Games Workshop Shares Plunged 15% Despite Upbeat H1 Results

The Games Workshop Group PLC (LON: GAW) share price plunged a maximum of 14.96% as of 9:30 GMT after releasing its results for the six months to 26 November 2023. For the six-month period ending on 26 November 2023, Games Workshop has projected some promising figures, reflecting the company's robust growth trajectory.

Based on current exchange rates, the company's core revenue is anticipated to reach at least £235 million. This marks a notable increase from the previous year's £212.3 million, demonstrating the company's expanding market presence and customer base.  

Additionally, licensing revenue is expected to be around £12 million, slightly down from £14.3 million in the previous year, yet still contributing significantly to the overall revenue.

The company's core operating profit is another area of significant growth. It is estimated to be no less than £82 million, which is a substantial rise from the previous year's £70.7 million. This increase can be attributed to effective cost-management strategies and increased sales volume. 

Likewise, the licensing operating profit is projected at approximately £11 million, marginally lower than the £12.9 million recorded last year.

One of the most notable aspects of Games Workshop's update is its profit before tax, which is estimated to be at least £94 million. Compared to the £83.6 million in the previous year, this indicates a significant upward trend in the company's financial health.

Games Workshop continues to prioritise its employees, as the company announced that each employee will receive £2,500 in cash in December 2023 as part of its profit share scheme. This amount totals £7.5 million for the year 2023/24, significantly higher than the £4.5 million distributed in the previous year. 

Shareholders too, have a reason to celebrate. The dividends declared and paid during this period are 195p per share, amounting to £64.2 million. This is an increase from the 165p per share, or £54.2 million, paid in the previous year. 

Further insights into Games Workshop's financial and operational performance will be available in the half-yearly report, scheduled for release on 9 January 2024.

Games Workshop (GAW) share price. 

The Games Workshop (GAW) share price plunged 14.96% to trade at 9035.0p from Wednesday’s closing price of 10625.0p.