Games Workshop cheers record year but faces £12m US tariff hit
Shares in the company swung higher on Tuesday morning, as investors were buoyed by surging sales.
The Nottingham-based company jumped into the FTSE 100 last year after growing global trade helped to drive a rise in the firm's value.
Games Workshop saw North American sales rise 14.6% to record levels of £51.7 million for the year to June, as it benefited from more store openings over the year.
However, the company cautioned that it could face higher costs because of new tariff plans from US President Donald Trump's administration.
'Our current estimate is that if we did nothing, new tariffs could impact profit before tax by around £12 million in 2025/26,' the company said.
It said it plans to deal with the issue in its 'normal pragmatic way' and will not change its operational plans 'too much'.
Tariff costs are likely to reduce its gross profit margins by around 2% for the year, but the company said it expects to recoup this through efficiencies.
It came as Games Workshop revealed that revenues lifted by 14.2% to £565 million for the year, amid strong demand for core Warhammer 40,000 products and through its licensed IP.
Meanwhile, pre-tax profits jumped by almost a third to £262.8 million for the year from £203 million a year earlier.
The company opened 30 new stores over the past year and shut eight sites to leave it with a portfolio of 570 stores globally.
Kevin Rountree, chief executive of Games Workshop, said: 'After a record year, we remain focused on delivering our operational plans and working tirelessly to overcome any significant obstacles that get in the way.
'We will continue to give ourselves the freedom to make some mistakes, constantly working on improvements in product quality and manufacturing innovation.
'Despite our recent successes we will never take our hobbyists' support for granted.'
Shares in the company were 5% higher as a result.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
19 minutes ago
- Reuters
US equity funds see sharp outflows on tariff caution, economic concerns
Aug 8 (Reuters) - U.S. investors divested riskier equity funds and significantly invested in the safety of money market funds in the week through August 6, spooked by President Donald Trump's new trade tariffs and discouraging economic readings. They pulled out a net $13.7 billion from U.S. equity funds in their largest weekly sales since June 25 while channeling a net $78.85 billion - the largest amount since December 4 - into money market funds, LSEG Lipper data showed. "Our base case remains that the U.S. effective tariff rate will settle at around 15% - enough to weigh on growth and lift inflation, but not enough to derail the U.S. economy or the equity rally," said Mark Haefele, Chief Investment Officer at UBS Global Wealth Management. "We expect near-term volatility to continue, but think investors should stick to their longer-term financial plan." The small-cap equity funds segment suffered the biggest weekly net sales since December 18, to the tune of approximately $5.2 billion. Large-cap and mid-cap funds meanwhile had a net $7 billion and $1.71 billion in weekly disposals. Sectoral funds were, however, net recipient of $806 million worth of weekly inflows with communication services and industrials leading the way, securing a net $1.17 billion and $586 million, respectively in inflows. Weekly net investments in bond funds, meanwhile, jumped to a 11-week high of $7.39 billion during the week. The short-to-intermediate investment-grade funds, short-to-intermediate government and treasury funds, and municipal debt funds attracted a massive $3.22 billion, $2.43 billion and $1.66 billion, respectively in net investments.
Reuters
21 minutes ago
- Reuters
Gold futures climb to fresh record after report of US tariff move
Aug 8 (Reuters) - U.S. gold futures surged to a record on Friday after a report that Washington has imposed tariffs on imports of 1-kg bullion bars, widening the spread between New York futures and spot prices. December U.S. gold futures were up 0.7% to $3,476.70, after hitting a record $3,534.10. Spot gold was down 0.3% at $3,386.63 per ounce as of 1151 GMT. Bullion is on track for a second straight weekly gain, up 0.7% so far this week. The futures-spot spread widened to more than $100 after the Financial Times reported that the United States had imposed tariffs on imports of 1-kg gold bars, citing a July 31 Customs and Border Protection letter. The letter said 1-kg and 100-ounce gold bars should be classified under a customs code subject to higher duties. "Given the volatility of U.S. trade-related decision-making, it is difficult to make longer-term predictions, but assuming a scenario in which tariffs remain in place ... one would expect spot prices to be affected and to rise, narrowing the spread relative to the futures," said Ricardo Evangelista, senior analyst at ActivTrades. Switzerland is the world's largest gold refining hub and the major exporter to the United States. U.S. President Donald Trump's higher tariffs on imports from dozens of countries kicked in on Thursday, leaving major trade partners such as Switzerland, Brazil and India hurriedly searching for a better deal. "All developments ... for now solidify the London spot price as the most reliable source telling us what the real value of gold is," said Saxo Bank's head of commodity strategy, Ole Hansen. "Spot prices remain stuck in a range since April, with a break above $3,450 needed to change that." Gold, a traditional safe-haven asset, is also drawing support from expectations that the Federal Reserve will cut interest rates next month. Weaker U.S. payroll data last week pushed CME Group's FedWatch Tool, opens new tab to price in an 89% chance of a 25-basis-point cut in September. Elsewhere, spot silver was steady $38.31 per ounce, platinum fell 0.5% at $1,326.91 and palladium was down 2.3% at $1,124.93.
Reuters
21 minutes ago
- Reuters
Bank of England's Pill sees risks that could slow pace of rate cuts
LONDON, Aug 8 (Reuters) - Bank of England Chief Economist Huw Pill said on Friday that inflation pressures were likely to continue weakening, but there was a risk that future rate cuts could be delayed by shifts in longer-term price- and wage-setting behaviour in the economy. "If that's more the driver of this increase in the upside risk to inflation, that might lead us to ... have to question whether the pace at which we're reducing Bank Rate over the last year, a pace of one quarter-point cut every quarter, is that sustainable?," Pill said in an online briefing to businesses. "I think that's kind of where more of the dissenting members focus, the members of the committee who were voting ultimately to hold rates at 4.25% yesterday," he said. The BoE cut its benchmark Bank Rate to 4.0% from 4.25% on Thursday but Pill and three other Monetary Policy Committee members favoured keeping rates on hold due to inflation pressures, resulting in an unexpectedly tight 5-4 vote. The outcome raised the prospect of the BoE slowing its run of rate cuts. Investors are not fully pricing in a next quarter-point reduction before February.
