Games Workshop Group PLC (LON:GAW) shares surged on Friday after the Warhammer owner said its recovery following the reopening of its stores and manufacturing facilities had been “better than expected”.
In a trading update, the FTSE 250 firm said its warehouses were now operational and its factory was operating at a limited capacity to comply with social distancing requirements, while the group said it had reopened 306 of its 532 stores in 20 countries.
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As its sales channels had now reopened, the company said it estimated that its sales for the year ended May 31 2020 will be around £270mln, while its pre-tax profits will be “no less” than £85mln.
The group also said it “did not intend” to claim additional government subsidies and as of the end of May, it had a cash balance of around £50mln as well as a £25mln overdraft facility.
Looking ahead, Games Workshop said it was “too early to know what the continuing impact of [coronavirus] is likely to be”.
In a note, analysts at house broker Peel Hunt hiked their target price on the firm to 8,000p from 6,000p and retained their ‘buy’ rating, saying they expected the firm to “thrive post [coronavirus], with a material level of pent-up demand and growing interest in the hobby and the IP”.
The broker also highlighted a “pipeline of potential opportunities” for the firm including the launch of the latest edition of the Warhammer 40k range, an aminated series, continuing work on a TV series and licensing deals with a range of partners to develop video games.
Shares in the company jumped 7.3% to 7,615p in early deals.