Codemasters plans stock market flotation

UK publisher Codemasters is set to float on the stock exchange in a move which will value the company at around £100 million, according to a report published in London's freesheet newspaper Metro this morning.

The short article in the newspaper states simply that the company has appointed consultancy firm Hoare Govett to advise on plans for a flotation, and hopes to see a valuation of £100m from the market. No further details of the plans, such as how much capital Codies hope to raise or where it will be invested, are mentioned.

Although Codemasters has some products which are performing strongly in the charts - such as the recently released Colin McRae Rally 04 - its future release list is largely an unknown quantity in market performance terms.

It will be hoping to realise significant sales off the Club Football titles, which are individually branded to match leading UK football teams, but there's a question mark over whether even team loyalty will drag football game fans away from the likes of FIFA 2004 and Pro Evolution Soccer 3 this Christmas. Likewise, Pop Idol is a relatively strong brand in certain market sectors, but that's not certain to translate into success for a game by any means.

Codemasters needs a hit or two, however; last year the company saw its revenues decline by over 10 per cent to £35.6 million, and filed a loss of some £7 million.