Games Workshop shares rocket to record high on guidance upgrade

Games Workshop has lifted annual guidance as the tabletop games firm lifted full-year guidance after better-than-expected sales over the last two months.

The group, which owns the Warhammer brand, told investors on Friday it expects to post core and licensing revenues of at least £260million and £30million respectively for the 12 months to 1 December.

It would mark an impressive improvement on core revenues of £236million and licensing revenues of £13million over the same period last year.

The firm says it is now on track for pre-tax profits of at least £120million, well ahead of the £96million made in 2023.

Games Workshop has been rewarding investors with bumper payouts this year as the group cashes in on sustained success on the shop floor – and on screen.

Russell Pointon, director of consumer at Edison Group, said Games Workshop has benefited from the launch of the fourth edition of Warhammer’s Age of Sigmar.

But ‘the real surprise’, Pointon added, comes from licensing revenue which offers ‘a very profitable revenue stream’.

He said: ‘The company’s growth rate is testimony to its ability to evolve its intellectual property and engaging with its customers.’

Games Workshop’s lucrative licensing revenues come from an increasing broad range of sources; from big budget video games and movies to last year’s Warhammer Panini sticker book.

Analysts at Peel Hunt said Games Workshop’s latest upgrade ‘is highly impressive’ given strong comparisons from the launch of Warhammer 40k last summer.

Peel Hunt upgraded its Games Workshop share price target from £120 to £135.

Games Workshop shares were up 16.2 per cent to £136.10 by midday, bringing blockbuster gains over the last five years to around 140 per cent. 

Peel Hunt said: ‘The hobby remains in excellent health, and the success of Space Marine 2 has increased its profile and helped short-term revenues.’

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