Games Workshop rises on solid trading
The Nottingham-based firm said trading had continued strongly and sales for the first six months of 2017/18 are set to come in some 54% higher.
Shares in fantasy miniatures maker Games Workshop rose sharply after the firm said strong half-year sales will deliver a boost to profits.
The Nottingham-based firm said trading in the period had continued strongly and sales for the first six months of 2017/18 are set to come in some 54% higher than the same period last year at £109 million.
Operating profit is expected to hit £38 million, which compares to £13.8 million.
The firm said: “Over the first half we have seen sales and profit growth in all channels in constant currency terms with the momentum continuing throughout period.”
Games Workshop shares advanced by over 5% trading to 2,063p in morning trading.
Over the past 12 months, Games Workshop shares have risen by over 150% as the firm continues to bounce back from a difficult period when sales faltered.
The group recorded a hefty rise in profits last year – from £16.9 million to £38.4 million – helped by the collapse in the value of the pound.
Games Workshop makes 75% of its sales overseas, so benefits from a weak British currency.
The group’s former chairman Tom Kirby said about the firm’s strategy earlier this year: “At heart Games Workshop is a simple business.
“We make and sell toy soldiers. We do nearly all of it ourselves (because we haven’t found people who can do any of it better than us; maybe one day we will, we keep on looking) and that makes it fiendishly complicated.
“Anyone can make a great miniature. No-one else can make 30 million of them a year and get them, on time, to our stores and trade partners all over the world and from there into the loving hands of our customers.”