 1 January 2027 and does not intend to early adopt the standard. IFRS
18 is expected to result in changes to the presentation and disclosure of
information in the financial statements, including new requirements for
subtotals in the statement of profit or loss and enhanced disclosures about
management-defined performance measures; the Group is currently assessing the
impact of its implementation on the consolidated financial statements.
The application of all other standards and interpretations not yet applied are
not expected to have a material impact on the Group's financial performance or
position or give rise to additional disclosures in the consolidated financial
statements.
IP Licences
Where the Group enters into licence agreements with third parties that contain
a minimum guaranteed payment obligation, the Group recognises an intangible
asset representing the right to use the IP and a corresponding liability at
inception. The intangible asset is initially measured at the present value of
the minimum guaranteed payments and amortised over the contractual term of the
licence in line with the expected returns profile of the asset. The liability
is presented in line with the contractual payment schedule and split between
current and non-current portions. Additional royalties payable above the
guaranteed amount are expensed as incurred. Intangible assets are subject to
impairment testing in line with IAS 36 whenever indicators of impairment
arise.
Licence Revenue
The Group receives revenue where the Group agrees to make a game available to
a third-party platform for their customers to download for an agreed period of
time for a fixed fee and with minimal future performance obligations required
by the Group. The third-party platform is considered to be the Group's
customer as they control the distribution of the game to the consumer during
the agreed period. These contracts are determined as right to use contracts in
accordance with IFRS 15 and the fixed fee is recognised on the date the
content is delivered to and accepted by the third party. Any additional
revenue earned based on volume of sales in these contracts are recognised as
usage-based royalties when usage occurs. If any contract includes a break
clause, then the revenue recognised excludes the amount that would be foregone
if the break clause was exercised. The remaining revenue is recognised at the
later of, the initial contract term has completed, termination clause has
expired, and all performance obligations have been met.
Derivative Financial Instruments
The Group holds derivative financial instruments to reduce exposure to
fluctuations in foreign currency exchange rates. Derivatives are only used for
economic hedging purposes and not as speculative investments. However, where
derivatives do not meet the hedge accounting criteria, they are classified as
'held for trading' for accounting purposes and are accounted for at fair value
through profit or loss.
Trading derivatives are classified as a current asset or liability. The Group
does not have any instruments that have been designated as hedge transactions
at December 31, 2025. All derivative financial instruments are therefore
classified as held for trading.
Prior Year Restatement
During the year the group reassessed its treatment applied to IP licences
containing minimum guarantee payments. Historically, minimum guarantee
payments were treated as a prepayment of royalty costs. Following this review,
such arrangements are recognised as intangible assets representing the right
to use licensed intellectual property, with a corresponding liability for the
contractual payment obligation. The comparative balance sheet has been
restated to reflect this presentation with a decrease in prepayments and an
increase in other payables.
The opening and closing comparative consolidated statement of financial
position at 1 January 2024 and 31 December 2024 respectively have been
restated to reflect the change. Where these changes impact the consolidated
statement of cashflows the relevant restatement has also been reflected. There
was no material impact to and therefore no restatement of the comparative
consolidated statement of profit and loss, the comparative consolidated
statement of comprehensive income, the comparative consolidated statement of
changes in equity or the comparative reported earnings per share.
Statement of Financial Position (extract) 31 December 2024 Increase/ 31 December 2024 (Restated) 31 December 2023 Increase/ 1 January 2024 (Restated)
(Decrease)
£'000
£'000 £'000 (Decrease) £'000
£'000
£'000
IP Licence Intangible Asset - 5,292 5,292 - 6,522 6,522
Prepayments 4,905 (2,329) 2,576 4,141 (1,662) 2,479
Other payables (404) (2,963) (3,367) (1,387) (4,860) (6,247)
Statement of Cashflows (extract) 31 December 2024 Increase/ 31 December 2024 (Restated)
(Decrease)
£'000
£'000
£'000
Amortisation of intangible assets 25,536 1,341 26,697
(Decrease) in trade and other receivables (9,116) 667 (8,449)
Increase in trade and other payables 7,957 (570) 7,027
Payments for other intangibles - (1,438) (1,438)
Key sources of estimation, uncertainty and significant accounting judgements
Impairment of intangible assets (Estimate)
The testing of development costs impairment is seen by the Group as a
significant accounting estimate. Annually, where an impairment trigger occurs
a value in use calculation is used in determining the level of impairment.
These value in use calculations are estimated based on cashflow forecasts.
These cashflow models are most sensitive to a change in the estimated future
revenues and details of sensitivities to changes in this estimate can be found
in note 8. A sensitivity of a 10% decrease in future revenues has been
disclosed as a plausible downside scenario for the portfolio, due to the
inherent uncertainty of future revenues individual titles may from time to
time perform worse than the 10% sensitivity disclosed.
3. Segmental analysis
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 CEO and CFO, 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 this 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 the annual report
are reported as a single aggregated reporting segment.
Non-current assets are located in the following locations:
31 December 31 December
2025 2024 (Restated)*
£'000 £'000
UK 107,930 95,755
EU 126,667 111,691
234,597 207,446
*See Note 2 for details of restatement.
4. Revenue
All revenue was generated through the sale or licence of video games. 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:
Year ended Year ended
31 December 31 December
2025 2024
£'000 £'000
First-Party IP 56,130 61,487
Third-Party IP 109,865 105,137
165,995 166,624
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 sales data of consumers.
With the exception of £760,000 of committed revenue that is to be recognised
later than 2026, all other committed revenue contracts in progress at the 31
December 2025 are expected to be completed and recognised in revenue within
one year or less. As permitted under IFRS 15, the transaction price allocated
to these unsatisfied contracts is not disclosed. All brought forward accrued
income and deferred income has been recognised or released during the year.
The following customers each contributed over 10% of the total revenue in 2025
and 2024:
Year ended Year ended
31 December 31 December
2025 2024
£'000 £'000
Steam 49,887 44,746
Microsoft 15,627 17,035
Sony 26,412 31,904
Nintendo 18,291 18,496
Apple 23,247 18,812
Customers contributing <10% 32,531 35,631
165,995 166,624
5. Operating Profit
Year ended Year ended
31 December 31 December
2025 2024 (Restated)*
£'000 £'000
The following items are charged/(credited) in arriving at operating profit:
Cost of sales
Amortisation of development costs (note 8) 14,164 13,482
Amortisation of publishing rights (note 8) 1,117 256
Amortisation of IP licences (note 8) 1,599 1,341
Net (reversal of Impairment)/Impairment of development costs (note 8) (259) 4,742
Administrative expenses
Amortisation of brands (note 8) 6,714 6,112
Amortisation of acquired apps (note 8) 4,983 4,916
Amortisation of customer and developer relationships (note 8) - 500
Amortisation of other intangibles (note 8) 136 90
Impairment of goodwill (note 8) - 991
Impairment of intangible assets (note 8) - 3,572
Depreciation of property, plant and equipment 521 596
Depreciation of right-of-use assets 631 676
Net gain on disposal of intangible assets (note 8) - 43
Net profit on disposal of property, plant and equipment 41 7
Auditors' remuneration:
Fees payable to the Company's auditors for the audit of everplay group Plc 229 236
Additional fees in respect of prior year audit - 98
Fees payable to the Company's auditors for the audit of Company's subsidiaries 276 307
*See Note 2 for details of restatement.
During the year £2,000 (FY 2024: £Nil) was paid to the Company's auditors
for non-audit fees.
6. Taxation
Year ended Year ended
31 December 31 December
2025 2024
£'000 £'000
Current tax:
Current year tax 10,353 8,769
Overseas tax suffered 45 -
Video Games Tax Relief (18) (115)
Double tax relief (29) -
Adjustments in respect of prior periods:
Video Games Tax Relief (129) -
Other 293 (1,103)
Deferred tax:
Origination and reversal of temporary differences (1,567) (2,418)
Adjustments in respect of prior periods 400 -
Total tax charge 9,348 5,133
Year ended Year ended
31 December 31 December
2025 2024
£'000 £'000
Reconciliation of total tax charge:
Profit before tax 36,588 25,323
Taxation using the UK Corporation Tax rate of 25% (2024: 25%) 9,147 6,331
Effects of:
Expenses not deductible for tax purposes 580 529
Non-taxable income (55) -
Video Games Tax Relief (18) (115)
Adjustment in respect of prior periods 564 (1,103)
Overseas tax suffered 45 -
Double tax relief (29) -
Movements in deferred tax not recognised 54 -
Difference in overseas tax rates (940) (509)
Total tax charge 9,348 5,133
Deferred taxes at the balance sheet date have been measured using the enacted
local tax rates of between 12.5% and 32.5% (2024: 12.5% and 32.5%).
7. Earnings per share
The calculation of the basic earnings per share is based on the Profit/(loss)
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 are 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 year.
Year ended Year ended
31 December 31 December
2025 2024
Profit attributable to shareholders £'000 27,240 20,190
Weighted average number of shares 144,058,825 143,924,037
Weighted average diluted number of shares 144,687,535 144,250,472
Basic earnings per share (pence) 18.9 14.0
Diluted earnings per share (pence) 18.8 14.0
8. Intangible Assets
Customer and developer relationships Publish-ing rights IP Licences
Development costs Acquired apps £'000 £'000 (Restated)* £'000 Other intangibles
£'000 Brands £'000 Goodwill £'000 Total (Restated)
£'000 £'000 £'000
Cost
At 31 December 2023 84,080 80,617 37,218 5,019 - - 107,123 1,020 315,077
Restatement* - - - - - 7,122 - - 7,122
At 1 January 2024 84,080 80,617 37,218 5,019 - 7,122 107,123 1,020 322,199
Additions 24,962 - - - 2,000 452 - - 27,414
Translation on foreign operations (1,097) (133) (1,730) 85 - (161) (2,586) (48) (5,670)
Disposals (1,678) - - - - - - - (1,678)
At 31 December 2024 106,267 80,484 35,488 5,104 2,000 7,413 104,537 972 342,265
Additions 33,242 9,399 - - 4,049 1,606 - 64 48,360
Disposals - - - - - (578) - - (578)
Translation on foreign operations 1,977 213 1,942 (356) - (395) 1,766 56 5,203
At 31 December 2025 141,486 90,096 37,430 4,748 6,049 8,046 106,303 1,092 395,250
Accumulated Amortisation and Impairment
At 31 December 2023 49,008 22,985 10,409 1,003 - - 20,879 801 105,085
Restatement* - - - - - 600 - - 600
At 1 January 2024 49,008 22,985 10,409 1,003 - 600 20,879 801 105,685
Charge for the year 13,482 6,112 4,916 500 256 1,341 - 90 26,697
Net Impairment 4,742 - - 3,572 - - 991 - 9,305
Translation on foreign operations (281) (26) (588) 29 - 180 353 (42) (375)
Disposals (1,321) - - - - - - - (1,321)
At 31 December 2024 65,630 29,071 14,737 5,104 256 2,121 22,223 849 139,991
Charge for the year 14,164 6,714 4,983 - 1,117 1,599 - 136 28,713
Net reversal of impairment (259) - - - - - - - (259)
Disposals - - - - - (578) - - (578)
Translation on foreign operations 587 42 899 (356) - (190) (1,549) 53 (514)
At 31 December 2025 80,122 35,827 20,619 4,748 1,373 2,952 20,674 1,038 167,353
Net carrying amount
At 31 December 2025 61,364 54,269 16,811 - 4,676 5,094 85,629 54 227,897
At 31 December 2024 40,637 51,413 20,751 - 1,744 5,292 82,314 123 202,274
*See Note 2 for details of restatement.
Acquisitions
Acquisition of Hammerwatch
On 23 June 2025, Team 17 Digital Limited acquired the Hammerwatch IP from
Crackshell AB, a company incorporated in Sweden, for a maximum payment of
£10,000,000. This purchase consists of an initial cash payment of £6,000,000
and a further £4,000,000 conditional on future performance of new content and
continued employment. The purchase is not being accounted for as a business
combination under IFRS 3 due to the assets being acquired comprising a single
group of assets under the concentration test as set out in "Definition of a
Business (Amendments to IFRS 3)" by the IASB issued in October 2018. As such
the acquisition is considered an asset purchase under IAS 38 - Intangible
Assets and is treated as a Brand asset. The initial cash payment of
£6,000,000 is treated as consideration and capitalised in full. As any
payments are conditional on future performance of new content and reliant on
continued performance they have been classified as remuneration and will be
expensed as incurred.
Acquisition of Bearded Brothers
On 23 June 2025, astragon Entertainment GmbH acquired a number of IPs from
Raccoons Studio S.A, a company incorporated in Poland. The IPs are known
collectively as the Bearded Brothers IPs. The purchase price for this
acquisition was a fixed price of £3,339,000. The purchase is not being
accounted for as a business combination under IFRS 3 due to the assets being
acquired comprising a single group of assets under the concentration test as
set out in "Definition of a Business (Amendments to IFRS 3)" by the IASB
issued in October 2018. As such the acquisition is considered an asset
purchase under IAS 38 - Intangible Assets and is treated as a Brand asset.
Finite Life Asset Categories
Development costs
The Group capitalises the costs of developing new games for release to the
market. The balance consists of internal salary costs, advances payable to
external developers under development agreements and other external payments.
Amortisation is calculated over the assets' useful life of between 2 to 5
years.
Brands
These reflect the value of brands acquired either through direct purchases of
IP recognised under IAS 38 "Intangible Assets" or brands recognised under IFRS
3 "Business Combinations". Amortisation on brands is calculated on a straight
line basis over the assets estimated useful life of between 8 and 15 years.
Brands
8 to 15 years straight line
Acquired games and apps
These represent games and apps separately identifiable within a business
combination. The assets are tested for impairment annually or more frequently
if there are indicators of impairment. Amortisation is calculated over the
estimated useful life using the following policy:
Acquired games and apps 7 to 10 years
straight-line
Customer and developer relationships
Customer and developer relationships represent the value of relationships held
with customers and developers acquired through business combinations. The
Group capitalises the costs of developing new games for release to the market.
The asset has previously been written down in full and is tested annually for
indicators that the impairment should be reversed.
Publishing Rights
Publishing rights represent payments to secure the rights to publish a game
title that has already been launched for a fixed future term. Amortisation is
calculated over the estimated useful life of the publishing rights and
amortisation is calculated using the sum of digits method. Currently the
useful life of publishing rights ranges between 5 and 8 years.
IP Licences
Where the Group enters into licence agreements with third parties that contain
a minimum guaranteed payment obligation, the Group recognises an intangible
asset representing the right to use the IP. Currently the useful life of IP
licences ranges between 3 and 5 years, the intangible asset is amortised over
this period on a profile in line with the expected benefit of the licence. IP
licences form part of the same cash generating unit as the development cost
assets to which they relate. Impairment is considered as part of the
development cost impairment testing.
Indicators of impairment
All finite life intangible assets are considered for impairment indicators
bi-annually. For those assets where an impairment indicator exists the
recoverable amount is assessed against the carrying value.
The recoverable amount of all finite life intangible assets at 31 December
2025 are determined from the value in use. In arriving at a value in use,
management has used cashflow forecasts in line with the expected useful life
of the assets.
Through this process, a net reversal of impairment of £259,000 (2024:
£4,742,000 charge) was recognised on development cost assets. This reversal
of impairment is due to titles expected to be terminated now having a release
plan. Impairment is stated as the net of £207,000 (2024: £5,862,000) of
impairment charges and £466,000 (2024: £1,120,000) of reversals of
impairment. No impairment was identified in any other category of intangible
asset.
Key assumptions used for value-in use calculations
Management considers that across all finite life asset classes projected
future cash inflows to be the sole key assumption in calculating the value in
use of each asset.
Impact of possible changes in key assumptions
Management has considered reasonable possible changes in the key assumption of
revenues that would lead to an impairment in each asset class.
In the case of development costs a 10% decrease in revenues across all titles
with an impairment indicator would lead to an additional impairment charge in
the year of £857,000 (2024: 10% decrease in revenues would have resulted in
an additional impairment charge of £263,000).
Goodwill
The Group tests for impairment annually, or more frequently if there are
indicators that goodwill might be impaired. There are 4 CGUs in the Group
which are as follows:
● Team 17 Digital (Indie games)
● StoryToys (Edutainment)
● astragon (Simulation)
● Team17 USA (Mobile licence)
The carrying value of Goodwill allocated to those CGU's is split as follows:
StoryToys (Edutainment) astragon (Simulation) Team17 (USA)
Team 17 Digital £'000 £'000 £'000 Total
£'000 £'000
At 1 January 2024 22,379 19,674 43,217 974 86,244
Foreign exchange - (916) (2,040) 17 (2,939)
Impairment - - - (991) (991)
At 31 December 2024 22,379 18,758 41,177 - 82,314
Foreign exchange - 1,027 2,288 - 3,315
At 31 December 2025 22,379 19,785 43,465 - 85,629
The Group tests goodwill for impairment on an annual basis and whenever there
is an indication of impairment. For the 2025 and 2024 reporting periods, the
recoverable amount of the cash-generating units (CGUs) was determined based on
value-in-use calculations which require the use of assumptions. The
calculations use cash flow projections based on financial budgets approved by
management covering a five-year period. Cash flows beyond the five-year period
are extrapolated using the long-term growth rate. The discount rates and
terminal growth used in the impairment assessment of each CGU is as follows:
2025 2024
Pre-Tax Discount Rate Used Terminal Growth Rate Used Pre-Tax Discount Rate Used Terminal Growth Rate Used
CGU
Team 17 Digital 14.0% 2.0% 14.1% 2.0%
StoryToys (Edutainment) 18.5% 2.0% 21.3% 2.0%
astragon (Simulation) 15.2% 2.0% 15.7% 2.0%
Key assumptions used for value-in use calculations
When reviewing for impairment of goodwill in CGU's, management prepare cash
flow forecasts to estimate the value in use. Management consider the following
to be the key assumptions in the cash flow:
● Pre-Tax discount rate
● Terminal growth rate
● Revenue (New releases and Back catalogue)
During the year the pre-tax discount rate has been adjusted to take into
account the Group's size risk premium which is based on the market cap for the
Group. Projected future cash inflows (revenue) are also considered to be a key
assumption. Budgeting is done on a game-by-game basis, with game revenues
varying based on management's best estimates.
Impact of possible changes in key assumptions
Management has assessed the sensitivity of the value-in-use calculations to
reasonably possible changes in key assumptions.
For the Team17 Digital CGU and StoryToys (Edutainment) CGU, management
concluded that reasonably possible changes in key assumptions would not result
in the carrying amount exceeding the recoverable amount.
For the astragon (Simulation) CGU, the recoverable amount exceeds the carrying
value, however management consider the valuation to be sensitive to changes in
revenue relating to currently unreleased titles.
A reduction in forecast revenues relating to currently unreleased titles of
approximately 25% across the forecast period would reduce the recoverable
amount to the carrying value of the CGU (2024: 12% reduction), where all other
assumptions remain unchanged. Management believes that no reasonable possible
change in any other key assumptions would cause the carrying amount of the CGU
to exceed its recoverable amount.
The recoverable amount of the astragon (Simulation) CGU is estimated to exceed
the carrying amount of the CGU at 31 December 2025 by £78,545,000 (2024:
£31,048,000)
Impairment of Team17 (USA)
The prior year impairment review of Team17 (USA) identified impairment of
£991,000 to Goodwill and a further impairment of £3,572,000 to Customer and
Developer Relationship intangible assets. This reduced both Goodwill and the
value of the intangible asset to nil. Team17 (USA) is focused on developing
games for the mobile subscription market. There have been no changes to the
assumptions of the Group that due to an increasingly competitive landscape,
key employees leaving the CGU and the current pipeline, the remaining carrying
value of Intangible assets associated with the purchase therefore remain at
nil value. As no further impairment of these assets is possible no associated
sensitivity analysis has been performed.
Other intangibles
These are made up of capitalised software and are amortised under the
following policies:
Capitalised software 2
years straight-line
9. Cash and cash equivalents
31 December 2025 31 December 2024
£'000 £'000
Cash at bank and in hand 49,261 60,178
Restricted cash 2,609 2,699
51,870 62,877
Included within the restricted cash balance above is £2,609,000 (FY 2024:
£2,699,000) held by the Team17 Employment Benefit Trust. This cash is not
readily available for use by the Group to meet its everyday operating costs
but can be spent for the benefit of the employees and as such is considered
restricted cash.
10. Cash generated from operations
Year ended Year ended
31 December 31 December (Restated)*
2025 2024
£'000 £'000
Cash flow from operating activities
Profit before tax 36,588 25,323
Adjustments for:
Amortisation of intangible assets 28,713 26,697
Net (reversal of impairment)/impairment of intangible assets (259) 9,305
Depreciation of property, plant and equipment 521 596
Depreciation of right-of-use assets 631 676
Gain on disposal of intangible assets - (43)
Gain on disposal of tangible assets (38) (7)
Share based compensation 438 741
Share of profit of associates (196) (307)
Fair value adjustment to derivatives 46 -
Finance income (1,639) (1,696)
Financial expenses 787 243
Operating cash flow before changes in working capital 65,592 61,528
Increase in trade and other receivables (783) (8,449)
(Decrease)/Increase in provisions (24) 14
(Decrease)/Increase in trade and other payables (7,726) 7,027
Decrease/(increase) in inventory 651 (171)
Cash generated from operations 57,710 59,949
*See Note 2 for details of restatement.
11. Dividends not recognised at the end of the reporting period
Since the year end the directors have recommended the payment of a final
dividend of 1.9 pence per fully paid ordinary share (2024: 2.7 pence). The
aggregate amount of the proposed dividend expected to be paid on 19 June 2026.
The dividend not recognised as a liability at year end, is £2,771,000 (2024:
£3,890,000). An interim dividend of 1.0 pence with a value of £1,440,000
(2024: nil) was paid on 10 October 2025.
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