(Alliance News) - Wargaming miniatures firm Games Workshop Group PLC reported significantly increased profit and revenue in its recent financial year and raised its payout for investors by 62%.
The FTSE 250-listed company saw pretax profit soar 69% to GBP150.9 million in the year ended May 30, up from GBP89.4 million the year before.
Revenue reached GBP353.2 million, up 31% year-on-year from GBP269.7 million, or 34% higher on a constant currency basis.
Gross margin improved year-on-year to 73% from 67% due to inventory provisions booked a year before due to the pandemic and a favourable mix of new and existing product sales.
Royalty income fell 3.0% to GBP16.3 million from GBP16.8 million the previous year, the company said, reflecting the high level of guarantee income from multi-year contracts signed in the previous year.
Games Workshop noted Covid-related restrictions and temporary closures at 523 of its retail stores in the past year, with an increased percentage of customers picking-up products online or from independent retailers.
With successful launches ongoing, the Warhammer owner said it will continue to invest in its employees to develop its intellectual property and product design with plans to raise payroll costs to GBP10.0 million from GBP8.9 million.
Games Workshop declared a 235 pence per share dividend for the year, jumping up 62% from 145p.
Looking ahead, the manufacturer of tabletop games said it will remain focused on quality miniatures, customer engagement and global sales in the new financial year.
The company plans to increase its global outreach, bringing on in-house Chinese and Russian translation teams and registering hundred of products for sale in China.
Operational improvements will continue in the new year, with five new injection moulding machines due to be operational by August and another eight to be added by January 2022.
Other new equipment is also scheduled to increase capacity and improve cost efficiency, the company said.
Chief Executive Kevin Rountree said the company will: "Continue to do what is right for Games Workshop and our customers. We will focus on what is in our control; delivering on our operational plan."
Shares in Games Workshop were trading down 2.5% at 11,480.00p each in London on Tuesday morning.
By Scarlett Butler; scarlettbutler@alliancenews.com
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Games Workshop (GAW)