Fantasy miniature wargames maker Games Workshop (GAW) provided a welcome degree of escapism for investors amid the coronavirus pandemic as it hailed the ‘best year’ in its history.
The company’s shares soared 9% to £92.21 in morning trade after it had reported a rise in profit on higher revenue, led by sales in its trade business.
In the year to 31 May, pre-tax profit rose to £89.4 million from £81.3 million on-year as sales grew by 5.1% to £269.7 million.
The trade segment, which made up 52% of total revenue, reported that sales rose 15% to £140 million.
Retail sales decreased by 11% in the year, as the coronavirus pandemic led to temporary store closures.
‘You can once again see from these results that our business and the Warhammer hobby are in good shape,’ said chief executive Kevin Rountree.
SPECIAL DIVIDEND FOR SHAREHOLDERS
Games Workshop did cut its annual dividend by 6.5% to 145p per share, down from 155p previously. But it has also declared a 30p per share special dividend, following its policy of distributing ‘truly surplus cash’ back to shareholders.
The company also said that it lost six weeks of sales and profit due to lockdown, with its retail channel the hardest hit. It was forced to turn to the UK government’s furlough scheme but added it will repay the cash drawn down under the programme.
AJ Bell investment director Russ Mould said Games Workshop’s soaring sales are ‘proof that its imaginary worlds have been much more appealing than present day Earth.’
Mould said, ‘A lot of its customers will have spent lockdown painting Games Workshop’s models and expanding their own collection of demons, wizards and warriors.
‘Increased engagement also bodes well for the company’s strategic growth plan which focuses on exploiting its intellectual property through the creation of TV shows and other media projects.’
