Annual Report 2018

Games Workshop achieved record-breaking financial performance during the 2017/18 fiscal year, characterized by a 39% increase in revenue to £219.9 million and a near doubling of operating profit to £74.6 million. This growth, which propelled the company into the FTSE 250, was primarily driven by the global success of the Warhammer brand and a 54% surge in the trade segment. With 76% of sales generated internationally, the company significantly expanded its Nottingham-based manufacturing and R&D facilities, doubling plastic injection molding capacity and increasing inventory levels to £20.2 million to meet rising global demand.

Strategic priorities focused on long-term infrastructure and digital engagement, including the implementation of a new ERP system and a successful relaunch of Warhammer 40,000 that drove 70 million digital community page views. Financial stability remained robust, with the company maintaining a debt-free position and increasing cash reserves to £28.5 million. While management monitored risks related to Brexit and supply chain interruptions, the return on capital rose from 72% to 120%. Governance remained stable, with the board defending the tenure of long-serving directors based on their deep industry expertise, while also implementing a revised remuneration policy to align executive pay with market rates following the year’s exceptional performance.

The company’s commitment to sustainability and compliance was evidenced by a reduction in greenhouse gas emissions through solar energy investments and the achievement of full GDPR compliance. Looking forward, the company remains focused on multi-channel retail growth and IP licensing opportunities. Independent auditors confirmed the integrity of the financial statements, noting that while inventory valuation and development costs require significant management judgment, the group remains a strong going concern with high liquidity and a clear trajectory for continued global expansion.