A 10.4 per cent revenue hike (on a constant currency basis) at fantasy role-playing games company Games Workshop (GAW) helped support the company's hefty half-year profit rise. Moreover, the group delivered that impressive performance despite an 85 per cent slide in royalty income, while strong cash generation meant a healthy dividend payout.
Indeed, Games managed growth across the board, with the north American operation having performed best - constant currency sales there jumped 16.2 per cent to £17.9m. The UK unit also performed well with constant currency sales here rising 6.8 per cent to £15.8m while, even in struggling continental Europe, sales rose 3.9 per cent to £21.3m. That progress was supported by various self-help measures - including the closure of underperforming hobby centres and relocations to cheaper one-man sites.
Chief executive Mark Wells is stepping down, however, after five years in the job - chairman Tom Kirby will become acting chief executive until a new boss is found. Mr Wells is credited with having improved the group's operating performance, although broker Peel Hunt reckons Games Workshop is now looking for a "different skill-set to take the business forward".
The broker expects full-year adjusted pre-tax profit of £21m, giving EPS of 47.6p (from £19.5 and 46.6p in 2012).
GAMES WORKSHOP (GAW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 658p | MARKET VALUE: | £209m | |
| TOUCH: | 655-660p | 12-MONTH HIGH: | 721p | LOW: 488p |
| DIVIDEND YIELD: | 6.8% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 162p | NET CASH: | £15.6m | |
| Half-year to 2 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 62.7 | 9.47 | 22.1 | 18.0 |
| 2012 | 67.5 | 11.1 | 25.6 | 18.0* |
| % change | +8 | +17 | +16 | - |
*Paid on 9 January 2013 | ||||
