Games Workshop Share Discussion Threads

[nimbo1] 16/4/2019 12:44

I am very intrigued by the potential here for GAW with their IP and strategy based computer games to go global using the new services from google // apple etc.

I spent some time talking with FDEV this year - a lot of value will go towards the content creators - imagine a scenario where games are being played on the tv - you can choose to participate or watch, basically esports opening up to your tv screen....interactive and as a viewer you can watch or play, support teams, send in game items, play yourself if you want - a completely immersive experience delivered straight to your screen with no hardware required could be a couple of years around the corner.

GAW were used to promote the Apple AR launch when the X came out - it really would not surprise me to see exclusive games deliver by someone on behalf of GAW to apples new game streaming platform...

[robinnicolson] 16/4/2019 12:24

Nod, please disregard those Peel Hunt forecast figures. They were Sharescope/Morningstar data shown at the end of last week. This morning Sharescope updated their forecast data but it is STILL out of date.
The Sharecast article seems to have the latest PH forecast...again FWIW.

[nod] 16/4/2019 12:01

Robin, post 3307 you gave the PH forecasts as:The most recent (11/4/2019) Peel Hunt forecast pre-tax profits were:2019: £70.4m2020: £73.5m2021: £76.0m

[robinnicolson] 16/4/2019 11:58

From a Sharecast article at the end of last week.

PH revised forecast:
FY2019
Turnover: >£250.0m
EPS c.195.0p

FY2020
Turnover: £265.0m
PBT: £85.0m
EPS 206.0p

[robinnicolson] 16/4/2019 10:35

Sharescope just updated their data with these PH forecast figures (which they get from Morningstar). I'll notify them that they have been overtaken by events (i.e. the TS from GAW last week).

[shanklin] 16/4/2019 10:16

Hi Robin

I would like to think that is out of date given the recent GAW TS indicated 2019 PBT of circa £80m?

[cockerhoop] 16/4/2019 10:15

Laughable - how can PH predict a dividend of 130.5p when 155p has already been announced? Likewise with PBT!!

[robinnicolson] 16/4/2019 10:03

FWIW here is the latest Peel Hunt forecast (Sharescope data):

FY2019:
Turnover: £247.3m
EBITDA: £86.4m
Pre-tax profit: £75.5m
EPS (pence): 184.1
Dividend (pence): 130.5

FY2020:
Turnover: £257.7m
EBITDA: £91.6m
Pre-tax profit: £79.5m
EPS (pence): 193.6
Dividend (pence): 136.0

[nimbo1] 15/4/2019 09:46

to think he gets paid for that sort of analysis ;)

[push n run] 14/4/2019 15:23

"Russ Mould, investment director at AJ Bell, said: ".....as long as this hobby remains popular the company looks well positioned to benefit.""

You think?

[nod] 14/4/2019 09:33

Motley Fool



If you’re looking for a dividend stock with more exciting growth potential, Games Workshop Group (LSE: GAW) might be of interest. Shares in the FTSE 250 war gaming specialist have tripled over the last two years, as management has kept costs down and benefited from a surge in interest in the firm’s Warhammer games.

The shares are up by another 11% as I write, after the company confirmed that strong trading seen earlier in the year has continued. Full-year pre-tax profit is now expected to be about £80m, comfortably ahead of analysts’ estimates of around £70m.

Today’s earnings upgrade means that Games Workshop’s profits are now expected to rise by about 7% this year, compared to previous forecasts for a 7% fall.

Refreshingly honest dividends
Games Workshop chief executive Kevin Rountree isn’t your standard corporate boss. His statements are short, direct and avoid the PR waffle that most companies prefer.

This straightforward approach also extends to the company’s dividend policy, which is to distribute “truly surplus cash” to shareholders. Most companies used adjusted earnings — an artificial, non-cash measure — to calculate their dividend payouts. By contrast, Games Workshop simply returns spare cash it doesn’t need.

Thanks to a 30%+ operating profit margin and a debt-free balance sheet, this business generates quite a lot of spare cash. Today’s statement confirms a final 35p per share dividend for this year. This will take the total payout for 2018/19 to 155p per share.

At the last-seen share price of 3,690p, that gives the stock a dividend yield of 4.2%. I’d expect a similar payout during the year ahead. In my view, the group’s cash-backed yield and continued growth mean this stock remains a compelling buy-and-hold investment.

[nod] 14/4/2019 09:30

From Sharecast
The tabletop gaming retailer rallied after saying that trading since January has "continued well" with sales and profits ahead of last year.

Russ Mould, investment director at AJ Bell, said: "The company is boosted by new licensing income as it taps into the power of its brands, of which Warhammer is the most popular. In retail knowing your customer is key and this is an area in which Games Workshop excels. It is constantly looking to engage with its audience through a variety of different mediums. This underpins robust cash flow and resilient earnings and for as long as this hobby remains popular the company looks well positioned to benefit."

[nod] 13/4/2019 09:13

The E is for enterprise and they are very very broad applications that don't fit any business out of the box. You would think after a few decades they would be able to plug and play from a very similar business. But that would not earn the implementors much money. Plus, every company believes their requirements are unique and set in stone and the apps must be customised to fit.

[shanklin] 13/4/2019 08:21

How complicated can designing, making and distributing figurines be? One would like to think an ERP system could do this with minimal customisation.

[texas_caddy] 12/4/2019 23:25

Assume the ERP is a cloud based implementation? This will limit the customisation they can make and should help with speed of implementation.

[nod] 12/4/2019 21:20

skirbel, I've worked for companies that two years after completing their ERP they embarked on a "simplification" project, to remove many if the customisations they insisted on in the initial project. The customisations made the software overly complex to use and expensive to maintain. My understanding is, we have only implemented ERP in Europe in this project and North America will follow later.

[red5] 12/4/2019 15:31

really good move could be even better soon.

[skirbell] 12/4/2019 12:51

If my experience with ERP implementations is anything to go by, they'll still be implementing it next year. And the Year after. :-)

[cockerhoop] 12/4/2019 12:47

We can hope, the bottom line is they need to continue producing exciting product to enthrall their client base.

[nod] 12/4/2019 11:28

Woozle, an improved margin would support the increase in PBT forecast for 2020 by PH and Edison.

[cockerhoop] 12/4/2019 11:28

It is pretty amazing that in a year of heavy investment that they have been able to pay out £1.55 in 'truly surplus cash'

[nod] 12/4/2019 11:17

The dividend is also very pleasing. With 155p divi this year it gives me an annual yield of 77.5% (I paid just under 200p per share). The capital gain is a bonus.

[nod] 12/4/2019 11:09

I think 80m now is being optimistic. We have around seven weeks of the year left and they'll know what the typical week generates in profit. Now Brexit is "sorted" for a few months it will be business as usual.