19th Jun 2024 11:30
(Alliance News) - The long-term prospects at Games Workshop Group PLC look "compelling", an analyst on Wednesday said, after the company predicted further pretax profit and core revenue growth.
The Nottingham, England-based miniature wargames maker and retailer, best known for the Warhammer tabletop game, said it anticipates annual pretax profit in the year ended June 2 to jump at least 17% to GBP200 million from GBP170.6 million a year prior.
Core revenue is set to be at least 10% higher at GBP490 million compared to the previous year's GBP445.4 million.
Games Workshop shares jumped 7.7% to 10,164.40 pence each on Wednesday morning in London.
Peel Hunt said it was a strong performance with core revenue ahead of its forecast of GBP485 million.
Licensing revenue was GBP30 million, an increase from GBP25 million in the prior year, the broker noted, pointing out that royalties can be volatile given the timing of upfront payments and the success and launch timings of customer games.
The pretax profit forecast by the company was ahead of Peel Hunt's GBP190 million forecast.
Peel Hunt said the company has had an "excellent year with a strong product line-up" and that the long-term prospects continue to look "compelling" as the company expands its production.
Jefferies said it was a "robust" end to the year, resulting in another small upgrade to consensus, even if this was mostly driven by the lumpy licensing income line.
By Jeremy Cutler, Alliance News reporter
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