Shares in Frontier Developments (FDEV:AIM) seem to be on a continual downward spiral, having fallen 84% year-to-date to the     154p mark.

The once high-flying Cambridge-based games software group has been hit by a series of profit warnings, the last one causing its shares to slide over 20% in a day.

This latest slump came after the firm cut its full-year sales guidance for 2024 following weaker-than-expected Black Friday sales of the Warhammer game Age of Sigmar: Realms of Ruin.

On the plus side, the company’s board expects to break even by full year 2025 and the business continues to be well- capitalised.

Liberum analysts Caspar Erskine and Andrew Ripper haven’t lost hope in the gaming group: ‘Management aim to deliver three new Creative Management Simulation (CMS) titles over the next three years, targeting niches where Frontier Developments has a proven track record.

‘Cash of £20.5 million as of 31 October, Microsoft and video games tax relief (VGTR) receipts, ongoing sales from its back catalogue, and further sales from F1 and Warhammer releases all provide plenty of runway to deliver on these titles we believe.’

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