Games Workshop profit jumps but warns of tariff hit

Times

4 days ago

The business behind the Warhammer fantasy universe has reported a near-third jump in annual profit, although it warned of a possible £12 million hit from tariffs next year.
Pre-tax profit at Games Workshop came in at £262.8 million, up 30 per cent from £203 million the year prior and well ahead of the £255 million it had guided for in May. Revenue rose 14.2 per cent to £565 million, up from £494 million.
A record set of financial results continued the Nottingham-based business's stellar performance in recent years, which included elevation into the FTSE 100 last December. Shares in Games Workshop have skyrocketed in recent years amid huge demand for its miniature figurines and games, and its market cap now sits at more than £5 billion.
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However, the company did warn that tariffs could have an impact on its pre-tax profit figure for the 2025-26 financial year by about £12 million and reduce reported gross margins by 2 per cent. Games Workshop insisted it was 'business as usual', with little change to any operational plans as of today.
Shares in Games Workshop, which have risen more than 50 per cent over the past year, gained 4.6 per cent to £159.60.
There had also been some concern after the company announced in May it would be unlikely to repeat a record revenue haul from licenses in the new financial year, a warning that sent shares down about 3 per cent.
Licensing revenue rose from £31 million to £52.5 million in the year ended June 1, while licensing operating profit rose to £49.5 million from £27 million. Games Workshop said its licensing performance had been a 'nice surprise,' although this would be 'difficult to match' next year given its Warhammer 40,000: Space Marine 2 game performed well above expectations.
Kevin Rountree, the chief executive, 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.'
Founded in 1975 by three friends, John Peake, Ian Livingstone and Steve Jackson, Games Workshop employs around 1,500 people at its Nottingham hub, with 134 stores in the UK and more globally. It floated on the London Stock Exchange in 1994.