Games Workshop achieved record financial performance in the 2017/18 fiscal year, with revenue increasing 39% to £219.9 million and operating profit nearly doubling to £74.6 million.
The company’s growth was driven by a 54% surge in the trade segment and the global success of the Warhammer brand, which helped propel the firm into the FTSE 250.
To support international demand, which accounted for 76% of total sales, the company doubled its plastic injection molding capacity and increased inventory levels to £20.2 million.
Operational efficiency and capital allocation were highly effective, with the return on capital rising from 72% to 120% while maintaining a debt-free balance sheet with £28.5 million in cash reserves.
Digital engagement initiatives, highlighted by the relaunch of Warhammer 40,000, generated 70 million page views on the company's community platform.
Management prioritized long-term infrastructure by implementing a new ERP system and investing in solar energy to reduce greenhouse gas emissions.
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.
