Proactive Investors - Team17 Group PLC (AIM:TM17) shares fell 10% to 400p after the indie video games group said chief executive Debbie Bestwick is looking to move to a non-executive director role, while also reporting a small fall in full-year profits.
Bestwick, who has been in the CEO role since 2010, just after the company was founded, will help choose her successor and will remain in place while the search progresses.
With a “highly experienced and effective divisional senior leadership team” that runs the day-to-day business, the company said the intention is for Bestwick to remain on the board after she leaves her current role.
The preliminary results showed a 52% rise in revenue to £137.4mln in a year when three acquisitions were made, of Hell Let Loose (a game series), Astragon (a maker of games such as Farming Simulator, Construction Simulator and Police Simulator) and The Label (a US indie publisher).
Group profit before tax fell 1% to £28.7mln, while underlying earnings (EBITDA) rose 36% to £48.8mln and adjusted earnings per share rose 26% to 27.8p.
Bestwick called it a “transformational year” and said she would not be stepping down “if I wasn't confident in the succession plans and the leadership team's ability to deliver the clear and focused strategy”.
Broker Peel Hunt said the EBITDA beat its upgraded forecasts by 4%, with an EPS beat of 8%.
Margins were higher than expected, helped by “smash hit” Hell Let Loose, while underlying cash generation was up 41%, leaving the group with £51mln of net cash to invest in further potential acquisitions.