Despite its buoyant annual results this summer, costs appear to be finally taking their toll on the Warhammer maker Games Workshop.
Shares slumped nearly ten per cent this afternoon after the firm revealed pre-tax profits slid 13 per cent in the last quarter to £39m.
Commenting on this announcement, analysts at Peel Hunt said that while hobbies are “generally resilient” in economic uncertainty, they are “not immune”.
Victoria Scholar at Interactive Investment said that Nottingham-based game manufacturer has been dealing with rising pressures on freight costs and currency rates, giving investors a “rough ride”, with shares down 34 per cent year-to-date and 40 per cent over the last year.
The trading update sits in stark contrast to Games Workshop’s “astonishing” full year results in July, which saw core revenue climb 9.5 per cent to £386.5m and sales soar, despite the glow of lockdown measures fading.
However, Scholar backed the British company. “Over the long run this stock has still proven to be a worthwhile holding, with shares up 260% over the last five years even after the 2022 market turmoil, sharply outperforming the FTSE 100 and FTSE 250,” she said.
Games Workshop also said that it would hike its dividend by 20 per cent, handing shareholders 30p per share for the three months to 28 August.