Games Workshop has this morning released an update confirming that trading has continued well since the half year results in January and that sales and profits and royalties receivable, following the signing of new license agreements, are ahead year-on-year. As a result, it expects pre-tax profit for the year to 2 June 2019 to be c. £80m. This represents a c 13% upgrade to Edison forecasts of £70.9m.
Today’s upgrade has been driven by strong trading across all regions and via all three sales channels (retail, trade and online). The company is highly cash generative and delivers outstanding returns on capital. As we flagged in our note, this underpins a healthy dividend yield and scope for further cash distributions to shareholders, in line with company policy. With today’s announcement, the company has declared a dividend of 35p per share, taking the total dividend this year to £1.55.
Author: Kate Heseltine