Games Workshop shares jump after sales and profits soar
Games Workshop has seen its shares jump higher after telling investors that sales and profits are set to surge for the first of the year.
The retailer said it expects sales for the six months to December 1 to be at least £140 million.
During the six-month period to December in 2018 the retailer posted revenues of £125.2 million and has seen sales continued to increase since.
The Nottingham-headquartered firm added that it expects its pre-tax profits for the period to be at least £55 million.
Over the equivalent period last year, it posted profits of £40.8 million but expects the rise on the back of improving sales.
In a statement to investors, the company said: “Following on from the group’s update in September, trading to November 3 has continued well.
“Compared to the same period in the prior year, sales and profits are ahead.
“Royalties receivable are also significantly ahead of the prior year driven by the timing of guarantee income on signing new licences.”
The Warhammer manufacturer has seen its shares rise by 700% over the past three years and now has a market value of over £1.4 billion.
Russ Mould, investment director at AJ Bell, said: “While it isn’t entirely immune from any economic downturn and the negative effects that might have on consumer spending, there is a sense that Games Workshop is currently enjoying a sweet spot whereby it is offering products which appeal to its end-market and in an engaging way.
“Games Workshop has fine-tuned its proposition and hit on a winning formula.
“The fantasy world seems less susceptible to going in and out of fashion and that should enable the company to keep delivering the magic.”
Shares in the company rose by 15.4% to 5,200p in early trading on Friday.