Since Games Workshop (GAW) released a stellar trading update on 10 September its shares have been on a tear, suggesting that investors expect more profit upgrades to come. This is not an unrealistic point of view, so I’ve decided to take a look at how this excellent business can keep on delivering for investors.
One of the key drivers of a higher share price for any company is the expectation that future profits will be higher than previously expected. Games Workshop shareholders have got used to this over the past few years, as regular profit forecast upgrades by City analysts has turbocharged the share price higher with some nice fat dividends on top.
The company has been transformed since 2016. A new release of Warhammer Age of Sigmar and a step change in customer engagement with the creation of a community at warhammer-community.com reinvigorated the brand, which had looked as though it had lost its way.