Games Workshop Group PLC (LSE:GAW) reported a drop in interim profits, despite a rise in revenues, hit by a fall in licensing operating profits.
The manufacturer of miniature wargames said in the 26 weeks to 27 November 2022 revenue rose to £226.6mln from £211.6mln, but pre-tax profits fell to £83.6mln from £88.5mln.
Licensing revenue fell to £14.3mln from £20.1mln, meaning licensing operating profits declined to £12.9mln from £18.8mln.
The company said it was “another record half year sales performance led by a great recovery in all channels in Australia, Canada and the UK”, but “it isn't where we wanted to be, particularly in the US”.
It also highlighted issues on the IT side. “Our global projects continue to be delayed - it remains an ongoing challenge to integrate new IT systems when we are still heavily reliant on working with our legacy IT systems,” the group stated.
Despite managing operating costs “exceptionally well”, core gross margin at actual rates fell 4.3% and Games Workshop said it continues to face external cost pressures.
The group also said “we are not planning any share buybacks or acquisitions”.
The company added a 100p payout to the 165p dividend already declared during the half-year taking the dividend year to date to 295p, up from 165p.
Kevin Rountree, CEO, said: "Games Workshop and the Warhammer hobby are in great shape.
"Another rewarding and successful period for the global team with core sales for the six months of over £200 million for the first time. We will continue to focus on making the best miniatures in the world, sign new licensing contracts with partners to exploit our IP outside of our core business and support our staff."