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Games Workshop: a case study in sound management

Games Workshop’s shares could hit fresh heights, but operational gearing is also a source of significant risk
Games Workshop: a case study in sound management

Games Workshop has been an outstanding share to own in recent years and has delivered sensational returns to its investors. The company has been transformed since a change of management in 2015 and has benefited from significant operational gearing that has seen a significant increase in revenues turn into an even bigger increase in profits. If it keeps on delivering then there’s no reason the shares can’t go higher, but if it hits a bump in the road the operational gearing that has served shareholders so well could start working against them.

 

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