Games Workshop Says Recovery Better than Expected

Games Workshop said in a trading update that its recovery has been better than expected, but it still doesn’t understand what impact of the pandemic will be.

While the company’s warehouses are fully operational, its factory is working at limited capacity. The company is complying with social distancing and hygiene requirements of each country.

Orders are being processed. Of their 532 stores 306 are open. Stores will continue to re-open as local restrictions are lifted.

Financially the company has seen the impact of the pandemic, but said their recovery since re-opening has been better than expected. The company estimated sales to be £270 million and profit before tax for the year ended May 2020 to be no less than £85 million. This included licensing revenue which they estimated to be about £16 million.

The company said they had an estimated £50 million in cash. They also had arraigned an a £25 million overdraft facility shortly after the outbreak. They have also claimed government subsidies to cover the period of uncertainty, but don’t intend on making future claims and will work to repay any amounts received.

Despite the good results, the Board felt that it was too early to know what the continuing impact of the pandemic will be.

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