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Games Workshop Group

Games Workshop Group performance impacted by COVID-19, recovery better than expected

Games Workshop Group plc (LON:GAW) announced that following the close of its 2019/20 financial year, a trading update has now been published:

Operational update

Following our announcement on 28 April 2020 we have continued to re-open our operations globally, in line with local guidance, whilst ensuring our priority is the health, safety and wellbeing of our staff and customers.

Our warehouses are now operational and our factory is working in a limited capacity, at all times complying with the social distancing and hygiene requirements in each country. Trade and online sales orders are also being processed as these staff currently work from home.

306 of our 532 stores are now open in 20 countries, again in line with local guidance and subject to their local social distancing measures. Our stores will continue to re-open across the world as local restrictions are lifted.

Financial update 

As stated previously, trading for Games Workshop in the nine months to the end of February was in line with expectations. Since the outbreak of COVID-19 and the subsequent closure of our operations globally, our performance has been impacted. However, our recovery since re-opening has been better than expected.

As we have re-opened our sales channels as discussed above, we now estimate our sales to be c. £270 million and profit before tax for the year ended 31 May 2020 to be no less than £85 million. This includes royalties receivable from licensing which are estimated to be approximately £16 million. Our cash balance as at 31 May 2020 is estimated at c. £50 million and we have put in place a £25 million overdraft facility. From March onwards, given the closure of all of our operations worldwide, we claimed the applicable government subsidies to cover the period of uncertainty. However, in light of these results, we do not intend to make further claims and we aim to repay any amounts that have already been received, where possible.

In relation to the future performance of the Group, the board feels that it is too early to know what the continuing impact of COVID-19 is likely to be.

Games Workshop Group will provide detailed information on the audited results for the 2019/20 financial year in due course.

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