FinancialGames Workshop Group
Half-Yearly Report: 2019-2020
9 Dec 201916 pages~46 min full read
Games Workshop achieved record financial performance for the six months ending December 1, 2019, with revenue rising 19% to £148.4 million and profit before taxation increasing to £58.6 million.
The Trade segment was a primary growth driver, recording a 27% sales increase and the addition of approximately 200 new accounts.
Royalty income doubled to £10.7 million, while operating profit grew significantly from £40.8 million in the previous year to £59.2 million.
The company maintained a high return on capital employed of 111%, supporting a dividend distribution of 100p per share and a cash position of nearly £33 million.
Basic earnings per share rose to 145.9p, supported by £60.4 million in net cash generated from operating activities despite £4.59 million in capital expenditure.
The adoption of IFRS 16 accounting standards resulted in the recognition of £33.6 million in right-of-use assets on the balance sheet.
Management identified Brexit as a primary external risk to EU trade and recruitment, though the company remains debt-free with mitigation plans in place for operational continuity.
Games Workshop achieved record financial performance during the six months ending December 1, 2019, characterized by a 19% increase in revenue to £148.4 million and a significant rise in profit before taxation to £58.6 million. This growth was primarily propelled by the Trade segment, which saw a 27% increase in sales and the addition of approximately 200 new accounts, alongside a doubling of royalty income to £10.7 million. Performance was particularly robust in North American markets and bolstered by the successful launch of the Citadel Colour paint range. The company maintained an exceptional return on capital employed of 111%, allowing for the distribution of 100p per share in dividends while sustaining a strong cash position of nearly £33 million.
The financial landscape of the period was also shaped by the adoption of IFRS 16, which integrated operating leases onto the balance sheet and resulted in the recognition of £33.6 million in right-of-use assets. Despite these accounting shifts and increased capital expenditure of £4.59 million, the group demonstrated high liquidity with £60.4 million in net cash generated from operating activities. Basic earnings per share rose to 145.9p, reflecting the overall increase in operating profit from £40.8 million in the previous year to £59.2 million.
Strategic focus remains centered on intellectual property exploitation and management quality as key internal drivers. While external uncertainties such as Brexit pose potential risks to European Union trade and recruitment, comprehensive mitigation plans are in place to ensure operational continuity. The combination of a debt-free balance sheet, seasonal sales peaks during the holiday period, and a growing global trade footprint reinforces a stable outlook for the remainder of the fiscal year.
