- Record pre-tax profits after lockdown boom last year
- At least 11 new IP titles for 2021
The twin effects of lockdown and major console launches meant that Team17 (TM17) made more money that it has ever done before in 2020. Adjusted cash profits grew by more than a third to £30.1m, as demand for 'at home entertainment' skyrocketed.
The company’s own IP generated around a fifth of its top-line, supported by the launch of two new titles in the final quarter. That proportion should grow further now that Team17 has completed the £12m acquisition of one of its partners Golf With Your Friends.
The market pushed up the shares 2.4 per cent in early trading, having staggered a little since February - perhaps as a wider move away from growth stocks, or industries that have been marked as lockdown winners. But Team17 should be able to hold onto the growth it achieved last year, with at least 11 new IP titles in the pipeline for 2021. Buy.
Last IC view: Buy, 730p, 04 Mar 2021
| TEAM17 (TM17) | ||||
| ORD PRICE: | 755p | MARKET VALUE: | £ 993m | |
| TOUCH: | 750-760p | 12-MONTH HIGH: | 900p | LOW: 48p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 44 | |
| NET ASSET VALUE: | 79p* | NET CASH: | £60m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016** | 13.5 | 2.80 | na | nil |
| 2017** | 29.6 | 5.40 | 4.30 | nil |
| 2018 | 43.2 | 8.70 | 6.10 | nil |
| 2019 | 61.8 | 19.2 | 12.9 | nil |
| 2020 | 82.9 | 26.2 | 17.0 | nil |
| % change | +34 | +36 | +32 | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of £43m or 33p a share **Pre-IPO | ||||
