Join our community of smart investors

Dividend restored at Games Workshop

Games Workshop has resumed dividend payments following a lengthy company-wide restructuring.
July 28, 2015

A restored dividend is perhaps the strongest single sign of corporate recovery. Games Workshop (GAW) has kept its word and will return 52p a share to investors for the last financial year. The group scrapped shareholder returns entirely for the 2013-14 year to focus on a company-wide restructuring.

IC TIP: Buy at 560p

It's fair to say last year's figures bear witness to a work in progress. Slow trading across continental Europe, unfavourable exchange rates and the refurbishment of the Nottingham visitor centre drove retail sales down 4.6 per cent, while trade sales fell 6.3 per cent. The group's mail order business fared better thanks to the launch of a new online shop, with sales up 3.9 per cent.

That left reported sales down 3.5 per cent overall, at £123m, but at constant currencies the decline was just 0.3 per cent. A close watch on operating costs also lifted operating profits by £2.2m to £17.5m at constant currencies.

Analysts at Peel Hunt expect pre-tax profits of £16.5m for the current financial year, giving EPS of 38p, compared to £16.9m and 36p for the year ended May 2014.

GAMES WORKSHOP (GAW)
ORD PRICE:560pMARKET VALUE:£180m
TOUCH:555-564p12-MONTH HIGH:635pLOW: 487p
DIVIDEND YIELD:9.3%PE RATIO:15
NET ASSET VALUE:161pNET CASH:£12.6m

Year to 31 MayTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
201112315.336.045.0
201213119.546.863.0
201313521.451.558.0
201412412.425.20.0
201511916.638.352.0
% change-4+34+52-

Ex-div: 6 Aug

Payment: 14 Sep