Heroic run for Games Workshop shares comes under fire

PROFITS are sliding at Games Workshop but the enthusiasm among devotees for its main product – Warhammer figurines – remains heroic.

The miniature army action men who do battle with aliens and orcs in the future are in their 35th-year, about the same age as many of the fans.

The shares have been on their own epic quest, up ten-fold in five years, a victory mission of which a Space Marine would be proud.

Today the stock retreated 300p to 9450p in the face of hostile fire, but that still leaves the business valued at a magical £3.1 billion.

For the year to November sales dipped a little to £191 million, while profits were off by £3.4 million to £88.2 million. That hasn’t stopped the wargame generals from paying a dividend of 100p, up from 80p.

Kevin Rountree, CEO of Games Workshop, said: “We have proven once again that the Warhammer hobby creates exciting experiences and allows people around the world to come together and have some fun.”

Analysts are worried about supply chain problems and rising costs for freight, shipping and warehouse – logistical problems that face all Warhammer players.

The cash position also took a body blow from £15.1 million worth of outstanding VAT receipts following Brexit.

Gemma Boothroyd at Freetrade thinks the warriors have a tactic. She said: “Games Workshop doesn’t only control the design, creation and distribution of its video games, it owns the stores selling them too. That can mean risky business if one part of the supply chain goes awry. In the same breath, vertical integration can be an opportunity if a firm manages problems astutely when they arise.”