Games Workshop shares soar after guidance upgrade

(Sharecast News) - Shares in Games Workshop surged on Wednesday after the Warhammer maker lifted guidance for the full year.

In a typically short statement, the company said trading in January and February had been ahead of expectations, with strong trading across both the core business and licensing. No further details were given.

Games Workshop shares topped the UK's FTSE 100, gaining 7%. The group joined the FTSE 100 at the end of last year boosted by the popularity of the Warhammer hobby, an Amazon Prime TV series and branded video game royalties.

It now expects pre-tax profits to come in ahead of expectations in the year to 1 June. The shares are up almost 60% over the last year.

"In a world full of uncertainty around economics, politics and consumer and business confidence, it's refreshing to see a company be able to get on with the job of making money. Games Workshop is showing resilience in the face of a difficult market backdrop and it's impressive how it has prospered this year," said AJ Bell investment director Russ Mould.

"Games Workshop's recent promotion to the FTSE 100 puts pressure on management to keep delivering good news. They will want to show the world that its inclusion in the premium UK index is not a brief visit and that the business has what it takes to stay in the top league.

"The licencing of its intellectual property is being done under a watchful eye and only the most promising ideas are getting the green light. This quality control might mean it misses out on some potential income, but Games Workshop wants to uphold its brand values and ensure that its reputation isn't tarnished by going down the Disney route of milking assets until they are bone dry."

Reporting by Frank Prenesti for Sharecast.com