Games workshop feels squeeze

GAMES Workshop’s profit margins took a hit as it grappled with supply chain disruption and rising costs.

The maker of Warhammer figurines said its core profit margin fell by 5.6 percentage points to 67.1pc in the year to May 29, which it blamed on failures to ‘get the right stock in the right place at the right time’. It pushed up inventory costs by £10.6m.

Freight expenses rose by £9.2m during the year, while the company also shelled out another £2.5m in extra staffing costs.

Boss Kevin Rountree estimated the group lost £4m in sales after it suspended its operations in Russia after the invasion of Ukraine.

Despite these pressures, Games Workshop reported full-year profits of £156.5m, up from £150.9m as sales rose to £ 414.8m from £369.5m. The shares were down 2.1pc or 160p at 7370p.