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Frontier Developments

February 2025

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • FDEV
  • Price:
  • 219.5p
Having returned to profitability in H2 24, Frontier's turnaround continued into the latest H1. Sales were flat at £47.3m. However, actions from the previous financial year to reduce costs - including closing the Frontier Foundry third-party publishing activity - led to a 25% reduction in cash operating expenses to £28.5m. A strategic reset towards creative management simulation (CMS) games also contributed to an improvement, with the company delivering EBITDA of £4.4m, a £9.3m swing from the £4.9m loss in H1 24. Net cash grew £10m to £27.2m. Frontier seems to be getting its mojo back. Its focus is one major CMS title per year and is derisked by focusing on sequels of previously successful IP. The first of the three planned CMS gam ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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