Games Workshop reports rise in sales and profits as CEO steps down
Games Workshop, the retailer of fantasy model battlegames, has reported an increase in sales and profit in the first half of its financial year.
In the six months to 2 December 2012, sales rose to £67.5 million from £62.7 million in 2011. Core business operating profit before royalty income increased from £6.5 million to £10.6 million and core business operating margin from 10.3% to 15.7%. Pre-tax profit rose to £11.1 million from £9.5 million in the previous year.
Operating expenses were reduced by £1.4 million in the period after Games Workshop maintained tight control of rents and staff headcount.
The company said its royalty income of £0.4 million was modest compared to last year's exceptional receipts of £2.6 million.
In a statement the Games Workshop said: "The hobby is healthy and the challenge is to stay focused on what needs to be done to grow it efficiently and cost effectively. The principal risks and uncertainties for the rest of the financial year are sales related and our businesses are focused on achieving growth whilst the product and supply chain will continue to implement plans to maintain gross margin."
The company added that a further risk was not having enough managers who understood its niche business model and who were aligned with its values and behaviours. However, it said that the risk was being mitigated by the recruitment of people who fitted in with the "Games Workshop culture".
Games Workshop also confirmed that its chief executive Mark Wells is to step down after five years in the role.
In a statement issued this morning the company said: "Games Workshop announces that after five years of outstanding service Mark Wells is stepping down as CEO. He leaves on good terms and with our very best wishes."
The company added that it will be seeking to appoint a new chief executive "in due course". In the meantime Tom Kirby will become acting chief executive while remaining as chairman.
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