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Games Workshop shares on the up after solid first half trade

The tabletop wargaming firm said the results show the Warhammer hobby is in great shape in its core markets
Games Workshop shares on the up after solid first half trade
Games Workshop will publish its first half results on 15 January 2019

Games Workshop Group PLC (LON:GAW) said tabletop wargaming remained popular with punters as it predicted that first-half sales and profits would be in line with expectations, boosting its shares.

The gaming company said on Friday that it expects sales to be around £124mln in the first six months of 2018/19 with operating profit likely to come in at some £41mln – in line with its view.

READ: Games Workshop keeps shareholders in the dark about "uncertainties" ahead

“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 said in a statement.

The company declared a dividend of 30p per share, in line with its policy of distributing truly surplus cash.

Games Workshop will publish its half-year results for the six months to 2 December 2018 on 15 January 2019.

Peel Hunt analysts said the company had delivered a “stellar result”.

“This puts the company well on track to meet our full-year forecast of £68mlm pretax profit. We expect second half sales to be higher than last year but profits to be lower due to lower gross margin (mix and capacity expansion) and higher operating costs (new openings, investment and higher wages),” the analysts said in a note to clients.

Shares in the company were 5.5% up at 3,160p in early deals.

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