Games Workshop's shift to a new retail model was one of the reasons it warned on profits at the start of the year. But its insistence that the move would underpin longer term improvement already looks well founded and the shares remain worth buying.
IC TIP:
Buy
at
417.5p
Profits for the year will be ahead of expectations, thanks to the lower costs of its streamlined retail operation, lower restructuring charges and an increase in gross margins from factory improvements. Strong cash generation meant that the group also declared an accelerated dividend payment of 20p a share, to be paid on 25 May to shareholders on the register on 26 April.
When: 26 August 2010
Price: 423p
Performance to date: -1%
