Business is booming for Games Workshop right now, but now it seems they’re having an even hard time keeping up with production. What does this mean for us?
In a trading statement that was put out yesterday, Games Workshop announced sales and profits to date were still well above where they were this time last year.
Following on from the Group’s update in September, sales to date have continued strongly. Given the high operational gearing of the business, any movement in sales is directly reflected in profits. Sales and profits to date therefore continue to be well above the same period in the prior year.
So, with that announcement we were a little curious to see by just how much they were actually up. The stock chart on the Financial Times was impressive to say the least.
This is the highest Games Workshop stock has ever been in recent times, and it had a significant spike recently. They stated that “any movement in sales is directly reflected in profits” which could help explain the sudden spike.
But, more sales means more production. Do they really have the ability to keep up with the sudden increase in demand? Let’s take a look at one of the latest rumors that appeared over on TGA that was posted by MightyMetro.
A message was recently posted on facebook by my local games store in Korea.
While referring specifically to large models such as baneblades etc, it may go some way to explain why aos hasnt seen a heap of new models recently.
Google translates the message as:
We will provide you with information on large model arrival with many inquiries recently. At present, Games Workshop is in short supply of all products due to high demand. As we announced earlier this year, we have expanded the existing 12 injection machines to 15 units. However, after the launch of Dark Imperium, it is difficult to keep up with the volume of orders. In the case of large models such as Vane Blade / Storm Wave, it takes about four times the production time of general models because it uses slide molds, which take a long time for mold replacement and injection before and after production. Therefore, for the smooth production of other products, these products are temporarily discontinued. GW currently has three more injection machines, but has failed to start because of the dangerous consumption of Lenton’s power plant at its headquarters, and in February 2018, scheduled to upgrade local transformers and power grid systems in the city of Nottingham It is not possible to use the facility until. Therefore, large models may resume production in the first half of 2018. However, due to increased orders, the schedule may be further delayed. Thank you.
Since the release of 8th edition the demand for Warhammer products and minis has jumped significantly. To help with the demand, according to this rumor, they have brought in 3 more injection machines. The new machines have failed to start because of the “dangerous consumption” levels of power from Lenton’s Power Plant, which is where the GW factory gets their power from.
The rumor also stated that larger models use slide molds and take a little longer to produce, so the production on large models might resume production in the first half of 2018. But, due to increased orders, it may be delayed even further.
Games Workshop had a factory in Memphis, Tennessee and moved production back to England in 2013. As a result, this ended up causing a lot of shortages with the Tau releases in 6th edition. Could we be seeing Games Workshop re-opening that factory to help meet the demands of the customer? We’re sure their team is working on a solution for their production problems, but they have a lot of plans for future releases as well.
If they’re already having a hard time keeping up with the current demand, how are they going to keep up with future demand of new products?
What do you think about the latest production/power problems GW is experiencing? Can we expect them to bounce back with ease? Or is this going to take some time?
Latest 8th Edition News & Rumors from Games Workshop
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