Games Workshop’s Soaring Success
Games Workshop, the renowned creator of Warhammer 40,000, continues its remarkable streak of success as its sales once again exceeded expectations during the summer season.
Impressive Financial Performance
The company reported a remarkable 16.5% year-on-year increase in revenue, reaching an impressive £127 million. Furthermore, profits soared by an astounding 46%, surging to £57 million. This exceptional performance was primarily attributed to increased spending on indoor hobbies during the rainy summer months.
Broad-Based Growth
Games Workshop attributed its robust performance to “healthy growth across all channels.” This success coincided with the launch of the 10th edition of the “Leviathan” Warhammer 40,000 set, which further bolstered sales and engagement.
Cautious Outlook
While celebrating their achievements, Games Workshop’s board acknowledged the early stage of the financial year. They recognized that despite surpassing the previous year’s performance, the road ahead holds uncertainties.
Analyst Acclaim
Analysts Andrew Wade and Grace Gilberg from Jefferies expressed their surprise at the first-quarter results, which exceeded market expectations. The impressive performance was well-received by both investors and experts.
Soaring Share Prices
Games Workshop’s shares have experienced a remarkable ascent, currently trading at 11,509p, a substantial increase from their price of almost 80 times lower in 2008. This impressive growth values the company at a substantial £3.7 billion.
Generous Returns to Shareholders
In addition to their soaring share prices, Games Workshop is committed to rewarding its shareholders. A 50p dividend will be distributed, adhering to the company’s policy of returning “truly surplus cash.” This brings the total returned to shareholders this year to £1.95.
The Warhammer 40,000 Phenomenon
Games Workshop’s flagship board game, Warhammer 40,000, is celebrated for its intricate and expensive figurine sets. A look back to 2008 reveals that purchasing basic armies for beginners along with a rulebook directly from Games Workshop would have cost approximately £175. Investing that money in Games Workshop shares instead would have yielded a staggering £26,000, inclusive of dividends. This remarkable growth has turned the company’s shares into a valuable asset, enabling individuals to potentially afford rare and expensive Warhammer kits like the custom-painted 1997 OOP Metal Thunderhawk, which set a record when it sold for £25,600 on eBay in 2021.