Games Workshop Share Discussion Threads

[cockerhoop] 12/1/2021 08:33

1smw,

The major variant in Q2 on operating margin was the £5m staff bonus rather than sales mix imo.

[bookbroker] 12/1/2021 08:28

Because this is like Bitcoin, impressive but how much more can be squeezed out!

[1smw] 12/1/2021 08:26

I have updated my forecasts now we can see the actuals for the half year. I have increased my most recent forecast (7 Dec trading update) to sales for the year of £381.4m (up from £376.4m) and PBT £179.1m (up from £176.1m). Eps forecast now 437.8p (430.5p). Sales growth in Q2 faster and sales number higher than both in Q1. So it is possible there is upside risk to my forecast on sales. Margins in Q1 were higher than Q2 so likely this was due to product mix and mix of how it went to market. I have assumed the margins of Q2 for my forecast for H2. With Spare cash of c£46m at Balance sheet end (ie >£50m buffer), there is the ability to pay dividends of 140p and "only" 60p about to be paid away. Interesting to see if analysts now at least use their May 22 forecasts for May 21-although these will still be too low.

[capitalist] 12/1/2021 08:15

People selling on news... I suspect... Quite normal

[investing2retire] 12/1/2021 08:11

why the drop in share price? dividend?

[jaf111] 12/1/2021 08:11

Has the company issued a profit warning?????

[mysteronz] 12/1/2021 07:56

One word boom

[robinnicolson] 12/1/2021 07:43

By my reckoning we have:

H1 2021 profit margin ex. royalties of 44.9% versus H1 2020 of 32.7%
H1 2021 profit margin inc. royalties of 48.6% versus H1 2020 of 39.9%

As usual the analysts forecasts look extremely conservative...

[mjc70] 12/1/2021 07:24

Games Workshop Group PLC (‘Games Workshop’ or the ‘Group’) announces its half-yearly results for the six
months to 29 November 2020.
Highlights:
Six months to Six months to
29 November 2020 1 December 2019
Revenue £186.8m £148.4m
Revenue at constant currency* £188.2m £148.4m
Operating profit - pre-royalties receivable £83.3m £48.5m
Royalties receivable £8.7m £10.7m
Operating profit £92.0m £59.2m
Operating profit at constant currency* £93.2m £59.2m
Profit before taxation £91.6m £58.6m
Cash generated from operations £100.0m £60.4m
Basic earnings per share 226.1p 145.9p
Dividend per share declared in the period 80p 100p
Kevin Rountree, CEO of Games Workshop, said:
“Another cracking performance from a truly amazing, global team; a solid six months building on the great progress and
profitable growth we have been consistently delivering over the last five years.
Finally, I’d like to thank our enthusiastic and loyal fan base who share our love for the Warhammer Hobby and the
fantastical settings, characters and narratives that make up our IP. Their ongoing support and feedback have been
invaluable, keeping us honest when we have fallen short and driving us onward to continue to deliver more and better.”
…Ends…

[1rcl] 11/1/2021 18:36

Reports of restricted quantities to independents continue, which seem likely to drive more sales at higher margins to GAW's own webstore:

hxxps://spikeybits.com/2021/01/new-40k-death-guard-release-allocated-in-us.html.

What's not clear is how much this is due to production/logistics restrictions rather than a deliberate strategy by GAW to increase margins. Given the expected record H1 revenues of ~£185m, H1 production was higher than ever (GAW finished that 2nd factory just in time...).

If the analysts update their models with higher H2 margins, that would have a significant impact on FY EPS forecasts - and presumably price targets.

[janeann] 11/1/2021 18:25

so does GAW... We expect to announce our half-yearly report for the six months to 29 November 2020 on 12 January 2021.

[cockerhoop] 11/1/2021 18:03

Set your alarm!

[scooper72] 11/1/2021 16:42

The Times says we should be expecting interim results tomorrow.

[1rcl] 08/1/2021 23:04

.

Extract from article:

"Beauchamp suggests one company that could enter the FTSE is Games Workshop, the wargame maker whose rip-roaring stock market climb in the last half-decade has been energised by a devoted fan base and popular games like Blood Bowl.

'The ascent of this niche winner has been a sight to behold, and should it find new global adherents perhaps the FTSE 100 will, in due course, get a little bit more quirky with the addition of this name,' he remarks."

Here's hoping Tuesday H1 results will nudge GAW a bit closer towards FTSE 100 qualification.

[1rcl] 06/1/2021 18:14

I see all 8 colours of the new release sprays have sold out on the GAW webstore this week.

A lot of painting going on.

[1rcl] 06/1/2021 11:44

I keep an eye on the job adverts as the text often gives updated clues to management's planned avenues for growth.

For example, the management said in their last annual report that they are targeting expansion in China, but the various GAW China job adverts help to understand better how the company is planning to approach a different cultural market via a locally-based team in Shanghai (and to see confirmation that this sales/marketing structure is expanding).

Of course, none of this guarantees success in the area targeted. But the company is historically reluctant to spend any money unless it expects a very high return - so the job adverts provide an up-to-date clue that the management still believe China expansion success is plausible. And given the company's operational gearing, that is a potential profit explosion that I would like to be part of (via share ownership).

[stepone68] 06/1/2021 11:33

No problem, it's just that you said 'new job', and I wondered if you had additional info from somewhere.

[1rcl] 05/1/2021 14:48

I think it is the "growing suite of apps, websites and online portals" that is of most relevance - with "growing" being the important thing.

[stepone68] 05/1/2021 14:30

Sorry, but how do you know that's a new role and not just replacing someone who has left?

[1rcl] 05/1/2021 13:24

New job to help support the ever-growing digital customer engagement and revenue streams:hxxps://jobs.games-workshop.com/search-and-apply/ui-designer.

"We’re looking for a new UI designer to join our team. You’ll be working with the Warhammer Marketing and Digital Technology teams to design and maintain user interfaces for Games Workshop’s growing suite of apps, websites and online portals"

[robinnicolson] 05/1/2021 08:33

Article about Games Workshop in the Baillie Gifford Investment Trust magazine:

[suetballs] 01/1/2021 14:54

Thanks robin.
Of the 5 I currently hold gaw sse and hsba. I have held mars.
So perhaps I'm getting better at this!
Suet

[robinnicolson] 01/1/2021 14:27

SSE
HSBC
Pennon

Tempus had an average loss of 10.1% for its five share tips for 2020...

[suetballs] 01/1/2021 13:10

Tempus tips 2021 - I can see gaw and mars - what are the other 3 please.
Thanks.
Suet

[scooper72] 01/1/2021 12:42

Someone else replied they had been doing that - since the shares were £20