Games Workshop shares jump as Warhammer creator predicts rising profits
Games Workshop’s shares climbed steeply today following a forecast of rising profits after a strong start to the year.
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In a trading statement the games and figurine company said it expected profit before tax for the year ending 2 June to be around £80m, compared to a figure of £75m for the same period a year earlier.
Shares in Games Workshop, which is best known for creating and selling tabletop game Warhammer, rose 11 per cent this morning and stood at 369p just before 11.30am UK time.
The company also announced a dividend of 35p per share to be paid in May, taking the total dividend for the year ending 2 June to 155p. This marks an increase of 18 per cent on the dividend of 126p per share paid out in the same period a year earlier.
AJ Bell investment director Russ Mould said: “It is hard to ignore the successful niche the company is ploughing.”
“Fresh from a slightly disappointing set of half year results in January the company is back in the game with today’s news of a higher than previously guided profit for the full year,” he said.
He added: “The company is boosted by new licensing income as it taps into the power of its brands, of which Warhammer is the most popular.”
In its half year results posted in January, Games Workshop said it received £4m of royalties in cash in the six months to 2 December 2018, compared to £2.8 million in the same period a year earlier.
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Kate Heseltine, analyst at Edison Investment Research, said Games Workshop was “vindicated in its focus on international multi-channel expansion, customer engagement and product innovation alongside its openness to exploring ways in which to leverage its rich intellectual property to generate royalty income”.