Games Workshop Group PLC (LON:GAW) has said it will begin taking online orders from Friday as the wargaming figurine firm began to slowly restart operations in the shadow of the coronavirus pandemic.
The owner of Warhammer said in a trading update on Tuesday that it will also begin to make trade sales in Europe and North America, adding that a small number of its stores have re-opened in China, the Netherlands and Scandinavia in line with local social distancing measures.
Meanwhile, the company said while trading in the nine months to end of February was in line with expectations, the pandemic and subsequent store closures had impacted its performance, estimating that its pre-tax profit for the year ended 31 May 2020 will be “no less than £70mln”.
The firm also said it had agreed a £25mln overdraft facility with its bank for six months, with a potential six month extension, to meet its operational cash flow requirements.
In a note, analysts at house broker Peel Hunt upped their price target to 6,000p from 5,000p and retained their ‘buy’ rating, saying the company’s profit forecast was higher than their own estimates of £57.4mln, which had been based on a business closure until the end of June.
The broker also predicted that royalties for the group were “likely to be higher” than their forecasts and the cost reduction through the closure period greater than estimated.
Games Workshop shares surged 8.9% to 5,795p in early deals.