Games Workshop shares drop 6% despite huge jump in revenue

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Games Workshop has continued to post runaway sales and profit figures meeting both its own and analysts expectations.

Amid its annual report, the table-top games retailer – which last year was the best performing company on the FTSE 250 – saw revenues top £200 million for the first time, rising 39 per cent to £219 million in the 53 weeks to June 3.

Meanwhile, operating profits before receivable royalties came in at £64.7 million, nearly more than doubling from £30.8 million a year earlier.

Pre-tax profits also saw significant rises, jumping from £38.4 million in 2017 to £74.5 million.

The news sent stocks dropping 6.5 per cent in morning trading, thanks to very high bar set last year.

Last month, the Warhammer seller’s shares dropped 4.5 per cent as it informed investors that its full year sales were on track to simply meet expectations published in May.

Following a standout year in 2017, traders had been expecting another huge positive boost in its projected sales figures.

“You can see from these results that our business and our Warhammer Hobby are in good shape,” chief executive Kevin Rountree said.

“The response from our customers to our models and games and how we support them has again been fantastic, thank you. The board continues to believe that the prospects for the business are good.

“We have surpassed the expectations which I set the business on appointment in January 2015, so I have set the bar higher: exciting times.

“It has taken a long time to reach £200 million-plus sales, and at a record 29 per cent-plus core operating profit percentage rate, we’ve proven again we can grow sales, maintain our gross margin and manage our costs at the same time. It also shows clearly our operational gearing.”

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