REG - Games Workshop Group - Half-yearly Report
14/01/2025 07:00
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RNS Number : 1649T Games Workshop Group PLC 14 January 2025
GAMES WORKSHOP GROUP PLC
14 January 2025
HALF-YEARLY REPORT
Games Workshop Group PLC ('Games Workshop' or the 'Group') announces its
half-yearly results for the 26 week period ended 1 December 2024.
Highlights:
26 weeks ended 26 weeks ended
1 December 2024 26 November 2023
Core revenue £269.4m £235.6m
Licensing revenue £30.1m £12.1m
Revenue £299.5m £247.7m
Revenue at constant currency £305.6m £247.7m
Core operating profit £98.1m £83.4m
Core operating profit at constant currency £102.2m £83.4m
Licensing operating profit £28.0m £11.1m
Licensing operating profit at constant currency £29.3m £11.1m
Operating profit £126.1m £94.5m
Profit before taxation £126.8m £95.2m
Net increase in cash - pre-dividends paid £79.1m £85.3m
Earnings per share 288.9p 216.9p
Dividends per share declared and paid in the period 185p 195p
Kevin Rountree, CEO of Games Workshop, said:
"I'm delighted to report our best first half-year performance. A huge thank
you to our staff, customers, trade accounts and broader stakeholders for their
ongoing support."
For further information, please contact:
Games Workshop Group PLC investorrelations@gwplc.com
Kevin Rountree, CEO
Liz Harrison, Group FD
Investor relations website investor.games-workshop.com (http://investor.games-workshop.com)
General website www.warhammer.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.
This announcement contains inside information for the purposes of the Market
Abuse Regulation (EU) no. 596/2014 (including as it forms part of the laws of
England and Wales by virtue of the European Union (Withdrawal) Act 2018)
('MAR'). Upon the publication of this announcement, such information will no
longer constitute inside information. Ross Matthews, the Company's General
Counsel and Company Secretary, is the person responsible for making the
notification for the purposes of Article 17 of MAR.
FIRST HALF HIGHLIGHTS
26 weeks ended 1 December 2024 and 26 November 2023:
Revenue and operating profit at actual exchange rates
Core Licensing Total
2024 2023 2024 2023 2024 2023
£m £m £m £m £m £m
Trade 165.7 136.1 - - 165.7 136.1
Retail 60.8 54.7 - - 60.8 54.7
Online 42.9 44.8 - - 42.9 44.8
Licensing - - 30.1 12.1 30.1 12.1
Revenue 269.4 235.6 30.1 12.1 299.5 247.7
Cost of sales (87.5) (72.1) - - (87.5) (72.1)
Gross profit 181.9 163.5 30.1 12.1 212.0 175.6
Operating expenses (83.8) (80.1) (2.1) (1.0) (85.9) (81.1)
Operating profit 98.1 83.4 28.0 11.1 126.1 94.5
Revenue and operating profit at constant currency
Core Licensing Total
2024 2023 2024 2023 2024 2023
£m £m £m £m £m £m
Trade 169.2 136.1 - - 169.2 136.1
Retail 62.0 54.7 - - 62.0 54.7
Online 43.0 44.8 - - 43.0 44.8
Licensing - - 31.4 12.1 31.4 12.1
Revenue 274.2 235.6 31.4 12.1 305.6 247.7
Cost of sales (87.7) (72.1) - - (87.7) (72.1)
Gross profit 186.5 163.5 31.4 12.1 217.9 175.6
Operating expenses (84.3) (80.1) (2.1) (1.0) (86.4) (81.1)
Operating profit 102.2 83.4 29.3 11.1 131.5 94.5
Foreign exchange rates
Our main currency exposures are in respect of the euro and US dollars:
euro US dollar
2024 2023 2024 2023
Rate used for the balance sheet at the period end 1.20 1.15 1.27 1.26
Average rate used for earnings 1.19 1.16 1.29 1.25
INTERIM MANAGEMENT REPORT
Games Workshop and the Warhammer hobby are in great shape.
Strategy
We have again remained focused on delivering our strategic goal - 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.
This relentless focus from all in our vertically integrated business continues
to deliver record results. The 12 month moving annual total trends on most of
our Group core KPIs are as planned - delivering profitable sales growth in all
key countries. Our balance sheet and net cash generation remain healthy
too. Thank you all!
Our business culture is built on a few important values. Key among them is
humility. So, while we are very proud of our achievements, we remain grounded,
pragmatic and ego free. We know through experience that, at Games Workshop,
speculation is unwise and extrapolation is a fool's game. We will therefore
continue to stay focused on managing the business under all scenarios. So far,
so good.
Cost increases are impacting most businesses in the UK. We, however, don't
expect any material impact on our financial performance for the year to May
2025 following the UK's Autumn Budget 2024 e.g. increases to the National
Living Wage, as we already pay all of our UK staff, as a minimum, close to the
new level. It may, however, drive third party input cost increases in
2025/2026. At this stage we have not been informed of any significant changes.
We await confirmation on any other external tariffs or tax changes and
we will manage them accordingly.
Licensing - we own what we believe is some of the best underexploited
intellectual property ('IP') globally. In the period reported, a few notable
games launched including Warhammer 40,000: Space Marine 2 and Warhammer
40,000: Speed Freeks. After the period end we concluded our negotiations with
Amazon Content Services LLC, a subsidiary of Amazon.com, Inc., for the
adaption of Games Workshop's Warhammer 40,000 universe into films and
television series, together with associated merchandising rights. We will give
you an appropriate update in the full year report.
Update
Another six months in line with our operational plan that gave our passionate
fans plenty of exciting opportunities to collect, build, paint and play with
their Warhammer miniatures. We had a successful launch of the new edition of
Age of Sigmar and the launch of the new edition of Warhammer 40,000: Kill Team
continued our momentum. We thank our existing customers for their ongoing
support and welcome new customers, far and wide, to what we think is the best
hobby in the world.
It's fair to say our results were helped by some of the excitement around
media and licensing product launches. I'm told by my retail team that we had
more people coming into our Warhammer stores in the period. This gave our
ambassadors a great opportunity to pass on their love for the Warhammer hobby.
They clearly didn't disappoint.
Our manufacturing team has delivered record volumes and has improved our stock
management and commercial performance. We still have, however, some hard work
to do. We are still not meeting our stock availability KPIs and not all of our
new product releases sold to our planned levels, so our write downs of the
stock in our warehouses were c. £3.6 million higher than the same period last
year. This is all well within our control so we will continue to fine tune the
details to find some improvements.
We have been increasing our manufacturing capacity: we are busy planning for
our Factory 4 and the efficiencies that investment might enable, and our new
paint factory a short trip across the road at Easter Park which will help
deliver higher volumes, if needed. Most of the cash costs for both, at c. £12
million will fall over the next 12 months.
I would normally now complain or whine about IT, well they still have a
difficult plan to implement, but they're making some progress, so I'm going to
keep quiet for a change. If anything changes I'll let you know. They're on
track to hit their first milestone, helping us open our new warehouse in
Sydney with our new global IT solution. More on that below.
During the period our IT team moved from reporting to our CFO to our global
manufacturing and supply chain director. Our CFO, Rachel Tongue, steps down
this month, and our new group finance director (Liz Harrison) is settling into
her new role. I am delighted to say these moves have been drama free. We say a
fond farewell to Rachel and also to John Brewis (our former chair who retired
in December) and wish them both all the best for the future.
Performance
Core sales for the month of December 2024 are estimated to be up 12%: our best
December, with all channels performing well.
For the 26 weeks ended 1 December 2024, at actual exchange rates:
● Core revenue growth (+14.3%) continues across Trade (+21.7%),
Retail (+11.2%) whilst Online decreased (-4.2%).
● Core gross margin has decreased from 69.4% to 67.5%. As
discussed earlier, the charge to inventory provision increased as some of our
new product releases sold to below planned levels. Design costs include
amortisation of capitalised development costs, which are aligned with the
sales profile of new release product volumes. This cost has increased as we
launched more new products in the period. Animation costs relating to
producing content for Warhammer+ were also higher due to an increased
investment in content.
%
Core gross margin at 26 November 2023 69.4
Inventory provision -1.2
Carriage +0.4
Materials +0.3
Design -1.1
Other +0.1
Core gross margin before animation 67.9
Animation -0.4
Core gross margin at 1 December 2024 67.5
● Core operating expenses are up £3.7 million to £83.8
million. Staff costs have increased reflecting pay reviews and the investment
in new roles. Marketing spend in the period is lower due to phasing of
expenditure.
£m
Core operating expenses at 26 November 2023 80.1
Staff costs +3.1
Group Profit Share Scheme +0.5
New stores +0.6
Marketing -1.0
Other +0.5
Core operating expenses at 1 December 2024 83.8
● Core operating profit is up £14.7 million to £98.1 million
and core operating profit to sales ratio is up 1.1% to 36.4%.
● Returns to shareholders - we have paid £61.0 million in
dividends during the period (2023/24: £64.2 million).
● Foreign exchange differences - we don't actively manage
foreign exchange rates and we will continue to report the impact on our
results.
Cash generation
Cash generated from operations is up £15.6 million to £132.5 million. This
increase reflects additional operating profit of £31.6 million, an increase
of £3.1 million in amortisation costs, offset by £20.8 million working
capital movements. These movements mainly relate to licensing receivables
(increase of £18.3 million); a result of the high level of earned royalty
income in the period.
We have continued to:
● Maintain an appropriate balance sheet to ensure we can
withstand any short-term setbacks. Our cash buffer remains at £80 million.
● Fund our own growth - reinvest to grow sustainably and deliver
our strategy.
● Pay regular dividends to our shareholders - we return any
'truly surplus' cash as dividends, as and when we have excess cash.
● Purchase capital assets - £12.8 million (2023/24: £6.6
million). Included is the purchase of land and buildings in Nottingham, and
investment in manufacturing facilities and equipment.
● Tax paid - £27.3 million, an increase of £12.0 million on
2023/24 mainly due to utilisation of tax paid on account brought forward in
the prior period.
£m
Cash and cash equivalents at 2 June 2024 107.6
Cash generated from operations +132.5
Lease payments -7.9
Product development -8.4
Purchase of capital assets -12.8
Tax paid -27.3
Dividends paid -61.0
Other +3.1
Cash and cash equivalents at 1 December 2024 125.8
We are not planning any share buybacks or acquisitions.
Review of the period
Revenue
Core revenue
Reported core revenue grew by 14.3% to £269.4 million for the period. On a
constant currency basis, sales were up by 16.4% to £274.2 million; split by
channel this comprised: Trade £169.2 million (2023/24: £136.1 million),
Retail £62.0 million (2023/24: £54.7 million) and Online £43.0 million
(2023/24: £44.8 million).
Trade
Trade grew by 21.7% at actual exchange rates, 24.3% at constant currency
rates. The majority of our sales to independent retailers are made via our
telesales teams talking directly to our trade accounts. Our telesales teams
strive to deliver excellent service from their locations in Memphis,
Barcelona, Nottingham, Sydney, Tokyo, Shanghai, Singapore, Hong Kong and Kuala
Lumpur. In the period, our net number of trade outlets globally increased by
c.300 accounts to c.7,500 (not including over 2,000 major chain outlets
stocking some key recruitment products).
Organic sales growth, particularly geographical spread in our smaller emerging
countries, remains an area of focus in the period ahead. We are delighted that
the Warhammer hobby continues to spread globally.
It's worth noting that a large number of independent retailers also sell our
products online, meaning our customers have more choice than ever about where
to buy Warhammer. It's also worth reminding you that our success with our
independents is not completely in our control. The viability of these stores
is completely dependent on the store owner and their choices on what to sell.
Most are reliant on a mix of other product lines to maintain that viability
e.g. collectible cards and board games.
Retail
Retail grew by 11.2% at actual exchange rates, 13.3% at constant currency
rates. Our stores have seen more customers and performed well during the
period, with 72% of our stores delivering like for like growth in the reported
period. It's great to see retail in such good shape, after what was a tough
few months in June and July (against a tough comparative). They have remained
focused on implementing their retail training and it is shining through. The
UK is continuing to achieve record sales levels, including both Warhammer
World at our Nottingham HQ and our UK high footfall store on Tottenham Court
Road in London. North America retail is also at record sales levels: all four
new territory managers are performing well and all are in profitable sales
growth. Continental Europe has performed at record levels too. We have also
seen some encouraging improvements in Australia. Globally we opened, including
relocations, 10 stores (our plan is 28 net new stores for the full year).
After closing 5 stores, our net total number of stores at the end of the
period is 553.
Online
Online declined by 4.2% at actual exchange rates, 4.0% at constant currency
rates. Excluding digital sales, Online sales decreased by 12.2% at constant
currency rates, which is broadly in line with our expectations, following the
Warhammer 40,000 release in June 2023. It's now been just over a year since we
launched our new webstore onto a more stable platform. The sales team with the
support of central IT are now looking to continuously improve our customers'
online experiences. This will, I'm promised, soon include additional payment
options and changes to our navigation, making it easier for our customers to
use the site. These initiatives align with our aim of allowing our customers
to shop where they want to - there are many other options to shop for
Warhammer online via our trade accounts.
Licensing revenue
Licensing revenue from royalty income increased in the period by £18.0
million to £30.1 million (at constant currency rates, an increase of £19.3
million to £31.4 million). Royalty income is recognised in line with IFRS 15
'Revenue from contracts with customers'; 'guarantee income' is recognised in
full at the inception of the contract where the performance obligations of the
contract have been met and additional 'earned income' is recognised when it
can be reliably measured following reporting by licensees. Earned income was
£26.1 million (2023/24: £5.9 million), the increase being mainly from
Warhammer 40,000: Space Marine 2. Guarantee income was £4.0 million (2023/24:
£6.2 million). As at the period end date we had receivable balances of £30.0
million (2023/24: £10.5 million) falling due in the year ahead. The total
licensing receivables balance at the period end was £47.0 million (2023/24:
£24.8 million).
Total licensing revenue is split as follows: 98% PC and console games, 1%
mobile and 1% other. Cash received from licensees in the period was £7.9
million (2023/24: £11.1 million).
Total revenue
Total revenue has increased by 20.9% to £299.5 million at actual exchange
rates, at constant currency total revenue increased by 23.4% to £305.6
million.
Design
We design, make, and sell fantasy miniatures based on our unique IP. We have
two main settings - our dark, gritty space-fantasy universe, which encompasses
'Warhammer 40,000' and 'Warhammer: The Horus Heresy', and our original fantasy
setting that includes 'Warhammer: Age of Sigmar' and 'Warhammer: The Old
World'.
IP and design studio payroll costs (excluding translation) increased by £0.5
million to £7.8 million in the period; as a percentage of core revenue they
have decreased by 0.2% to 2.9%. Our Warhammer Studio headcount is up 6 to 325.
Manufacturing
Now we have secured planning permission for the construction of our fourth
factory at our HQ in Nottingham, it will be completed in the summer of 2026.
In the period we also purchased two further properties near our HQ, further
cementing our commitment to the local area. The larger of the two sites,
Easter Park, will be operational this financial year and will expand our paint
production capacity. The second property provides us with capacity for future
expansion.
Total manufacturing costs have increased by £0.9 million to £13.3 million at
actual exchange rates, this mainly relates to increased staff costs of £0.9
million; as a percentage of core revenue they have decreased from 5.3% to
4.9%.
Warehousing
UK
Operations within our EMG warehouse and Lenton Component Operation (LCO) have
been very effective throughout the reporting period. Both sites maintained
agreed dispatch KPIs and service levels. The collaboration with our IT team
yielded a marked improvement in the stability of systems and this had a direct
positive impact on morale and performance. Our distribution and merchandising
teams took proactive steps to mitigate the various supply chain disruptions
that surprised us, including the US port strikes. We await to see whether they
restart.
North America
We have installed additional pallet racking into our Memphis warehouse to
reduce our reliance upon external bulk storage. Having added 18 heads, taking
the total headcount to 103, and after introducing a night shift, the team in
Memphis are maintaining agreed dispatch KPIs and milestones.
Australia
We finally took possession of our new leased facility in October. Stock
migration is progressing well and as a direct result we are using
significantly less offsite pallet storage space. The team is concluding
systems testing and the warehouse will be fully operational in the second half
of this financial year, as planned.
Europe
We continue to review options for improving service levels to Continental
Europe. It is highly likely that we will pilot an EU third party solution.
This will add more complexity to the systems improvement programme 'SIP'
project but we think it is the right thing to do.
Total warehousing costs (including LCO) have increased by £2.4 million to
£16.0 million at actual exchange rates; as a percentage of core revenue they
have increased from 5.8% to 5.9%. This is mainly due to increased staff costs
and external storage costs in the UK and North America.
Service centres
IT - The team is starting the physical move to our new Australian warehouse
and is making the expected progress in the delivery of our SIP project, which
is now in its initial build phase. The first significant deployments of this
multi year international project are expected during the first half of 2025/26
when all of our Australian teams will go live with the new core systems. As
discussed in previous periods, this will take approximately three years to
complete. We can continue to use our legacy system during this period.
Customer service - As a result of sustained improvements with order dispatch
times, our customer service teams have seen a drop in the number of customer
queries they received, enabling them to resolve more queries within our target
timeframe.
Total support services operating expenses, excluding marketing costs, have
increased by £3.4 million to £19.3 million at actual exchange rates; as a
percentage of core revenue they have increased from 6.7% to 7.2% in line with
our operational plan. The increase was mainly due to increased staff costs,
higher compliance costs and investment in IP protection.
Licensing operating expenses have increased by £1.1 million due to a
provision put in place against amounts receivable.
Customer focused
Our stores
The staff in our retail stores work cheerfully and relentlessly to offer great
customer service and recruit ever more customers into the Warhammer hobby. Our
stores continue to be the best place to start your hobby journey with us.
My Warhammer
Registrations for this single login continue to grow at pace and we have
695,000 active users at the period end (26 November 2023: 576,000) up 21% on
prior year. Active users are defined as someone who has engaged with us online
in the last six months. My Warhammer is a central part of our customer
journey, enabling us to tailor our marketing communications to what our
customers are most interested in.
Warhammer Community
We have seen good growth in the number of hobbyists enjoying our articles and
news stories. Warhammer Community is the hub for our marketing activities and
plays a vital role in delivering hobby news and information every day of the
year.
Email
Our email campaigns continue to be one of our most effective methods of
communication. Subscriber numbers (defined as the number of people who opened
one of our emails in the last six months) were 629,000 (26 November 2023:
570,000) at the period end. We continue to look for more ways to surprise and
delight our loyal fans and bring new customers into the Warhammer hobby.
Warhammer+
Launched in August 2021, it continues to delight and entertain a steadily
growing subscriber base. Subscriber numbers are 207,000 at the period end (26
November 2023: 169,000).
Customer engagement
Core to our strategy is engaging with our loyal customers. We do this online
via a number of channels, physical locations and through Warhammer events and
gaming conventions. The success of the recent Warhammer World Championships in
Atlanta, US, actively demonstrates the global appeal of our hobby. We look
forward to more events that inspire our customers, recruit new ones, and give
Warhammer fans across the world the opportunity to meet up with each other.
We continue to support the recruitment efforts of our sales channels through
engaging, informing and inspiring our global community, and by making new
people aware of Warhammer. Total marketing operating expenses have stayed
relatively low in line with our core operational plan. Excluding Warhammer+
animation costs, they have decreased by £1.0 million to £3.2 million; as a
percentage of core sales they have decreased from 1.8% to 1.2%, due to phasing
of activities in line with our operational plan.
Capital investment
In the period reported we invested £14.3 million (2023/24 £6.5 million).
This can be summarised as investing £5.4 million on land and building
purchases at the two sites in Nottingham, £3.3 million in tooling and £2.0
million in manufacturing facilities and equipment. We have also invested £0.6
million on shop fits in new and existing stores and £1.5 million on site
improvements at Nottingham HQ as well as £1.5 million in warehouse
facilities, racking, IT systems and computer equipment and software.
Licensing business
Our strategy is to exploit the value of our IP beyond our core tabletop
business, leveraging 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:
Media
On 10 December 2024 we announced the conclusion of our negotiations with
Amazon for the adaption of Games Workshop's Warhammer 40,000 universe into
films and television series, together with associated merchandising rights. We
are now more confident we will bring the worlds of Warhammer to the screen
like you have never seen before.
Video games
During the period, our licensing partners launched two new video games;
Warhammer 40,000: Space Marine 2, a third person shooter for PC and console
and Warhammer 40,000: Speed Freeks, a combat racing game. Established games
continue to contribute, alongside royalty income earned following the success
of Space Marine 2. We recognise that successes like these for Warhammer are
not a given in the world of video games. Clearly we are looking for the next
one. We remain cautious when forecasting royalty income.
Risks and uncertainties
The board has overall responsibility for ensuring risk is appropriately
managed across the Group. We continue to take a bottom-up and top-down
approach to managing risks in line with our risk appetite, which ensures the
appropriate escalation and consideration of any emerging risks or changes to
existing identified risks.
Our operational risks are monitored at regular meetings attended by the senior
management team and coordinated by the internal audit function. The senior
management team are responsible for managing these operational risks and the
mitigation activities for their areas of the business.
Our key strategic risks (principal risks) are regularly reviewed by the board,
and are described below. The board considers no fundamental changes are
necessary to the risks as presented in the last annual report.
IP protection
Development and exploitation of our IP is fundamental to our future growth.
Failure to protect our IP erodes our competitive advantage and undermines our
reputation. An IP steering committee is in place with oversight of IP
compliance processes, and ensures on-going review of our IP protection
resources and capabilities. It is supported by our specialist legal, IP and
archiving teams who work closely together to ensure IP consistency and
correctness, and take timely and appropriate action against infringements. Our
teams have been working very closely with all of our licensing partners to
ensure their interpretation of our IP is respectful. We thank them all for
their collaborative approach.
Cyber security, data and systems
Our IT systems are critical to our ability to operate, manufacture and
distribute our products to customers. The threat of cyber attack is forever
evolving, and as our business success and profile grows we could become a
larger target. Whilst it is impossible to completely protect ourselves from
this inherent business risk, we are making significant investment in IT
improvements to protect our critical systems, increase our resilience, and
strengthen our ability to recover from incidents. An IT security steering
committee governs all our information security and data privacy risks and
mitigation plans, supported by subject matter experts who advise and support
all departments across the business, as required.
Global distribution and supply disruption
Our hobby and business operations have increasingly global reach, and we are
dependent on key global distribution suppliers and supply chains. Global
supply chain disruption and instability may negatively impact our
manufacturing and distribution operations, and our ability to meet demand and
fulfil orders. Business continuity planning is in place for short term
disruption to ensure we can continue trading, but there is an inherent risk
that this may not be possible in all scenarios. Nevertheless, we undertake
on-going reviews of our international supply chain activity to ensure we react
quickly, and reduce 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
and warehousing sites in Nottingham and Memphis in order to manufacture and
deliver products to our customers and run our business. Failure to ensure
continuous supply from our key manufacturing and warehousing facilities, due
to the effects of climate change, physical damage, lack of capacity or IT
systems failure, could lead to the inability to supply customers. We continue
to invest in additional sites to spread the risk and ensure capacity is in
line with our business plans. Business continuity plans and business
interruption insurance are also in place. Our on-going approved IT programme
is continuing to improve system recovery times, and we continue to develop a
clearer understanding and mitigation of climate related risks, as much as we
can.
Going concern
After making appropriate enquiries, the directors have a reasonable
expectation that the Group has adequate resources, in light of the level of
cash generation, to continue in operational existence for at least twelve
months from the date of approval of the condensed consolidated interim
financial information. For this reason, they have adopted the going concern
basis in preparing this condensed consolidated interim financial information.
Statement of directors' responsibilities
The directors confirm that this condensed consolidated interim financial
information has been prepared in accordance with IAS 34, 'Interim Financial
Reporting', as adopted by the United Kingdom, and that the interim management
report herein includes a fair review of the information required by DTR 4.2.7
R and DTR 4.2.8 R, namely: an indication of important events that have
occurred during the first six months and their impact on the condensed set of
financial statements, and a description of (i) the principal risks and
uncertainties for the remaining six months of the financial period; (ii)
related party transactions in the first six months and (iii) any changes in
the related party transactions described in the last annual report.
Since the annual report for the 53 week period to 2 June 2024 there have been
the following changes to the board:
· The appointment of Elizabeth (Liz) Harrison as group finance
director with effect from 18 September 2024.
· Rachel Tongue, CFO, has stepped down from the board with effect
from 18 September 2024.
· The appointment of Mark Lam as non-executive chair with effect
from 1 November 2024.
· The retirement of John Brewis from the role of non-executive
chair with effect from 1 November 2024, and from the board with effect from 31
December 2024.
· The appointment of Randal Casson as senior independent director
with effect from 26 November 2024.
A list of all current directors is maintained on the investor relations
website at investor.games-workshop.com.
Key priorities
We have made some good 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. They have not changed. We set out some
further detail below:
Staff training and development
We care passionately about our global 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. We
have added 46 new roles in the six month period, like last year, many of these
new roles are in our factories and warehouse facilities as well as investing
in our Warhammer Studio, Retail and Trade sales teams.
We will continue to support lifelong learning and training to develop the
skills needed to enable all our staff to be successful including offering
apprenticeship opportunities for on the job training. Since May 2024, 120
staff have decided to transfer on to a new job across the business; we wish
them all well. We remain more active in developing orderly succession plans
for senior management roles.
Customer focused
We continue to be customer focused - engaging better with our existing
customers and reaching new audiences with the Warhammer hobby.
In Asia, work continues on opening our first store in South Korea and we have
signed off an exciting store opening plan for Japan with over 30 locations
identified for a Warhammer store over the next circa five years. We are
confirming the pace of store openings with the local team; it's always better
that they commit to what they think is an achievable pace. They are in the
best place to judge whether the local communities are mature enough for us to
invest in these new stores. We are reviewing our operational structure in Asia
and Australia to ensure we are giving the regions the resources they need to
deliver our exciting operational plans.
We still believe that North America has significant growth potential. We are
currently on track to have 200 profitable stores by May 2025. Once this
milestone is passed, and they've finished celebrating, the team is ready to
present their long list of potential new locations for the years ahead.
Closer to home, our store in Zurich, our first store in Switzerland, opened on
30 November. It was a great team effort and our customers at our opening
weekend seemed to appreciate our efforts. I'm sure a store in Geneva in
2025/2026 would be fun too.
Globally we are seeing encouraging performance from our distribution and trade
partners in growing emerging markets: for example, some of our fastest growth
trends are from countries such as South Korea and Thailand.
Social responsibility
We have a clear plan and agreed priorities. We continue in our commitment to
diversity and inclusion at Games Workshop, we now collect data on the
ethnicity of all of our staff
Sustainability - climate change
We remain committed to delivery of our 2032 scope 1 and 2 carbon emission
target and are pleased to report that, at this stage, we remain firmly on
track. We'll share more detail in the next annual report. Results from our UK
wide in store sprue recycling scheme have remained in line with our targets.
As such, we will expand this scheme to Warhammer stores across France, Germany
and America during Spring 2025.
Outlook
I'm delighted to report our best first half-year performance. A huge thank you
to our staff, customers, trade accounts and broader stakeholders for their
ongoing support. It is never the easiest period to produce an operational plan
that delivers incremental profitable sales growth when the prior period
included the record launch of our updated Warhammer 40,000 system, but it was
very rewarding for the team when they proved to themselves again that they can
do it. It shows our broader product range is growing and the Warhammer Hobby
is in good shape.
We are awaiting confirmation, like everyone else, on the timing and magnitude
of any US tariffs before we can confirm the impact on our net cash generation
and other financial metrics. We are also facing constant cost inflation which
we will continue to actively manage as part of the day job.
By order of the board
Kevin Rountree
CEO
Liz Harrison
Group FD
14 January 2025
CONSOLIDATED INCOME STATEMENT
53 weeks ended
26 weeks ended 26 weeks ended 2 June 2024
Notes 1 December 2024 26 November 2023 £m
£m £m
Core revenue 269.4 235.6 494.7
Licensing revenue 30.1 12.1 31.0
Revenue 2 299.5 247.7 525.7
Cost of sales (87.5) (72.1) (151.2)
Core gross profit 181.9 163.5 343.5
Licensing gross profit 30.1 12.1 31.0
Gross profit 212.0 175.6 374.5
Operating expenses 2 (85.9) (81.1) (172.7)
Core operating profit 98.1 83.4 174.8
Licensing operating profit 28.0 11.1 27.0
Operating profit 2 126.1 94.5 201.8
Finance income 1.4 1.2 2.5
Finance expenses (0.7) (0.5) (1.3)
Profit before taxation 3 126.8 95.2 203.0
Taxation 4 (31.6) (23.8) (51.9)
Profit attributable to owners of the parent 95.2 71.4 151.1
Basic earnings per ordinary share 5 288.9p 216.9p 458.8p
Diluted earnings per ordinary share 5 288.4p 216.3p 458.2p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
26 weeks ended 26 weeks ended 53 weeks ended
1 December 2024 26 November 2023 2 June 2024
£m £m £m
Profit attributable to owners of the parent 95.2 71.4 151.1
Other comprehensive income
Items that may be subsequently reclassified to profit or loss
Exchange differences on translation of foreign operations 0.3 (0.1) (0.6)
Other comprehensive income for the period 0.3 (0.1) (0.6)
Total comprehensive income attributable to owners of the parent 95.5 71.3 150.5
CONSOLIDATED BALANCE SHEET
1 December 2024 2 June 2024
£m 26 November 2023 £m
Notes £m
Non-current assets
Goodwill 1.4 1.4 1.4
Other intangible assets 8 22.0 22.9 22.8
Property, plant and equipment 9 62.9 54.8 56.5
Right-of-use assets 10 45.5 47.5 46.1
Deferred tax assets 14.5 12.5 12.9
Non-current receivables 11 18.1 16.0 19.7
164.4 155.1 159.4
Current assets
Inventories 36.3 36.3 42.2
Trade and other receivables 12 66.4 41.4 37.8
Current tax assets 3.3 5.3 4.3
Cash and cash equivalents 125.8 111.3 107.6
231.8 194.3 191.9
Total assets 396.2 349.4 351.3
Current liabilities
Lease liabilities (9.8) (10.0) (10.0)
Trade and other payables 13 (50.3) (50.6) (46.3)
Current tax liabilities (6.2) (0.1) (1.2)
Provisions for other liabilities and charges (0.9) (0.8) (0.9)
(67.2) (61.5) (58.4)
Net current assets 164.6 132.8 133.5
Non-current liabilities
Lease liabilities (36.6) (38.6) (37.2)
Other non-current liabilities (0.7) (0.7) (0.7)
Deferred tax liabilities (0.9) (1.4) (1.7)
Provisions for other liabilities and charges (2.0) (1.7) (1.9)
(40.2) (42.4) (41.5)
Net assets 288.8 245.5 251.4
Capital and reserves
Called up share capital 1.6 1.6 1.6
Share premium account 23.2 21.3 21.6
Other reserves 1.1 1.3 0.8
Retained earnings 262.9 221.3 227.4
Total equity 288.8 245.5 251.4
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 2 June 2024 and 3 June 2024 1.6 21.6 0.8 227.4 251.4
Profit for the 26 weeks to 1 December 2024 - - - 95.2 95.2
Exchange differences on translation of foreign operations - - 0.3 - 0.3
Total comprehensive income for the period - - 0.3 95.2 95.5
Transactions with owners:
Share-based payments - - - 0.6 0.6
Shares issued under employee sharesave scheme - 1.6 - - 1.6
Deferred tax credit relating to share options - - - 0.7 0.7
Dividends paid to Company shareholders - - - (61.0) (61.0)
Total transactions with owners - 1.6 - (59.7) (58.1)
At 1 December 2024 1.6 23.2 1.1 262.9 288.8
Called up Share premium account Other reserves Retained earnings Total
share capital £m £m £m equity
£m £m
At 28 May 2023 and 29 May 2023 1.6 18.9 1.4 213.2 235.1
Profit for the 26 weeks to 26 November 2023 - - - 71.4 71.4
Exchange differences on translation of foreign operations - - (0.1) - (0.1)
Total comprehensive income for the period - - (0.1) 71.4 71.3
Transactions with owners:
Share-based payments - - - 0.7 0.7
Shares issued under employee sharesave scheme - 2.4 - - 2.4
Deferred tax credit relating to share options - - - 0.2 0.2
Dividends paid to Company shareholders - - - (64.2) (64.2)
Total transactions with owners - 2.4 - (63.3) (60.9)
At 26 November 2023 1.6 21.3 1.3 221.3 245.5
Called up Share premium account Other reserves Retained earnings Total
share capital £m £m £m equity
£m £m
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
CONSOLIDATED CASH FLOW STATEMENT
26 weeks ended 53 weeks ended 2 June 2024
1 December 2024 26 weeks ended £m
Notes £m 26 November 2023
£m
Cash flows from operating activities
Cash generated from operations 7 132.5 116.9 237.9
UK corporation tax paid (25.5) (14.6) (40.0)
Overseas tax paid (1.8) (0.7) (1.7)
Net cash generated from operating activities 105.2 101.6 196.2
Cash flows from investing activities
Purchases of property, plant and equipment (12.5) (6.4) (15.6)
Purchases of other intangible assets (0.3) (0.2) (1.6)
Expenditure on product development (8.4) (7.0) (15.4)
Interest received 1.4 1.2 2.5
Net cash used in investing activities (19.8) (12.4) (30.1)
Cash flows from financing activities
Proceeds from issue of ordinary share capital 1.6 2.4 2.7
Repayment of principal under leases (7.2) (5.8) (11.8)
Lease interest paid (0.7) (0.5) (1.1)
Dividends paid to Company shareholders (61.0) (64.2) (138.3)
Net cash used in financing activities (67.3) (68.1) (148.5)
Net increase in cash and cash equivalents 18.1 21.1 17.6
Opening cash and cash equivalents 107.6 90.2 90.2
Effects of foreign exchange rates on cash and cash equivalents 0.1 - (0.2)
Closing cash and cash equivalents 125.8 111.3 107.6
The following notes form an integral part of this condensed consolidated
interim financial information.
NOTES TO THE FINANCIAL INFORMATION
1. Basis of preparation
The Company is a limited liability company, incorporated and domiciled in the
United Kingdom. The address of its registered office is Willow Road, Lenton,
Nottingham, NG7 2WS.
The Company has its listing on the London Stock Exchange.
This condensed consolidated interim financial information does not comprise
statutory accounts within the meaning of section 434 of the Companies Act
2006. Statutory accounts for the 53 week period ended 2 June 2024 were
approved by the board of directors on 29 July 2024 and have been delivered to
the Registrar of Companies. The report of the auditor on those accounts was
unqualified, did not contain an emphasis of matter paragraph and did not
contain any statement under either section 498 (2) or section 498 (3) of the
Companies Act 2006.
This condensed consolidated interim financial information has not been audited
or reviewed pursuant to the Auditing Practices Board guidance on 'Review of
Interim Financial Information' and does not include all of the information
required for full annual financial statements.
This condensed consolidated interim financial information for the 26 week
period ended 1 December 2024 has been prepared in accordance with the
Disclosure and Transparency Rules of the Financial Conduct Authority and with
IAS 34, 'Interim Financial Reporting' as adopted by the United Kingdom. The
condensed consolidated interim financial information should be read in
conjunction with the annual financial statements for the 53 week period ended
2 June 2024 which have been prepared in accordance with IFRSs as adopted by
the United Kingdom.
After making appropriate enquiries, the directors have a reasonable
expectation that the Group has adequate resources to continue in operational
existence for the foreseeable future. For this reason, they have adopted the
going concern basis in preparing this condensed consolidated interim financial
information.
This condensed consolidated interim financial information was approved for
issue on 14 January 2025.
This condensed consolidated interim financial information is available to
shareholders and members of the public on the Company's website at
investor.games-workshop.com.
The preparation of interim financial information requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities,
revenues, and expenses. Actual results may differ from these estimates.
In preparing this condensed consolidated interim financial information, the
significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the same as those
that applied to the consolidated financial statements for the 53 week period
ended 2 June 2024.
Taxes on income in the interim periods are accrued using the tax rate that
would be applicable to expected total annual earnings.
The accounting policies applied are consistent with those of the annual
financial statements for the 53 week period ended 2 June 2024, as described in
those financial statements.
The Group considers that there are no new accounting standards, amendments or
interpretations issued by the IASB, but not yet applicable, which have had, or
are expected to have a significant effect on the financial statements.
2. 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 1 December 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 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 Warhammer Studio (which 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.
The segment information reported to the executive directors for the periods
included in this financial information is as follows:
26 weeks ended 1 December 2024 and 26 November 2023:
Core Licensing Total
2024 2023 2024 2023 2024 2023
£m £m £m £m £m £m
Trade 165.7 136.1 - - 165.7 136.1
Retail 60.8 54.7 - - 60.8 54.7
Online 42.9 44.8 - - 42.9 44.8
Licensing - - 30.1 12.1 30.1 12.1
Revenue 269.4 235.6 30.1 12.1 299.5 247.7
Cost of sales (87.5) (72.1) - - (87.5) (72.1)
Gross profit 181.9 163.5 30.1 12.1 212.0 175.6
Trade (6.9) (6.5) - - (6.9) (6.5)
Retail (33.6) (32.8) - - (33.6) (32.8)
Online (4.6) (6.8) - - (4.6) (6.8)
Design, manufacturing, logistics and operations (27.9) (24.0) - - (27.9) (24.0)
Licensing - - (2.1) (1.0) (2.1) (1.0)
Group (2.2) (1.8) - - (2.2) (1.8)
Share-based payment charge (0.6) (0.7) - - (0.6) (0.7)
Group Profit Share Scheme (8.0) (7.5) - - (8.0) (7.5)
Operating expenses (83.8) (80.1) (2.1) (1.0) (85.9) (81.1)
Operating profit 98.1 83.4 28.0 11.1 126.1 94.5
Finance income 1.4 1.2 - - 1.4 1.2
Finance costs (0.7) (0.5) - - (0.7) (0.5)
Profit before tax 98.8 84.1 28.0 11.1 126.8 95.2
53 weeks ended 2 June 2024:
Core Licensing Total
£m £m £m
Trade 288.4 - 288.4
Retail 115.6 - 115.6
Online 90.7 - 90.7
Licensing - 31.0 31.0
Revenue 494.7 31.0 525.7
Cost of sales (151.2) - (151.2)
Gross profit 343.5 31.0 374.5
Trade (13.9) - (13.9)
Retail (65.4) - (65.4)
Online (12.0) - (12.0)
Design, manufacturing, logistics and operations (52.4) - (52.4)
Licensing - (4.0) (4.0)
Group (5.5) - (5.5)
Share-based payment charge (1.1) - (1.1)
Group Profit Share Scheme (18.4) - (18.4)
Operating expenses (168.7) (4.0) (172.7)
Operating profit 174.8 27.0 201.8
Finance income 2.5 - 2.5
Finance costs (1.3) - (1.3)
Profit before tax 176.0 27.0 203.0
For information, we analyse core external revenue further below:
26 weeks ended 26 weeks ended 53 weeks ended
1 December 2024 26 November 2023 2 June 2024
£m £m £m
Trade
UK and Continental Europe 74.7 58.0 125.4
North America 69.8 59.3 124.4
Australia and New Zealand 9.6 8.1 16.6
Asia 8.1 7.3 15.0
Rest of world 2.3 2.2 4.7
Black Library 1.2 1.2 2.3
Total Trade 165.7 136.1 288.4
Retail
UK 17.6 16.3 34.3
Continental Europe 13.0 11.0 24.4
North America 24.2 21.6 45.1
Australia and New Zealand 4.1 4.2 8.4
Asia 1.9 1.6 3.4
Total Retail 60.8 54.7 115.6
Online
UK 7.7 8.7 17.4
Continental Europe 6.8 7.1 14.3
North America 13.9 16.3 32.3
Australia and New Zealand 1.5 2.1 3.8
Asia 0.4 0.3 0.8
Rest of world 0.4 0.4 0.8
Total Online (excluding digital) 30.7 34.9 69.4
Digital 12.2 9.9 21.3
Total Online 42.9 44.8 90.7
Total core external revenue 269.4 235.6 494.7
3. Profit before taxation
26 weeks ended 26 weeks ended 53 weeks ended
1 December 2024 26 November 2023 2 June 2024
£m £m £m
Profit before taxation is stated after charging:
Depreciation:
- Owned property, plant and equipment 7.5 7.0 14.4
- Right-of-use assets 5.8 5.9 11.9
Amortisation:
- Owned computer software 0.3 0.8 1.7
- Development costs 7.8 4.7 10.8
- Other intangible assets 0.1 - 0.2
Impairment of computer software - - 1.7
Impairment of development costs 1.2 - 0.9
Employee and agency staff costs (excluding capitalised salary costs) 68.0 62.8 135.8
Cost of inventories included in cost of sales 32.4 29.5 61.2
Inventory provision creation 5.9 2.3 5.8
Unrealised and realised exchange losses 0.8 0.3 2.0
Loss on disposal of tangible assets - - 0.1
Loss on disposal of intangible assets 0.1 - -
Redundancy costs and compensation for loss of office 0.1 0.3 0.4
4. Taxation
The taxation charge for the 26 weeks ended 1 December 2024 is based on an
estimate of the full year effective rate of 25.0% (2023/24: 25.0%). As the UK
and overseas tax rates are now more closely aligned, the impact of any higher
overseas rates is minimal.
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 throughout the relevant period.
26 weeks ended 26 weeks ended 53 weeks ended
1 December 2024 26 November 2023 2 June 2024
Profit attributable to owners of the parent (£m) 95.2 71.4 151.1
Weighted average number of ordinary shares in issue (thousands) 32,955 32,919 32,935
Basic earnings per share (pence per share) 288.9 216.9 458.8
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.
26 weeks ended 26 weeks ended 53 weeks ended
1 December 2024 26 November 2023 2 June 2024
Profit attributable to owners of the parent (£m) 95.2 71.4 151.1
Weighted average number of ordinary shares in issue (thousands) 32,955 32,919 32,935
Adjustment for share options (thousands) 57 93 42
Weighted average number of ordinary shares for diluted earnings per share 33,012 33,012 32,977
(thousands)
Diluted earnings per share (pence per share) 288.4 216.3 458.2
6. Dividends
Dividends of £33.0 million (100 pence per share) and £28.0 million (85 pence
per share) were declared and paid in the 26 weeks to 1 December 2024. A
further dividend of 80 pence per share was declared after the period end on 18
December 2024.
Dividends of £47.7 million (145 pence per share) and £16.5 million (50 pence
per share) were declared and paid in the 26 weeks to 26 November 2023.
7. Reconciliation of profit to cash generated from operations
26 weeks ended 26 weeks ended 53 weeks ended
1 December 2024 26 November 2023 2 June 2024
£m £m £m
Profit before taxation 126.8 95.2 203.0
Finance income (1.4) (1.2) (2.5)
Finance costs 0.7 0.5 1.3
Operating profit 126.1 94.5 201.82
Adjustments for:
Depreciation of property, plant and equipment 7.5 7.0 14.4
Depreciation of right-of-use assets 5.8 5.9 11.9
Impairment of intangible assets 1.2 - 2.6
Loss on disposal of property, plant and equipment - - 0.1
Loss on disposal of intangible assets 0.1 - -
Amortisation of capitalised development costs 7.8 4.7 10.8
Amortisation of other intangibles 0.4 0.9 1.9
Share-based payments 0.6 0.7 1.2
Exchange movements 1.7 1.1 1.1
Changes in working capital:
-Decrease/(increase) in inventories 5.9 (4.4) (10.0)
-Increase in trade and other receivables (excluding licensing receivables) (8.3) (7.1) (0.8)
-Increase in licensing receivables (18.6) (0.3) (6.8)
-Increase in trade and other payables 2.1 13.9 9.4
-Increase in provisions 0.2 - 0.3
Cash generated from operations 132.5 116.9 237.9
8. Other intangible assets
1 December 2024 26 November 2023 2 June 2024
£m £m £m
Net book value at beginning of period 22.8 21.2 21.2
Additions 8.7 7.2 17.0
Disposals (0.1) - -
Amortisation charge (8.2) (5.5) (12.7)
Impairment (1.2) - (2.6)
Exchange differences - - (0.1)
Net book value at end of period 22.0 22.9 22.8
9. Property, plant and equipment
1 December 2024 26 November 2023 2 June 2024
£m £m £m
Net book value at beginning of period 56.5 55.7 55.7
Additions 14.0 6.2 15.6
Disposals - - (0.1)
Depreciation charge (7.5) (7.0) (14.4)
Exchange differences (0.1) (0.1) (0.3)
Net book value at end of period 62.9 54.8 56.5
10. Right-of-use assets
1 December 2024 26 November 2023 2 June 2024
£m £m £m
Net book value at beginning of period 46.1 48.9 48.9
Additions 5.5 4.9 9.9
Depreciation charge (5.8) (5.9) (11.9)
Exchange differences (0.3) (0.4) (0.8)
Net book value at end of period 45.5 47.5 46.1
11. Non-current receivables
1 December 2024 26 November 2023 2 June 2024
£m £m £m
Licensing receivables 17.0 14.3 18.7
Other receivables 1.1 1.7 1.0
Total other non-current receivables 18.1 16.0 19.7
Licensing receivables represents amounts in respect of guarantee instalments
due in more than one year.
12. Trade and other receivables
1 December 2024 26 November 2023 2 June 2024
£m £m £m
Trade receivables 18.7 14.3 11.1
Prepayments and accrued income 12.0 12.1 12.1
Licensing receivables 30.0 10.5 9.6
Other receivables 5.7 4.5 5.0
Total trade and other receivables 66.4 41.4 37.8
13. Trade and other payables
1 December 2024 26 November 2023 2 June 2024
£m £m £m
Trade payables 8.7 8.0 12.5
Other taxes and social security 4.6 3.0 2.6
Other payables 17.6 17.0 10.9
Accruals 10.8 10.4 11.7
Deferred income 8.6 12.2 8.6
Total trade and other payables 50.3 50.6 46.3
Included in deferred income is £3.4 million (26 November 2023: £8.6m, 2 June
2024: £5.2m) of advance payments made by trade and online customers.
14. Seasonality
The Group's monthly sales profile demonstrates an element of seasonality
around the Christmas period with increased sales in the month of December.
15. Commitments
Capital expenditure contracted for at the balance sheet date but not yet
incurred is £5.2 million (2023/24: £4.8 million), of which £1.9 million
(2023/24: £3.3 million) relates to tangible fixed assets and £3.3 million
(2023/24: £1.5 million) relates to intangible fixed assets.
16. Related party transactions
There were no related party transactions during the period.
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 2 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 2 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 2 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 2 to the
financial statements.
Core operating profit is core revenue less all related cost of sales and
operating expenses
Licensing revenue Revenue Licensing revenue is reconciled to revenue in note 2 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 2 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 2 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 2 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
£m £m £m £m
Revenue 299.5 6.1 305.6 247.7
Core operating profit 98.1 4.1 102.2 83.4
Licensing operating profit 28.0 1.3 29.3 11.1
Cash generated - pre dividends paid Net increase 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 (2024/25: £18.1m, 2023/24: £21.1m) 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 (2024/25:
account £61.0m, 2023/24: £64.2m).
Cash generated - pre dividends paid
Movement in cash in the period before any payments of dividends are taken into
account
Net increase 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 (2024/25: £18.1m, 2023/24: £21.1m) and
adding back the dividends which have been paid in the period (2024/25:
£61.0m, 2023/24: £64.2m).
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