Financial

Half-Yearly Report and Trading Update

1 January 201614 pages6,594 words

Summary

Games Workshop maintained a stable pre-tax profit of £6.3 million for the six months ending November 29, 2015, despite a 2.2% decline in reported revenue to £55.3 million. While constant currency sales saw a marginal increase of 0.7% and licensing royalties doubled to £1.5 million, core operating profit decreased by £0.8 million. This decline was primarily driven by unfavorable exchange rate fluctuations and increased capital investment in retail infrastructure. Performance across geographic segments remained mixed, with growth in Trade and Mail Order channels offset by a notable decline in Retail sales, particularly within Continental Europe. The financial position remains supported by a profit of £4.78 million attributable to owners and a slight increase in basic earnings per share to 14.9p. Net cash from operating activities rose to £8.57 million, though total cash and cash equivalents decreased to £7.8 million following the distribution of £6.4 million in dividends. Significant investment in intangible assets continued, with £3.57 million in new additions bringing the net book value to £9.41 million, while contracted capital expenditure commitments were reduced to £867,000. Despite the stable half-year results, a cautious outlook prevails following disappointing sales figures in December. Projections indicate that full-year pre-tax profit is unlikely to exceed £16 million. While the company continues to prioritize shareholder returns and operational investment, the immediate future is tempered by the volatility of the seasonal Christmas peak and the ongoing challenges of maintaining retail momentum in international markets.

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