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Games Workshop profits flat but above guidance after 'astonishing year'

Profit was just below flat on a year earlier despite a 5.6 percentage point decline in gross margin amid stock provisions, elevated freight costs and staff cost inflation

Games Workshop Group PLC (LSE:GAW) said more Warhammer tabletop gaming miniatures were sold in its past year than any previous period, with final results in line with expectations and guidance.

Revenue of £387mln was generated in the 52 week period to 29 May 2022, up from £369.5ln a year ago and versus guidance that it would be "not less than £385mln".

Profit before tax came in just below flat at £157.1mln, versus £157.7mln the year before, with the company having guided to "not less than £155mln".

This was with a 5.6 percentage point decline in gross margin, impacted by one-off stock provisions, elevated freight costs and staff cost inflation as it recently awarded another £10mln in bonuses to staff.

GAW pushed through around 5% average price increases in the year to offset these headwinds as email subscriber numbers rose 39%.

Chief executive Kevin Rountree said: "It's been another astonishing year. I once again take great comfort that some things don't change - our staff and customers love Warhammer."

Analysts at Jefferies said it was: "A robust set of numbers, and an upbeat outlook – ‘Its been another astonishing year. We look forward with a great deal of confidence’. Management states again that it plans to grow in every major country and via all 3 sales channels; 20 new stores are planned to be opened this year (US 15, EU 5). Perhaps demonstrating the confidence, a 90p dividend has been announced, ahead of the 40p this time last year.

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