Games Workshop shares slump despite sales surge over lockdown
Games Workshop shares slipped today despite the gaming and miniature figures retailer recording a spike in sales as Brits got on its ware to relieve lockdown.
The Nottingham-based firm’s pre-tax profits surged 69 per cent, hitting nearly £151m in the year to 30 May.
Revenue rose 31 per cent to £353m due to a hike in online sales and trade, although most 523 retail stores across the world were forced to close during the pandemic temporarily.
The FTSE 250-listed company’s result was in line with forecasts that had already been racheted up, so the numbers were not good enough for some investors to hold onto shares, with the price slipping by as more than six per cent this afternoon.
“After a tough year we are delighted that the Warhammer hobby and Games Workshop are in great shape,” said Kevin Rountree, chief executive of Games Workshop.
Games Workshop, most famous of its tabletop wargame Warhammer 40,000, earlier announced to reward its staff £10m more in bonuses for their “exceptional performance in helping to increase our profitability significantly”, while bonuses to senior management team were £1.1m.
The company is now shifting its focus on the market in China, as the firm has received the product safety regulation by the Chinese authorities and registered over 750 products in the country.
“Due to some cross border delays with customs clearance, they have not all been on sale in the country just yet. We hope to have them all on sale soon,” said Rountree.
The firm plans to open a Warhammer cafe in Shanghai and set up a Chinese translation team to capture the massive market.