Games Workshop Records Another Record Year Despite Pandemic Closures

Pausing Opening of New Stores into 2021

Games Workshop CEO Kevin Rountree said the company had its best year in the company’s history, despite retail closures and challenges caused by the pandemic.

Sales grew 5.1% to £269.7 million for the year ending in May, with operating profits up 10%. It is the companies forth year of growth in sales and profit.

Shares were up 7% yesterday on the news and have increased 80% over the past year.

The company said it lost six weeks of sales due to closures, and while it initially took government support, it is working to return it. The company has secured an overdraft facility with a bank, but have yet to use it.

Rountree said, “We had a healthy balance sheet at the end of February and we have a healthy balance sheet at the end of May. My sincere thanks to everyone who supported us through such a challenging time, your help has been invaluable in achieving the strong position we find ourselves in.”

The company continues to support investors paying £47.3 million in dividends for the year, down a bit from £50.2 million in 2019. This trend may change as current events have them rethinking their cash reserves and how much they consider surplus.

Retail sales declined 11%, due primarily to store closings in April and May. Sales in their visitor center fell 17%. The company opened 23 new stores in the year including seven relocated. The new stores generated £1.6 million in sales. The company have paused store openings for 2020 and 2021, and will focus on existing store performance.

Royalty income increased £5.5 million as the company received guarantee income on new contracts signed during the year. A majority of this comes from PC and console gaming.

The company saw sales outside of their stores grow. Trade sales were up 15% and online sales grew 9%. The company said it will continue to support both.

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