Profits soar at Games Workshop as fantasy model retailer battles back from slump
Games Workshop has battled back from a tough 2015 to post much-improved figures for the second half of last year, with revenues soaring and pre-tax profit more than doubling.
The Nottingham-based company, which is known for its model figures, saw profit before tax leap to £13.8m in the six months to November 27, compared to £6.3m for the same period in 2015.
Games Workshop also saw revenues jump 28.2pc from £55.3m to £70.9m, with chief executive Kevin Rountree saying the business and the hobby is in ”good shape".
The company's share price climbed nearly 5pc in early trading on Tuesday morning.
The retailer, which specialises in figurines of fantasy creatures such as aliens and goblins, exports to countries including Australia, Japan and the US.
After opening 17 stores (including relocations) and closing eight in the six-month period, it now has 460 shops across the world, including new stores in Singapore, Malaysia and Hong Kong.
The half-year results come after a challenging 2015, when it was hit by disappointing Christmas sales and a slowdown on the high street.
But the company announced in October that sales had been boosted by the weakening of the pound.
”Our business and hobby are in good shape," said Mr Rountree. ”We are pleased to report sales and profit growth in the period across all channels. The improvement was built on a considerable team effort across the business."
He added: ”The key priority in the period reported has been to give our store managers the appropriate product and sales support to help them recruit new customers, retain our existing customers and re-recruit lapsed customers. Recruiting new store managers remains a key area of focus."
Games Workshop also sells its intellectual property to video game developers. Royalties from these sales more than doubled in the half year compared to the same period in 2015, from £1.5m to £3.3m.
