Investors in Rage Software Plc have needed strong nerves in recent years as the company plunged headlong into the red and the shares could be picked up for a few pence. However, there has been an enormous transformation in the fortunes of the Liverpool, UK-based company. In the year through June 30 it saw a net profit of 2.6m pounds ($4.1m), up from profit of 860,000 pounds ($1.3m) on revenue of 8.8m pounds ($14.1m), up from 3.6m pounds ($5.8m).
The revenue boost is attributed to three games which it says are in high demand, together with partnerships with high-profile companies including Microsoft, Sony and Sega. Chairman John Roberts says this has put its brand before a worldwide audience at a time when there are fewer independent developers.
Rage now has 95 staff working on development and it feels that owning content is increasingly important. With an average of 24 months to produce a game, which can run up a budget of 200,000 pounds ($320,000), Rage argues there are now significant barriers to entry into the industry. Looking ahead, Rage says it is working on a broader range of products and platforms than a year ago and is confident of further growth.
