Games Workshop trading ahead of expectations, dividend declared

The FTSE 250 company said current estimates show sales of around £90m during the period, up from £78m in the same period a year ago. Meanwhile, operating profit before royalty income is estimated at around £45m, up from £28m in 2019 and royalty income is expected to rise to £3m from £2m.

"This has been driven by healthy growth in our online and trade channels. However, our retail channel is still recovering from the Covid-19 closures earlier in 2020," it said. "The longer-term impact on the group as a result of the ongoing pandemic is still unknown.

"The board recognises that this performance is better than the prior year but is also aware that it is still early in the financial year. A further update will be given as appropriate."

Games Workshop declared a 50p per share dividend, in line with its policy to distribute truly surplus cash. This will be paid on 23 October for shareholders on the register at 18 September.

At 0945 BST, the shares were up 12.2% at 9,785p, having hit a record high earlier.

Russ Mould, investment director at AJ Bell, said: "There is no question that Games Workshop is a winner on the stock market. For what feels like the umpteenth time the Nottingham-based fantasy miniature figures seller is trading ahead of expectations and has made an earlier than expected return to the dividend list.

"In the last five years the shares have delivered a total return of 1,710%. Rival UK growth companies must be tempted to sweep their pieces off the table and go home.

"Simply put this is an excellent and brilliantly-run business. The company is reaping the rewards from having got its act together on the digital front in recent years - enabling it to continue generating bumper sales through lockdown despite the obvious impact on its physical stores.

"It always helps when a company understands its customer base and is able to deliver what that customer base wants. This is something Games Workshop has got down to a tee."