Fall in profit despite rise in turnover for software developer
NORTH East software developer Bede Gaming saw profits fall in its most recent accounts, despite turnover rising to almost £25m on the back of work for its Canadian subsidiary.
The Gosforth-based firm develops and markets online gaming platforms for operators of casino, sports betting and lottery offerings.
It secured significant backing in 2020 when German business Gauselmann Group acquired a majority stake for an undisclosed sum.
The deal opened doors on new opportunities for Bede, which also has bases in Bulgaria and Canada, including entry into German markets, triggering what it described as a transformational period in which its turnover more than doubled in the first full-year of its work with a Canadian subsidiary.
Now new accounts covering 2022 have been published by the Esh Plaza-based company, showing how turnover rose from £21.1m to £24.9m, but operating profit fell from £3.1m to £871,701. Overall profit also dropped from £2.6m to £363,969 but total equity increased from £1.4m to £1.8m
During the year Bede received £836,628 in R&D expenditure credit, down on 2021 credit of £1.35m.
Meanwhile, the company’s wages bill increased significantly from £9.9m to £12.5m as its workforce grew from 180 to 201 employees.
In the company’s accounts, directors said: “2022 built upon the previous transformational year with continued revenue and profitable growth largely arising from the provision of online platform services to Bede Gaming Canada Limited, a Canadian subsidiary of the company’s parent, Bede Gaming (Holdings) Limited, following the roll-out of a new digital player platform solution for the Ontario Lottery and Gaming Corporation in October 2020.
“Development work was also undertaken for parties within the wider Gauselmann Group to expand its digital presence to ultimately deliver an entry into the newly regulated German online gaming market and other European territories.”
Bede said that the year also saw it continue to deliver online gaming platform services to customers including Broadway Gaming Limited and Sun International.
The firm added: “Like all businesses in the global economy, during the year the company carefully monitored the potential impacts of the Covid-19 pandemic and maintained full business continuity arrangements to ensure that all essential client services were successfully maintained via off-site working utilising cloud-based technology.”