Powering up Growth at Guildford Games Festival
Powering up Growth at Guildford Games Festival
Guildford has long been referred to as ‘The Hollywood of Games’ and the birthplace of the gaming industry in the UK. The town is home to a huge variety of games studios employing more than 3,000 highly qualified programmers and 60 game developers, ranging from industry giants EA Criterion, nDreams and Supermassive Games to smaller independent studios. As one of the biggest sectors in the area, it is thought to be worth more than £90 million to the local economy.
Each year businesses of all sizes come together to celebrate the vibrant gaming cluster at the Guildford Games Festival. During the pandemic the festival was streamed online but on 10 February it was back in person at GLive. Over 2,000 people attended the event to check out the latest releases from local games studios and hear from a line-up of more than 40 industry experts covering a broad range of topics.
One of the first talks featured Gareth Hill, Tax Director at BDO South East, interviewing industry veterans Felix Wong, Partner at Level Up Partners and Neil Bancroft-Jones, CFO of Emergent Entertainment on Powering Up Growth. Gareth posed questions on the key commercial factors at each stage of the business lifecycle; from having an idea for a game and setting up a studio, and seeking funding and getting investor ready to ultimately selling the business.
Through a series of scenarios, the panel discussed the main financial, legal and tax challenges studio founders typically face. Each speaker offered insights and practical advice on issues, such as negotiating publishing agreements, putting in place employment contracts, outsourcing the finance function, hiring advisors for due diligence, and claiming grants and Video Games Tax Reliefs (VGTR) – regarded as a lifeline to the sector.
Since the festival, the Chancellor has announced significant changes to the way in which video games companies will claim tax reliefs in the future in his Spring Budget.
Commenting on the replacement of VGTR to Video Games Expenditure Credit (VGEC), Gareth said: “Overall, the move to an expenditure credit is likely to be welcome news for many. However, as always, it’s important to understand the full impact of the changes and these will vary depending on a company’s specific circumstances. Those studios with non-UK personnel engaged in developing games, for example, may find that staying within the VGTR regime for as long as possible could prove beneficial in terms of the value to the company.”
This is the second year running BDO South East has sponsored the festival as part of the firm’s commitment to supporting the local games community. At the Guildford Games Festival 2021 Gareth took part in a panel session on Establishing a Studio with nDreams founder Patrick O’Luanaigh, James Brooksby, founder of Absolutely Games and Sam Collins, Commercial Director at ukie.
Watch the Guildford Games Festival 2021
In February 2022, Gareth Hill was interviewed by Sam Read, Games Sector Specialist, in a webinar hosted by the Department of International Trade.
BDO has a national team of specialists who work with games studios and developers across the country and overseas providing a complete suite of services. To find out how we can help your studio succeed, contact Gareth Hill.