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Games Workshop reports strong first-half sales as it engages with customers across channels

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Games Workshop has reported strong growth across its sales channels as it invested in engaging with its customers both through new stores and online.

The retailer behind the Warhammer game, a Top350 retailer in IRUK Top500 research, reported revenues of £148.4m in the six months to December 1, up by 19% from £125.2m a year earlier. Trade sales continued to be the largest channel, growing to £76.1m from £61.4m last time, while retail sales in Games Workshop’s own stores reached £45.3m (£42.6m last time) and its own direct online sales of £24.2m were 15% up from £21.2m. Online shoppers can also buy from third-party trade customers. Income from licensing royalties increased to £10.7m over the half-year, and it is also working to develop a TV series. Pre-tax profits of £58.6m were up from £40.8m a year earlier. 

Games Workshop said that over the half-year it had built new communities, opening 12 stores, about 200 trade accounts, while reaching more customers online. More fans (-48%) visited its Warhammer Community website over the six months compared to the same time last year, visiting more often and staying online for longer. The retailer said that it continued to improve the shopping experience and functionality in its own online store, concentrating in particular on personalised content and navigation. It is also changing its ERP system in the UK. 

Kevin Rountree, chief executive of Games Workshop, said: “Our business and the Warhammer hobby continue to be in great shape. We are pleased to once again report record sales and profit levels in the period. The global team have worked their socks off to deliver these great results. My thanks go out to them all. 

“We are also announcing that the board has today declared a dividend of 45p per share, in line with the company’s policy of distributing truly surplus cash.” 

Games Workshop said it had put plans in place to mitigate the effects of Brexit, depending on what form the UK’s withdrawal from the EU takes. It is also looking at the environmental effects of its business through several new projects. It says this is a priority for the business and that it is committed to improving its progress in this area. 

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