British game production and retail company Games Workshop has seen sales fall four per cent year-on-year in the six months to November 28th 2010, following a restructuring of the business.
Staffing changes to reduce overheads was blamed for the £2.5 million drop in revenue to £60 million, but the firm is confident the move will benefit the business in the long run.
Operating and pre-tax profits were both down to £6.7 million for the period, and a statement released today reveals that the group’s focus remains on investing in its Hobby centres and improving retail volume.
Hobby centres are located across the UK, Ireland, Scandinavia and the Benelux countries, and are staffed by dedicated enthusiasts of the games sold in these stores.
Restructuring has not been restricted to Games Workshop’s European operations, with the six-month period in question also seeing the successful relocation of the North American sales office to Memphis, which is expected to be a cost-effective move.
Following this switch, which was conducted to reduce the firm’s overheads, Tom Kirby will return to the UK and hand over responsibility for the North American sales business to new Head of Sales, Sandra Casey.
Today’s statement said: “Games Workshop’s core business model remains strong.
“The initiatives taken in the sales businesses are designed ultimately to lead to higher volumes whilst efficiency measures are maintained.
“The board remains confident in the future growth and profitability of the group.”