REG - Games Workshop Group - Annual Report
30/07/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240730:nRSd2917Ya&default-theme=true
RNS Number : 2917Y Games Workshop Group PLC 30 July 2024
PRESS ANNOUNCEMENT
GAMES WORKSHOP GROUP PLC
30 July 2024
ANNUAL REPORT
Games Workshop Group PLC ("Games Workshop" or the "Group") announces its
annual report for the 53 week period to 2 June 2024.
Highlights
53 weeks ended 52 weeks ended
2 June 2024 28 May 2023
£m £m
Core revenue 494.7 445.4
Licensing revenue 31.0 25.4
Revenue 525.7 470.8
Revenue at constant currency 540.2 470.8
Core operating profit 174.8 148.2
Core operating profit at constant currency 185.6 148.2
Licensing operating profit 27.0 22.0
Licensing operating profit at constant currency 28.8 22.0
Operating profit 201.8 170.2
Profit before taxation 203.0 170.6
Net increase in cash - pre-dividends paid 155.9 155.5
Earnings per share 458.8p 409.7p
Dividends per share declared and paid in the period 420p 415p
Kevin Rountree, CEO of Games Workshop said:
"After a record year, we will continue to focus on the things in our control.
We have a very clear strategy, which remains unchanged, a detailed operational
plan for the year ahead and a great team to deliver it. I wish to thank our
staff, customers, trade accounts and broader stakeholders for their ongoing
support. Exciting times."
For further information, please contact:
Games Workshop Group PLC investorrelations@gwplc.com
Kevin Rountree, CEO
Rachel Tongue, CFO
Investor relations website investor.games-workshop.com
General website www.warhammer.com
The full 2024 annual report can be downloaded from the investor relations
website at investor.games-workshop.com.
See the glossary for details on the alternative performance measures (APMs)
used by the Group. Where appropriate, a reconciliation between an APM and its
closest statutory equivalent is provided.
STRATEGIC REPORT
Strategy and objectives
Games Workshop is committed to the continuous development of our intellectual
property ('IP') and making the Warhammer hobby and our business ever better.
Our ambitions remain clear: to make the best fantasy miniatures in the world,
to engage and inspire our customers, and to sell our products globally at a
profit. We intend to do this forever. Our decisions are focused on long-term
success, not short-term gains.
Let me go through our strategy part-by-part:
The first element is that we make high quality miniatures. We understand that
what we make may not appeal to everyone, so to recruit and retain customers we
are absolutely focused on making our models the best in the world. In order to
continue to do that forever and to deliver a decent return to our owners, we
sell our miniatures for a price that we believe represents the investment in
their quality.
The second element is that we make fantasy miniatures based in our endless,
imaginary worlds. This gives us control over the imagery and styles we use,
and ownership of the IP. Aside from our core business, we are constantly
looking to grow our licensing income from opportunities to use our IP in other
markets.
The third element is that we are customer focused. We aim to communicate in an
open, fun way. Whoever and wherever our customers are, and in whichever way
they want to engage with Warhammer, we will do our utmost to support them.
The fourth element is the global nature of our business. Our customers can be
found anywhere, and we seek them out all over the world. They're a passionate
bunch with an interest in science fiction and fantasy. They're collectors,
painters, model builders, gamers, book lovers and much more. And while no two
customers engage with Warhammer in exactly the same way, they're all deeply
invested in the rich characters and settings of our IP.
To reach them, we have two key tools: our retail chain and our digital
content. In retail, we showcase the Warhammer hobby and offer a fantastic
customer experience. Our digital offering has never been richer. Through
warhammer-community.com and social media we reach hundreds of thousands of
people every day, showing them the very best aspects of the Warhammer hobby
and inviting them to join our global community of enthusiastic fans.
Our retail channel is supported by our own online store (it has the full range
of our products) and our independent stockist and trade accounts across the
world. These independent accounts do a great job supporting our customers in
parts of the world where we either have not yet opened one of our stores or
where it is not commercially viable for us to have one. Our long-term goal is
to have all three channels (retail, trade and online) growing in harmony. We
will always have more independent accounts than our own stores. Our strategy
is to grow our business through geographic spread, growing all of the three
complementary channels.
The fifth element is being focused on cash. By delivering a good cash return
every year we can continue to innovate, surprise and delight our loyal
existing customers and new customers with great products. To be around forever
we also need to invest in both long-term capital and short-term maintenance
projects every year, pay our staff what they have earned for the value they
contribute and deliver surplus cash to our shareholders. Our dedication and
focus should ensure we deliver on time and within our agreed cash limits.
We measure our long-term success by seeking a high return on investment. In
the short term, we measure our success on our ability to grow sales whilst
maintaining our core operating profit margin at current levels. The way we go
about implementing this strategy is to recruit the best staff we can to fit
the job, and the team. The team is more important than the individuals. We
look for those with the appropriate attitude and behaviour a given job
requires and for those who are aligned with our beliefs and who are quality
obsessed. It is also important that everyone we employ has a real desire to
learn the skills needed to do their job and has a great attitude towards
change. To support them, we offer all of our staff both personal development
and skills training.
Our brands
We have originated and are in control of a number of strong, globally
recognised brands with their own identities, associations and logos.
Our key consumer facing brand is 'Warhammer' - this unites all aspects of the
Warhammer hobby - collecting, building, painting, playing, reading, watching,
gaming, etc. in the worlds of Warhammer.
We have two main universes/settings - our dark, gritty fantasy sci-fi
universe, which encompasses 'Warhammer 40,000', 'Warhammer: The Horus Heresy'
and 'Necromunda', and our unique fantasy setting that includes 'Warhammer Age
of Sigmar', 'Blood Bowl' (albeit a tongue in cheek parody) and 'Warhammer: The
Old World'. We believe our IP to be among the best in the world.
We continue to add to the depth of these worlds with an ever evolving range of
miniatures that we hope will keep hobbyists engaged and excited for a
lifetime.
The Warhammer settings are set against incredibly rich and evocative
backdrops. They're populated by more than three decades of fantastical
characters and comprise thousands of exciting narratives. We are committed to
making it easier than ever for people to discover, engage with and immerse
themselves in our IP. Aided by a small senior team, we have already begun to
find new partners, and new ways to help us bring the worlds of Warhammer to
life like never before. Together, we'll continue to explore animation, live
action, video games and more. We'll present the very best aspects of our rich
IP, delighting audiences while always ensuring we do no harm to our core
miniatures business.
Business model and structure
We are a vertically integrated business. We design, manufacture, distribute
and sell our fantasy miniatures and related products. These are fantasy
miniatures from our sci-fi and fantasy universes. We are an international
business centrally run from our HQ in Nottingham, with 78% of our sales coming
from outside the UK. We have our two main factories, a paint factory, two
warehouse facilities, the Warhammer Studio and back office support functions -
all are based in or near Nottingham.
Design
We design all of our products at our HQ in Nottingham. Employing c.320 people,
the Warhammer Studio creates all the IP and all the associated miniatures,
artwork, games and publications that we sell. Annually, these specialist staff
produce hundreds of new sculpts, illustrations, rules, stories etc. enabling
us to deliver new products every week and continue to keep our customers
engaged and excited. In 2023/24 we invested £18.0 million in the Warhammer
Studio with a further £7.0 million spent on tooling, the majority of which
was for new plastic miniatures. We are committed to investing in these areas
at an appropriate level every year.
All of our plastic miniatures are branded as Citadel Miniatures, a mark with
an unparalleled reputation for quality. It denotes both a style and level of
detail that we apply to both our own worlds (Warhammer 40,000, Warhammer Age
of Sigmar etc.) and those of others, e.g. Lord of the Rings. Our resin
miniatures, designed for more experienced customers, are branded as Forge
World and are less widely available than their plastic counterparts.
Many customers love personalising their miniatures and our Citadel Colour
paint range, brushes and accompanying painting system are designed to help
everyone from the complete beginner to the most experienced painters in the
world achieve great results. In the pursuit of ever better, we continually
develop new types of paint and ways of using them. The result - our paints are
used the world over. And for painting more than just our miniatures.
When not interacting with our miniatures, many customers enjoy reading stories
set in our rich and immersive worlds. Under our Black Library imprint we
publish new titles every year, from short stories and audio dramas through to
full length novels and audio books. These we make available in physical
bookstores, on third party digital platforms and through our own retail and
other specialist stores.
Manufacture
We are proud to manufacture our product in Nottingham which is the centre of
expertise for our global business. It's where we started and where we intend
to stay.
Logistics
Our product is distributed from our warehouse (EMG) approximately 25 minutes
away from our HQ in Nottingham. EMG supplies our two hubs; one in Memphis,
Tennessee and one in Sydney, Australia. Between these three warehouses, we are
able to directly supply our independent retailers, our own retail stores and
fulfil our online orders.
Sell
Our core revenue is generated via three channels, our own stores 'Retail',
third party independent retailers 'Trade' and our online store 'Online'. We
also sell via our licensing partners. We support these channels and activities
via our digital and marketing team.
Retail - our stores provide the focus for the Warhammer hobby in their
geographical areas. Our stores only stock Games Workshop products. They are
where we recruit the majority of our new customers. To do so, the stores don't
offer the full range of our product, only starter sets, new release products
and the appropriate extended range. At the period end, we had 548 of our own
retail stores in 23 countries. We have 412 single staff stores: small sites,
each one operated by only one store manager. We also have 136 multi-staff
stores, which, like our single staff stores, are constantly reviewed to ensure
they remain profitable. If not, they will probably be converted to single
staff stores.
Trade - we sell to third party retailers under closely controlled terms and
conditions. Independent retailers are an integral part of our business model
helping us to sell our products around the world and importantly in areas
where we don't have our own stores. Games Workshop strives to support those
outlets which help to build the Warhammer hobby community in their local
areas. The bulk of our sales to independent retailers are made via our
telesales teams based in Memphis, Nottingham and Barcelona. We also have small
telesales teams in Sydney, Tokyo, Shanghai, Singapore, Hong Kong and Kuala
Lumpur. In 2023/24 we had 7,200 independent retailers (2022/23: 6,500) in 71
countries. We strive to deliver excellent service, operating in 20 languages
covering all time zones. Independent retailers sell from their physical stores
as well as their own online web stores.
Online - sales via our own web stores. All of our retail stores also have a
web store terminal that allows our customers to access the full range from
within the store. Our web stores are run centrally from our HQ in Nottingham.
Licensing - we grant licences to a number of carefully chosen partners. This
allows us to exploit our IP to broaden the presence and brand exposure of
Warhammer around the world, often entering new markets such as media and
entertainment. It also allows us to generate additional income. Currently, the
majority of this income is generated by video games sales in North America,
the UK and Continental Europe.
Marketing - keep us customer focused. This team acts as the bridge between our
other business areas, ensuring we have a joined up approach between product
(design to manufacture) and sales. Marketing spend a lot of time listening and
developing a two way dialogue with our customers to make sure we keep their
needs at the forefront, championing the Warhammer hobby around the globe and
injecting our content and communications with a real sense of passion and
fun.
Structure
We control the business centrally from our HQ in Nottingham; it is where the
majority of people with experience and knowledge of running our business work.
I have put in place a flat structure: the people with senior responsibility,
that make all of the big decisions, report directly to me.
I have two main teams: an operational board team and a senior management team.
The operational board members are: the chief financial officer, a global IP
and product design director, a global business to business (B2B) sales and
marketing director, a global manufacturing and supply chain director, and a
creative media director. I represent our own sales channels, Retail and
Online, at the regular reviews.
Our global IP and product design director is responsible for our Warhammer
design studios (miniatures, books and box games, specialist systems, hobby
product, our publishing business - Black Library, and creative approvals for
third party licences). They ensure any content that is produced, whether
physical or virtual, truly represents our IP. They also support me in
exploiting our IP, alongside our creative media director.
The responsibility for our trade sales is with our global B2B sales and
marketing director who also manages the marketing team for all sales
channels.
Reporting directly to me, our retail chain is split between two retail
territory managers, one for North America and Asia and one for the rest of the
world. Our online store (our biggest store) is the responsibility of our rest
of the world retail manager, who also manages our biggest physical store,
Warhammer World.
The global manufacturing and supply chain director manages the three factories
in Nottingham and our main warehouse facilities in Nottingham, Memphis and
Sydney as well as the service levels at our third party run warehouses in
Tokyo and Shanghai. He is also responsible for our stock forecasting and our
merchandising team, supporting all sales channels.
Our operations and support structure includes the chief financial officer for
Games Workshop who is responsible for accounts, HR, legal and compliance, and
IT. They also support me in exploiting our IP by managing the licensing team.
The senior management team comprises the members of the operational board
together with our global head of IT, two retail territory heads, our Group
company secretary/general counsel, two HR managers (covering support and
advisory as well as recruitment and development). In addition, my executive
assistant helps me by running a team who supports the day to day running of
the teams above.
Key performance indicators
The boards and management team use a number of key performance indicators to
provide a consistent method of analysing performance, in addition to allowing
the boards to benchmark performance against our forecast. The key performance
indicators utilised by the boards can be split into key financial performance
indicators and key non-financial performance indicators.
Our key financial performance indicators are:
Monthly and year to date core business sales growth by channel
This measures the core business sales growth achieved in each of our core
channels on a monthly and year to date basis.
Monthly and year to date core gross margin
This measures the core gross margin achieved on core sales after taking
account of the direct costs, depreciation of manufacturing equipment and the
costs of shipping our product to customers/stores on a monthly and year to
date basis.
Year to date core operating profit percentage
The ratio of core operating profit against core revenue, as a percentage. This
is considered to be a measure which reflects sales and costs under our direct
control.
Monthly and year to date core operating profit
This measures gross profit less operating expenses for the core business on a
monthly and year to date basis. This is considered to be a measure which
reflects sales and costs under our direct control.
Year to date licensing revenue
This measures licensing revenue and cash earned from licensing. These measures
reflect revenue which is not under our control.
Our key non-financial performance indicators are:
Number of own stores by territory
This measures the number of our own stores which is an indicator of our global
reach.
Number of ordering stockist accounts by territory
This measures the number of trade outlets that have ordered from us in the
last six months. It is an indicator of our global reach and the health of our
trade account base.
Customer engagement
We measure this through our own content channel warhammer-community.com and
reach, delivered through our social platforms.
Shareholder value
We believe shareholder value is created, primarily, by not destroying it. We
have no intention to acquire other companies, nor to dispose of any of those
we own.
We return our surplus cash to our owners and try to do so in ever increasing
amounts. A cash buffer of three months' worth of working capital requirement
(now £80 million) alongside three months' worth of tax payments and any large
planned capital purchases or Group Profit Share payments/bonuses over £1
million, have been set aside before deciding how much cash is truly surplus
for the purpose of declaring dividends.
Review of the period
Games Workshop and the Warhammer hobby are in great shape.
I am delighted to report the best results in Games Workshop's history, so far.
We have delivered sales, profits and dividend payments to shareholders at
record levels.
We once again have designed, made and sold in record quantities, the best
fantasy miniatures in the world - our Warhammer Studio has again been
inspiring, thank you all.
Performance
These record results were delivered by an incredible international team
performance. A team that cares passionately about the Warhammer hobby and our
loyal fans. We delivered 12 out of 12 months of profitable sales growth at
constant currency. This consistent performance is a direct result of the team
being absolutely focused on the delivery of a great customer offer. At the
same time, they've shown a great ability to work together to deliver our
detailed commercial plan. Both are essential to our ongoing success and
neither is easy to deliver week after week.
Our business is run to a weekly rhythm e.g. range management - too much stock
or too little stock, for our vertically integrated business is a trade off of
either too much cash tied up in stock versus not making enough stock to
support weekly new releases or existing range items, sometimes leaving a few
customers annoyed. We have flexed up our safety stock levels in the last year
and we are still working to get this balance right. We have purposefully, for
our customers, increased stock levels year on year and the result is gross
stock is higher. So, in the year ahead we will need to continue to be
ambitious on our new release product performance and at the same time
pragmatic when forecasting customer demand on our existing ranges. This will
ensure we deliver great customer service, support our sales channels and at
the same time keep to our commercial short term performance goals.
The most likely thing we are aware of at this stage in the trading period that
could stall our growth plans is our old IT system. It keeps randomly annoying
us and causing temporary issues for us and our customers - particularly in
order processing. We have skilled staff who know, more now than we have ever
done, what the problems are to solve. We have an outline plan to replace our
legacy systems and have agreed and implemented an increase in investment. It's
clearly being managed better, and it's not getting in the way, too much, of us
delivering record volumes.
We aim for many more years of profitable growth and for all our customers to
continue to enjoy their hobby. So every year as we plan for the next few, we
continue to set the sales volume bar higher; as I wrote in 2021, it is still
worth noting that historically the launch year of a new Warhammer 40,000
edition is normally the financial high point, until the next edition of
Warhammer 40,000. I'm stating the facts: Warhammer 40,000 is still our best
selling range of products. We have an ambitious plan for the next period, time
will tell whether it was good enough.
Cash
Since May 2023, we have increased our cash buffer from £50 million to £80
million, in line with the new three monthly cash cost of running Games
Workshop. Our job is to run the business under all scenarios - some not so
positive ones are highlighted in our annual report under going concern
scenarios - our cash buffer levels pass all these scenarios.
Climate change - supporting global temperature reduction
We have made good progress on this strategic priority. As promised, we are
focussing on our scope 1 and 2 CO(2)e emissions and we are ahead of the
milestones presented in the 2023 annual report.
Culture
I am really proud that I see a great culture at Games Workshop. A culture
built on us all appreciating the efforts of everyone in the team, all working
hard to do the right thing for Games Workshop. A culture which allows a few of
us to make big judgements with no fear; we are allowed to make mistakes,
tomorrow is another day. We are ambitious and so occasionally we do make
mistakes. We also understand that continuing to improve all the little things
is essential for our ongoing success: there are no silver bullets - these
results are built on our hard work and focus on what's in our control. As time
goes by and a few long-standing team members leave, we will continue to help
all our staff understand the key elements of our culture that have shaped the
successful company we are. For example, ensuring we continue to recruit well
(behavioural fit is more important than skills - which we can ultimately
train) and our personal development, most importantly self-awareness and the
impact on the morale of those around you at Games Workshop, really does
matter. We are here for the Company and for each other.
At Games Workshop we have a senior team that has an average tenure of over 20
years. So, pragmatically as some leave, we look for a few remarkable people to
be our future leaders. I still believe, for a niche vertically integrated
company like us, it is in the best interests of Games Workshop, Warhammer fans
and our broader stakeholders to recruit senior jobs from within. The challenge
for most companies, and it is the same for Games Workshop, is that only a few
people have the personal qualities to be consistently successful in the most
senior jobs or the willingness to accept the responsibility that comes with
these jobs…and at the same time remain ego free. Rachel Tongue and John
Blanche, two of our great leaders, are moving on. We thank them both for their
many years of considerable efforts and support - we wish them both all the
best for the future.
Our staff and their team efforts are critical to our ongoing success so we are
all proud that our staff retention rate continues to remain high. We thank all
of our staff for their ongoing support and their focus on delivering their
department strategies. This year, in line with our remuneration policy, to
reward their huge efforts we increased the Group Profit Share payments to a
record level.
Design
In June we launched the 10th edition of Warhammer 40,000 - now 37 years old
and going strong. The response to the new miniatures and rules has been
fantastic, driving growth through the whole of the Warhammer 40,000 range.
Our Horus Heresy offer explores the civil war that is the founding story of
the Warhammer 40,000 setting. Our drive to turn this predominantly resin range
into plastic continues at pace. In December we launched Horus Heresy Legions
Imperialis to complement the Horus Heresy range - the same setting but with a
different scale of miniature allowing customers to recreate huge battles on
the tabletop.
Warhammer Age of Sigmar received several faction launches over the year, the
most significant being Cities of Sigmar. Accompanying them was an unfolding
storyline, culminating in the summer of 2024 with the return of a much loved
protagonist…
In January we expanded our fantasy offer with the return of Warhammer: The Old
World (first launched in the 1980s). Sales suggest that it is appealing to
both new and veteran hobbyists alike. As with everything we do, we have grand
plans for the years ahead.
Finally, our monthly printed magazine, White Dwarf, hit its 500th issue in May
2024 - quite a milestone in an ever increasingly digital age.
Manufacturing
Our manufacturing focus has remained, as always, on producing the best fantasy
miniatures in the world.
All three Nottingham factories have operated in line with our forecast and
expectations throughout the year. Factory output has been at record levels,
producing in excess of 40 million plastic sprues during the year. Projects to
improve efficiency, (we re-laid out our factories amongst other initiatives)
allowed this to happen without adding additional machinery or buildings. We
have also undertaken work to improve our factory environments for staff with
air conditioning and lighting systems being upgraded. To give us extra
capacity, we are now in the planning approval stage of an additional factory,
called Factory 4, on our existing Nottingham site. The land was purchased in
2020 at a cost of c.£2.7 million and we estimate the fully operational build
cost to be c.£9 million.
Total production costs have increased by £3.9 million to £25.8 million, this
includes increased staff costs of £2.7 million; as a percentage of core
sales, production costs have increased from 4.9% to 5.2%.
Warehousing
Our warehousing, logistics and distribution focus has been improving the
service offered to our customers, which in the recent past has been below what
we'd expect.
North America
We are still having some issues with our old IT systems at our Memphis
facility. They will be addressed fully as we implement our systems improvement
programme. These issues are random which can be frustrating for us and some
customers, as it temporarily drops our service levels to below expectations.
We have invested in an additional 25 robots and associated equipment during
the period to further increase our picking capacity. More can be added in
future, as and when required. I highlighted earlier some tremendous efforts by
the team to not only deliver the highest dispatch volumes ever, but they also
planned and implemented, without any real drama, the transition from the old
warehouse set up to the new one in April 2024.
UK
All UK and European finished goods fulfilment has now transitioned to the EMG
site. During this transition, the service we provided to customers from
September to January, particularly to our direct web customers, was late.
However, with everything now in place the site delivered the expected
improvements with Online orders now routinely dispatched in under 48 hours
(excluding pre orders and made to order). Here too, an additional 25 robots
and associated equipment were introduced to scale picking capacity. There is
plenty of room for more, as and when they are required. The legacy Eurohub
warehouse was successfully refurbished and converted to become our dedicated
materials and component warehouse (now known as the Lenton Components
Operation or LCO). Its location, close to the factories, has enabled a more
just in time service, and the consistency of delivery has greatly aided the
factories' record productivity. Consistency and reliability of cross border
shipping remains a key focus for orders transiting into Europe. A finished
goods warehouse solution in Europe is still under review. It is likely to be
an outsourced solution like we have implemented in Asia.
Australia
After over 25 years, we concluded the time had come for us to upgrade to a
new, larger, modern warehouse to better meet the needs of our sales channels
in Australia and New Zealand. At the time of writing the construction of our
new warehouse, situated in Leppington, Sydney (close to our original Ingleburn
warehouse) is nearing completion. Our warehouse team (and the wider Australian
sales and support teams) will move into this new site during 2024/25.
Total warehousing costs have increased by £3.1 million to £29.0 million,
this includes increased staff costs of £2.6 million; as a percentage of core
sales, warehouse costs have increased from 5.8% to 5.9%.
Service centres
During the year our teams helped deliver the change programmes described
above. In addition, they have been busy: benchmarking salaries on all jobs,
supporting our investment in ESG topics, helping us open up in new countries
(the admin burden is often considerable), navigating us through the
significant tax reporting and returns we do in 38 countries, working alongside
our trade accounts to manage to the £12 million credit we have across 7,200
accounts and paying the 3,500 suppliers. Not forgetting paying our c.3,500
staff on time across 23 countries. We thank them all for their considerable
efforts and for their commitment to continuous improvement. There will be some
small structure changes in the next year as Rachel (CFO) leaves and passes the
cheque book and keys to Liz (Group FD).
IT
Following a thorough review of our services we have increased our cash
allocation investment in IT from c.3% of core revenue up to c.5%. It's worth
noting that most of this spend is written off in the period it is incurred in
line with accounting standards. The review process was fairly challenging for
our new team- it is clear to them that we run IT like everything else, aligned
with core business operational KPIs. The work to remove our legacy systems
will take three to five years so we will just let them crack on. We will judge
the team on delivery of the key milestones. The next key one is the go live of
the new core systems in Australia, which is by September 2025.
Customer focused
Our goal remains to reach out and find new fans, and engage and inspire
existing Warhammer enthusiasts, wherever in the world they may be. We continue
to focus our efforts on six of our own key areas:
Our stores
For decades, the staff in our retail stores have worked cheerfully and
relentlessly to offer great customer service and more importantly recruit ever
more new customers into the Warhammer hobby. Our stores continue to be the
best place to start your hobby journey with us. We continue to offer free
introductory experiences: receive your first model, learn how to build and
paint it, and play an exciting game with store staff. Our store formats are
varied and applicable to the local area; from small stores run by a manager to
our large café format stores found in the US and Japan. The Warhammer
Alliance schools programme has c.7,700 active school and library clubs signed
up worldwide, supporting young people in improving their engineering, arts,
and maths skills.
Warhammer community and social media
Warhammer-community.com remains the cornerstone of our online presence. The
best place to come for all the latest news from our Warhammer universes.
During the year, the team again put out thousands of pieces of content to
engage, inform and inspire Warhammer fans globally, including news of the new
edition of Warhammer 40,000, supported by our latest animated trailer. The
most recent exciting news is an increase in our coverage of our IP and product
content to cover more languages; including local language coverage in some of
our fastest growing markets like Germany and Japan.
My Warhammer
This single login gives access to our webstore and related apps. As at the
period end, we have 565,000 active users (2022/23: 427,000). We define active
users as someone who has engaged with us online in the last six months.
Warhammer+
Our subscription service for Warhammer fans is approaching its third year.
Packed with original animated shows, tutorials and much more, it continues to
extend the ways in which everyone can explore the worlds of Warhammer.
The exciting content delivered through Warhammer+ will remain an integral part
of our digital offer and how we share our IP. Subscriber numbers are currently
176,000 (2022/23: 136,000).
Email
Our email campaigns continue to be one of our most effective methods of
communication. Subscriber numbers, defined as people who opened one of our
emails in the last six months, at the period end were 598,000 (2022/23:
531,000).
External events and product placement
To broaden our reach to ever more potential enthusiasts, we continue to attend
many of the largest tabletop third party events in the world including in the
US, Germany and Japan.
The network of local clubs, schools and group events, plus the activities of
our trading partners and our own Warhammer stores, have helped local Warhammer
communities grow offline…in the real world.
Licensing business
Warhammer IP is rich, vast and endless so as we do more projects, it's
important that we are focused on exploiting it all and that we can always
defend the ownership of our IP. We always work with partners that understand
that their IP representation continues to be respectfully aligned to ours. We
do understand that we are not funding these products nor do we own them, so
this is a relationship built on trust. During the period, we transferred the
approval process for managing our IP with licensing partners to the management
team at the heart of Games Workshop, our Warhammer Studio. This will ensure
our views on what our IP representation is, comes from our experts.
Our strategy is to exploit the value of our IP beyond our core tabletop
business, in multiple categories and markets globally. We intend to ensure
Warhammer's place as one of the top fantasy IPs globally. The main areas of
focus are:
Entertainment
As we announced in December 2023, we have entered into an agreement with
Amazon Content Services LLC ('Amazon'), a subsidiary of Amazon.com, Inc., for
the prospective development by Amazon of Games Workshop's Warhammer 40,000
universe into films and television series, together with associated
merchandising rights.
Under the terms of the agreement, Games Workshop has granted exclusive rights
to Amazon in relation to films and television series set within the Warhammer
40,000 universe, together with an option for Amazon to license equivalent
rights in the Warhammer Fantasy universe following the release of the initial
Warhammer 40,000 production.
Games Workshop and Amazon are working together for a period of 12 months,
ending in December 2024, to agree creative guidelines for the films and
television series to be developed by Amazon. The agreement will only proceed
if the creative guidelines are mutually agreed between Games Workshop and
Amazon. We will update you accordingly.
Video games
During the period our licensing partners launched three new games; two
PC/console and one mobile. We also saw revenue from established games that
continue to perform well, many years after launch, through a mixture of added
content and continued marketing. Particular launches of note were Rogue Trader
and Warpforge.
The general backdrop still remains challenging for this market in the short
term. Our team, under a new boss, continues to promote the depth of our IP and
its unique lore and settings to potential licensing partners. Two new games
were announced in the period, a sequel to a successful PC and console tactical
game, Mechanicus 2, and a digital version of Talisman 5th edition.
We are delighted that new games launching in 2024/25 include the highly
anticipated video game - Space Marine 2.
As a reminder, the viability and ongoing success of any of our licensing deals
is broadly out of our control; they are reliant on the successful development
and delivery by our licensing partners. Our cash receipts performance is
linked to games launched. This can be different to reported income which
includes an element of guarantee income on multi year contracts not yet paid.
Revenue
Reported core revenue grew by 11.1% to £494.7 million for the period. On a
constant currency basis, core sales were up by 13.9% to £507.4 million.
Licensing revenue from royalty income was up in the period at £31.0 million
(2022/23: £25.4 million). This was partly due to a high level of guarantee
income on multi-year contracts signed in the second half of the year; this
income was recognised in full at the inception of the contract in line with
IFRS 15 'Revenue from contracts with customers' following assessment of the
performance obligations of the contract. As at the period end we had
receivable balances of £9.6 million falling due in the year ahead. The total
licensing receivables balance at the period end was £28.3 million.
Reported income is split as follows: 70% PC and console games, 15% mobile and
15% other. In the period, guarantee income was £17.6 million (2022/23: £8.1
million). Cash received from licensees in the period was £25.0 million
(2022/23: £26.5 million).
Revenue by sales channel
53 weeks ended 52 weeks ended 53 weeks ended 52 weeks ended
2 June 2024 28 May 2023 2 June 2024 28 May 2023 2024 2023
Constant currency Constant currency Actual rates Actual rates % of core % of core
£m £m £m £m revenue revenue
Trade 296.3 248.0 288.4 248.0 58% 56%
Retail 118.9 106.4 115.6 106.4 24% 24%
Online 92.2 91.0 90.7 91.0 18% 20%
Core revenue 507.4 445.4 494.7 445.4
Licensing revenue 32.8 25.4 31.0 25.4
Revenue 540.2 470.8 525.7 470.8
Trade
Trade achieved significant growth of 16.3% with growth in all key countries.
In the period, our net number of trade outlets increased by c.700 accounts to
7,200 which helped drive forward sales in this channel. It's worth noting that
a large number of independent retailers now also sell our products online,
meaning our customers have more choice than ever about where to buy Warhammer.
A highlight in the period reported is the performance of our multilingual team
based in Barcelona; nearly all of our trade team that supports our trade
accounts across Continental Europe sit in an office in Spain. This has
resolved our staff recruitment challenges.
Retail
We believe our stores are the best place to start your Warhammer hobby
journey. Our stores are filled with staff who have extensive Warhammer
knowledge, build local communities, and offer Warhammer hobby guidance and
support. It is an essential and unique customer service offer that we are
proud of. In the period, Retail achieved growth of 8.6%.
Store openings and closures during the period:
Number of stores Number of stores Number of single staff Number of single staff
at 28 May 2023 Opened Closed at 2 June 2024 stores at 2 June 2024 stores at 28 May 2023
UK 135 3 4 134 83 90
North America 172 14 1 185 158 145
Continental Europe 154 10 2 162 120 113
Australia 49 1 1 49 36 37
Asia 16 2 - 18 15 14
526 30 8 548 412 399
In the period, we opened, including relocations, 30 stores. After closing 8
stores, our total number of stores at the end of the period was 548. The
performance of each store will be kept under review and any stores that do
not meet our financial model will be closed.
Our new country structures in North America (now run through four regional
managers instead of centrally from a boss at retail HQ in Dallas) and the UK
(staff development opportunity with some additional regional managers) are in
their early stages but performing well. Retail sales in North America are up
10.0% to £45.1 million and in the UK up 6.9% to £34.3 million. We may, if
needed, slow down new store openings to give them additional time to focus on
the performance of our existing stores. The team has highlighted significant
opportunities including reaching 200 stores in North America soon.
Our new Australia and New Zealand retail territory manager, appointed in 2023,
with the support of our UK retail team, has gone back to ensuring all of our
staff across our 49 stores in this region are focused on delivering the
essential customer facing services to our very high standards; they are making
some good progress. This, as expected, has impacted sales. Our sales
performance in Retail in Australia and New Zealand is down 10.6% to £8.4
million. It's going to be busy in Australia in the next few years as we
upgrade their core financial systems and relocate the whole team to a new
warehouse and office HQ too. Any IT solutions rolled out here will be the
globally chosen solution. These projects will be a fair challenge; centrally
run with the full support of the UK based team with an appropriately resourced
local implementation team. My fingers are crossed - we will deploy more
resources, if needed, to ensure they're not crossed for too long.
Sales in Retail in Continental Europe are up 15.6% to £24.4 million with all
countries in growth.
Asia, China and Japan were in like for like growth with Retail sales in Asia
up 21.4% to £3.4 million.
Our new store openings will continue to follow our single staff model, where
appropriate. Managing rents and shopfits has been more challenging during the
period with the average rent increase at c.4% at constant currency and average
capex at £40,000. All but a few of our stores remain profitable at these new
levels. Our larger stores continue to perform within their multi staff model
too: our North America retail team are looking forward to finding a new
location for a café format store on the east coast to open when they're
ready.
Ensuring we always recruit great store managers and offer our customers an
exceptional in-store experience, remains a priority for us. We have had no
issues during the year recruiting store managers…it's a very rewarding job
being one of our wonderful ambassadors.
Online
In October, we launched our new Warhammer.com store. Completed successfully, a
few months earlier than planned, phase 1 was focused on moving us to a new,
more stable platform. Phase 2 is now progressing, and will add extra
functionality to give customers a better shopping experience.
Reported Online sales have decreased by 0.3% compared to the same period last
year. Excluding digital sales, Online sales decreased by 5% or £3.8 million.
This was due to fewer customers ordering directly to and from home with us.
There was a significant increase of 46% (£2.7 million) to £9 million of
orders from home and picked up in a Warhammer store (reported in Online).
Our Warhammer.com webstore functions as more than just our B2C online shopping
channel. It fully supports our retail stores and trade partners, acting as a
virtual stockroom portal, allowing us to offer the widest possible Warhammer
range to every customer. We're not precious about where our customers shop -
only that they can do it how they want, wherever they are.
We saw orders in our own stores and/or in trade accounts processed by the
platform increasing in popularity. There has been a 20% (£3.0 million)
increase to £18 million in the period in 'Direct through Trade' (reported in
Trade). There was a 16% (£2.0 million) increase to £15 million in the period
of sales of products ordered through our in store terminals (reported in
Retail).
Core gross margin
Core gross margin percentage increased in the period from 66.5% to 69.4%.
Core gross margin at May 2023 66.5%
Inventory provision +0.7%
Materials -0.1%
Production +0.2%
Carriage +1.1%
Warehousing and logistics -0.2%
Other +0.2%
Gross margin before animation 68.4%
Animation +1.0%
Core gross margin at May 2024 69.4%
Core gross margin increase of 2.9% has benefitted from a reduction in the
charge to inventory provisions (+0.7%) due to sales performance of new release
products. There has also been a decrease in carriage costs (+1.1%) following
the high costs experienced in the first half of the prior period. These have
been offset by an increase in logistics costs (-0.2%) as a result of our
expanded warehouse facilities. Animation relates to the costs of producing the
content for Warhammer+, the amortisation of which is reported in cost of
sales.
Operating expenses
Core operating expenses have increased by £20.7 million in the period
(2023/24: 34.1% of core revenue; 2022/23: 33.2%).
Core operating expenses at May 2023 £148.0m
Staff costs +£8.5m
Group profit share +£6.7m
New stores +£1.6m
Other +£1.1m
Core operating expenses at May 2024 £168.7m
The increase of £20.7 million was directly attributable to our investment in
our staff: increasing the levels of pay to our staff and investing in new
roles, as well as paying all staff more Group Profit Share. Included in other
costs are increases in professional fees (+£1.2 million) and marketing spend
(+£1.6 million).
Licensing operating expenses have increased by £0.6 million due to a
provision against licensing receivables.
Operating profit
Core operating profit increased by £26.6 million to £174.8 million (2022/23:
£148.2 million). As a percentage of core sales, core business operating
profit was 35.3% (2022/23: 33.3%). Core operating profit excluding Group
Profit Share increased from 35.9% in 2022/23 to 39.1%. On a constant currency
basis, core business operating profit increased by £37.4 million to £185.6
million.
Licensing operating profit increased by £5.0 million to £27.0 million
(2022/23: £22.0 million). On a constant currency basis, licensing operating
profit increased by £6.8 million to £28.8 million. These numbers are income
less costs; they do not include any costs related to using the IP created in
the core business.
Total operating profit increased by £31.6 million to £201.8 million.
Cash generation
Cash and cash equivalents at May 2023 £90.2m
Cash generated from operations +£237.9m
Share issue +£2.7m
Interest received +£2.5m
Lease payments -£12.9m
Product development -£15.4m
Purchase of capital assets -£17.2m
Other -£0.2m
Tax paid -£41.7m
Dividends paid -£138.3m
Cash and cash equivalents at May 2024 £107.6m
Included within cash generated from operations are increases in spend on
inventory of £10.0 million and an increase in trade and other receivables of
£7.6 million, of which £6.8 million relates to an increase in licensing
receivables due to the multi year contracts signed in the year.
Dividends
We followed our principle of returning truly surplus cash to shareholders.
Dividends of £138.3 million (2022/23: £136.5 million) were declared during
the period. Surplus cash in the prior period benefitted from the repayment of
a French VAT receivable of £11.6 million. A cash buffer of three months'
worth of working capital requirement (now £80 million) alongside three
months' worth of tax payments and any large planned capital purchases or Group
Profit Share payments/bonuses over £1 million, have been set aside before
deciding how much cash is truly surplus for the purpose of declaring
dividends.
Return on capital employed - core business
A long-term measure of our performance has been return on capital employed
(ROCE). During the year our core business return on capital has increased from
133% to 176%. If ROCE was calculated using the period end values, it would be
173% (2022/23: 155%). Core average capital employed decreased by £12.4
million to £99.3 million with average balances being calculated over the 12
month period. Core operating profit increased by £26.6 million to £174.8
million (2022/23: £148.2 million).
Investments in assets
This is what we have been spending your money on:
2024 2023
£m £m
Shop fits for new and existing stores 1.2 1.3
Production equipment and tooling 10.7 9.3
Computer equipment and software 2.1 2.1
Site 2.0 1.9
Total capital additions 16.0 14.6
In 2023/24, we invested £7.0 million on moulding tools and £1.1 million in
tooling, milling and injection moulding machines. The investment in computer
equipment and software includes £0.3 million on the upgrade of our Australia
warehousing system. The investment in site includes £0.3 million on our US
warehouse and several projects at our HQ in Nottingham.
Inventories
Inventories have increased by £9.2 million, to provide better product
availability to our customers. Inventory before inventory provisions increased
by £11.3 million to £47.9 million (2023: £36.6 million). Provisions at the
period end increased to 11.9% of gross stock (2023: 9.8%) due to the phasing
of provisioning and obsolete stock disposals. We continue to offer a broad
range of price points. Our average RRP increase on miniatures in the period
reported was 2% and an average of 2% across all other product lines.
Trade and other receivables
Trade and other receivables increased by £7.6 million. This includes a £6.8
million increase in licensing receivables due to the multi year contracts
signed in the year, a £0.5 million increase in trade account debtor balances,
and an increase in property deposits for the new Australia warehouse of
£0.3m.
Trade and other payables
Trade and other payables increased by £9.5 million, including: a £3.5
million increase in advance payments made by trade and online customers
relating to made to order products and a change in the preorder window for new
release products; a £3.1 million increase in trade payables; a £1.8 million
increase in PAYE and other staff costs payable; and an increase of £0.8
million in guaranteed royalty payables. These were partially offset by a £0.9
million decrease in VAT liabilities.
Taxation
The effective tax rate for the period was 25.6% (2022/23: 21.0%) as the UK
corporate tax rate increased from 19% to 25% on 1 April 2023. This continues
to be above the UK rate of 25% (2022/23: 20%) due to items not deductible for
tax and the marginal impact of higher overseas rates.
Treasury
The objective of our treasury operation is the cost effective management of
financial risk. The treasury relationships are managed centrally and operate
within a range of board approved policies. No transactions of a speculative
nature are permitted. Credit risk on cash and short term deposits is mitigated
as the counterparties are banks with high credit ratings assigned by
international credit agencies.
Funding and liquidity risk
The Group pays for its operations entirely from its free cash flow.
Interest rate risk
Interest income for the period was £2.5 million (2022/23: £1.3 million) and
interest expense was £1.3 million (2022/23: £0.9 million).
Foreign exchange risk
The sensitivity of the Group's income statement to depreciation in foreign
exchange rates on US dollar and euro financial assets and liabilities are
disclosed below. An appreciation of the stated currencies would have an equal
and opposite effect:
Income statement losses
2024
£m
15% depreciation of the US dollar 4.2
15% depreciation of the euro 1.5
Our main currency exposures are in respect of the euro and US dollars. The
rates used for these throughout the accounts are:
euro US dollar
2024 2023 2024 2023
Period end rate used for the balance sheet 1.17 1.15 1.27 1.23
Average rate used for earnings 1.16 1.15 1.26 1.20
Principal risks and uncertainties
Risk governance and oversight
The board has overall responsibility for ensuring risk is appropriately
managed across the Group, for ensuring effective internal controls are in
place, and for carrying out robust assessments of the principal risks to the
business.
Our approach to risk management
We operate a top-down and bottom-up approach to identifying and managing
risks.
Key strategic risks (principal risks) to the Group are regularly reviewed by
the board. Individual members of the senior management team are responsible
for managing operational risks, the mitigating controls for their areas of the
business, and escalating any emerging or changes to key risks.
Operational risks and mitigating activities are identified, assessed and
monitored at regular risk assessment meetings, attended by the senior
management team and coordinated by the internal audit function. The risk
assessment considers both the inherent risk (before mitigation) and residual
risk (after mitigation), and is captured in the operational risk register. The
output is reported to the audit and risk committee twice yearly for awareness,
review and challenge.
Independent assurance over the effectiveness of risk management and internal
control is provided via a risk-based internal audit programme delivered by
internal audit and approved by the audit and risk committee.
Risk appetite
The board is responsible for establishing the risk appetite for the Group,
taking account of our business strategy and principal risks. We manage all
controllable risks to a level within this risk appetite, and where risks are
more uncertain, we base our decisions on our long-term business strategy and
objectives. Our long-term success is measured by achieving a high return on
investment, and our strong financial disciplines help ensure we are well
placed to withstand the impact of risks.
Assessment of principal risks and uncertainties
The principal risks and uncertainties have been discussed and assessed by the
board, including any risks that would impact the Group's business model or
future performance.
Following this review, the board agreed no fundamental changes were necessary
to the principal risks and uncertainties this year. Our principal risks are
described below, with some more detail this year explaining the nature of the
risks and how they are managed.
Why the risk is important to us What is the risk How we manage the risk
IP protection
Development and exploitation of our IP is fundamental to our future growth. Failure to protect our IP may erode our competitive advantage and/or undermine · An IP steering committee is in place with oversight of IP
our reputation, which will negatively impact our financial performance. compliance processes, and ensures on-going review of our IP protection
resources and capabilities.
· Our specialist legal, IP and archiving teams maintain historical
records and samples in respect of IP creation.
· Our specialist IP and licensing teams work closely together to
ensure IP consistency and correctness.
· Timely and appropriate action is taken against infringement of
our IP.
Cyber security, data and systems
Our IT systems are critical to our ability to operate, to manufacture and It is impossible to completely protect ourselves from this inherent business · Significant investment in IT improvements to protect our critical
distribute our products to customers. risk. A cyber attack could result in reputational damage, regulatory fines, an systems, increase our resilience, and strengthen our ability to recover from
inability to operate, IP breaches, and will negatively impact our financial incidents.
performance.
· We carry out due diligence in respect of partners that hold
The threat of cyber attack is forever evolving, and as our business success personal data on our behalf to ensure that they have appropriate security
and profile grows we could become a larger target. controls in place.
· An IT security steering committee governs all our information
security and data privacy risks, along with our mitigation plans.
· Information security and data protection are overseen by subject
matter experts who advise and support all departments across the business as
required.
· Compulsory cyber risk and data protection training for all
employees.
Global distribution and supply disruption
As a group with global reach, we are dependent on key global distribution Global supply chain disruption and instability may negatively impact our · Business continuity planning for short term disruption to ensure
suppliers and supply chains. manufacturing and distribution operations, and our ability to meet demand and we can continue trading. This may not be possible in all scenarios.
fulfil orders.
· On-going review of our international supply chain activity to
ensure we react quickly.
If this happened it would negatively impact our financial performance. · Reduction of the risk of distribution supplier failure by working
with multiple suppliers.
Loss of key manufacturing and warehousing facilities
As a vertically integrated business, we are dependent on our key manufacturing Failure to ensure continuous supply from our key manufacturing and warehousing · On-going collaboration with carefully selected and vetted suppliers
and warehousing sites in Nottingham and Memphis in order to manufacture and facilities, due to effects of climate change, physical damage, lack of to ensure early identification and rectification of potential issues or
deliver products to our customers and run our business. capacity, and IT systems failure could lead to the inability to supply disruption.
customers.
· Business continuity plans and business interruption insurance in
place.
· Manufacturing risk register and compliance measures in place to
reduce the likelihood of major events (e.g. fire prevention) and limit their
impact (e.g. ensuring quick recovery from flooding).
· On-going review to ensure capacity is in line with our business
plans.
· On-going approved IT programme to improve system recovery times. Our
core KPI is 8 hours.
· A clear understanding of climate related risks, as documented in our
TCFD reporting.
Climate change and environment
We have considered the environmental and climate change risks posed to Games
Workshop, and their potential impacts on our business. We continue to comply
with TCFD requirements, including undertaking climate change scenario analysis
to ensure a better understanding of the key risks and to drive appropriate
action.
Our key risks in the short to medium-term relate to physical impacts, such as
extreme weather affecting our supply chain, manufacture, and distribution of
our product (for example flooding interrupting operations), and on the
transitional changes (for example, carbon and fossil fuel taxation increasing
the cost to our business). We have concluded that these short to medium-term
risks are not currently material to our business. However, we are committed to
continue to monitor these risks closely.
We have therefore concluded that rather than being a separate business risk in
its own right, climate and environment risk forms an integral part of a number
of our principal risks. The impacts and our responses to them are included in
the principal risks summary above. Management of these risks is overseen by
the sustainability steering committee, with regular reporting to the board.
Priorities for 2024/25
We are making progress with our key priorities. Each of these is designed to
ensure we deliver our exciting operational plan and continue to engage and
inspire our loyal customers and attract new ones. It may seem a little
repetitive, it is, we are not planning any significant changes to the
implementation of our core strategy in the year ahead. We will remain
commercially curious and inquisitive.
Like most years we set out the six key initiatives that will be prioritised in
2024/25. These are designed to give us the best chance of delivering further
sales growth whilst maintaining our core operating profit margin and
continuing to surprise and delight our customers. They are in addition to our
investment in new product quality, increased levels of inventory in existing
ranges and ensuring our factories and warehouses deliver the appropriate
services at the right cost to help us meet studio output and satisfy customer
demand whilst maintaining our gross margin.
Staff training and development
We care passionately about our international team. We have ambitious long-term
plans, but we also run the business with only the resources we need. We will
continue to recruit essential new jobs or where we need to back-fill
positions. Like last year, many of these recruits will be in order to scale
with activity levels - in our factories and warehouse facilities.
We will continue to support lifelong learning and training to develop the
skills needed to enable all our staff to be successful. We are also more
active in developing orderly succession plans of both the board and senior
management. We continue in our commitment to diversity and inclusion at Games
Workshop.
Growth
Our aim is to open new stores in North America and Continental Europe.
We again aim to grow in every major country in the world. We look forward to
more hobbyists signing up to My Warhammer, an easy gateway into the depths of
content on our fantasy worlds.
We will continue to open more independent retailer accounts. Selling via
physical outlets remains an important sales channel for us. Some have their
own online store, some not. We have seen sales grow in both. In the year
ahead we expect the majority of our incremental growth to be through sales to
independents, the channel we call Trade.
We have deployed a project team led by a veteran export sales manager to open
up more countries across East Asia (they really enjoyed their recent trip to
South Korea), and we are working with our local distributor in Mexico on an
exciting growth plan for Latin America to be delivered in the years ahead. In
addition, we will be opening our first Warhammer stores in Switzerland this
year as part of our aim to build more communities worldwide.
We will continue to search for and engage with hobbyists everywhere.
As I highlighted earlier, delivering growth when the comparative year is the
best Warhammer 40,000 launch year on record, is a fair challenge. That's the
plan we are implementing for the period to May 2025. I'll let you know if we
have any major problems on the way. My advice is please don't judge us on
quarters. We do not manage the business to that rhythm: we monitor 12 month
moving annual trends…i.e. reviewing whether we are heading in the right
direction or not. It's very difficult to change our new release schedule live
in any year, it is set in stone.
Customer focused
We will also continue to be customer focused - engaging better with our
existing customers in our physical locations as well as online. We will deploy
our normal plan to reach whole new audiences with the Warhammer hobby, and the
rich worlds it is set within. We have agreed a new sales matrix approach to
delivering an appropriate level of investment in new and existing countries.
Once a country is delivering above our threshold level of sales, we will
offer: an official Warhammer retail store with one of our great ambassadors to
support any aspect of the Warhammer hobby, a local currency price list, the
full core range translated into local language (with employed translators
managed from the UK, but having the option of working in country), a locale on
Warhammer.com and marketing support translated into the relevant language. We
have been deploying this approach and it has shown to support the building of
local communities and making the Warhammer hobby more fun and engaging.
Social responsibility
We are committed to ethical sourcing and staff wellbeing, diversity and
inclusion. We will be collecting and reporting internally the ethnicity of our
staff and we will track trends. Committed to diversity, we will continue to
performance manage and recruit for the personal qualities needed to do a
particular job as well as the necessary skills. I will continue to do my best
to ensure this is the case and that we are fair and free from any bias and/or
prejudice.
Sustainability - climate change
We will continue our work on reducing our carbon footprint in line with our
plan documented on page 27 and explain how we are doing against those goals.
Licensing business
The priority remains the same to deliver on our strategy by licensing our IP
to partners who will launch successful video games, live action or animation
shows. In the short term the priority is to conclude our contractual
negotiations with Amazon.
Outlook
After a record year, we will continue to focus on the things in our control.
We have a very clear strategy, which remains unchanged, a detailed operational
plan for the year ahead and a great team to deliver it. I wish to thank our
staff, customers, trade accounts and broader stakeholders for their ongoing
support. Exciting times.
Approved by the board, and signed on behalf of the board
Kevin Rountree
CEO
30 July 2024
Statement of directors' responsibilities
The directors confirm that this condensed consolidated financial information
has been prepared in accordance with international accounting standards in
conformity with the requirements of the Companies Act 2006 and UK-adopted
International Accounting Standards and that the management report herein
includes a true and fair review of the information required by DTR 4.2.7 and
DTR 4.2.8, namely:
· an indication of important events that have occurred during the
period and their impact on the condensed financial information, and a
description of the principal risks and uncertainties; and
· material related-party transactions in the period and any material
changes in the related-party transactions described in the last annual report.
A list of all current directors is maintained on the investor relations
website at investor.games-workshop.com (http://investor.games-workshop.com/)
.
By order of the board
Kevin
Rountree
Rachel Tongue
CEO
CFO
30 July 2024
CONSOLIDATED INCOME STATEMENT
Notes 53 weeks ended 52 weeks ended
2 June 2024 28 May 2023
£m £m
Core revenue 494.7 445.4
Licensing revenue 31.0 25.4
Revenue 3 525.7 470.8
Cost of sales (151.2) (149.2)
Core gross profit 343.5 296.2
Licensing gross profit 31.0 25.4
Gross profit 374.5 321.6
Operating expenses 3 (172.7) (151.4)
Core operating profit 174.8 148.2
Licensing operating profit 27.0 22.0
Operating profit 201.8 170.2
Finance income 2.5 1.3
Finance expenses (1.3) (0.9)
Profit before taxation 203.0 170.6
Taxation 4 (51.9) (35.9)
Profit attributable to owners of the parent 151.1 134.7
Earnings per share for profit attributable to the owners of the parent during
the period (expressed in pence per share):
53 weeks ended 52 weeks ended
Notes 2 June 2024 28 May 2023
Basic earnings per ordinary share 5 458.8p 409.7p
Diluted earnings per ordinary share 5 458.2p 409.4p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
53 weeks ended 52 weeks ended
Notes 2 June 2024 28 May 2023
£m £m
Profit attributable to owners of the parent 151.1 134.7
Other comprehensive income
Exchange losses on translation of foreign operations (0.6) (1.5)
Other comprehensive income for the period (0.6) (1.5)
Total comprehensive income attributable to owners of the parent 150.5 133.2
All items disclosed in the statements of comprehensive income will not be
reclassified to the income statement.
The following notes form an integral part of this condensed consolidated
financial information.
CONSOLIDATED BALANCE SHEET
2 June 2024 28 May 2023
Notes £m £m
Non-current assets
Goodwill 1.4 1.4
Other intangible assets 7 22.8 21.2
Property, plant and equipment 8 56.5 55.7
Right-of-use assets 9 46.1 48.9
Deferred tax assets 12.9 12.0
Non-current receivables 19.7 13.6
159.4 152.8
Current assets
Inventories 42.2 33.0
Trade and other receivables 37.8 36.3
Current tax assets 4.3 14.5
Cash and cash equivalents 10 107.6 90.2
191.9 174.0
Total assets 351.3 326.8
Current liabilities
Lease liabilities (10.0) (9.9)
Trade and other payables (46.3) (37.0)
Current tax liabilities (1.2) (0.4)
Provisions for other liabilities and charges 11 (0.9) (0.9)
(58.4) (48.2)
Net current assets 133.5 125.8
Non-current liabilities
Lease liabilities (37.2) (40.0)
Other non-current liabilities (0.7) (0.5)
Deferred tax liabilities (1.7) (1.4)
Provisions for other liabilities and charges (1.9) (1.6)
(41.5) (43.5)
Net assets 251.4 235.1
Capital and reserves
Called up share capital 1.6 1.6
Share premium account 21.6 18.9
Other reserves 0.8 1.4
Retained earnings 227.4 213.2
Total equity 251.4 235.1
The following notes form an integral part of this condensed consolidated
financial information.
CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY
Called up Share premium account Other reserves Retained earnings Total
share capital £m £m £m equity
£m £m
At 29 May 2022 and 30 May 2022 1.6 16.3 2.9 213.9 234.7
Profit for the 52 weeks to 28 May 2023 - - - 134.7 134.7
Exchange differences on translation of foreign operations - - (1.5) - (1.5)
Total comprehensive income for the period - - (1.5) 134.7 133.2
Transactions with owners:
Share-based payments - - - 1.0 1.0
Shares issued under employee sharesave scheme - 2.6 - - 2.6
Deferred tax debit relating to share options - - - (0.2) (0.2)
Current tax credit relating to exercised share options - - - 0.3 0.3
Dividends paid to Company shareholders - - - (136.5) (136.5)
Total transactions with owners - 2.6 - (135.4) (132.8)
At 28 May 2023 and 29 May 2023 1.6 18.9 1.4 213.2 235.1
Profit for the 53 weeks to 2 June 2024 - - - 151.1 151.1
Exchange differences on translation of foreign operations - - (0.6) - (0.6)
Total comprehensive income for the period - - (0.6) 151.1 150.5
Transactions with owners:
Share-based payments - - - 1.2 1.2
Shares issued under employee sharesave scheme - 2.7 - - 2.7
Deferred tax credit relating to share options - - - 0.1 0.1
Current tax credit relating to exercised share options - - - 0.1 0.1
Dividends paid to Company shareholders - - - (138.3) (138.3)
Total transactions with owners - 2.7 - (136.9) (134.2)
At 2 June 2024 1.6 21.6 0.8 227.4 251.4
The following notes form an integral part of this condensed consolidated
financial information.
CONSOLIDATED CASH FLOW STATEMENT
53 weeks ended 52 weeks ended
2 June 2024 28 May 2023
Notes £m £m
Cash flows from operating activities
Cash generated from operations 13 237.9 231.7
UK corporation tax paid (40.0) (31.3)
Overseas tax paid (1.7) (7.7)
Net cash generated from operating activities 196.2 192.7
Cash flows from investing activities
Purchases of property, plant and equipment (15.6) (14.8)
Purchases of other intangible assets (1.6) (0.4)
Expenditure on product development (15.4) (13.1)
Interest received 2.5 1.2
Net cash used in investing activities (30.1) (27.1)
Cash flows from financing activities
Proceeds from issue of ordinary share capital 2.7 2.6
Repayment of principal under leases (11.8) (11.8)
Lease interest paid (1.1) (0.9)
Dividends paid to Company shareholders (138.3) (136.5)
Net cash used in financing activities (148.5) (146.6)
Net increase in cash and cash equivalents 17.6 19.0
Opening cash and cash equivalents 90.2 71.4
Effects of foreign exchange rates on cash and cash equivalents (0.2) (0.2)
Closing cash and cash equivalents 107.6 90.2
The following notes form an integral part of this condensed consolidated
financial information.
NOTES TO THE FINANCIAL INFORMATION
1. General information
The consolidated financial information of Games Workshop Group PLC is prepared
under the going concern basis and in accordance with both international
accounting standards in conformity with the requirements of the Companies Act
2006 and UK-adopted International Accounting Standards.
The financial information set out above does not constitute the company's
statutory accounts for the periods ended 2 June 2024 or 28 May 2023 but is
derived from those accounts. Statutory accounts for 2023 have been delivered
to the registrar of companies, and those for 2024 will be delivered in due
course. The auditors have reported on those accounts; their reports were (i)
unqualified, (ii) did not include a reference to any matters to which the
auditors drew attention by way of emphasis without qualifying their reports
and (iii) did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006. Copies will also be available from Ross Matthews, Games
Workshop Group PLC, Willow Road, Lenton, Nottingham, NG7 2WS. This information
is also available on the Company's website at
http://investor.games-workshop.com.
The annual general meeting will be held at Willow Road, Lenton, Nottingham,
NG7 2WS at 10am on 18 September 2024.
The annual financial report is prepared in accordance with the UK Listing
Rules and Disclosure and Transparency Rules of the Financial Conduct Authority
and accounting policies consistent with those used in the 2024 annual report.
The preparation of the consolidated financial information requires management
to make estimates and assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities, and disclosure of contingencies at
the balance sheet date. If in future such estimates and assumptions, which are
based on management's best judgement at the date of the consolidated financial
information, deviate from actual circumstances, the original estimates and
assumptions will be modified, as appropriate, in the period in which the
circumstances change.
Management do not consider there to be any critical accounting estimates or
judgements that have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next financial
period.
2. Changes in accounting policies
The Group has applied the following amendments for the first time in the
financial statements:
- 'Disclosure of Accounting Policies' (Amendments to IAS 1 and
IFRS Practice Statement 2);
- 'Deferred Tax relating to assets and liabilities arising from a
single transaction' (Amendments to IAS 12).
The application of these new standards and amendments did not have a material
impact on the financial statements. The Group considers that there are no
other new accounting standards, amendments or interpretations issued, but not
yet applicable, which have had, or are expected to have a significant effect
on the financial statements.
3. Segment information
As Games Workshop is a vertically integrated business, management assesses the
performance of sales channels and manufacturing and distribution channels
separately. Share-based payment charges and Group Profit Share Scheme charges
to employees have all been included in core operating expenses.
At 2 June 2024 Games Workshop has two segments, core and licensing:
- Core: the core segment includes all revenue and expenditure
relating to the design, manufacture and sales of our fantasy miniatures and
related products. It also includes the revenue and expenditure related to
Warhammer+.
- Licensing: the licensing segment includes all revenue and
expenditure relating to licences granted to external partners.
We provide further information on revenue and expenses within the core segment
below. The core segment has been divided into channels as follows:
- Trade: this sales channel sells globally to independent retailers,
agents and distributors. It also includes the Group's magazine newsstand
business and the distributor sales from the Group's publishing business (Black
Library).
- Retail: this includes sales through the Group's retail stores, the
Group's visitor centre in Nottingham and global events.
- Online: this includes sales through the Group's global web stores,
our online subscription service (Warhammer+) and digital sales through
external affiliates.
- Design, manufacturing, logistics and operations, which includes
costs for:
- the design studio (that creates all of the IP and the associated
miniatures, artwork, games and publications);
- the production facilities;
- the warehouses and logistics costs;
- charges for inventory provisions. This includes adjustments for
the profit in stock arising from inter-segment sales; and
- support services (marketing, IT, accounting, payroll, personnel,
procurement, legal, health and safety, customer services and credit control)
provided to activities across the Group;
- Group: this includes the Company's overheads.
The chief operating decision-maker, identified as the executive directors,
assesses the performance of each segment based on segmental operating profit.
This has been reconciled to the Group's total profit before taxation below.
Core Licensing Total
2024 2023 2024 2023 2024 2023
£m £m £m £m £m £m
Trade 288.4 248.0 - - 288.4 248.0
Retail 115.6 106.4 - - 115.6 106.4
Online 90.7 91.0 - - 90.7 91.0
Licensing - - 31.0 25.4 31.0 25.4
Revenue 494.7 445.4 31.0 25.4 525.7 470.8
Cost of sales (151.2) (149.2) - - (151.2) (149.2)
Gross Profit 343.5 296.2 31.0 25.4 374.5 321.6
Trade (13.9) (11.8) - - (13.9) (11.8)
Retail (65.4) (61.7) - - (65.4) (61.7)
Online (12.0) (15.6) - - (12.0) (15.6)
Design, manufacturing, logistics and operations (52.4) (41.4) - - (52.4) (41.4)
Licensing - - (4.0) (3.4) (4.0) (3.4)
Group (5.5) (4.9) - - (5.5) (4.9)
Share-based payment charge (1.1) (1.0) - - (1.1) (1.0)
Group profit share scheme (18.4) (11.6) - - (18.4) (11.6)
Operating expenses (168.7) (148.0) (4.0) (3.4) (172.7) (151.4)
Operating profit 174.8 148.2 27.0 22.0 201.8 170.2
Finance income 2.5 1.3 - - 2.5 1.3
Finance costs (1.3) (0.9) - - (1.3) (0.9)
Profit before tax 176.0 148.6 27.0 22.0 203.0 170.6
Revenue analysis
Segment revenue and segment profit include transactions between business
segments; these transactions are eliminated on consolidation. Sales between
segments are carried out at arm's length. The revenue from external parties
reported to the executive directors is measured in a manner consistent with
that in the income statement. Sales regions analysed within the segments
reported to the executive directors differ from the analysis of sales by
customer geography, due to the categorisation of some European and Asian
customers. For information, core external revenue is analysed further below:
53 weeks ended 52 weeks ended
2 June 2024 28 May 2023
£m £m
Trade
UK and Continental Europe 125.4 105.0
North America 124.4 112.8
Australia and New Zealand 16.6 14.3
Asia 15.0 10.4
Rest of world 4.7 3.4
Black Library 2.3 2.1
Total Trade 288.4 248.0
Retail
UK 34.3 32.1
Continental Europe 24.4 21.1
North America 45.1 41.0
Australia and New Zealand 8.4 9.4
Asia 3.4 2.8
Total Retail 115.6 106.4
Online
UK 17.4 16.2
Continental Europe 14.3 15.6
North America 32.3 35.7
Australia and New Zealand 3.8 4.1
Asia 0.8 0.6
Rest of world 0.8 1.0
Total Online (excluding digital) 69.4 73.2
Digital 21.3 17.8
Total Online 90.7 91.0
Total external core revenue 494.7 445.4
External core revenue analysed by customer geographical location is as
follows:
53 weeks ended 52 weeks ended
2 June 2024 28 May 2023
£m £m
UK 107.1 97.2
Continental Europe 117.7 104.8
North America 216.6 197.4
Australia and New Zealand 30.1 28.9
Asia 19.9 14.7
Rest of world 3.3 2.4
External core revenue 494.7 445.4
The Group is not reliant on any one individual customer.
Analysis of costs
Operating profit as reported above includes impairment, depreciation and
amortisation charges as follows:
53 weeks ended 52 weeks ended
2 June 2024 28 May 2023
£m £m
Core 41.6 43.1
Licensing - -
Total group charges for impairment, depreciation and amortisation 41.6 43.1
Operating expenses were previously analysed by channel. All channels
previously analysed are included in the core segment.
Non-current asset analysis
Non-current assets (excluding deferred tax and non-current financial
instruments) located within the UK were £88.3m (2023: £95.2m) and all other
countries were £38.5m (2023: £32.0m). Tangible, intangible and right-of-use
asset additions included within the UK were £31.0m (2023: £26.8m) and all
other countries were £11.6m (2023: £13.6m).
Other non-cash charges
Other non-cash charges and significant costs included in operating profit are
as follows:
Redundancy costs and compensation for loss of office
Charge to inventory provisions
53 weeks ended 52 weeks ended 52 weeks ended 52 weeks ended
2 June 2024 28 May 2023 2 June 2024 28 May 2023
£m £m £m £m
Core (5.8) (8.0) (0.4) (0.7)
Licensing - - - (0.4)
Total group charge (5.8) (8.0) (0.4) (1.1)
4. Taxation
53 weeks ended 52 weeks ended
2 June 2024 28 May 2023
£m £m
Current UK taxation:
- UK corporation tax on profits for the period 48.1 25.1
Adjustments to tax charge in respect of prior periods 1.3 0.6
49.4 25.7
Current overseas taxation:
- Overseas corporation tax on profits for the period 5.0 3.6
Adjustments to tax charge in respect of prior periods (1.7) (0.9)
Total current taxation 52.7 28.4
Deferred taxation:
Origination and reversal of timing differences (1.1) 6.4
Adjustments to tax charge in respect of prior periods 0.3 1.1
Tax expense recognised in the income statement 51.9 35.9
Current tax credit relating to sharesave scheme (0.1) (0.3)
Deferred tax (credit)/debit relating to sharesave scheme (0.1) 0.2
Credit taken directly to equity (0.2) (0.1)
The tax on the Group's profit before taxation differs in both periods
presented from the standard rate of corporation tax in the UK as follows:
53 weeks ended 52 weeks ended
2 June 2024 28 May 2023
£m £m
Profit before taxation 203.0 170.6
Profit before taxation multiplied by the corporation tax rate in the UK of 25% 50.8 34.1
(2023: blended 20%)
Effects of:
Items not deductible/(assessable) for tax purposes 0.8 (0.4)
Different tax rates on overseas earnings 0.2 0.9
Tax rate changes 0.2 0.5
Adjustments to tax charge in respect of prior periods (0.1) 0.8
Total tax charge for the period 51.9 35.9
The UK corporation tax rate increased from 19% to 25% from 1 April 2023. Items
not assessable for tax purposes in the prior period include the UK's super
deduction for fixed asset additions as well as tax relief for other taxes
paid.
5. Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to
owners of the parent by the weighted average number of ordinary shares in
issue during the period.
53 weeks ended 52 weeks ended
2 June 2024 28 May 2023
Profit attributable to owners of the parent (£m) 151.1 134.7
Weighted average number of ordinary shares in issue (thousands) 32,935 32,881
Basic earnings per share (pence per share) 458.8 409.7
Diluted earnings per share
The calculation of diluted earnings per share has been based on the profit
attributable to owners of the parent and the weighted average number of shares
in issue throughout the period, adjusted for the dilutive effect of share
options outstanding at the period end.
53 weeks ended 52 weeks ended
2 June 2024 28 May 2023
Profit attributable to owners of the parent (£m) 151.1 134.7
Weighted average number of ordinary shares in issue (thousands) 32,935 32,881
Adjustment for share options (thousands) 42 17
Weighted average number of ordinary shares for diluted earnings per share 32,977 32,898
(thousands)
Diluted earnings per share (pence per share) 458.2 409.4
6. Dividends per share
Dividends of £47.7m (145 pence per share), £16.5m (50 pence per share),
£39.5m (120 pence per share), and £34.6m (105 pence per share) were declared
and paid during the current period.
Dividends of £29.6m (90 pence per share), £9.8m (30 pence per share),
£14.8m (45 pence per share), £42.8m (130 pence per share) and £39.5m (120
pence per share) were declared and paid during the prior period.
7. Other intangible assets
2024 2023
£m £m
Net book value at the beginning of the period 21.2 25.6
Exchange differences (0.1) -
Additions 17.0 13.5
Disposals - (0.2)
Reclassifications - (0.2)
Amortisation charge (12.7) (13.9)
Impairment (2.6) (3.6)
Net book value at the end of the period 22.8 21.2
8. Property, plant and equipment
2024 2023
£m £m
Net book value at the beginning of the period 55.7 55.0
Exchange differences (0.3) 0.1
Additions 15.6 14.2
Disposals (0.1) (0.1)
Reclassifications - 0.2
Depreciation charge (14.4) (13.7)
Net book value at the end of the period 56.5 55.7
9. Right-of-use assets
2024 2023
£m £m
Net book value at the beginning of the period 48.9 48.1
Exchange differences (0.8) 0.1
Additions 9.9 12.7
Disposals - (0.1)
Depreciation charge (11.9) (11.9)
Net book value at the end of the period 46.1 48.9
10. Cash and cash equivalents
Cash and cash equivalents include the following for the purposes of the cash
flow statement:
2024 2023
£m £m
Cash at bank and in hand 107.6 90.2
Cash and cash equivalents 107.6 90.2
11. Provisions for other liabilities and charges
Analysis of total provisions:
2024 2023
£m £m
Current 0.9 0.9
Non-current 1.9 1.6
Total provisions for other liabilities and charges 2.8 2.5
Employee benefits
£m Property Total
£m £m
At 28 May 2023 and 29 May 2023 2.0 0.5 2.5
Charged to the income statement:
- Additional provisions 0.5 - 0.5
Utilised (0.2) - (0.2)
At 2 June 2024 2.3 0.5 2.8
12. Commitments
Capital expenditure contracted for at the balance sheet date but not yet
incurred is £8.8m (2023: £3.8m). Inventory purchase commitments contracted
for at the balance sheet date are £8.4m (2023: £7.4m). Lease commitments at
the balance sheet date, where the Group has entered into an obligation but
does not yet have control of the underlying asset, are £2.5m (2023: less than
£0.1m).
13. Reconciliation of profit to net cash from operating activities
2024 2023
£m £m
Profit before taxation 203.0 170.6
Finance income (2.5) (1.3)
Finance costs 1.3 0.9
Operating profit 201.8 170.2
Depreciation of property, plant and equipment 14.4 13.7
Depreciation of right-of-use assets 11.9 11.9
Net impairment charge of intangible assets 2.6 3.6
Loss on disposal of property, plant and equipment 0.1 0.1
Loss on disposal of right-of-use-assets - 0.1
Loss on disposal of intangible assets - 0.2
Amortisation of capitalised development costs 10.8 12.1
Amortisation of other intangibles 1.9 1.8
Share-based payments 1.2 1.0
Exchange movement 1.1 (1.6)
Changes in working capital:
- (Increase)/decrease in inventories (10.0) 6.0
- (Increase)/decrease in trade and other receivables (excluding licensing (0.8) 4.2
receivables)
- (Increase)/decrease in licensing receivables (6.8) 3.9
- Increase in trade and other payables 9.4 4.2
- - Increase in provisions 0.3 0.3
Net cash from operating activities 237.9 231.7
GLOSSARY
Alternative Performance Measures (APMs)
APM definitions Closest equivalent IFRS measure Reconciliation to closest IFRS measure where applicable
Core revenue Revenue Core revenue is reconciled to revenue in note 3 to the financial statements.
Direct sales made of our core products to external customers, through the
Group's network of retail stores, independent retailers and online through the
global web stores
Core gross profit Gross profit Core gross profit is reconciled to gross profit in note 3 to the financial
statements.
Core gross profit is core revenue less all related cost of sales
Core operating expenses Operating expenses Core operating expenses are reconciled to operating expenses in note 3 to the
financial statements.
Operating expenses relating to the core business of selling directly to
external customers
Core operating profit Operating profit Core operating profit is reconciled to operating profit in note 3 to the
financial statements.
Core operating profit is core revenue less all related cost of sales and
operating expenses
Core operating profit excluding Group Profit Share Core operating profit above, adding back Group Profit Share payments (2024:
£18.4m, 2023 £11.6m).
Licensing revenue Revenue Licensing revenue is reconciled to revenue in note 3 to the financial
statements.
Income relating to royalties earned from third party licensees
Licensing gross profit Gross profit Licensing gross profit is reconciled to gross profit in note 3 to the
financial statements.
Licensing gross profit is licensing revenue less any related cost of sales
Licensing operating expenses Operating expenses Licensing operating expenses are reconciled to operating expenses in note 3 to
the financial statements.
Operating expenses relating to the licensing segments
Licensing operating profit Operating profit Licensing operating profit is reconciled to operating profit in note 3 to the
financial statements.
Licensing operating profit is licensing revenue less all related cost of sales
and operating expenses
Revenue at constant currency Revenue These are calculated by converting underlying revenue, core operating profit
and licensing operating profit amounts at local currency values for the
current period at the prior period average exchange rate.
Core operating profit at constant currency Operating profit
Licensing operating profit at constant currency Operating profit
Amounts for current and prior periods, stated at a constant exchange rate.
2024 2023
Actual Impact of FX Constant currency Actual
Revenue 525.7 14.5 540.2 470.8
Core operating profit 174.8 10.8 185.6 148.2
Licensing operating profit 27.0 1.8 28.8 22.0
Core average capital employed None This value is calculated by taking monthly net assets and adjusting for any
cash, borrowings, licensing receivables, exceptional provisions, taxation and
This is a measure of the capital employed in the core business averaged over a dividends, for each of the 12 months. These are then added together and
12 month period divided by 12 to give the core average capital employed.
12 month average
2024 2023
£m £m
Net assets 262.1 257.4
Cash (126.9) (105.3)
Licensing receivables (25.9) (22.5)
Taxation (10.0) (17.9)
Core average capital employed 99.3 111.7
Return on capital employed (ROCE) None Return is a percentage calculated by dividing the core operating profit (2024:
£174.8, 2023: £148.2m) by the core average capital employed (2024: £99.3m,
Measure of the profit relative to the amount of capital employed. The higher 2023: £111.7m).
the ROCE, the greater the return for the capital employed
Cash generated - pre dividends paid Net increase/(decrease) in cash and cash equivalents Net increase in cash-pre dividends paid can be calculated by taking the net
increase in cash and cash equivalents (2024: £17.6m, 2023: £19.0m) and
Movement in cash in the period before any payments of dividends are taken into adding back the dividends which have been paid in the period (2024: £138.3m,
account 2023: £136.5m).
Core average capital employed
This is a measure of the capital employed in the core business averaged over a
12 month period
None
This value is calculated by taking monthly net assets and adjusting for any
cash, borrowings, licensing receivables, exceptional provisions, taxation and
dividends, for each of the 12 months. These are then added together and
divided by 12 to give the core average capital employed.
12 month average
2024 2023
£m £m
Net assets 262.1 257.4
Cash (126.9) (105.3)
Licensing receivables (25.9) (22.5)
Taxation (10.0) (17.9)
Core average capital employed 99.3 111.7
Return on capital employed (ROCE)
Measure of the profit relative to the amount of capital employed. The higher
the ROCE, the greater the return for the capital employed
None
Return is a percentage calculated by dividing the core operating profit (2024:
£174.8, 2023: £148.2m) by the core average capital employed (2024: £99.3m,
2023: £111.7m).
Cash generated - pre dividends paid
Movement in cash in the period before any payments of dividends are taken into
account
Net increase/(decrease) in cash and cash equivalents
Net increase in cash-pre dividends paid can be calculated by taking the net
increase in cash and cash equivalents (2024: £17.6m, 2023: £19.0m) and
adding back the dividends which have been paid in the period (2024: £138.3m,
2023: £136.5m).
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END ACSSEMESUELSEFWRecent news on Games Workshop
See all newsREG - Games Workshop Group - Total Voting Rights
AnnouncementREG - Games Workshop Group - Publication of Notice convening a General Meeting
AnnouncementREG - Games Workshop Group - Total Voting Rights
AnnouncementREG - Games Workshop Group - Director/PDMR Shareholding
AnnouncementREG - Games Workshop Group - Dividend
Announcement