There is a whole army of teenagers (of all ages) dedicated to war-gaming – a leisure activity which entered the public consciousness through the growth of the Dungeons & Dragons brand in the mid-1970s. The rise of fantasy tabletop games – a pastime at once collective and insular – has created tremendous commercial opportunities, a point not lost on shareholders in Games Workshop (GAW).
The chain has expanded sales by an average of 21.2 per cent a year since Kevin Rountree assumed control back in 2015, reflecting the successful relaunch of its core fantasy title: Warhammer Age of Sigmar. A relatively high level of operational gearing has underpinned annualised profit growth of 48.9 per cent over the same period. You would have a virtual “ten bagger” if you had invested in the stock at the beginning of 2017, but is the Age of Sigmar drawing to a close?
The group has been boosting logistics and is looking to expand digitally, and there is also a Warhammer TV series in the offing. But these growth rates aren’t sustainable indefinitely, even though the December half-year figures were outstanding. There is a little more working capital locked-in than usual and sterling appreciation could also have a detrimental effect on margins. So, with the three principals hiving off £1.3m in shares between them, you might be entitled to ask whether the shares have hit a high-water mark. But even though Games Workshop, as Phil Oakley puts it, “is not an easy business to forecast or value,” management has demonstrated a consistent ability to identify and adapt to the needs of its customer base. Buy at 7,055p.
Buys | ||||||
Company | Director/PDMR | Date | No. of shares | Price (p) | Aggregate value (£) | Comments |
Imperial Brands | Thérèse Esperdy (ch) | 06 Feb 20 | 24,000 | 1,858.9 | 446,131 | ADRs at US$24.06 each |
Micro Focus | Kevin Loosemore (ch) | 06 Feb 20 | 64,400 | 763.3 | 491,552 | |
Quarto Group Inc | Chuk Kin Lau (ce) | 03 Feb 20 | 1,679,743 | 68 | 1,142,225 | CK Lau and associates hold 39.8 per cent |
Quarto Group Inc | Chuk Kin Lau (ce) | 03 Feb 20 | 7,720,154 | 68 | 5,249,705 | Through HK-based associate company |
Sells | ||||||
Company | Director/PDMR | Date | No. of shares | Price (p) | Aggregate value (£) | Comments |
Ashmore | Mark Coombs (ce) | 06 Feb 20 | 10,000,000 | 550 | 55,000,000 | |
Berkeley Group Holdings | Sean Ellis (PDMR) | 05 Feb 20 | 34,000 | 5,349.6 | 1,818,866 | Sale by Karen Ellis |
Biffa | Roger Edwards | 31 Jan 20 | 154,000 | 283 | 435,820 | Managing Director - Municipal |
Countryside Properties | Ian Kelley | 04 Feb 20 | 256,618 | 495.8 | 1,272,268 | Divisional Chief Executive |
Countryside Properties | Ian Kelley | 04 Feb 20 | 181,063 | 498.5 | 902,599 | Spouse/associate |
Diageo | Samuel Fischer (PDMR) | 05 Feb 20 | 30,000 | 3,139 | 941,700 | Member of exec. committee |
Games Workshop | Nick Donaldson (ch) | 10 Feb 20 | 3,300 | 7,178 | 236,867 | Residual interest 16,700 shares |
Games Workshop | Kevin Rountree (ce) | 10 Feb 20 | 10,000 | 7,197.5 | 719,750 | Residual interest of 5,793 shares |
Games Workshop | Rachel Tongue (fd) | 10 Feb 20 | 1,400 | 7,170 | 100,380 | Residual interest of 5,314 shares |
Games Workshop | Rachel Tongue (fd) | 10 Feb 20 | 3,300 | 7,187.8 | 237,197 | Sales conducted with spouse |
Hargreaves Lansdown | Peter Hargreaves | 06 Feb 20 | 34,375,000 | 1,600 | 550,000,000 | Residual holding of 24.3 per cent |
SThree | Alex Smith (cfo) | 05 Feb 20 | 100,000 | 374 | 374,000 | |
Unilever | Leena Nair (PDMR) | 04 Feb 20 | 1,650 | 4,590.3 | 75,739 | Chief HR Officer |
Whitbread | Mark Anderson (PDMR) | 03 Feb 20 | 1,879 | 4,500 | 84,555 | Includes spouse/associate sale |