8th Dec 2021 09:28
(Alliance News) - Games Workshop Group PLC confirmed on Wednesday that trading since its last update in September has been in line with expectations.
The Nottingham-based games manufacturer and retailer guided pretax profit for the six months that ended November 28 of not less than GBP86 million, down 6.1% from GBP91.6 million in the previous year.
Games Workshop said it expects sales of not less than GBP190 million, a 1.7% increase from GBP186.8 million a year ago. The company cited for the rise the growth its trade and retail channels following the reopening of the majority of its retail stores.
Licensing income has more than doubled to GBP19 million from GBP8.7 million the previous year. Games Workshop said this was driven by significant computer game licensing deals with Tokyo-based video game publisher, Nexon Co Ltd, and other major licensees that it did not name.
Operating profit, pre-royalties receivable, is estimated to be down GBP15 million. Games Workshop reported an operating profit, pre-royalties receivable, of GBP83.3 million for the first half of financial 2021, the six months that ended November 29, 2020.
Games Workshop added that, excluding foreign exchange movements, increased carriage costs and the cost of paying more to its staff, its core operating profit is "broadly in line" with last year's performance.
As in the prior year, Games Workshop said it would pay GBP2,500 in cash to each employee under the group's profit share scheme in December to reward "exceptional contribution" to the company's performance. The scheme is expected to cost of GBP6.9 million, up from GBP6.2 million in 2020.
Games Workshop noted it declared 100 pence per share in dividends during the first half, up 25% from 80 pence a year before.
Shares in Games Workshop were down 5.9% at 9,180.10 pence on Wednesday morning in London.
By Heather Rydings; [email protected]
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