LONDON (Alliance News) - Games Workshop Group PLC sat firmly on the stock-market losers list Thursday, having seen almost a quarter wiped off its market value, after the games retailer reported a huge drop in profits and revenues for the first half of its financial year.
The maker of miniature figures and gaming sets, reported pretax profit of GBP7.7 million for the six month to December 1, 2013, down significantly from GBP11.1 million a year earlier, due to falling sales across the business. It reported a net profit of GBP5.6 million, compared with GBP8.1 million the prior year.
Revenues for the first-half fell to GBP60.5 million, down from GBP67.5 million the prior year.
"During the first half, the rapid transition from multi-man stores to one-man stores and the reduction of trading hours across the group caused disruption in our retail chain. We also experienced some decline in sales through independent stockists," the company said Thursday.
Games Workshop said that it expects to benefit from the more focussed selling operation and lower cost base, although profits will remain under pressure while it implements these changes.
The company did not declare an interim dividend.
"Our costs are well under control and margins remain strong. Cash management is good and our capital expenditure continues as planned," said Chairman and acting Chief Executive Officer Tom Kirby in a statement.
Shares in Games Workshop were the biggest faller on the London All-Share Thursday, down 24% at 548.00 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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Games Workshop (GAW)