Half-Yearly Report: Six Months to 28 November 2021

Summary

Games Workshop achieved record sales of £191.5 million during the six months ending November 28, 2021, representing a 3% increase over the previous year. This growth was primarily driven by robust performance in the trade and retail segments, which grew by 8% and 17% respectively at constant currency, alongside a significant rise in licensing royalties to £20.1 million. The period was marked by the successful launch of the Warhammer+ subscription service and the most successful fantasy release to date with Warhammer Age of Sigmar. However, online sales experienced a 10% decline as consumer behavior shifted back toward independent retailers and physical storefronts following the height of the pandemic. Despite the rise in revenue, profit before tax decreased slightly to £88.2 million from £91.6 million in the prior year. This contraction was largely due to macroeconomic headwinds, including £2 million in additional Brexit-related shipping costs, raw material inflation, and increased staff expenses. Operational challenges were further compounded by a decrease in net cash from operating activities to £76.5 million, influenced by a £32.0 million increase in trade receivables and outstanding European VAT receipts. To mitigate these pressures and ensure long-term scalability, the company is investing £6 million in web store infrastructure and expanding manufacturing capacity with 43 active injection moulding machines. The financial position remains secure with £88.6 million in cash and a continued commitment to shareholder returns, evidenced by dividends totaling 115 pence per share declared during the period. Management continues to prioritize the global production of miniatures and the protection of intellectual property as it expands into broader media. While COVID-19 uncertainties and logistical delays persist, current trading remains aligned with expectations. The company is also formalizing its social responsibility and climate initiatives under new senior leadership to ensure sustainable growth as it navigates the evolving global retail landscape.

Tags

Citation