Games Workshop shares dip as profits wane, but fantasy miniatures retailer raises dividend by a fifth
- Games Workshop said its investors would receive a dividend of 30p per share
- The fantasy miniatures retailer has seen its business surge during the Covid-19 crisis
- Its sales continued to grow despite the easing of lockdown restrictions
Games Workshop shares fell nearly 10% on Wednesday as the retailer reported weaker earnings over the past three months.
However, in a trading update, the group has also increased its dividend by 20% and will now pay shareholders 30p per share for the three months to August 28.
After paying out a 90p per share payout last week following record annual results, it means the company’s total dividends declared to investors so far this financial year are almost double what they were. 12 months ago.
Hike: Miniatures retailer Fantasy Games Workshop, the maker of Blood Bowl (pictured), said it would pay shareholders a dividend of 30p per share for the three months until August 28
Known for the Warhammer series of tabletop games, Games Workshop has seen trade surge during the Covid-19 crisis as consumers have sought to keep busy while spending more time indoors.
Despite the easing of lockdown restrictions, the Nottingham-based group continued to see sales rise, albeit at a much slower pace than before.
For the most recent quarterly period, he reported that license sales fell to around £3m, from £5m in 2021, although this was offset by base revenue of around £106m. of pounds sterling.
However, pre-tax profits fell 13% to around £39m. Following the revelation, Games Workshop shares fell 9.1% to £64.15 in the early afternoon, meaning their value has fallen by more than a third this year.
Victoria Scholar, chief investment officer at Interactive Investor, said shareholders “have struggled lately” due to the decline in the company’s shares over the past year and a succession of revisions to the decline in price targets by analysts.
Nonetheless, she noted that the stock was on a positive long-term trajectory and had “significantly outperformed” the broader FTSE 350 index.
The group has achieved a return on shareholder value of 2,630% over the previous decade, according to figures from the AJ Bell investment platform, the second best performance of any mid-cap company listed on the London Stock Exchange. .
General Manager Kevin Rountree has been credited with turning Games Workshop’s fortunes around since he took charge in 2015.
He repaired the company’s relationship with many fans who had been alienated by his aggressive approach to protecting intellectual property rights, and launched or reintroduced more streamlined games that were popular with customers.
One of them was Blood Bowl, an American football-inspired board game where players aim to score as many “touchdowns” as possible with a team of fantastical creatures.