Games Workshop shares rocket to record guidance upgrade

Games Workshop has lifted annual guidance after the tabletop games company lifted full-year guidance following better-than-expected sales in the past two months.

The group, which owns the Warhammer brand, told investors on Friday that it expects to achieve core and licensing revenues of at least £260 million and £30 million respectively for the 12 months to December 1.

It would represent an impressive improvement on core revenues of £236 million and licensing revenues of £13 million compared to the same period last year.

The company says it is now on track for pre-tax profits of at least £120m, well ahead of £96m in 2023.

Games Workshop has rewarded investors with huge payouts this year as the group cashes in on continued success on the shop floor – and on screen.

Russell Pointon, consumer affairs director at Edison Group, said Games Workshop has benefited from the launch of the fourth edition of Warhammer’s Age of Sigmar.

But “the real surprise,” Pointon added, comes from licensing revenue, which provides “a very profitable revenue stream.”

He said: ‘The company’s growth rate is a testament to its ability to develop its intellectual property and engage with its customers.’

Games Workshop’s lucrative licensing revenue comes from an increasingly wide range of sources; from video games and big budget films to last year’s Warhammer Panini sticker book.

Analysts at Peel Hunt said Games Workshop’s latest upgrade is “very impressive” given the strong comparisons to last summer’s Warhammer 40k launch.

Peel Hunt raised its price target for Games Workshop from £120 to £135.

Games Workshop shares rose 16.2 per cent to £136.10 by midday, taking blockbuster profits over the past five years to around 140 per cent.

Peel Hunt said: ‘The hobby remains in excellent health, and the success of Space Marine 2 has raised its profile and boosted revenue in the short term.’