Interim sales, profits jump at Games Workshop

(Sharecast News) - Games Workshop Group posted a "record" first half on Tuesday, as demand for its Warhammer battle figurines continued to soar. Revenues at the blue chip came in at £332.1m in the 26 weeks to 30 November, up from £299.5m a year previously. Pre-tax profits rose to £140.8m from £126.8m.

Kevin Rountree, chief executive, called it a "record half-year performance".

He continued: "We have again remained focused on delivering our strategic goal - to make the best fantasy miniatures in the world, to engage and inspire our customers and to sell our products globally at profit. We intend to do this forever."

The company said it had seen profitable sales growth across its 23 core markets and in all three channels, driven by weekly releases of new miniatures.

It also opened more stores during the period, although Rountree acknowledge the rate of expansion had been slower than expected. Games Workshop now has 575 shops worldwide, including 134 in the UK and 202 in North America.

Tariffs impacted profits by around £6m during the period, in line with forecasts for a hit of around £12m over the full year.

Looking to the second half, Games Workshop said core sales in the December had been "slightly ahead" of the same month a year previously. It did not, however, provide any further guidance regarding the full year.

Founded in 1975 as a maker of traditional wooden board games such as backgammon, Games Workshop's growth soared as it moved into miniature wargames. Played with figurines painted by dedicated hobbyists, the most well-know of its games is the hugely popular Warhammer.

In 2023 the Nottingham-based company signed a licensing deal with Amazon, which includes developing Warhammer films and television programmes.

However, as at 0945 GMT, the stock - which has put on 38% over the last year and was promoted to the FTSE 100 in December - had lost 3% at 18,320p.

Dan Coatsworth, head of markets at AJ Bell, said: "Games Workshop didn't offer anything to get the market too excited.

"Licensing revenue is an area which attracts considerable market excitement, given the ability to capitalise on Games Workshop's intellectual property at virtually no added cost to the company.

"However, as the first-half results show, this source of revenue is lumpy and unpredictable, falling significantly year-on-year in the period."

Licensing revenue fell to £16m from £30.1m during the period, in line with expectations.

Independent retail analyst Nick Bubb added: "There are no obvious surprises in today's interims. The detailed management report is headed 'Games Workshop and the Warhammer hobby are in great shape', but for a FTSE 100 company, the lack of an outlook statement is surprising. Some investors may be disappointed by the lack of news in the Amazon TV tie up."