Keywords is an international technical service provider to the global Video Game Industry with offices in Dublin, Tokyo, Seattle, Montreal and Rome. Working on a worldwide basis, we provide a range of linguistic, testing, and quality control services to Video Game Developers and Publishers alike.

Keywords is focused 100% on the localization and testing of video games. Our experience and dedication to this field allows us to provide our clients with games that connect to their core audience, no matter what language they speak.

With our principal operations hub in Dublin, Keywords works globally. Our business is international in every sense so we are available to clients in North America and Japan just as we are available to those based in Europe. Providing our clients access to us so we can service their needs is tremendously important. There are points of contact ready to speak with our customers during all global business hours.

http://www.keywordsintl.com/en

... expected to be earnings enhancing from year one ..

10:40 18/05/2017
Broker Forecast - finnCap issues a broker note on Keywords Studios
finnCap today reaffirms its buy investment rating on Keywords Studios (LON:KWS) and raised its price target to 885p (from 692p). Story provided by StockMarketWire.com
08:00 18/05/2017
Broker Forecast - Berenberg issues a broker note on Keywords Studios
Berenberg today reaffirms its buy investment rating on Keywords Studios (LON:KWS) and raised its price target to 970p (from 850p). Story provided by StockMarketWire.com

Acquisition
RNS
RNS Number : 7322F
Keywords Studios PLC
22 May 2017
 
22 May 2017
 
 
 
Keywords Studios plc ("Keywords", "the Group")
 
Acquisition of Red Hot CG
Expansion of Art Service Line and further growth in Asia
 
Keywords Studios, the international technical services provider to the global video games industry, today announces the acquisition of 100% of Strongbox Ltd, a holding company with subsidiaries in China and Indonesia trading under the Red Hot CG ("Red Hot") brand. Red Hot are specialists in the production of graphical art assets for video games.
 
The acquisition of Red Hot is in line with Keywords' strategy of growing both organically and by acquisition. It will increase the capacity of Keywords' fast growing and higher margin Art Service Line, as well as bringing a number of attractive new clients to the art business at Keywords.
Founded in 2010 by Daniel Staton, Red Hot's operating hub is in Shanghai with satellite studios in the lower cost locations of Chengdu, Dalian and Zhengzhou in China plus Yogyakarta in Indonesia. This hub and spoke model gives the company the advantage of broader access to the Chinese pool of video game art talent, which is the largest in the world, while maintaining control and providing international business access through Shanghai.  It has 220 artists which, when added to Keywords existing 900 artist employees and contractors, will increase the Group's art production capacity by approximately 25%.
Red Hot has a strong client base, including many of the game development studios of Activision as well as Sony, Bethesda, Tencent and Capcom, which will complement Keywords' existing Art Service Line client base.
 
Daniel Staton (CEO), Leo Ling (COO), Claas Grimm (CRO) and the rest of the management team will remain with Red Hot, bringing many years of video game industry experience and art production expertise to the Art Service Line.  They will continue to run Red Hot whilst working closely with the other Art studios in the Group to bring additional services and production capacity to their existing and prospective clients.
 
Under the terms of the acquisition, which is expected to be earnings enhancing in the current year, Keywords is paying a total consideration of $6.0 million for 100% of Red Hot. This is being satisfied by $4.35m in cash, $1.0m of which is deferred until the third anniversary of acquisition, funded from the Group's existing resources. The remainder is being satisfied by the issue of 160,842 new ordinary shares in Keywords, which will be issued to the Sellers on the second anniversary of the acquisition.
 
In the year ended 31 December 2016, the Red Hot businesses generated revenues of $5.4m and underlying pre-tax profit of $0.9m. Good further growth is expected in 2017.
 
Andrew Day, Chief Executive of Keywords, commented:
"The acquisition of Red Hot further strengthens our fast growing, higher margin art services business, enhancing our unique client proposition which combines operations close to our clients, in the US and Canada, with those in lower cost locations across Asia. Following the acquisition, we believe the Keywords Art Service Line is the leading player in the outsourced market in terms of capacity and breadth of service. We warmly welcome Red Hot's highly talented teams to the growing Keywords family and we look forward to continuing to build upon its excellent reputation and loyal client base as part of the Group."
Daniel Staton, CEO of Red Hot Studios commented:
"We are delighted to be joining the Keywords Group as we continue to grow our business.  We believe that combining forces with Keywords' Mindwalk studio in China as well as leveraging the overall resources of the wider Keywords Group will enable us to accelerate our development and provide wider opportunities to all members of the Red Hot team."

14 Jun
Berenberg
980.00
Buy

Keywords Studios PLC (KWS:LSE) set a new 52-week high during today's trading session when it reached 878.50. Over this period, the share price is up 178.88%.

Half year trading update
RNS
RNS Number : 2172M
Keywords Studios PLC
27 July 2017
 
27 July 2017
 
 
 
Keywords Studios plc ("Keywords Studios" or "the Group")
 
Half year trading update
 
Strong performance in the first half of the year
 
Keywords Studios, the international technical services provider to the global video games industry, is pleased to provide an update on trading for the six months ended 30 June 2017.
 
The Group has performed strongly during the first half, with preliminary unaudited revenues for the period up by 50% to €63.7m (H1 2016: €42.4m) and a 60% increase in adjusted PBT* to €9.6m (H1 2016: €6.0m). 
 
All the Group's service lines showed good organic growth, as measured on a like-for-like basis, with the exception of Audio which had a particularly tough comparative due to the exceptional performance of Synthesis in H1 2016, as previously reported.  The underlying like-for-like** revenue growth was 17%, or 28% when excluding Synthesis in both periods.
 
The Group continues to deliver on its strategy of growing organically and through acquisition in order to become the "go to" supplier of technical services to the video games industry globally. To this end, the Group is now comprised of seven globally managed service lines operating from 33 production studios in 17 countries.
 
Since the start of the year we have made four acquisitions of Spov, XLOC, GameSim and Red Hot which have, respectively, extended the Group's market position as a leading provider of digital art services; given the Group a content management system which allows it to provide integrated software and services across the full text localisation cycle; provided a first step into the market for video games related software engineering services; and positioned the Group as the leading global player in the outsourced art services market in terms of capacity and breadth and depth of service.
 
To date in 2017 the Group has invested net cash of €6.9m for the acquisitions described above and it continues to evaluate a healthy pipeline of high quality acquisition opportunities, in line with its acquisition strategy. The credit facility of up to €35m with Barclays Bank which was announced in April 2017, combined with continuing strong cash generation and the judicious use of Keywords shares to part-fund acquisitions where appropriate, leaves the Group well placed to complete further selective acquisitions this year.
 
Andrew Day, Chief Executive of Keywords, commented:
 
"We are delighted with our progress so far this year. This has enabled us to deliver a first half performance ahead of our expectations, underpinning our confidence in the Group at least meeting market consensus for the year as whole.
 
"We continue to win new clients and grow market share and are regularly seeing the benefits of our wider geographic reach and broader range of services as we introduce additional services to established clients.
 
"We look forward to another full year of strong progress as we continue to invest in existing and new businesses, building our talent pool and integrating the newer members of our Group."
 
Keywords Studios will provide a further update on trading with its half year results which it expects to announce in mid September.
 
*The Group reports adjusted PBT before acquisition and integration expenses, share option charges, amortisation of intangibles and foreign currency gains 
 
** Calculated on the basis that the H1 2016 comparative includes all of the 2017 and 2016 acquisitions as if they had been owned for the same period in 2016 as they have been in 2017.

09:20 27/07/2017
Broker Forecast - finnCap issues a broker note on Keywords Studios
finnCap today reaffirms its buy investment rating on Keywords Studios (LON:KWS) and raised its price target to 1000p (from 923p). Story provided by StockMarketWire.com

Octopus investment >6%

whoosh.. share price has risen eightfold in two years and still capable of more.

In a world of leaks, the company did well to keep everyone quiet during negotiations with multiple targets ahead of today's announcement. And they look to have got themselves a bargain.

On the other hand, it could be that there have been leaks which are partly responsible for the rise already seen.

10:30 04/08/2017
Broker Forecast - Numis issues a broker note on Keywords Studios
Numis today reaffirms its buy investment rating on Keywords Studios (LON:KWS) and raised its price target to 1400p (from 1260p). Story provided by StockMarketWire.com

That's a significantly large upgrade. 11% higher than their previous target and 18% up from last night's close.

09:40 08/08/2017
Broker Forecast - Berenberg issues a broker note on Keywords Studios
Berenberg today reaffirms its buy investment rating on Keywords Studios (LON:KWS) and raised its price target to 1350p (from 1150p). Story provided by StockMarketWire.com

There is madness in the Market, that's for sure... A PE ratio about 100... sp about £11 and little or no USP . . . a few key workers could replicate this and smooth-talk their clients....added to which the yield is zippo and what have you got....?

Well clearly Brokers know something I don't . . . or maybe they see the fever and postulate it will continue . . . . Let's hope it does, for anyone buying at these levels.

It's all about FEVER. lol WanDisco doing well Fevertree as well . lol All Disco Fever. :-))

Interims Tues 19 Sept

Market buzz- Keywords Studios, which is an AIM stock with a wide following after its shares have rocketed from under 150p to above 1400p over the last three years, also is scheduled to report interim numbers.

In late July, the computer game industry services specialist revealed it was doing well in the first half of the year, with preliminary unaudited revenues up 50% to €63.7m and a 60% increase in adjusted PBT to €9.6m, which was substantially ahead expectations.

"With the results themselves, clearly we will be interested to see comments on trading over the important summer period, and also comments on confidence about prospects for further acquisitions, which have typically been highly value creative," said Numis, which is also house broker to this company too.

"Guidance for H2 profitability will also be important - we think management has been playing down the longer term prospect for margin improvement from current levels."

Half-year Report
RNS
RNS Number : 0936R
Keywords Studios PLC
19 September 2017
 
19 September 2017
 
 
 
Keywords Studios plc ("Keywords Studios", "the Group")
 
Half year results for the six months to 30 June 2017
 
Keywords Studios, the international technical services provider to the global video games industry, today provides its half year results for the six months to 30 June 2017.
 
Financial overview:
·     Revenue, including contribution from acquisitions, increased by 50% to €63.8m (H1 2016: €42.4m)
·     Adjusted profit before tax* up 60% to €9.6m (H1 2016: €6.0m)
·     Adjusted earnings per share* up 55% to 13.2c (H1 2016: 8.5c)
·     Net cash of €1.1m (H1 2016: €3.5m) after €6.9m of net cash outlay on acquisitions
·     10% increase in interim dividend to 0.48p per share (2016: 0.44p)
 
 
Operational overview:
·     17% increase in like for like** revenue, or 28% when excluding Synthesis in both periods reflects the underlying growth of the group
·     Continued to invest in the development of the Group:
o  Acquisition of Spov, to enhance our Art offering, in February
o  Acquisition of XLOC, bringing a specialist localisation content management system for videogames development to the Group, in May
o  Acquisition of Gamesim, which provides the Group with a first step into software engineering services, in May
o  Acquisition of the Chinese based art group, Red Hot, in May adding further capacity and providing reach to talent pools in second and third tier cities in China
o  Further strengthened the senior management team with the appointment of a Group HR Director, a newly created position
o  Invested in facilities in India and Tokyo, adding up to 150 seats and audio / voice over recording studios respectively in response to demand
·     Five year revolving credit facility of €35m with Barclays Bank Plc secured
·     40% increase in clients using three or more services to 84 (H1 2016: 60)
 
 
Post period end, current trading and outlook:
·     Further investment in operational capacity and Group infrastructure to support growth in future periods:
·     Three acquisitions of Paris based audio and localisation service providers in August giving Keywords a market leading position in this key language
·     Strengthened the Board and management team with the appointments of Georges Fornay and Charlotta Ginman as Non-Executive Directors 
·     Expansion plans supported by investment in 8 facilities to add up to 700 seats across Art, Player Support, Functionality Testing, and Localisation Testing in the second half to accommodate organic growth in response to market demands
·     Selectively reviewing a strong acquisition pipeline
·     Trading in the first three months of the second half has been in line with the Board's expectations
 
*    before acquisition and integration expenses of €0.5m (H1 2016: €0.7m), share option charges of €0.4m (H1 2016: €0.3m), amortisation of intangibles of €1.2m (H1 2016: €0.6m) and foreign currency loss of €1.96m (H1 2016: €1.77m)
** calculated on the basis that the H1 2016 comparative includes all of the 2016 and 2017 acquisitions as if they had been owned for the same period in 2016 as they have been in 2017.
 
Andrew Day, Chief Executive of Keywords Studios, commented:             
 
"We have delivered another strong set of results for the first six months of the year as we continue to pursue our strategy of organic and acquisition led growth as we build our global games services business." 
 
"Our success in providing a wider range of services to our existing client base, which is comprised of 23 of the 25 leading video game companies around the world, is evidenced by a 40% increase in the number of clients buying three or more services from us." 
 
"We continue to invest in larger facilities and additional talent in our existing business in support of organic growth while welcoming new businesses to the group through our active strategy to lead the consolidation of a highly-fragmented market."

19 Sep
Numis
1,400.00
Hold

19 Sep
finnCap
1,325.00
Hold