Fantasy miniatures retailer Games Workshop (GAW) says its sales growth across all channels and profitability has continued to soar in the remainder of its financial year ending 3 June.
Investors have been impressed with the company’s strong performance over the last year, leading to several earnings upgrades.
Over the last year, shares in fantasy miniature manufacturing firm have catapulted 158.7% to £28.90.
So why are the shares down nearly 6% following the latest update? We believe the market may have been expecting the company to say that earnings are once again ahead of expectations. Instead, they are merely in line with forecasts.
For the year to 3 June 2018, the company expects to report £219m revenue and pre-tax profit is forecast to be at least £74m. Games Workshop also receives royalties, which are anticipated to reach £10m.
On the back of its strong performance, Games Workshop is rewarding its staff with a £5m bonus to be split equally, and a 30p dividend per share for investors.
In May, we revealed sales in 2019 could fall to £200.2m and pre-tax profit may decline to £58m according to Peel Hunt estimates.
This is expected due to tough summer comparatives instead of weaker trading, particularly after Games Workshop benefited from the Warhammer 40K: Dark Imperium launch in 2017.
