// Games Workshop posts rise in sales as Warhammer game proves popular
// The gaming retailer is planning a £6m upgrade to its web store
// Games Workshop said its Warhammer game products are better available to customers
Games Workshop has reported a rise in sales and engagement after a strong interest in its Warhammer game.
However, profits dropped in the six months to November 28, 2021 as costs increased.
The gaming retailer is planning a £6 million upgrade to its web store after a half-year in which online sales fell by 10%.
Games Workshop said its Warhammer game products are better available to customers and has invested in support functions to boost on time deliveries.
It also said that global disruptions have affected its operations in ways that may persist for several months.
Games Workshop revenue rose 2.5% to £191.5 million from £186.8 million a year earlier.
Pre-tax profits of £88.2 million were 3.7% down from £91.6 million, as the cost of distribution, staffing and wages increased, while foreign exchange movement also hit the bottom line.
Trade sales continue to be the largest part of the Games Workshop business, with sales of £108.1 million up 3.9% from £104 million.
More than 20% of Games Workshop sales take place online through its own website, while shoppers also buy its goods online from the independent retailers that it supplies.
“We have proven once again that the Warhammer hobby creates exciting experiences and allows people around the world to come together and have some fun,” Games Workshop chief executive Kevin Rountree said.
“We continue to focus on making the best miniatures in the world and to document and deliver an exciting operational plan.”
The retailer said that post-Brexit trade rules cost it an extra £2 million in shipping and freight costs in the half-year, compared to the previous year.
Warehousing costs grew by £2.8 million to £9.7 million as it put new technology into both its North America and East Midland Gate sites.
During the half-year, the retailer closed eight shops and opened four, taking it to a total of 519, of which 34 are not profitable.
The retailer says that some stores, including its Warhammer World shop at its Nottingham headquarters, are now trading at pre-Covid levels.