FinancialGames Workshop Group
Half-Yearly Report: 26 Week Period to 26 November 2023
22 Jan 202420 pages~53 min full read
Games Workshop achieved record financial performance for the 26-week period ending November 26, 2023, with revenue rising 9.3% to £247.7 million and profit before tax reaching £95.2 million.
Core business revenue grew 11%, driven by the launch of the latest Warhammer 40,000 core set and a 12.6% increase in trade sales.
Operational efficiency improved as core gross margins rose to 69.4% from 64.2%, aided by lower logistics costs and reduced inventory provisions.
Digital infrastructure investment of £10.8 million resulted in a 66% increase in active 'My Warhammer' users, totaling 576,000.
The company maintains a strong liquidity position with £111.3 million in cash equivalents, enabling a dividend distribution of 195p per share.
Licensing revenue declined to £12.1 million due to lower guarantee income, despite the company securing a landmark film and television development agreement with Amazon.
Basic earnings per share grew to 216.9p, even with an increased effective tax rate of 25% following UK statutory hikes.
Games Workshop achieved record financial performance during the 26-week period ending November 26, 2023, characterized by significant growth in both revenue and profitability. Total revenue reached £247.7 million, a 9.3% increase over the previous year, while profit before tax rose to £95.2 million. This success was primarily driven by the core business segment, which saw an 11% rise in revenue fueled by the successful launch of the latest Warhammer 40,000 core set. Trade sales led this growth with a 12.6% increase, supported by record retail performances across the United Kingdom and North America.
Operational efficiency improved markedly as core gross margins rose from 64.2% to 69.4%, a result of reduced inventory provisions and lower logistics costs. While the core business thrived, licensing revenue experienced a slight decline to £12.1 million due to lower guarantee income, though the period was highlighted by a landmark development agreement with Amazon for film and television projects. Digital engagement also saw a sharp uptick, with active "My Warhammer" users increasing by 66% to 576,000 following a substantial £10.8 million investment in webstore infrastructure.
The financial position remains robust, with cash generated from operations rising to £116.9 million and cash equivalents reaching £111.3 million. This liquidity supported a dividend distribution of 195p per share, totaling £64.2 million. Despite an increased effective tax rate of 25% following UK statutory hikes, basic earnings per share grew to 216.9p. Looking forward, the company is expanding its global manufacturing and warehouse capacity while accelerating its carbon reduction initiatives ahead of the original 2032 schedule, maintaining a strong outlook across its primary markets in Europe and North America.
