The Games Workshop (LSE: GAW) share price fell when markets opened today after the wargaming and fantasy miniature specialist reported a slump in its half-year profits.
Key facts
Games Workshop said that sales were unchanged at £211.7m during the six months to 27 November, excluding exchange rate differences.
Management said the performance was led by “a great recovery in all channels in Australia, Canada and the UK”. The firm is also expanding in North America, where it added 119 trade outlets during the half year.
However, an increase in manufacturing costs and other expenses meant that pre-tax profit for the period fell by 6% to £83.6m.
Fortunately, cash generation remained very strong, resulting in a cash balance of £68.1m at the end of November. That’s 64% higher than the £41.4m balance reported one year earlier.
A big chunk of this cash will now be returned to shareholders, who will receive a 130p per share dividend in late February. This payout will bring the total dividend declared so far this year to 295p. That’s equivalent to a dividend…
