Games Workshop Group

LN: GAW

Market Cap£2,223m

Last Close 6770p

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

The trading update for the year ended May 2022 indicated ongoing good demand following the standout performance of the prior year. Revenue will be not less than £385m (our prior estimate of £378m and FY21 £353m) and PBT not less than £155m (our prior estimate £158m and FY21 £151m). The lower profitability PBT margin for FY22 versus FY21 reflected the already flagged economy wide inflationary cost pressures and internal investment, offset by a notable improvement in royalties income (£28m vs £16.3m FY21). The royalties income was the highest ever generated by the company, indicating the success it is having in leveraging its intellectual property. We trimmed our FY22 PBT estimate by c 2% to be in line with indicated guidance, and a similar percentage for FY23.

Y/E May	Revenue (£m)	EBITDA (£m)	PBT (£m)	EPS (fd) (p)	P/E (x)	P/CF (x)
2020A	269.7	115.6	89.4	217.8	31.1	21.2
2021A	353.2	178.3	150.9	370.5	18.3	16.7
2022E	385.5	183.5	155.7	380.4	17.8	14.7
2023E	407.3	189.6	160.5	390.9	17.3	14.2

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 04/07/2022