Good morning, it's Jack and Paul here with the SCVR for Monday.

Although it’s too big to be a company typically covered here (with now a £3bn+ market cap), Games Workshop (LON:GAW) has released its half year update. It’s a particularly interesting company and many will already be aware of its fantastic performance over the past few years.

The group last updated with another ‘trading ahead of expectations’ announcement on a Friday afternoon in early November: unusual timing for an unusual company.

Now the group reveals that half year sales are c£185m (up 25%) and profit before tax is at least £90m (up 52.5%), with a 60p dividend declared for the period. Games Workshop continues to generate impressive growth as it takes its products to new markets. It looks like it will make more in first half profits this year than it did in the entirety of FY19/20.

The shares peaked recently at some £114.60 but have since fallen back to £98.75. If it can turn in a similar performance in the second half and bring in full year profit of £180m then the shares don’t look overly expensive. Apply a 20% tax rate to £180m for profit after tax, divide by the shares in issue and you get around £4.40 in earnings per share, which would make for a PE ratio of 22.5. Not bad at all given the rate of growth.

But the share price has been softer recently, so it will be interesting to see what happens to it this morning.

Anyway, onto the small cap news.

Ted Baker (LON:TED)

Share price: 141.21p (+5.38%)

Shares in issue: 184,605,541

Market cap: £260.7m

Interim Results Announcement for the 28 weeks ended 8 August 2020

The turnaround of Ted Baker (LON:TED) is probably one of the most closely watched stories in retail. If management gets it right, then there could be good upside - but there is plenty of work to do.

On first half progress, CEO Rachel Osborne comments that Ted’s balance sheet is ‘materially stronger than we had envisaged this early in the plan and operational cashflow will be positive for the full-year… and are on track or ahead of our operational KPIs for the first year of our plan.

There are, however, some legacy issues that are ‘being amplified by COVID-19’,…

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