Starbreeze Reports It May Not Last 12 Months

By Digz 4 years ago

Starbeeze finds itself in a very difficult situation following a difficult period for the organisation. The publishers of PayDay2 and The Walking Dead may cease to operate in 12 months time or prior to that unless additional funding can be found. 

It had to restructure last year due to bad sales figures for The Walking Dead, resulting in 40 out of 622 staff it had then, in their Q1 report is also states they are still going through a reconstruction period for the company. It has also sold off publishing rights for games like 10 Crowns, their problem at the moment is a liquidity shortfall and the approximately £10,000 loss they made in Q1 doesn't help the situation.

The report highlighted the following in the risks and uncertainties section:

The company currently lacks sufficient secured funds to guarantee continued operations for the next 12 months and is expected to have a liquidity shortfall before mid-year 2019 if no additional funds are provided. These conditions indicate that there are significant uncertainties that can lead to significant doubts about the company's ability to continue its business.

However, the company is looking at long term loans and also spreading the ownership of certain projects to minimise risk if they do not do well. And in the last paragraph of that section the directors have confidence that they are working towards a solution to the liquidity problem and the current risks do not include the large two loans included within the on-going restructure in the parent and subsidiary companies

You can check out the interim 2019 Q1 report here.


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