REG - Frontier Developmnts - Organisational Review and Trading Update

Frontier DevelopmentsAnnouncement

17/10/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231017:nRSQ3029Qa&default-theme=true

RNS Number : 3029Q  Frontier Developments PLC  17 October 2023

This announcement contains inside information

 

17 October 2023

 

Frontier Developments plc

 

Organisational Review and Trading Update

 

Frontier Developments plc (AIM: FDEV, 'Frontier' or the 'Company'), a leading
developer and publisher of videogames based in Cambridge, UK, announces an
Organisational Review and provides an update on trading.

 

Organisational Review

 

During 2023, Frontier refined its strategy to refocus on its core strengths
following a period of disappointing financial performance and more challenging
industry conditions. The Organisational Review announced today will reshape
Frontier to deliver on that updated strategic plan more efficiently, return
the Company to profit, and create a sustainable foundation for the future.

 

The review will deliver enhancements to Frontier's leadership and structure,
drive efficiencies across the Company and achieve a reduction in annual
operating costs of up to 20%. The cost reductions will be achieved through a
recruitment freeze, spending cuts and, unfortunately, redundancies, subject to
consultation.

 

The Organisational Review and resulting actions are expected to conclude by
early 2024, placing Frontier in a strong position to deliver efficiently on
its strategic plan over the medium term, and capitalise on future
opportunities.

 

Trading Update

 

Frontier's existing game portfolio continues to perform in line with
expectations, and the Company looks forward to the important November and
December trading period, which will include the release of Warhammer Age of
Sigmar: Realms of Ruin (releasing on 17th November), Black Friday, and
Christmas.

 

The Board remains comfortable with market expectations for FY24, with
consensus revenue at £108 million and consensus Adjusted EBITDA* loss of £9
million. The cost reductions from the Organisational Review are expected to be
fully effective for FY25.

 

The Company will provide an update on the Organisational Review in January
2024 alongside interim financial results.

 

* Adjusted EBITDA is earnings before interest, tax, depreciation, and
amortisation charges related to game developments and Frontier's game
technology, less investments in game developments and Frontier's game
technology, and excluding impairment charges, share-based payment charges and
other non-cash items.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK domestic
law by virtue of the European Union (Withdrawal) Act 2018 (as amended). This
announcement is issued on behalf of the Company by Alex Bevis, CFO.

 

Enquiries:

 

Frontier Developments   +44 (0)1223 394 300

Jonny Watts, CEO

Alex Bevis, CFO

 

Peel Hunt - Nomad and Joint Corporate Broker   +44 (0)20 3100 2000

Neil Patel / Paul Gillam / James Smith

 

Liberum - Joint Corporate Broker   +44 (0)20 3100 2000

Max Jones / Nikhil Varghese

 

Teneo   +44 (0)20 7353 4200

Matt Low / Alex
Dart

 

About Frontier Developments plc

Frontier is a leading independent developer and publisher of videogames
founded in 1994 by David Braben, co-author of the iconic Elite game. Frontier
uses its proprietary COBRA game development technology to create innovative
genre-leading games, primarily for personal computers and videogame consoles.

Frontier's LEI number: 213800B9LGPWUAZ9GX18.

 

www.frontier.co.uk (http://www.frontier.co.uk/)

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTMFBBTMTTBTPJ