(Alliance News) - Nottingham-based Games Workshop Group PLC on Tuesday lowered its interim payout and warned on current trading conditions, despite reporting a solid rise in profit and revenue for the period.
Shares in the FTSE 250 wargames manufacturer and retailer were down 6.5% at 10,880.00 pence on Tuesday in London, the worst performer in the FTSE 250 index.
For the six months ended November 29, the company posted a pretax profit of GBP91.6 million, up 56% from GBP58.6 million the year before. This was on revenue that grew by 26% year-on-year to GBP186.8 million from GBP148.4 million on a reported basis. On a constant currency basis, revenue rose by 27%.
By division, Games Workshop's Trade business grew by 33% to GBP104.0 million, as the overall number of trade outlets rose over the period to 5,100, which helped to drive forward sales.
Online rose sharply by 87% to GBP45.9 million, as the group said it is continuing to improve its online store services and functionality.
Meanwhile, the Retail business declined by 19% to GBP36.9 million, with trading in most countries stifled by government restrictions.
In fact, Games Workshop warned that should current sales trends continue for the full year, the group would have around 50 stores that would not break even.
During the period, the group opened six stores, including relocations, and closed eight stories, bringing the total number of stores at the end of the period to 529.
Games Workshop declared an interim ordinary dividend of 80 pence per share, down 20% from 100p the prior year.
However, in early December, the group declared an additional payout of 60 pence per share.
"Another cracking performance from a truly amazing, global team; a solid six months building on the great progress and profitable growth we have been consistently delivering over the last five years," said Chief Executive Officer Kevin Rountree.
"Finally, I'd like to thank our enthusiastic and loyal fan base who share our love for the Warhammer Hobby and the fantastical settings, characters and narratives that make up our IP. Their ongoing support and feedback have been invaluable, keeping us honest when we have fallen short and driving us onward to continue to deliver more and better," Rountree added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Games Workshop (GAW)