Games Workshop to smash forecasts

Model and war game retailer Games Workshop expects profits this year will come in some £5m ahead of market forecasts as cost cutting benefits and royalty income come through strongly.In a statement, Games Workshop, which is best known for selling the Warhammer range, said pre-tax profits in the year to 30 May 2010 are likely to be "materially ahead" of current market expectations even though sales in the first half of the year to 29 November 2009 declined slightly in constant currency terms. Trading in December was satisfactory, it added, while gross margins improved. The outlook for royalties receivable in the current year also remains good, although not as significant as in the year to 31 May 2009, it added. Games Workshop