UK's Games Workshop falls as tariff, cost concerns overshadow record profit
UK's Games Workshop falls as tariff, cost concerns overshadow record profit July 28 (Reuters) - Shares in Games Workshop GAW.L fell as much as 6.5% on Tuesday after the British miniature wargames maker flagged tariff headwinds and higher plastic prices stemming from the Iran war, overshadowing record annual profit.
Here are some details:
Games Workshop said new U.S. tariffs are expected to create an annualised cost of around £13 million ($17.29 million), although the company expects mitigation measures, including price increases and operational changes, to offset part of the impact.
The Warhammer maker also flagged higher plastic input costs, estimating a roughly £2 million hit from supply-chain disruption and inflationary pressures linked to volatility in global energy markets.
The company, known for its premium, in-house produced fantasy miniatures, has built a cult-like following for Warhammer, which has expanded into video games, books and a film.
It reiterated that AI is not used in creating Warhammer miniatures, artwork or lore, but said the growing inclusion of AI tools in third-party software means it may be used in some non-creative business functions.
Profit before tax rose 4.9% to a record £275.7 million for the fiscal year ended May 31, driven by continued growth in the core Warhammer busine
Games Workshop, the only publicly listed pure-play miniatures company globally, last traded at £195.64 per share around 0755 GMT, valuing it at about £6.46 billion.
($1 = 0.7519 pounds)
(Reporting by Atharva Singh in Bengaluru; Editing by Nivedita Bhattacharjee)