FinancialGames Workshop Group
Games Workshop Group PLC Annual Report FY2019
1 Aug 201978 pages~295 min full read
Games Workshop achieved record financial performance in FY2019, reaching £256.6 million in revenue and £81.3 million in profit before tax.
Growth was driven by a 29% increase in the trade channel, with significant expansion in North American and Asian markets.
The company invested £14 million into capital expenditures, specifically targeting a new Nottingham production facility and global warehousing upgrades.
Strategic brand expansion included the launch of 'Warhammer Story Forge' for animation and a development agreement for an 'Eisenhorn' television series.
Operational scale increased through the addition of 40 new retail stores and 600 new trade accounts, bringing the total workforce to 2,110 employees.
Gross margins declined slightly to 67.5% due to shifts in product and channel mix, while return on capital adjusted to 100% following heavy investment.
The company maintains a strong financial position with £29.4 million in cash and no utilized borrowing facilities, providing stability against potential Brexit-related uncertainties.
Games Workshop achieved record-breaking financial performance for the 2018/19 fiscal year, with annual revenue surpassing £250 million for the first time. Reaching £256.6 million in sales and £81.3 million in profit before tax, the company demonstrated a third consecutive year of significant growth. This expansion was driven by a 29% increase in the trade channel, particularly within North American and Asian markets, alongside a rising contribution from intellectual property royalties. To sustain this momentum, the company invested approximately £14 million in manufacturing and tooling, including a new production facility in Nottingham and global warehousing upgrades.
The strategic focus centered on a centralized business model and high-quality fantasy miniatures, supported by the opening of 40 new retail stores and the addition of 600 trade accounts. Beyond core manufacturing, the company expanded its brand reach through the "Warhammer Story Forge" for animation and a development agreement for an *Eisenhorn* television series. While operating profit rose by 9%, gross margins saw a slight decline to 67.5% due to shifts in product and channel mix, and return on capital adjusted to 100% following substantial capital expenditures.
Corporate governance and workforce investment remained central to operations. The workforce grew to 2,110 employees, supported by the UK living wage and a discretionary £1,500 payment to all staff in recognition of exceptional performance. Executive remuneration also saw significant adjustments following external benchmarking, with CEO total pay rising to £1.077 million. Despite increased energy efficiency at headquarters, the company’s carbon footprint rose slightly to 5,240 tonnes of CO2e. Looking forward, the company maintains a strong balance sheet with £29.4 million in cash and no utilized borrowing facilities, confirming financial viability for the next three years while navigating potential economic uncertainties related to Brexit.
