Games Workshop Group

LSE: GAW

Market Cap£2,423m

Last Close 7365p

Games Workshop is a leading international specialist designer, manufacturer and multi-channel retailer of miniatures, scenery, artwork and fiction for tabletop miniature games set in its fantasy Warhammer worlds.

Investment summary

Games Workshop’s Q123 (end August) trading update showed a solid start to the year from a revenue perspective with total revenue growth of c 6%, made up of c 8% growth in core, and a 40% decline in licensing revenue, which is typically quite lumpy. Sterling weakness, specifically versus the US dollar, is likely to have helped the reported growth rate. PBT, which was down by c 13% y-o-y to £39m from £45m in the prior year, reflects the decline in high-margin licensing revenue as well as likely ongoing cost pressures. Despite the lower profit, the higher cumulative declared dividend year to date of 165p, versus 65p last year suggests an improved cash position.

Y/E May	Revenue (£m)	EBITDA (£m)	PBT (£m)	EPS (fd) (p)	P/E (x)	P/CF (x)
2021A	369.6	178.3	150.9	370.5	19.9	18.3
2022A	414.8	193.2	156.5	390.6	18.9	19.9
2023E	432.7	196.5	160.4	399.6	18.4	15.1
2024E	454.2	211.0	169.2	384.5	19.2	14.5

Industry outlook

Games Workshop is the global leader for tabletop miniature gaming, a market it created. Tabletop miniature gaming is the fastest-growing segment of the global non-digital games market, which is expected to grow at a CAGR of 9% between 2017 and 2023 and reach a value exceeding $12bn.

Last updated on 30/11/2022