REG - Games Workshop Group - Half-year Report <Origin Href="QuoteRef">GAW.L</Origin> - Part 2
09/01/2018 07:05
- Part 2: For the preceding part double click ID:nRSI2864Ba
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Total external revenue 108,852 70,935 158,114
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For information, we analyse external revenue further below:
Six months to Restated*Six months to Year to
26 November 27 November 28 May
2017 2016 2017
£000 £000 £000
Trade
UK and Continental Europe 19,652 12,958 25,442
North America 21,345 12,178 27,207
Australia and New Zealand 2,407 1,261 2,472
Asia 2,025 1,109 2,257
Rest of world 1,260 648 1,580
Black Library 1,272 1,187 2,296
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Total Trade 47,961 29,341 61,254
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Retail
UK 13,077 10,275 22,474
Continental Europe 10,321 7,869 16,859
North America 10,587 7,141 16,759
Australia and New Zealand 4,586 3,338 7,471
Asia 1,044 545 1,285
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Total Retail 39,615 29,168 64,848
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Mail order 21,276 12,426 32,012
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Total external revenue 108,852 70,935 158,114
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*Segment revenue of £5,915,000 for the six months to 27 November 2016
previously reported as non-core trade has been reclassified within the trade
segment as UK and Continental Europe (£2,542,000), North America (£1,047,000),
Australia and New Zealand (£128,000), Asia (£363,000), Rest of world
(£648,000) and Black Library (£1,187,000) to reflect the management structure
in place at 28 May 2017 and 26 November 2017.
Segment revenue of £1,752,000 for the six months to 27 November 2016
previously reported as non-core retail has been reclassified within the retail
segment as UK (£1,648,000), North America (£97,000) and Asia (£7,000) to
reflect the management structure in place at 28 May 2017 and 26 November
2017.
In addition mail order segment revenue of £2,143,000 for the six months to 27
November 2016 previously reported as non-core mail order and £10,283,000
previously reported as Citadel and Forge World are now reported together as
Mail order which reflects the management structure in place at 28 May 2017 and
26 November 2017.
Operating expenses by segment are regularly reviewed by the executive
directors and are provided below:
Six months to Restated*Six months to Year to
26 November 27 November 28 May
2017 2016 2017
£000 £000 £000
Trade (5,734) (5,388) (10,855)
Retail (23,020) (21,222) (42,849)
Mail order (2,719) (2,595) (5,290)
Product and supply (1,412) (1,261) (2,618)
Central costs (3,743) (3,143) (6,215)
Service centre costs (6,360) (4,738) (11,824)
Royalties (352) (192) (371)
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Total segment operating expenses (43,340) (38,539) (80,022)
Share-based payment charge (60) (82) (160)
Profit share scheme charge (1,025) (444) (444)
Discretionary payment to employees - - (2,965)
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Total group operating expenses (44,425) (39,065) (83,591)
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*Operating expenses of £18,000 for the six months to 27 November 2016 relating
to certain marketing costs have been reclassified from product and supply to
central costs which reflects the management structure in place at 28 May 2017
and 26 November 2017.
Total segment operating profit is as follows and is reconciled to profit
before taxation below:
Six months to Restated*Six months to Year to
26 November 27 November 28 May
2017 2016 2017
£000 £000 £000
Trade 13,471 8,791 17,956
Retail 1,813 (2,369) 461
Mail order 13,626 6,651 18,788
Product and supply 17,901 6,356 16,286
Central costs (4,397) (3,406) (6,724)
Service centre costs (6,360) (4,738) (11,824)
Royalties 3,804 2,999 6,949
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Total segment operating profit 39,858 14,284 41,892
Share-based payment charge (60) (82) (160)
Profit share scheme charge (1,025) (444) (444)
Discretionary payment to employees - - (2,965)
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Total group operating profit 38,773 13,758 38,323
Finance income 51 29 87
Finance costs (50) - (7)
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Profit before taxation 38,774 13,787 38,403
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*A segment loss of £281,000 for the six months to 27 November 2016 relating to
certain marketing costs has been reclassified from product and supply to
central costs. This reflects the management structure in place at 28 May 2017
and 26 November 2017.
4. Dividends
Dividends of £6,428,000 (20 pence per share) and £11,248,000 (35 pence per
share) were declared and paid in the six months to 26 November 2017. In
addition a further £1,901,000 (6 pence per share) was distributed in the six
months to 26 November 2017 by way of a rectification dividend. The
rectification dividend was satisfied by the release of Company shareholders
from the liability to repay the amount received in the year ended 28 May 2017
in the form of an unlawful dividend.
A dividend of £8,031,000 (25 pence per share) was declared and paid in the six
months to 27 November 2016.
Dividends of £8,031,000 (25 pence per share), £9,638,000 (30 pence per share),
and £6,132,000 (19 pence per share) were declared and paid during the year
ended 28 May 2017.
5. Profit before taxation
The following costs have been incurred in the reported periods in respect of
ongoing redundancies, inventory provisions, impairments and loss-making retail
stores:
Six months to Six months to Year to
26 November 27 November 28 May
2017 2016 2017
£000 £000 £000
Redundancy costs and compensation for loss of office 177 345 1,009
(Reversal) of/charge for impairment of property, plant and equipment (17) 16 (55)
Charge for impairment of computer software - - 833
Net charge/(credit) to property provisions including closed or loss-making retail stores 28 197 (185)
Net inventory provision creation 1,610 235 1,376
6. Tax
The taxation charge for the six months to 26 November 2017 is based on an
estimate of the full year effective rate of 19.0% (2016: 20.7%). Although
overseas tax rates are higher than the UK rate of 19%, these are offset by the
release of prior provisions against tax uncertainties.
7. 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 throughout the relevant period.
Six months to Six months to Year to
26 November 27 November 28 May
2017 2016 2017
Profit attributable to owners of the parent (£000) 31,403 10,930 30,547
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Weighted average number of ordinary shares in issue (thousands) 32,166 32,121 32,126
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Basic earnings per share (pence per share) 97.6 34.0 95.1
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Basic earnings per share pre-change in accounting estimates
Basic earnings per share pre-change in accounting estimates is calculated by
dividing the profit attributable to owners of the parent, before the impact of
the change in accounting estimates, by the weighted average number of ordinary
shares in issue throughout the relevant period.
Six months to Six months to Year to
26 November 27 November 28 May
2017 2016 2017
Profit attributable to owners of the parent pre-change in accounting estimates (£000) 30,404 10,286 29,305
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Weighted average number of ordinary shares in issue (thousands) 32,166 32,121 32,126
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Basic earnings per share pre-change in accounting estimates (pence per share) 94.5 32.0 91.2
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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 relevant period, adjusted for the dilution effect of
share options outstanding at the period end.
Six months to Six months to Year to
26 November 27 November 28 May
2017 2016 2017
Profit attributable to owners of the parent (£000) 31,403 10,930 30,547
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Weighted average number of ordinary shares in issue (thousands) 32,166 32,121 32,126
Adjustment for share options (thousands) 280 77 199
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Weighted average number of ordinary shares for diluted earnings per share (thousands) 32,446 32,198 32,325
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Diluted earnings per share (pence per share) 96.8 33.9 94.5
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Diluted earnings per share pre-change in accounting estimates
The calculation of diluted earnings per share has been based on the profit
attributable to owners of the parent, before the impact of the change in
accounting estimates, and the weighted average number of shares in issue
throughout the relevant period, adjusted for the dilution effect of share
options outstanding at the period end.
Six months to Six months to Year to
26 November 27 November 28 May
2017 2016 2017
Profit attributable to owners of the parent pre-change in accounting estimates (£000) 30,404 10,286 29,305
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Weighted average number of ordinary shares in issue (thousands) 32,166 32,121 32,126
Adjustment for share options (thousands) 280 77 199
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Weighted average number of ordinary shares for diluted earnings per share (thousands) 32,446 32,198 32,325
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Diluted earnings per share pre-change in accounting estimates (pence per share) 93.7 31.9 90.7
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8. Reconciliation of profit to net cash from operating activities
Six months to Six months to Year to
26 November 27 November 28 May
2017 2016 2017
£000 £000 £000
Operating profit 38,773 13,758 38,323
Depreciation of property, plant and equipment 2,635 3,156 6,107
Net (reversal) of impairment/impairment of property, plant and equipment (17) 16 (55)
Loss on disposal of property, plant and equipment 20 23 111
Impairment of intangible assets - - 833
Loss on disposal of intangible assets - - 14
Amortisation of capitalised development costs 1,630 1,557 2,900
Amortisation of other intangibles 651 604 1,217
Share-based payments 60 82 160
Changes in working capital:
-Increase in inventories (4,128) (1,805) (2,984)
-Increase in trade and other receivables (4,813) (1,298) (379)
-Increase in trade and other payables 6,279 3,585 3,491
-Increase/(decrease) in provisions 116 (57) (368)
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Net cash from operating activities 41,206 19,621 49,370
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9. Other intangible assets
26 November 27 November 28 May
2017 2016 2017
£000 £000 £000
Net book value at beginning of period 12,917 10,501 10,501
Additions 3,635 4,479 7,376
Exchange differences - 5 4
Disposals - - (14)
Amortisation charge (2,281) (2,161) (4,117)
Impairment - - (833)
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Net book value at end of period 14,271 12,824 12,917
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10. Property, plant and equipment
26 November 27 November 28 May
2017 2016 2017
£000 £000 £000
Net book value at beginning of period 22,132 22,621 22,621
Additions 4,912 2,348 5,372
Exchange differences (39) 338 302
Disposals (20) (23) (111)
Charge for the period (2,635) (3,156) (6,107)
Reversal of impairment/(impairment) 17 (16) 55
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Net book value at end of period 24,367 22,112 22,132
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11. Provisions for other liabilities and charges
Analysis of total provisions:
26 November 27 November 28 May
2017 2016 2017
£000 £000 £000
Current 757 838 689
Non-current 536 662 495
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1,293 1,500 1,184
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Employee
Other benefits Property Total
£000 £000 £000 £000
At 29 May 2016 - 547 897 1,444
Charged to the income statement - 99 197 296
Exchange differences - 53 60 113
Utilised - (47) (306) (353)
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At 27 November 2016 - 652 848 1,500
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Employee
Other benefits Property Total
£000 £000 £000 £000
At 29 May 2016 - 547 897 1,444
Charged/(credited) to the income statement - 153 (185) (32)
Exchange differences - 47 57 104
Utilised - (67) (265) (332)
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At 28 May 2017 - 680 504 1,184
Charged to the income statement 50 150 28 228
Exchange differences (1) (5) (6) (12)
Utilised - (61) (46) (107)
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At 26 November 2017 49 764 480 1,293
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12. Seasonality
The Group's monthly sales profile demonstrates an element of seasonality
around the Christmas period which impacts sales in the month of December.
13. Commitments
Capital expenditure contracted for at the balance sheet date but not yet
incurred is £2,480,000 (2016: £996,000).
14. Related-party transactions
There were no material related-party transactions during the period.
This information is provided by RNS
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