Games Workshop warns on year profits

Miniature war games retailer Games Workshop has admitted a drop in sales means full-year profits will miss estimates."The board of Games Workshop currently believes that, as a result of reduced volumes, pre-tax profits in respect of the year ending 29 May 2011 are unlikely to meet current market consensus estimates," it said Wednesday. Sales fell 4% in the six months to 28 November and "difficult" trading conditions since then make it "unlikely" that the shortfall will be recovered by the year end.But gross margin and costs remain under "firm control", while cash generation remains "healthy". The outlook for royalties receivable in the current year is good, but not as much as in the year to 30 May 2010. Interim results are due on 25 January. Games Workshop