Sparks - Games Workshop Group

Games Workshop had already provided an indication of headline figures for its H125 results in a trading update in November, so today’s announcement focused on the details. On a reported basis, revenue increased by c 21% to £299.5m and operating profit increased by c 33% to £126.1m, delivering the company’s best-ever H1 performance. While the core business put in a strong performance (growing by 16% at constant currency), licensing revenue was the star performer with c 160% constant currency growth, helped by the release of the Space Marines 2 video game.

As expected, foreign exchange exposure was a drag on reported results, negatively affecting revenue by c 2.5% and operating profit by c 6%. The company generated good growth across all distribution channels except online, as management expected given the strong comparative by the release of Warhammer 40K in the prior year. Gross margin was negatively affected by an increased inventory provision as sales of some new products fell below expectations.

Games Workshop also announced its fourth dividend of the year, taking the cumulative dividends to £4.20 per share, a good increase from the £3.15 declared at the same stage last year.

As ever, there is no financial guidance but it is clear that management continues to plan for growth in the medium term, with planning permission secured for a fourth factory in Nottingham and the purchase of two additional properties during the period.