- CEO leaves with immediate effect
- Industry veteran Frank Sangnier steps up
- Full year trading reiterated
Shares in Everplay (EVPL:AIM), formerly known as Team17, fell 4% after the video games developer and publisher announced CEO Steve Bell will be stepping down with immediate effect.
The company reiterated that trading remains in line with the 26 March trading update when it said the full year to December is tracking marginally ahead of market forecasts, alongside announcing a maiden dividend.
Investors generally get spooked when key executives leave with immediate effect, so it is not surprising to see weakness in the shares, which have gained around 16% year-to-date.
VETERAN STEPS-UP
Bell has only been with the business since June 2023 and will be replaced on an interim basis by current non-executive chair Frank Sagnier, with the board commencing a search for a new CEO ‘in due course.’
Sagnier has spent thirty years in the video gaming industry and held senior roles at Codemasters, Electronic Arts (EA:NASADQ), Acclaim Entertainment and Funcom.
‘As interim Executive Chair, I look forward to working with the broader leadership team as the business continues to execute on its strategic priorities: to accelerate growth alongside improving profitability, with an elevated focus on first-party IP, our evergreen franchises and improved returns,’ commented Sagnier.
MORE PRODUCT FOCUS
Shore Capital analyst Katie Cousins conceded that Bell stepping down is a surprise given his positive contribution to the rebranding of Everplay.
‘Mr Bell’s expertise lay within brand and digital marketing rather than gaming and going forward Everplay has stated it wishes to focus on leveraging existing franchises and acquire more intellectual property, so we would now expect the new CEO to have more product experience,’ explained Cousins.
Cousins noted the company recently appointed a new chief operating officer and group product acquisition director which, she believe should strengthen the operating structure of the group for the next phase of its development.
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