Games Workshop shares level up on expectations beat
Shares in Games Workshop jumped more than 18 per cent today, after the retailer said trading for the most recent quarter came in ahead of expectations.
Strong performance in its online segment has meant current estimates for the three months to the end of August show sales of approximately £90m, up from £78m year on year.
Bucking the pandemic downturn, Games Workshop said operating profit before income from royalties is expected at around £45m, up from £28m in 2019.
Meanwhile royalty income is forecast to increase from £2m to £3m.
However the company said its retail channel is “still recovering from the Covid-19 closures earlier in 2020”, with the long-term impact of the pandemic “still unknown”.
Games Workshop declared a dividend of 50p per share, to be distributed to shareholders on 23 October.
“The board recognises that this performance is better than the prior year but is also aware that it is still early in the financial year. A further update will be given as appropriate,” it said in a statement.
Games Workshop has had a strong 2020 on the London Stock Exchange so far, outperforming the market by approximately 50 per cent in the last three months.
Today’s share price bounce has put it at the top of the FTSE 250 index’s risers list.