- Gross margins fall 6 percentage points
- Royalties received on intellectual property (IP) more than doubled
Games Workshop (GAW), the owner of the extremely popular Warhammer IP, has been walking a valuation tight rope. The success of the franchise, together with regular returns of surplus cash to shareholders, saw the group trading at lofty multiples. However, when supply chain issues kicked in, the market was quick to re-evaluate. In the second half of last year it lost around 25 per cent of its value, yet there are silver linings evident in solid half-year results that suggest it could recover quickly when commercial disruptions ease.