Games Workshop Regulatory News (GAW)

4 Apr 2005 10:00

Games Workshop Group PLC04 April 2005 TRADING STATEMENT In the interim results released by Games Workshop Group PLC ("Games Workshop" orthe "Company") on 25 January 2005, we reported a slowdown in UK sales growth;this was against a background of a period of very strong growth in this market,which we had described in our 2003 and 2004 Annual Report & Accounts as a'bubble effect, which may not be sustainable in the future'. Trading in the period since our interim announcement has continued to bedifficult. This slowdown in sales has been most significant in the UK and inContinental Europe. In particular sales in the Company's March 2005 tradingperiod, a five week period which included the Easter holiday, were well belowbudget. As a result, the Company is unlikely to achieve market estimates of sales forthe current year ending 29 May 2005. These currently range between approximately£151 million and £162 million compared with sales in the 2004 year of £151.8m.After analysing trading in March, we expect group sales in the 2005 financialyear to fall below this range, although we do expect sales to exceed comfortablythe 2003 sales figure of £129 million. Besides working hard to improve on this sluggish sales experience, GamesWorkshop continues to focus on maximising operational efficiencies so as tomaintain the higher gross margins reported at the interim stage. In spite ofthis, the sales shortfall described above is likely to impact materially on theCompany's profits and earnings per share in the current year. Games Workshop remains a highly profitable and cash generative business. It iscurrently the intention of the Board to recommend a maintained final dividendfor the 2005 year at the 2004 level of 14.025 pence per share. Despite thisshort-term disappointment the Directors continue to view the long-term prospectsfor the Company with great confidence. Games Workshop Group PLC Today only: 01756 770 376Tom Kirby, Chairman and Chief Executive Thereafter: 0115 900 4003Michael Sherwin, Finance Director Rawlings Financial PR Limited Tel: 01756 770 376John RawlingsCatriona Valentine This information is provided by RNS The company news service from the London Stock Exchange