Games Workshop Group

LN: GAW

Market Cap£3680.8m

Last Close 11230p

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 year-end trading update highlighted higher revenue and a more significant increase in operating profit and licensing income, versus our expectations. FY21 has been very strong despite COVID-19 restrictions on Retail, likely incremental costs due to Brexit, and recent currency headwinds. Management’s new estimates for FY21 of sales not less than £350m and PBT not less than £150m, imply y-o-y growth for revenue and PBT of at least c 30% and c 68% respectively and limited underlying cost growth of c 4%. The strong performance has led to higher year-on-year rewards for staff (profit-related pay increased fivefold) and shareholders (total dividend of 235p versus 145p).

Y/E May	Revenue (£m)	EBITDA (£m)	PBT (£m)	EPS (fd) (p)	P/E (x)	P/CF (x)
2019A	256.6	97.1	81.3	200.8	55.9	50.7
2020A	269.7	115.6	89.4	217.8	51.6	35.2
2021E	350.5	179.9	152.1	367.6	30.5	27.8
2022E	375.5	187.1	158.1	380.9	29.5	24.4

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 21/06/2021