Team17 Group PLC shares fell on Tuesday, after it swung to an annual loss.

Team17 is a developer of video games, educational entertainment apps for children, and working simulation games.

Shares in the company were down 6.3% to 243.60 pence each in London on Tuesday morning. Over the last 12 months, its stock is down 36%

Revenue in 2023 rose 12% annually to £159.1 million from £142.3 million.

However, Team17 swung to a pretax loss of £1.1 million from a profit of £28.7 million.

The company noted one-off charges of £11.1 million relating to games title impairments and a £20.9 million goodwill impairment charge relating to the acquisition of the Label Inc.

Team17 explained that impairments were related to the restructuring of Games Label, including its strategic refocus on Indie titles and the impairment of the development costs of certain titles.

‘While 2023 presented some challenges for the Games Label, the speed and tenacity with which the teams have responded has demonstrated the exceptional talent we have at Team17,’ said Chief Executive Steve Bell.

‘The Games Label is now realigned to its proven low-risk Indie model, tighter cost controls have been enforced and one-off actions taken to clean up the balance sheet.’

Looking ahead, Team17 noted a ‘pleasing start’ to the new financial year, though it remains mindful of ‘the challenging competitive landscape, the ongoing cost of living pressures affecting discretionary spending and geopolitical uncertainty weighing on global markets more broadly.’

Copyright 2024 Alliance News Ltd. All Rights Reserved.