Everplay Group PLC  

Everplay Group PLC (LSE: EVPL), a constituent of the FTSE AIM UK 50 Index, is a global video game developer and publisher. The company operates through three core divisions: Team17, a leading partner for indie developers known for IP like Hell Let Loose and Worms; astragon, a publisher of simulation and entertainment software; and Story Toys, a creator of children's educational apps and games. This report covers the key recommendation rationale and conclusion for the stock.

Key Recommendation Rationale – Sell at GBX 399.90

• Top-line softness and launch cadence risk: Revenue fell 10% to £72.4m (H1 2024: £80.6m) with only 4 new games launched versus 9 last year; while new-release revenue rose 40% to £8.9m, it is coming off a smaller base and the heavier H2 weighting heightens delivery and timing risk for the year.
• Cash generation trending lower amid higher capitalization: Operating cash conversion reduced to 94% (H1 2024: 109%) and net cash from operations was £25.2m (H1 2024: £32.4m); capitalized development costs increased to £14.3m (Team17 £7.7m, astragon £4.9m, StoryToys £1.7m), and cash ended the period at £59.5m, down from £62.9m at FY24 despite acquisition outflows of £7.5m, indicating a tighter cash trajectory.
• Mix headwinds in key segments: First-party IP revenue declined 26% to £25.1m, reducing mix to 35% of Group revenue (H1 2024: 42%), and astragon revenue dropped 35% to £12.0m with no new titles in the half; back-catalogue revenue also eased 15% to £63.5m, pointing to softer momentum versus a very high prior-year comparator
• Macroeconomic Risk: The market sentiments can remain weak in the short term due to the subdued consumer disposable income, geopolitical tensions, and political risks.

Share Price Chart 

Valuation Methodology: Price/ Earnings Approach

Conclusion

EVPL’s valuation may face pressure as the industry navigates regulatory hurdles, economic slowdown risks, currency volatility, potential U.S. tariffs, and intensified competition driving price wars. For conducting the valuation, the following peers have been considered: Devolver Digital Inc (LSE: DEVO), Gaming Realms PLC (LSE: GMR), etc.

Given its current trading levels, the recent financial performance, strategic investments and partnerships, market expansion and cost optimization strategies, relative valuation, and associated risks, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the Current Market Price of GBX 399.90 as of 16 October 2025, 08:25 AM, GMT+1.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 16 October 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.