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Games Workshop H1 profits rise, special divi announced

By Michele Maatouk

Date: Tuesday 15 Jan 2019

Games Workshop H1 profits rise, special divi announced

(Sharecast News) - Games Workshop posted a jump in first-half revenue and profit on Tuesday as it declared a special dividend.
In the six months to 2 December, revenue rose to £125.2m from £109.6m while pre-tax profit increased 7% from the same period a year ago to £40.8m. Basic earnings per share pushed up to 100.8p from 96p and Games declared a special dividend of 25p per share.

The company saw sales and profit growth across its retail and trade channels, while its online channel continues to be in line with last year.

Despite the solid first-half performance, Games said its gross margin and stock levels are not currently where it would like them to be as it moves to complete a series of major investment projects.

"We're looking forward to our new Nottingham factory and ERP projects completing, allowing us to fully optimise our Nottingham site. From there, we'll begin to upgrade our warehousing capacity in both Memphis and Nottingham. These further investments will help us maintain our current volumes, increase efficiencies, and give us good scope for sales growth in the future," it said.

Chief executive officer Kevin Rountree said the business and the Warhammer Hobby continue to be "in great shape".

"We have remained true to our long-term strategy, and once again delivered on our promise to produce and sell the best fantasy miniatures in the world, while engaging and inspiring our fans. We continue to strive to make the Warhammer hobby ever better. Exciting times."

He added that trading in December remained in line with the sales performance in the first half.

At 0820 GMT, the shares were up 0.3% to 3,159.80p.

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