Games Workshop hails record first-half results

Miniature wargames manufacturer Games Workshop hailed record first-half results on Tuesday and said trading in December was in line with expectations.

In the six months to 1 December 2019, pre-tax profit increased to £58.6m from £40.8m on revenue of £148.4m, up from £125.2m in the first half of the previous year. Revenue was up across all of the company’s segments.

Reported sales grew 19% to £148.4m, or 16% on a constant currency basis from £125.2m to £145.6m and the group declared a special dividend of 45p a share.

Chief executive officer Kevin Rountree said: "Our business and the Warhammer Hobby continue to be in great shape.

"We are pleased to once again report record sales and profit levels in the period. The global team have worked their socks off to deliver these great results."

Rountree said sales for the month of December were in line with the company’s expectations.

At 1250 GMT, the shares were up 4.9% at 6,690p.

Neil Wilson, chief market analyst at Markets.com, said: "With an army of faithful, albeit slightly pale, followers and boasting characters with names such as Thorek Ironbrow (not a fizzy Scottish drink) and Azhag the Slaughterer, Games Workshop still has plenty to teach mere mortals on the high street.

"Nerdy types who grew up with the company now earn real money and have stuck with the brand. They have more cash than ever before to spend. There is no one else really doing what they do so they have the market cornered.

"Refresh of the Warhammer 40,000 series proved a big hit and they can easily squeeze margins as they have the market to themselves. They’re very good at the basics too - dialled down on costs and is reaping rewards from that effort."

Russ Mould, investment director at AJ Bell, said: "Forget celebrity endorsements and Instagram follower numbers, carving out a market niche and excelling at good old fashioned customer engagement seems to be a key part of Games Workshop’s winning formula.

"You can see that in its numbers; revenue, profit and dividends continue to rise at pace and so does the share price."