Investors who followed our advice to stick with shares in Games Workshop despite a couple of tricky moments back in 2011 have been amply rewarded, with the share price now up by nearly a quarter since we suggested buying the stock.
The fantasy hobby specialist warned on profits in December 2010 after a restructuring of regional management and the introduction of a new store format hit sales. Those efforts have been successful, though, laying the groundwork for a sharp recovery in the second half of last year, which has continued into 2012. First-half pre-tax profits forn the year to end May were up 40 per cent to £9.5m (£6.8m), driven by better trading in its hobby centres and a sharp increase in royalty payments, which rose from £1m to £2.6m after the successful launch of a new Space Marine computer game.
Broker Peel Hunt expects adjusted EPS to climb from 35.3p in 2010-11 to 41.3p this year.
