Games Workshop (GAW) had a mixed year, with stronger sales in the first half than the second. But cost control and cash management improved over the period, so the group generated its highest profit since the shares were listed in 1994.
The small increase in sales translated into an 11 per cent rise in operating profit to £21.3m, including £1m of royalties generated from licences sold to computer game companies. Although the £1m figure is significantly less than last year's £3.5m, the decline was down to the changing landscape of gaming, which is no longer dominated by a handful of giants. Now, though, a new stream of smaller games for smartphones is flowing, which should raise royalty income back to earlier levels.
Meanwhile, strong trading in the Forge World and Black Library businesses and in North America was partly offset by weaker performance in Europe and the UK. Online sales grew 10 per cent to £14.4m, and a new website will be tested this year, hopefully becoming operational in April 2014.
Broker Peel Hunt expects adjusted pre-tax profit of £22.5m in 2014, giving EPS of 49.9p
| GAMES WORKSHOP (GAW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 780p | MARKET VALUE: | £247m | |
| TOUCH: | 775-785p | 12-MONTH HIGH: | 792p | LOW: 572p |
| DIVIDEND YIELD: | 7.4% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 151p | NET CASH: | £13.9m | |
| Year to 2 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 126 | 7.5 | 17.6 | nil |
| 2010 | 127 | 16.1 | 48.4 | 25.0 |
| 2011 | 123 | 15.3 | 36.0 | 45.0 |
| 2012 | 131 | 19.5 | 46.8 | 63.0 |
| 2013 | 135 | 21.4 | 51.5 | 58.0 |
| % change | +3 | +10 | +10 | -8 |
Paid on 5 July 2013 | ||||
