(Alliance News) - Games Workshop Group PLC on Tuesday posted growth in annual profit, despite margins coming under pressure, with Brexit adding over GBP3 million of additional supply chain costs in the year.
Revenue for the financial year that ended May 29 rose 12% to GBP414.8 million from GBP369.5 million the year before.
"It's been another astonishing year. I once again take great comfort that some things don't change - our staff and customers love Warhammer," said Chief Executive Kevin Rountree.
Games Workshop is a Nottingham-based miniature wargames maker.
Core gross margin declined to 67.1% from 72.7%, which the company put down to inventory provisions of GBP10.6 million, "as we failed to get the right stock in the right place at the right time", GBP9.2 million in additional freight and carriage costs - noting that Brexit added GBP3.4 million of additional supply chain costs in the year - and GBP2.5 million in additional staff costs.
Despite this, pretax profit still rose 3.7% to GBP156.5 million from GBP150.9 million.
Looking ahead, Games Workshop said one of its areas of focus lies on mitigating the decline in core gross margin. During the year, Games Workshop said it reviewed its input price increases and "they looked more permanent", so it decided to raise prices on a broader existing range by 5%.
"We will always, in the short term, continue to absorb some of the cost pressures ourselves - we prefer to only increase prices for the additional quality of new miniatures. We are focusing our efforts on efficiency improvements everywhere and further volume growth," it said.
Games Workshop declared dividends amounting to 235 pence for the recent the year, in line with the year before. On Tuesday, it declared a dividend of 90p, to be paid in September.
Shares in Games Workshop were down 1.5% at 7,415.55p in London on Tuesday morning.
By Lucy Heming; lucyheming@alliancenews.com
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Games Workshop (GAW)