Latest news with #Warhammer
Times
8 hours ago
- Business
- Times
Games Workshop profit jumps but warns of tariff hit
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. • Market turmoil drives profit surge at Barclays 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.
Yahoo
11 hours ago
- Business
- Yahoo
My favourite UK stock rose 5% today and topped the FTSE 100 index!
Of all the stocks in the FTSE 100 index, Games Workshop (LSE: GAW) is my favourite. This choice is made easier when the share price is up 107% in three years, and continues to make money in my portfolio. Games Workshop stock rose again today (29 July), up 5.7% to 16,140p. In 10 years, the Warhammer maker has returned around 2,700%, not including cash dividends (of which there have been plenty). Let's take a look at why this FTSE 100 outperformer is on the move right now. A cracking year Games Workshop has just published its full-year results, covering the 52 weeks to 1 June (FY25). The headline news was that pre-tax profit rose nearly 30% year on year to £262.8m. This comfortably matched prior guidance of 'not less than £255m.' That was on revenue of £617.5m, up 17.5%. Immediately, we can see with these figures why many investors love the miniature wargames maker. It's very, very profitable, with eye-catching margins. Licensing revenue jumped 69% to £52.5m, as video game Space Marine 2 performed well above expectations. This highlights how the firm is successfully monetising its treasure trove of intellectual property to bring in high-margin revenue. Management says it will look to release more Warhammer 40,000 games, as well hunt for partners to bring its Age of Sigmar setting and characters to console, PC and mobile. CEO Kevin Rountree commented: 'Games Workshop and the Warhammer hobby are in great shape. A cracking performance by the team delivering some cracking results: core business profit before tax of over £200m from sales of Warhammer products for the first time and the best financial results in Games Workshop's history, so far.' Licensing lumpiness Warhammer IP is rich, vast and endless…Our strategy is to exploit the value of our IP beyond our core tabletop business, in multiple categories and markets globally. Now, one thing worth mentioning is that the licensing revenue figure may be hard to top this year. This points to a bit of IP lumpiness, which might cause volatility in the share price. And while a deal with Amazon for the adaptation of Warhammer 40,000 universe into TV content is now signed, management cautions that 'these things take several years to bring to market'. Elsewhere, the company said it could take around a 2% hit on the gross margin this year due to tariffs. It's trying to make up the shortfall through efficiency savings, but it warns that 'this is not a simple task when we are already very efficient'. A slight disappointment for me was that its three stores in China are now under review. If Warhammer had taken off there, the growth opportunity could have been vast. However, you can't win them all, and most countries are still delivering strong growth, including Japan (where retail sales rose 25.9%). Games Workshop ended the period with 570 stores. This year, it aims to open another 35 or so in North America, Europe and Asia (including its first Warhammer store in South Korea). Foolish takeaway While the company continues to impress and could be worth considering, the stock isn't cheap, trading at nearly 30 times forward earnings. Investors researching Games Workshop should be mindful of the valuation. Personally though, I intend to keep holding my shares for many years to come. The post My favourite UK stock rose 5% today and topped the FTSE 100 index! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Ben McPoland has positions in Games Workshop Group Plc. The Motley Fool UK has recommended Amazon and Games Workshop Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
The Independent
13 hours ago
- Business
- The Independent
Games Workshop cheers record year but faces £12m US tariff hit
Warhammer maker Games Workshop has cheered a record year thanks to the continued popularity of its table-top games but warned that US tariffs could wipe £12 million off its profits. 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.
Daily Mail
14 hours ago
- Business
- Daily Mail
Games Workshop to open new stores in US, Europe and Asia this year after Space Marine 2 success
Games Workshop is plotting dozens of new store launches around the world after the Warhammer creator's profits were supercharged by the launch of 'Space Marine 2'. The group cheered a record 2025 on Tuesday with pre-tax profits soaring by nearly 30 per cent to £262.8million, beating guidance of £255million, as sales jumped 19.6 per cent on a constant currency basis to £628.7million. It came as licencing revenues jumped from £31million to £52.5million after Warhammer 40,000: Space Marine 2, a third-person shooter video game launched last year, performed 'well above' the group's expectations with seven million copies sold. Games Workshop is best known in the UK for its tabletop miniatures and high street stores across the country. But it has increasingly moved into video games and books, and a film and TV deal with Amazon that was finalised last December and is expected to be fronted by Superman actor Henry Cavill. Games Workshop cautioned that the next 12 months would suffer tough comparisons owing to the success of Space Marine 2, while the group thinks tariffs could impact profit before tax by around £12million. It said tariffs would be 'dealt with in our normal pragmatic way'. Nevertheless, Games Workshop outlined plans to boost manufacturing capacity and said it aims to open around 35 new stores globally over the next year. These are set to be focused on North American, continental Europe and Asia. The Nottingham-based firm's chief executive Kevin Rountree, CEO 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.' Games Workshop declared and paid dividends worth 520p per share last year, up from 420p in the previous 12 months. Games Workshop shares were up 5.6 per cent to 16,110p approaching midday, having more than doubled over the last three years.
Yahoo
15 hours ago
- Business
- Yahoo
Games Workshop's annual profit soars on flagship Warhammer game sales
By Yamini Kalia (Reuters) -British miniature wargames maker Games Workshop on Tuesday posted a nearly 30% jump in annual pre-tax profit, thanks to robust sales of its flagship Warhammer 40,000 game. The company, known for its premium, in-house produced fantasy miniatures, has built a cult-like following for Warhammer, which has expanded into video games, books and a film and TV deal with Amazon that was finalised last December. The flagship science-fantasy universe will be brought to screens via a live-action series from Amazon Studios. Henry Cavill, the British actor who played Superman and is a fan of Warhammer, has said he will be involved in the project. Games Workshop's Space Marine 2 video game, released last September, has also been a commercial success with more than 7 million copies sold. Games Workshop reported pre-tax profit of 262.8 million pounds ($350.79 million) for the year ended June 1, up from 203 million pounds the year before. Shares of the company were up 4.1% at 15,880 pence by 0816 GMT. "We have been pretty solid during the year managing our cash costs and investments," the company said in a statement. "The exception was the news about tariffs and the cute looking pipistrelle bat that is delaying our work on our new temporary car park," it added. The Nottingham-based games designer forecast a tariff impact of about 12 million pounds on its pre-tax profit in the current fiscal year and a 2% impact on gross margin in the following year. However, Games Workshop said it was "business as usual" for the firm, which already has a U.S. corporate entity and is investing in its Memphis base. Peel Hunt analysts expect the company's strong performance to continue, despite its vulnerability to tariffs, a stronger pound and a tough comparative period due to the exceptional success of Space Marine 2 last year. ($1 = 0.7492 pounds) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
