Last close As at 05/08/2026
GBP190.10
▲ −20.00 (−0.11%)
Market capitalisation
GBP6,282m
Research: Consumer
Games Workshop Group’s (GAW’s) H124 trading update indicated a robust start to the year in line with management’s expectations. The launch of the new edition of Warhammer 40k in Q1 helped to boost core year-on-year revenue growth in the first half by an expected 11% to no less than £235m (H123: £212.3m). Licensing revenue is expected at £12m (H123: £14.3m), taking total group revenue to c £247m (H123: £227m). There was an implied slowdown in core revenue growth in Q2 versus Q1, although this is expected following a new edition of Warhammer 40k. PBT is expected to grow 12% to ‘not less than’ £94m (H123: £83.6m). We have left our estimates unchanged, anticipating broadly a 50:50 H1:H2 split for both revenue and profit. The H124 results are scheduled for 9 January 2024.
Games Workshop Group |
H124 in line, solid core growth |
H124 trading update |
Consumer goods |
7 December 2023 |
Share price performance
Business description
Analysts
Games Workshop Group is a research client of Edison Investment Research Limited |
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Games Workshop Group’s (GAW’s) H124 trading update indicated a robust start to the year in line with management’s expectations. The launch of the new edition of Warhammer 40k in Q1 helped to boost core year-on-year revenue growth in the first half by an expected 11% to no less than £235m (H123: £212.3m). Licensing revenue is expected at £12m (H123: £14.3m), taking total group revenue to c £247m (H123: £227m). There was an implied slowdown in core revenue growth in Q2 versus Q1, although this is expected following a new edition of Warhammer 40k. PBT is expected to grow 12% to ‘not less than’ £94m (H123: £83.6m). We have left our estimates unchanged, anticipating broadly a 50:50 H1:H2 split for both revenue and profit. The H124 results are scheduled for 9 January 2024.
Year end |
Revenue (£m) |
PBT* (£m) |
EPS* |
DPS |
P/E |
Yield |
05/22 |
414.8 |
158.1 |
394.6 |
235.0 |
26.9 |
2.2 |
05/23 |
470.8 |
171.6 |
411.8 |
415.0 |
25.7 |
3.9 |
05/24e |
495.8 |
187.3 |
426.3 |
425.0 |
24.9 |
4.0 |
05/25e |
518.4 |
194.4 |
442.3 |
435.0 |
24.0 |
4.1 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
GAW demonstrated good group revenue growth in H124 of 9% at actual exchange rates to no less than c £247m (H123: £227m), as the release of the 10th edition of GAW’s most significant IP, Warhammer 40k, was well received and helped to grow core revenue. The core revenue growth of 11% marks a slowdown from the 14% reported in Q1, although this is to be expected given the boost to core sales a 40k release provides. Licensing, which accounts for just 5% of group revenue and is typically quite lumpy, declined 16% to c £12m (H123: £14.3m). The more favourable cost profile of Warhammer 40k helped to expand the core operating margin by 160bp y-o-y to 34.9% (H123: 33.3%) and provide a boost to the bottom line as PBT grew to ‘not less than’ £94m (H123: £83.6m). As GAW continues to make good progress, management is rewarding its staff through a profit share of £2,500 per employee, up 66.7% y-o-y to a total cost of £7.5m (H123: £4.5m). Shareholders have received good cash returns with dividends paid to date in FY24 of 195p/share. The H124 results are scheduled to be published on 9 January 2024.
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Research: Industrials
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