Sumo Group made a £1.8 million loss before tax in the first six months of the year although revenue and profits grew by more than half.

In the first results since it floated on the stock market in December, Sumo reported revenues of £22.9 million (up 60 per cent on 2017) and gross profits of £8m (up 51 per cent).

The video games firm said the seven-figure loss was “primarily due to the payment terms on the one contract whereby for commercially attractive terms the group is financing an element of development combined with the timing of milestone receipts”.

It also spent £1.5m capital – compared with £400,000 last year – mainly to refit its Sheffield HQ and purchase IT equipment and systems.

“The business is flourishing under this new, independent capital structure and I am delighted to report an excellent performance in H1, driven by continued strong organic growth in our core services,” said Sumo Group CEO Carl Cavers.

“We are seeing exciting business development opportunities, as the video gaming market continues to grow globally. This, combined with our low risk business model, gives us a great deal of confidence in the ongoing success of the business.

“Our investment in people and locations continues, as demonstrated by our recent acquisition of The Chinese Room in Brighton, an industry hot spot. We have strengthened the board to support growth.”

→ READ MORE: RECORD RESULTS FOR UK GAMES STUDIO AFTER IPO

The firm also appointed Andrea Dunstan as a non-executive director.

“We are a people business and the appointment of Andrea Dunstan, with her people expertise, shows our absolute commitment to ensuring that Sumo Group is in the best possible shape to attract and retain exceptional talent,” added Cavers.

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