Games Workshop lifts dividend as Warhammer maker maintains momentum

Games Workshop will pay investors a dividend of 105 pence per share after trading in the three months to February was in line with forecasts.

This brings the total dividends announced by the Warhammer creator since the start of the financial year to £4.20 per share, compared to £4.15 per share distributed the previous year.

The Nottingham-based group declared a record dividend per share of 195p for the six months ended November 26 after achieving its highest ever half-year turnover and profits despite a challenging economic backdrop.

Analysts at Peel Hunt maintained their buy rating following Thursday’s announcement with a target price of 12,000p, and raised the broker’s revenue and pre-tax profit forecasts by 3 per cent.

Peel Hunt said: “Encouraging trends from the first half of the year continue. Games Workshop continues to perform well despite a difficult consumer context and there is a lot to hope for in our opinion.

Sales were driven by strong demand from independent retailers and exceptional trading at the company’s stores in the UK and North America.

Digital sales also increased although the company acknowledged “some teething problems” with the launch of its new online store, although this was slightly offset by lower licensing revenue.

At the same time, profitability benefited from a core gross margin that increased 5.2 percentage points to 69.4 percent, driven mainly by lower logistics costs and inventory provisioning charges.

Releasing the results, Kevin Rountree, managing director of Games Workshop, said: “We continue to perform well despite difficult economic times, generating record revenue, profit and dividends for the group over the past year. of the period.

“Morale is high at Games Workshop and our fans are having fun too.”

Founded in 1975, the company began as a distributor and manufacturer of board games before transforming the following decade into a manufacturer of fantasy tabletop games with the launch of Warhammer.

Since Rountree took over as CEO in 2015, the company has seen significant growth after improving its relationships with fans and launching more streamlined games like the American football-themed Blood Bowl.

The trade has been further boosted by the Covid-19 pandemic, although its stores have been forced to close most of the time as lockdown restrictions force people to spend more time indoors.

Games Workshop struck a deal with Amazon MGM Studios in December to develop Warhammer 40,000 into films and TV series, in what some analysts described as a “game changer” for the FTSE 250 business.

Henry Cavill, known for his starring roles in the Superman franchise and Netflix series The Witcher, will reportedly act and serve as an executive producer on the sci-fi series.

Games Workshop Group Actions were up 1.8 per cent at £102.30 just before midday on Thursday and have risen around 250 per cent over the past five years.