Games Workshop today reports record revenues after a year in which it sold its highest number of Warhammer miniatures to date. Pre-tax profits grew despite pressure on costs from Covid-19, Brexit and the war in Ukraine.
The retail brand behind the Warhammer role play game, says that while the effects of Covid significantly reduced towards the end of the year, losing sales from Russia, where trade is currently suspended, cost it about £4m in net revenue during the year. Brexit has added £3.4m in extra supply chain costs. The business is looking to “mitigate” recruitment gaps in its UK-based European trade team following Brexit. “We look forward to the Brexit benefits promised,” it adds.
Games Workshop, ranked Top350 in RXUK Top500 research, says its digital content has never been richer, as it reaches thousands of people a day through its Warhammer community website and through social media. That engagement is supported by retail sales that take place through its 518 own stores (23% of sales), its online website (22%) and 6,200 third-party independent retailers (55%). Ecommerce sales of £85m were delivered in its latest financial year. That’s 5.5% down from £90m last year, but up by 70% from £50m in 2019/20.
The update comes as Games Workshop today reports revenue of £414.8m in the 52 weeks to May 29 2022. That’s 12% higher than the previous year. Pre-tax profits grew by 3.7% to £156.5m. Sales through all of its channels and most of its markets grew during the year, with the exception of Australia – as a result of freight issues, China – as a result of Covid-19 lockdowns – and Russia – following the suspension of trade.
During the year Games Workshop invested £16.7m in its studio and £5.7m in tooling for new plastic miniatures. It has also increased design, factory and warehouse capacity. Both its headquarters and its factory are in Nottingham. It launched new technology in its Memphis warehouse, started to upgrade its online business, and launched a plastic recycling project that can take in its plastic miniatures and turn them back into raw materials.
“It’s been another astonishing year,” says Kevin Rountree, chief executive of Games Workshop. “I once again take great comfort that some things don’t change – our staff and customers love Warhammer.”