Warhammer retailer’s ‘healthy growth’ sends shares up sharply

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Revenue at Games Workshop, the Nottingham-based company behind the Warhammer game, was 14 per cent higher in the three months to August 27, the company said on Friday, adding that the performance was “ahead of the board’s expectations”.

The statement, ahead of next week’s annual meeting, sent the shares up 11.8 per cent by lunchtime on Friday, to £11.62. The jump in revenue had been “driven by healthy growth across all channels”, said Games Workshop. The company’s shares, listed on the London Stock Exchange, are up 63 per cent over the past year.

The rally comes as the world of Warhammer is set to be transformed into a series of games, TV shows and films, which will see the figurines manufactured by Games Workshop appear on screen. A deal struck between the company and Amazon in December was the first sign of the move to digitalisation.

Core revenue for the quarter to August 27 was up 14 per cent to £121mn compared with the same quarter of 2022. Licensing revenue doubled to £6mn, from £3mn a year earlier.

A trailer released this week for the franchise’s cross-platform video game, Warhammer 40,000: Rogue Trader, also revealed the December 7 launch date for the game set for the PC, Mac, Xbox and PlayStation.

Alex Chatterton, analyst at Panmure Gordon, said results for the quarter had been expected to be strong thanks to new product releases. But the announcement had been more positive than he expected.

“They just released the new edition of Warhammer 40k which is their most popular range, and you’ll always see an uptick in sales once they release these new additions,” he said.

The next catalyst for the company’s strong performance was the deal with Amazon, he added.

“You’ll have the initial recognition of the licensing income, but really the long-term benefit is getting more people attached to the hobby,” he said.

Demand for table-top figurines had previously strengthened throughout the Covid-19 pandemic, supported by a general uptake in gaming during the lockdown period. 

Alongside the trading statement, the company declared a 50p a share dividend for the six months to May 28, taking dividends for the full year to £1.95, compared with £1.20 in the previous financial year.

The company acknowledged that performance for the quarter had been better than the previous year but warned it was “still early” in the financial year.