Warhammer maker Games Workshop declares a victory as profits double

Alys Key
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Games Workshop still makes the bulk of its sales through physical stores (Source: Public domain)

Shares in Games Workshop were up nearly 10 per cent today after the miniature wargaming company more than doubled pre-tax profits.

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The figures

Pre-tax profit more than doubled to £38.4m, while revenue was up by a third to £158m.

Earnings per share also more than doubled from 42.1p to 95.1p.

Aside from its retail operations, the company also receives royalties from teh use of its trademarked fantasy brand Warhammer. Royalties were up on last year, coming in at just under £7.5m.

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Why it's interesting

With three quarters of sales made overseas, Games Workshop benefitted this year from the weaker pound as it expanded business operations in global locations, especially Asia.

Although one in five sales went through the company's web store, it bucks the growing trend for online shopping as bricks-and-mortar retail still accounts for the bulk of purchases.

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Sales across the company's 462 Games Workshop stores accounted for 41 per cent of the total, while 38 per cent of stock was sold through independent retailers.

The growing sales volume posed a challenge for the supply chain including factory and warehouse staff, who approached this "without any fuss", according to the annual report. The company says it has an agile resource plan to meet any future volume changes.

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What the company said

Kevin Rountree, CEO of Games Workshop said: "We've had another fun and exciting year and made significant progress on our strategic initiatives. You can see from these results that our business and our Hobby are in good shape.

"The board continues to believe that the prospects for the business are good."

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