Games Workshop (GAW,), a UK-based miniature wargames manufacturer, announced that trading for the three months to the end of February 2023 has been in line with expectations, as it detailed plans to return surplus cash to shareholders.
The company said it would pay a dividend of £1.20 per share. The payout is in line with the company's policy of distributing truly surplus cash including the receipt of the remaining £12 million of VAT that was outstanding from the French tax authorities. Total dividends declared in the year so far are £4.15 per share.
The company also noted that a full-year trading update for the 52 weeks ending 28 May 2023 will be released in June 2023.
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A good result from Games Workshop, meeting trading expectations in a period that included the key Christmas season. In its half-yearly report released earlier this year, the miniature wargames manufacturer continued to demonstrate that it is in ‘great shape’, documenting core sales exceeding £200m for the first time in results for the six months to 27 November 2022, illustrating an 11% year-on-year rise.
The news today bodes well for full-year results released in June, and the company can also enjoy the easing of external factors that previously impacted the delivery of its commercial plan, namely, lost sales from China following Covid-19 restrictions. China’s reopening will help to boost sales in this region once again. For other external headwinds that persist, such as Brexit adding extra costs, the company notes they are ‘staying positive’ and carefully managing what is in control to improve margins.
Looking ahead, Games Workshop says it is committed to signing new licensing contracts with partners to exploit its IP outside of its core business. In December, the company announced a tie-up with Amazon to develop Warhammer based TV content, and although no numbers were revealed high-margin licensing activity has the potential to deliver material profit uplifts.
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