Games Workshop Group PLC reported significant growth for the six months to November 27, 2016, with total revenue increasing to £70.9m from £55.3m in the prior year, and operating profit more than doubling to £13.8m from £6.2m.
02
Profit before tax for the period surged to £13.8m, up from £6.3m in the previous year, while basic earnings per share more than doubled to 34.0p from 14.9p.
03
The company experienced sales and profit growth across all channels, with Trade revenue increasing to £29.3m (actual rates) from £22.4m, Retail to £29.2m from £21.5m, and Mail Order to £12.4m from £11.4m.
04
A change in accounting estimates for amortisation of development costs and depreciation of moulding tools, effective May 30, 2016, positively impacted operating profit by £0.8m for the six months to November 27, 2016.
05
Cash generated from operations saw a substantial increase, rising to £19.6m from £8.6m in the comparable period, and dividends per share declared increased to 25p from 20p.
06
Royalty income from licensing significantly increased from £1.5 million to £3.3 million, contributing to the overall profit growth.
07
Key risks identified for the remainder of the year include ERP change, store manager recruitment, supply chain changes (mail order warehouse system), range management, and general distractions.
Insights
01
Games Workshop Group PLC reported significant growth for the six months to November 27, 2016, with total revenue increasing to £70.9m from £55.3m in the prior year, and operating profit more than doubling to £13.8m from £6.2m.
02
Profit before tax for the period surged to £13.8m, up from £6.3m in the previous year, while basic earnings per share more than doubled to 34.0p from 14.9p.
03
The company experienced sales and profit growth across all channels, with Trade revenue increasing to £29.3m (actual rates) from £22.4m, Retail to £29.2m from £21.5m, and Mail Order to £12.4m from £11.4m.
04
A change in accounting estimates for amortisation of development costs and depreciation of moulding tools, effective May 30, 2016, positively impacted operating profit by £0.8m for the six months to November 27, 2016.
05
Cash generated from operations saw a substantial increase, rising to £19.6m from £8.6m in the comparable period, and dividends per share declared increased to 25p from 20p.
06
Royalty income from licensing significantly increased from £1.5 million to £3.3 million, contributing to the overall profit growth.
07
Key risks identified for the remainder of the year include ERP change, store manager recruitment, supply chain changes (mail order warehouse system), range management, and general distractions.