Profits leap at Games Workshop
By Sarah Wood | 29th July 2020
Profits at Games Workshop, the maker of fantasy war game miniatures, were up 10 per cent, despite the shutdown of the entire business for six weeks due to the coronavirus crisis.
Sales for the year to the end of May were up five per cent at £270m, while pre-tax profit was £89.4m, above the retailer's forecast of £85m, as reported by the Financial Times.
The company, which has War Hammer branded stores in Gloucester and Cheltenham, saw shares rise seven per cent yesterday (28th July). In total, they have increased 80 per cent over the past year.
Games Workshop said it hadn't needed to use additional banking facilities arranged at the start of the crisis, and that its balance sheet remained healthy throughout lockdown.
The Nottingham-based company makes three-quarters of its sales outside the UK. About a third of Games Workshops's sales are made through its own stores, with half coming from independent retailers and just under a fifth online.
It also receives significant royalty income, mostly from licensing Warhammer intellectual property to video game developers, which was up almost 50 per cent increased to £16.8m.
It is focused on expansion into North America and China once the effects of the pandemic have eased.
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