It’s been another red-hot year for Games Workshop. They’ve just released their mid-year statement, and things are up… way up!
GW just released their mid-year report on how successful they’ve been financially in their current year. Let’s take a look at the latest.
To make sure we’re on the same page, GW’s “year” technically ends mid-summer (July). So we are half-way through their financial year even though it’s the end of the normal calendar year for us.
With that being said, let’s take a look at where they left off last year (which again was this July 2018).
GW’s Financials Success: 2017-2018 Report
Take a minute and compare the two columns to each other. The bold column is the most recent. Just look at the growth in every section.
There’s been a healthy growth for the company as a whole. We began seeing evidence of this back when they announced a £5M bonus to its employees, and when they were the hottest stock on the London Exchange this time last year.
Percentage Growth Highlights
- Operating Profit (pre-exceptional items & royalties) +109%
- Operating Profit +95%
- Earnings per share: +95%
- Revenue: +39%
Again, this is when their 2017/18 financial year ended. Now, we are halfway through the 2018/19 financial year.
How successful are they? In short, very. Check it out.
GW’s Mid-Year 2018 Financial Report & Hobby Outlook
Coming from GW’s Investor Relations Page:
Games Workshop Group PLC announces a half year trading update for the six months to 2 December 2018. Preliminary estimates indicate sales of c. £124 million in the first six months of 2018/19 and an operating profit of c. £41 million. These results are in line with expectations for the year ending 2 June 2019 although the Board is aware that it is still early in the 2018/19 financial year.
These results show the Warhammer Hobby is in great shape in our core markets. We have built on the progress we made last year and the results are considerable given the backdrop of major projects; increasing factory capacity and ERP system implementation.
Games Workshop Group PLC announces that the Board has today declared a dividend of 30 pence per share, in line with the Company’s policy of distributing truly surplus cash. This will be paid on 25 January 2019 for shareholders on the register at 21 December 2018, with an ex-dividend date of 20 December 2018. The last date for elections for the dividend re-investment plan is 4 January 2019.
Within half a year, they’ve sold £124 million in merchandise and have already made £41 million in profit. They are even more successful than last year as they were topping London Stock Charts.
Preliminary estimates indicate sales of c. £109 million in the first six months of 2017/18 and an operating profit of c. £38 million for the period.
What does that mean for the hobby? It means that the bloodline to the game is stronger than ever before, which in turn, means a stronger support system. The parent company has been extremely successful after all of these different releases.
GW seems to be pushing the boundaries on new models/box sets and with their financial success evident, we can expect to see more great things head our way.
As a side-effect of their success, they also made a comment of increasing “factory capacity”. Meaning that we should see less and less “Out of Stock” items in the days ahead. This should be a warm welcome to those who have had to go through the ordeal of trying to get their hands on an older unit that became very good post-codex.
They also appear to be ramping up their ERP systems which should streamline their overall business management, and project capabilities, perhaps making the path to market for new release even shorter in the near future.
So overall despite a market warning and former CEO’s stock selloff, it looks like GW’s stock may be poised for a rise going into the new year, but there may be rough seas ahead for the market in general.
What are your thoughts on their success mid-year? Do you think sales will only be going up from here? Let us know in the comments of our Facebook Hobby Group.
About the Author: Rob Baer
Rob Baer
Job Title: Managing Editor
Founded Spikey Bits in 2009
Socials: Rob Baer on Facebook and @catdaddymbg on X
About Rob Baer: Founder, Publisher, & Managing Editor of Spikey Bits, the leading tabletop gaming news website focused on the hobby side of wargaming and miniatures. Rob has won many Warhammer 40k Tournaments over the years, including the Adepticon Team Tournament and American Team Tournaments, and is on a first-name basis with almost every major company in the space.
He’s all gaming all the time. With over 30 years of experience in retail and distribution, Rob knows all the products and exactly which ones are the best. He advocates for gaming stores and manufacturers in these difficult times, always looking for the next big thing to feature for the miniatures hobby, helping everyone to provide the value consumers want.
While he’s played every edition of Warhammer 40k and Warhammer Fantasy (since 5th Edition) and has been hobbying on miniatures since the 1908s, Titans of all sizes will always be his favorite! It’s even rumored that his hobby vault rivals the Solemnance Galleries, containing rulebooks filled with lore from editions long past, ancient packs of black-bordered Magic Cards, and models made of both pewter and resin.
