FinancialGames Workshop Group
Half-Yearly Report: 26‑Week Period to 27 November 2022
1 Jan 202320 pages~54 min full read
Games Workshop achieved record core revenue of £212.3 million for the 26-week period ending November 27, 2022, marking a 10.9% increase year-over-year.
See it on page 1Profit before tax declined to £83.6 million from £88.2 million, driven by a drop in licensing income to £14.3 million and rising operational costs for materials, carriage, and staff.
See it on page 18Gross margins fell by 4.5% to 64.1% due to global inflationary pressures, despite strong performance in trade channels and retail recovery in the UK and Europe.
See it on page 4The company invested heavily in infrastructure, including a £4.9 million webstore platform upgrade and expanded manufacturing facilities in Nottingham.
See it on page 7Management secured a preliminary agreement with Amazon Studios to explore media opportunities as part of a broader strategy to expand intellectual property.
See it on page 9The business maintains a strong liquidity position with £85.2 million in cash, supporting a dividend distribution of £54.2 million at 165p per share.
See it on page 4Games Workshop achieved record core revenue of £212.3 million during the 26-week period ending November 27, 2022, representing a 10.9% increase over the previous year. This growth was primarily driven by robust performance in the trade channel and a recovery in retail across the United Kingdom and Europe, even as online sales experienced a marginal decline and North American retail remained flat. Despite this top-line success, total profit before tax fell to £83.6 million from £88.2 million in the prior year. This contraction was largely attributed to a significant decrease in licensing income, which dropped to £14.3 million, alongside rising operational costs for materials, carriage, and staff investments.
The financial landscape was further characterized by a decline in constant currency gross margins, which fell by 4.5% to 64.1% due to global inflationary pressures. To mitigate long-term risks and support future growth, significant capital was directed toward infrastructure, including expanded manufacturing facilities in Nottingham, a new sales office in Barcelona, and a major £4.9 million webstore platform upgrade. Strategic focus remains centered on global intellectual property expansion, highlighted by a preliminary agreement with Amazon Studios to explore media opportunities.
The Group maintains a strong liquidity position with £85.2 million in cash and cash equivalents, allowing for the distribution of £54.2 million in dividends at 165p per share. While basic earnings per share decreased to 202.4p and the effective tax rate rose to 20.5%, the business remains a stable going concern. Management continues to monitor strategic risks involving IT infrastructure, intellectual property protection in media, and potential organizational complacency while navigating a complex macroeconomic environment.
