Games Workshop dropped 28% to 235p this morning after issuing a profit warning. The Company said that despite sales progress in its core markets of the UK and Australia, and "promising" developments in the US, the overall group would be hit by a deterioration in sales in Continental Europe, particularly in France and Germany.
As a result of the poor trading in Europe, Games Workshop has initiated a cost cutting program which will see 35 store closures, a 10% reduction in full time staff and the reorganisation of back office, warehousing and manufacturing activities. The cost cutting program is expected to generate annual savings of £7 million, but will incur an exceptional charge of £6 million in the current financial year.
Due to the weakened position of the group, there will be no final dividend