Kuju announces year-end financial results

Surrey-based developer and publisher Kuju has announced its financial results for the year ending 31 March 2005, reporting an increase in turnover of almost 60 per cent.

Operating losses were down from nearly GBP 1.5 million in 2004 to GBP 146,000, resulting in a loss after tax of around GBP 102,000. Operating profits fell slightly in the first half of the year from GBP 60,000 to GBP 52,000, and then dropped again in the second half to GBP 71,000 after tax.

Turnover for the full year was up from GBP 4.9 million to GBP 7.7 million, and cash deposits and investments amounted to GBP 275,000 on March 31.

Kuju blamed the decrease in cash position on the delay in signing the Rail Simulator contract, which meant there were months of work when no invoices were raised. The publisher said the contract has now been signed and the project is "progressing well."

The report predicted that turnover will continue to increase during the second half of 2005. Sales of key titles Battalion Wars for Gamecube and EyeToy: Play 3 over the Christmas period are likely to have a major impact on profits, said Kuju, adding that "previews for both titles are thus far encouraging."

But things are not looking so good for PC and console title George A. Romero Presents City of the Dead. Kuju was developing the game for Hip Interactive, which ceased operations in July - leaving "a number of outstanding and unpaid milestones," according to Kuju.

The company is continuing to work with the receivers to place the game with a new publisher, but admitted that: "At this point we can report that whilst there is interest in the title from a number of parties, there is no certainty that the product will be successfully placed."

"Until the matter is resolved we will not be able to assess the financial impact on the Group's current full year results, however we do expect there to be a negative impact on the first half year of trading," the report concluded.