Games Workshop (GAW) registered yet another record performance in the six months to the beginning of December 2019, with sales and profits reaching record highs. Revenues grew 16 per cent at constant currencies, outpaced by operating profits, which were up 40 per cent. The group grew in all divisions, but trade led the way, with around 200 net new trade outlets and 27 per cent sales growth.
In line with management’s strategy, royalty income increased in the period, more than doubling to £10.7m. However, management cautioned that future income is difficult to predict, as the group recognises royalty income only when the contract is signed. The group is at work developing a TV series based in its universe, but at present no production contracts have been signed or royalties booked.
Games Workshop’s business is reliant on continued interest from enthusiasts, and management’s efforts to engage with and expand that community seem to have paid off. The number of users accessing the Warhammer community website was up 48 per cent against the same period last year, and the number of visits per user also increased.
House broker Peel Hunt increased its adjusted pre-tax profit and EPS forecasts by 3 per cent each to £96m and 232.8p, respectively, compared with £81.2m and 198.2p in FY2019.
| GAMES WORKSHOP (GAW) | ||||
| ORD PRICE: | 6,675p | MARKET VALUE: | £ 2.18bn | |
| TOUCH: | 6,670-6,695p | 12-MONTH HIGH: | 6,960p | LOW: 2,785p |
| DIVIDEND YIELD: | 2.8% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 370p | NET CASH: | £33m | |
| Half-year to 1 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2018 | 125 | 40.8 | 101 | 65 |
| 2019 | 148 | 58.6 | 146 | 100 |
| % change | +18 | +44 | +44 | +54 |
| *Ex-div: | 23 Jan | |||
| *Payment: | 02 Mar | |||
| *Dividends paid quarterly | ||||
