Record sales and profits secured by Games Workshop

GAMES WORKSHOP has notched up record sales and profits over the past half-year as the fantasy games specialist shrugged off the recent malaise in the retail sector.

Shares in the retailer jumped after it said pre-tax profits increased by 44 per cent to £58.6m over the six months to December 1.

It added that sales in December were in line with the board’s expectations, adding that the business is “in great shape”.

The Warhammer maker reported a 19 per cent jump in sales for the six-month period to £148.4m, ahead of the company’s previous guidance.

Games Workshop was particularly boosted by strong growth in its trade division, which saw sales increase 23.9 per cent to £76.1m.

It said this was driven by the addition of 200 new trade accounts as it increased supply to independent retailers.

Meanwhile, its own retail business saw sales increase by 6.3 per cent to £45.3m as it was strengthened by 19 new store openings.

The company also reported a 14 per cent increase in online revenues to £24.2m for the period.

It said that an increase in licensing agreements saw its income from royalties increase by £5.2m to £10.7m.

Chief executive Kevin Rountree said: “Our business and the Warhammer hobby continue to be in great shape.

“We are pleased to once again report record sales and profit levels in the period.

“The global team have worked their socks off to deliver these great results. My thanks go out to them all.”

The business has been a major success story for investors in recent years, with shares surging by more than 1,000 per cent over the past five years. Shares in Games Workshop leapt 9.2 per cent to 6,960p in early trading on Tuesday.

Games Workshop began its life in the UK but it now has direct sales operations in the US, Australia, China and Japan.

The design centre is in Nottingham and it has manufacturing and distribution facilities in Nottingham and distribution centres in Memphis, Tennessee and Sydney, Australia.