// Games Workshop staff each receive £5000 bonus after profits spike 69% to £151m
// It also cancelled business rates relief and other pandemic financial support from the government
// Games Workshop now gearing up to roll out hundreds of products across China
Games Workshop showed a big spike in profit over the past year as it confirmed plans to expand in China as well as payment of a generous staff bonus scheme.
The fantasy figurines retailer confirmed in its trading update this week that around 2600 staff will each receive £5000 in shares under its profit-share scheme.
The share bonuses, paid in May, in total are worth £12 million and mark a £10 million hike on the £2 million awards given to staff the previous year.
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The staff would split a £10.6 million special bonus on top of a £2.6 million profit share.
Meanwhile, senior executives will share an extra £1.1 million bonus pot, which marks a £300,000 increase on the year before.
Although Games Workshop had to shut its 523 stores during lockdowns due to the Covid-19 pandemic, it still performed well thanks to social media engagement, online events, and online sales.
As a result, the full-year pre-tax profit rose 69 per cent to nearly £151 million, while revenue came in a £353 million, which marked an increase of around a third.
The retailer said it also cancelled business rates relief and other pandemic financial support from the government.
Games Workshop, which trades on the high street as Warhammer, said it was now gearing up to roll out hundreds of products across China following delays at the border.
To help, it is hiring an in-house Chinese translation team in a bid to capture the massive market.
The country, and nearby Japan, are “not significant contributors to our performance yet, but we remain focused on sharing our passion for Warhammer to more people in these countries as well as the rest of Asia”, chief executive Kevin Rountree said.
Last year Rountree’s company was given a safety registration by authorities in China and has now signed up 750 products for the country.
All of these will be on sale in China soon.
Games Workshop’s trading performance was also in line with forecasts.
Analysts at Jefferies had expected exactly those numbers, but still left shareholders feeling a little cold.
After a series of guidance upgrades over the past year, simply meeting expectations did not seem to be enough for the market. Shares had dipped around 2.8 per cent on Tuesday morning.
The retailer did not provide any new guidance, merely reiterating what it said six months ago.
with PA Wires