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Games Workshop reports record sales but CEO heightens expectations

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Games Workshop LON:GAW published its half year report to end-November 2022 today (10th January).

As The Armchair Trader recently reported much is expected of the FTSE250-listed, Nottingham-based tabletop games and miniatures retailer in 2023. Today’s results added momentum to a company that had a good 2022, with most of the important numbers showing an upward trajectory.

Core sales topped GBP200m for the first time in the company’s history, up 4% from GBP191.5m for the corresponding period in 2021. Net cash from operations was GBP104.7m up 36.9% y-o-y and core operational profit was up to GBP70.7m from GBP69.7m in 2021.

However, chief executive, Kevin Rountree did dampen expectation, citing ongoing external cost pressures seeing cost of sales rise from GBP60.2 to GBP76m and operating expenses rise from GBP61.6m to GBP65.6m on an actual basis year-on-year.

Wary outlook

Rountree also highlighted that the hangover from a difficult trading period during the Coronavirus pandemic was still being felt and was wary about the impact of the ongoing War in Ukraine and cost-of-living crisis might have on sales in 2023, as well as the trading conditions brought on by Britain’s withdrawal from the EU.


The CEO also expressed dissatisfaction at the growth of sales particularly in North America. He said in a statement: “We set ourselves a higher sales growth goal, so whilst this is a record number, it isn’t where we wanted to be, particularly in the US, which was flat, at constant currency, against a record year last year. We are working as a senior team to improve our joined-up plan in the US.”

IP development

The exploration of developing Games Workshop’s Warhammer IP was noted, and although the company did not sign any new agreements in the period, as previously reported, GW is looking at developing small- and big-screen content with Amazon NASDAQ:AMZN.

Licensing revenue from royalty income decreased in the period by GBP5.8m to GBP14.3m. Rountree attributed this mainly due to a high level of guarantee income on multi-year contracts signed in the period last year.

Games Workshop opened trading today at 8,895p and had fallen to 8,628p in the first two hours of trading.

The company has offered a 2.5% year-to-date return and -11.3p over one-year, with shares ranging from 5,565p to 9,985p. The company has a market capitalisation of GBP3bn.

Deshe Analytics rates Games Workshop as a ‘Hold’ stating: “Games Workshop published its 2Q22 report on 26th July 2022 with positive results, but no significant factors particularly remarkable relative to its peers. This typically translates into the stock performing on par with market performance for the upcoming quarter.”

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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