Games Workshop declares dividend as it raises profit expectations

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Games Workshop Group PLC (LON:GAW) has declared a dividend and raised its profit expectations for the six months to November 29, 2020.


The retailer and maker of Warhammer figurines is planning to pay a dividend of 60p per share, in line with its policy of distributing truly surplus cash, which will be paid next month.


READ: Games Workshop jumps as Autumn trading beats expectations


In a brief update, the FTSE 250 firm said its interim profit before tax is expected to be no less than GBP90mln, up from the GBP80mln it forecast in November and from the GBP58.6mln posted in 2019.


Sales are expected to come in at GBP185mln, from GBP148mln last year, the group added.


Last month, the company said its online and trade channels have been growing, while its retail channel was still recovering from store closures earlier in the year.


Analysts at house broker Peel Hunt said the performance was driven by strong sales in the second quarter combined with improved margins and higher royalties than expected.


Their forecasts assume an operating margin of 44.1% in the first half, reducing to 27.6% in the second half due to lower sales (GBP165mln vs GBP185mln), a greater share of sales through the stores, increased marketing spend, stronger sterling, additional staff costs and a step-up in spend on future growth opportunities.


Shares rose 3% to 10,150p on Monday morning.


–Adds analyst comment, shares–

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