Games Workshop shares drop 5% after trading update

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Games Workshop saw shares drop 4.9 per cent this morning after it released a trading update confirming its full year results are likely to be in line with current expectations.

Following a runaway year in 2017, in which the company’s stock became the fastest growing on the FTSE 250, traders had been expecting another positive boost in its projected sales figures.

Instead, the retailer simply confirmed it was on track to meet expectations published amid a trading update last month, ahead of its full year results next month.

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Games Workshop continues flawless performance/perfectpullquote]

The table top fantasy games retailer expects pre-tax profits to be no less than £74 million, up nearly 100 per cent year-on-year.

Group sales are expected to come in at £219 million, with a further £10 million expected to come from royalties.

It is set to hand £5 million to its staff in bonuses, paid equally among each member of staff.

Dividends for the year rose from 20p to 30p year on year, taking the total yearly payout to 130p, up from 100p a year earlier.

“Notwithstanding the 53rd week impact, that outcome is only in line with City expectations, after a stellar year – in year ending May 2017 sales were just £158 million and profit before tax was only £38 million – and the new year is expected to see things drop back,” retail analyst Nick Bubb said.

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