Games Workshop H1 pre-tax profits slip despite improved sales

Miniature wargames manufacturer Games Workshop said on Wednesday that pre-tax profits had slipped in the six months ended 28 November despite seeing sales moderately improve.

Games Workshop now anticipates interim sales to be no less than £190.0m, up from £186.8m at the same time a year ago as a result of growth in both its retail and trade channels, while pre-tax profits were pegged to be approximately £86.0m, down from £91.6m.

The FTSE 250-listed firm stated although operating profits-pre royalties receivable was estimated to be down around £15.0m, excluding foreign exchange movements, increased carriage costs, and the costs of paying more to its staff, Games Workshop's core business operating profit was broadly in line with 2020.

Licensing income increased to £19.0m, a marked improvement when compared to the prior year's figure of £8.7m, driven by significant computer game licensing deals with Nexon and other major licensees.