Warhammer maker Games Workshop is poised to achieve record revenues and a notable increase in profits for the past financial year, driving its shares higher in early trading on Friday.
Strong Financial Performance
The Nottingham-based retail business informed shareholders that it expects to deliver at least £625 million in core revenue for the year ending May 31. This represents a significant rise from the £565 million recorded a year earlier.
Pre-tax profits are projected to reach at least £265 million, up from £262.8 million in the previous year. The profit growth comes despite the group facing higher tariff costs, particularly in the United States, where it anticipates around £12 million in expenses from import taxes this year.
Licensing Revenues Slow Down
However, the stronger overall performance masks a slowdown in licensing revenues. Games Workshop reported that licensing income linked to the Warhammer brand would be at least £30 million, but this is lower than the £52.5 million generated in the prior year.
Global Store Network
The company operates 575 stores worldwide, with North America being its largest market, hosting 202 shops. In the UK, it runs 134 stores.
Analyst Reaction
Andrew Wade, equity analyst at Jefferies, described the update as pointing to a “re-acceleration” in recent months after softer growth in December. He commented: “In all, a very solid trading performance – essentially as we had anticipated, and ahead of consensus expectations.”
Shares in Games Workshop were 3% higher on Friday morning, reflecting investor optimism over the record results.
