Games Workshop Share Discussion Threads

[zoolook] 31/7/2019 09:31

Concerns investors might have I perceive are:
- with a relatively high PE they can’t stumble
- growth can cause problems with logistics, product quality etc
- the nature of the product makes it hard to take seriously as an investment
- it could still be cyclical as it was in the past and it could therefore be at the top of the cycle
- cautious tone of statements ie “Breaking records for three years in a row sets the bar higher and higher and so, to be realistic, I will continue to make no promises that we will continue to grow“ - pithy phrases like this tend to stick in the mind
- the transformation has been driven by one individual who whilst only 49 is not immune to oncoming buses

There I’ve said it. Great business but personally I’d like more downside protection from a lower valuation before backing the proverbial truck up again

[robinnicolson] 31/7/2019 09:15

I perceive it as just some profit taking after a strong run this year.

[zoolook] 31/7/2019 08:46

Stuck my toe back in. I think it’s going further down but didn’t want to take the risk.

[nod] 31/7/2019 08:46

For the first time, we now have over 500 own stores. Operating profit of Retail is 13% of total profits. This is excellent. In most years, Retail made a loss or just broke-even. Once our stores move into profit additional revenue has a very high margin and little extra cost.

[nod] 31/7/2019 08:36

As usual, the bears are coming out to play.

[sd_anon] 31/7/2019 08:05

Could Kirby be off loading some more maybe?

[shanklin] 31/7/2019 08:04

Good job the results were strong or we would be at £30. Bizarre.

[cockerhoop] 31/7/2019 05:48

The 3 factors the company described for reduction in gross margin 1. Note 18 highlights the increased write down in inventory which resulted from the more ambitious release schedule. They didn't sell out every new release.2.Trade sales supplied the highest growth but is lower margin3. Production inefficiencies during expansion phase.Some of these factors appear temporary so a GM improvement likely to approach 70% but unlikely to return to 2017's 72.5%.

[nod] 30/7/2019 22:32

I've only had a quick look at GAW results.Trade grew 29% and grew across all regions. Trade now makes up 47% of our total revenue, up from 43%. Operating expenses increased by gbp 11 million. Operational gearing was not as pronounced for some reason. Product & Supply segment was down nearly 5 million. Perhaps increased inventory? Perhaps Brexit related?"Product and supply: this includes the design and manufacture of the products and incorporates the production facility in the UK and the Group logistics and merchandising costs. This also includes adjustments for the profit in stock arising from inter-segment sales and charges for inventory provisions."

[shanklin] 30/7/2019 15:54

Given that the significant increase in sales has only resulted in a modest increase in profits, I suspect a lot of investment in future growth has been going on.

[prospective investor] 30/7/2019 15:27

"Breaking records for three years in a row sets the bar higher and higher and so, to be realistic, I will continue to make no promises that we will continue to grow. That said, I do not see anything significant that will get in the way." Keeping to underpromising over delivering, ill be keeping mine! Good longterm Hold/add for me.

[1squintyflinty] 30/7/2019 15:18

wonder why the share price is easing after Spectaculer results.

[nod] 30/7/2019 13:40

As an aside on results day, I mentioned a while back that the MMORPG game Age of Reckoning (2008) had been resurrected by one of its developers. I expected this to get squashed by EA but it hasn't yet. Maybe EA are watching to see how it develops.

This is a long article. Very long.

The untimely death of Warhammer Online, and the long road to resurrect it
By Jody Macgregor 20 hours ago

There's no shortage of Warhammer games, but none quite like Warhammer Online: Age of Reckoning.

[cockerhoop] 30/7/2019 10:16

Robin,

I concur on the dividend - today's 30p is the 1st FY2020 payment.

[robinnicolson] 30/7/2019 09:34

Peel Hunt (via Proactive Investors website):

"There is a lot of positive momentum in the business, with increases in the number of trade accounts (+15%) and hobby stores (+6%), new product launches and developments in TV and animation."

As well as increasing the level of engagement with hobbyists and adding to both production and distribution capacity, analysts said the company has considerable IP to drive royalty revenue.

"Games Workshop continues to provide a compelling mix of a unique business model, with high ROCE (100% last year), cash generation and content."

Incidentally I don't believe that the Proactive website is correct. Today's dividend declaration of 30p is for the new FY ending May 2020. The 155p declared in FY19 was received in five separate dividend payments of 30p, 35p, 30p, 25p and 35p.

[nod] 30/7/2019 09:29

In a word. Wow.

[trident5] 30/7/2019 07:48

GAW is not a founder led business though.

[robinnicolson] 30/7/2019 07:45

GW's annual reports are refreshing. No fancy colour production with mugshots of management but a black and white report with a just a few simple graphs and tables. Apparently it is a sign of a well run company if management are able to publish the full annual report on the same day as the announcement.

The retail editor of The Times this morning:

They might both be founder-led businesses but Games Workshop's annual statement and Sports Direct's rambling missive couldn't be further apart. Mike Ashley should take note of this point on egos:

"Problems will arise if the board allows egos and private agendas to rule. I will do my utmost to ensure that this does not happen."

[woozle1] 30/7/2019 07:25

Great results and good foundations for future growth .. they seem to be making progress in China and Japan .. this is where most of the world’s consumers live

[mad foetus] 30/7/2019 07:10

Good results, I bought back in first thing, this is a rare company imo

[shanklin] 30/7/2019 06:27

Good to see several mentions of GAW plans to exploit its IP in "Media and entertainment", as reflected in the recent non-exec appointment.

Also impressed to see their multi-stranded youth engagement:

- Warhammer Schools Alliance Programme
- UK Scouts partnership
- Duke of Edinburgh's Award scheme

[warala] 30/7/2019 06:19

AMAZING SET OF RESULTS