Games Workshop

Games Workshop sees 'record sales and profits'

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Games Workshop, the Nottingham-based fantasy games specialist, has announced record sales and profits.

Shares in the firm jumped after it said pre-tax profits increased by 44% to about £58m over the six months to 1 December.

It added that sales in December were in line with the board's expectations and that the business was "in great shape".

The Warhammer maker reported a 19% jump in sales for the six-month period to £148m, ahead of the company's previous guidance.

Games Workshop HQ in Nottingham
BBC

Games Workshop was largely boosted by strong growth in its trade division, which saw sales increase 23.9% to £76.1m.

It said this was driven by the addition of 200 new trade accounts as it increased supply to independent retailers.

Chief executive Kevin Rountree said: "We are pleased to once again report record sales and profit levels in the period.

"The global team have worked their socks off to deliver these great results."

The business has been a major success story for investors in recent years, with shares surging by more than 1,000% over the past five years.

Games Workshop winning the battle

Warhammer game
Games Workshop

Shares in Games Workshop jumped 9% in early trading after it reported record sales and profits over the past half-year.

Pre-tax profits increased by 44% to £58.6m over the six months to 1 December.

Sales climbed 19% to £148.4m.

Chief executive Kevin Rountree said: "Our business and the Warhammer hobby continue to be in great shape.

"The global team have worked their socks off to deliver these great results."

The business has been a major success story for investors in recent years, with shares surging by more than 1,000% over the past five years.

Shares are now up 4.39% on the day to 6,955.

Game plan?

Warhammer game
Games Workshop

Games Workshop is likely to exploit its tactical advantage, adds investment analyst Russ Mould, who has been sharing his views on the fantasy games firm this morning.

The Nottingham based firm is expanding internationally with the US and Germany as key locations for new stores.

It now has more stores in both North America and mainland Europe than it does in the UK, he points out.

"This suggests that the scope for future earnings growth could be bigger than people may think," says Mr Mould.

“It is now looking at ways of getting more out of its intellectual property with growing royalty income from PC and console games, as well as a move to develop animation and TV content.

Games Workshop's 'winning formula'

Warhammer store
Games Workshop

Games Workshop's market cap a year ago was £1bn. Today it is £1.67bn after a very positive trading update.

But the retailer which sells miniature figures for table top fantasy war games had already seen its shares rise 48% this year.

What's its secret?

“Having a niche focus can help certain retailers be isolated from the pains facing general merchandisers," says Russ Mould, investment director at AJ Bell.

"In Games Workshop’s case, it couldn’t be any more niche if it tried. Its customers are fanatical, loyal and part of a vibrant community."

He also praises shop staff who tend to be as enthusiastic as their customers.

“Games Workshop has fine-tuned its proposition and hit on a winning formula," says Mr Mould.

"The fantasy world seems less susceptible to going in and out of fashion and that should enable the company to keep delivering the magic.”

Games Workshop jumps 13%

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In the FTSE 250 the biggest riser is Games Workshop which has jumped 13% after its latest trading update.

It says that since its update in September, trading to 3 November 2019 has continued well.

"Compared to the same period in the prior year, sales and profits are ahead. Royalties receivable are also significantly ahead of the prior year driven by the timing of guarantee income on signing new licences."

It expects profits for the six months to 1 December to be "not less" than £55m and sales of "not less" than £140m

Protest against Games Workshop chair

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Games Workshop has held its annual general meeting where a quarter of investors (26.6%) voted against the re-election to the board of Nick Donaldson, the non-executive chairman.

The company said: "From our ongoing communications with investors and proxy voting agencies, we understand that the concerns are largely in relation to Mr Donaldson being overboarded in terms of the calls on his time.

"The board will consult with those shareholders who did not vote in favour to understand their views with respect to Mr Donaldson's multiple board commitments.

"The Board is confident that Mr Donaldson discharges effectively his role as chairman, notwithstanding his other board commitments."

According to Games Workshop he also holds board positions at restaurant group Fulham Shore and Domino Pizza Poland.

Ahead of the AGM it had said it was " trading is in line with the board's expectations. Cash generation also remains strong."

Games Workshop has its best ever year

Games Workshop figure
Games Workshop

Games Workshop is one of the few High Street chains that is thriving at the moment.

For the year to 3 June it reported a profit of £81.2m up 9% on the previous year.

"An amazing set of results - the best year in Games Workshop's history, so far," said Kevin Rountree, the chief executive said.

The company is best known for its Warhammer miniature figures, which are designed and made in Nottingham, where the firm is based.

Three quarters of the firm's sales come from overseas.

In July the company signed a development agreement to make a TV show based on one its novels, Eisenhorn.

Games Workshop staff bonus payout

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Shares in fantasy role playing firm Games Workshop are up 4% to 4,632p.

That's after it issued a trading statement in which it said it had experienced growth across all sales channels. It also said it had paid £5m in bonuses to staff.

It says sales for the year to 2 June 2019 will be approximately £254m and pre-tax profits to be "not less than" £80m. Royalties from licensing deals will be approximately £11m.

"As in the prior year, in recognition of our staff's contribution to these results, we paid during the year profit share bonuses amounting in total to £5m. These were paid on an equal basis to each member of staff," the company said.

Games Workshop offers promising forecast

A fantasy miniature made by Games Workshop
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Hobbyist fantasy table-top war game retailer Games Workshop has forecast rising profits, due to better-than-expected sales.

Games Workshop said pre-tax profits for the year ending 2 June 2019 would come in at about £80m, up 7% compared to the previous year,

The retailer also announced that it is raising its dividend from 126p to 155p per share.