Profit boost drives Games Workshop to £1bn valuation

GAMES Workshop briefly recorded a market value of £1bn for the first time, as the model figure retailer said it expected profits to nearly double this year.

The company’s share price yesterday touched a record high of £31, underscoring its remarkable rally since a year ago when the stock stood at £11.15.

It came as the once-embattled retailer defied the gloom on the high street by forecasting pre-tax profits to be at least £74m for the year to June, rising from £38m for 2017.

However, the share price slipped lower later in the day, as analysts questioned whether it could keep up its strong sales growth into the new financial year.

Charles Hall, of Peel Hunt, said: “We continue to like the long-term prospects, but the shares feel toppy given that first-quarter sales are likely to be lower than last year.”

Games Workshop has a loyal following for its figurines, which customers build, paint and collect before using them to battle each other in strategy games. The Nottingham-based business said its robust growth earlier in the year had continued, prompting it to reward staff with a £5m bonus.

The company, founded in 1975 and floated in 1994, is best known for its Warhammer game series.

Revenues are also expected to come in 38pc higher at around £219m, as it raked in £10m from licensing royalties.

‘We like the long-term prospects but the shares feel toppy given first-quarter sales are likely to be lower’