Games Workshop, the makers of the tabletop fantasy hit Warhammer, have been fighting their way to the FTSE 100 gates, 30 years after listing on the London Stock Exchange.
With hundreds of stores around the world, the company serves legions of fans of its complex games, but as the latest restructuring of the index was announced on Wednesday, value retailers B&M, Mike – It is expected to be replaced by Ashley’s Frasers Group or housebuilder Vistry.
Games Workshop’s promotion to the UK-listed 100 largest companies marks the culmination of an extraordinary rise in the company’s share price, with shares hovering near all-time highs and the group’s market capitalization at £4.6bn. exceeds.
Russell Poynton of investment research firm Edison Group, which counts Games Workshop among its clients, said this was “one of the great British success stories”. “I spend a lot of time talking to investors who feel guilty (and ask), ‘Did we miss an opportunity?’
Entering the FTSE 100 “will raise the profile of the business and attract the attention of a wider investor base,” said Andrew Ford, equity analyst at Peel Hunt, which is also the company’s corporate broker.
“We believe there is more to come. It continues to grow tremendously behind the scenes without attracting much attention.
The Nottingham-based company was one of the fastest-growing “hobby stocks” during the pandemic as consumers spent more on entertainment, and has maintained its growth since the end of lockdown. The company last month said it expected pre-tax profit for the six months to December 1 to be more than £120m, compared with £96.1m in the same period last year, with core income up around 10%. It is expected to cost more than 260 million pounds.
In a recent plain annual report (a document featuring plain black text on white paper, with the only visual content being a few bar graphs), recently departed chairman John Brewis said: writes as follows: It’s not easy. . . Avoiding distractions helps us focus on the things we can control. ”
The city also expects news to be announced this month of a partnership with Amazon to produce films and television series based on the Warhammer 40,000 universe. This is because the two companies announced that they will agree on “creative guidelines” for projects with Amazon by the end of this year. Potential to expand your brand’s fan base. Superman star Henry Cavill has previously expressed his enthusiasm for Warhammer and is expected to star in the film.
“When a lesser-known IP becomes mainstream, it gains recognition, but that doesn’t necessarily drive sales for the core business,” said Peel Hunt’s Ford. “Whenever that happens, or even if it does happen, we don’t think it will be the core driver. It could be a catalyst, but in North America and Asia. There is a lot of potential for the core business without that.”
Games Workshop was founded in 1975 by friends John Peake, Steve Jackson and Ian Livingstone, selling handmade wooden games from their London home. The company grew as a mail order business for fantasy games and opened its first store in 1978. The founders are not currently involved in the business.
The company’s big breakthrough came in 1983 when its designers invented Warhammer, now the world’s most popular miniature war game. With over 500 stores worldwide, around 70% of our sales currently come from outside the UK.
The game is a relatively expensive endeavor, requiring steady spending from dedicated players. A so-called complete combat patrol unit of around 12 Space Marines for the Warhammer 40,000 game costs £100, while a Cerberus heavy tank destroyer costs £74. The plastic figures and game rules are constantly updated, leading to repeat purchases by fans.
Many enthusiasts attend events at local clubs, schools, and other venues, often hosted by third parties. Some veteran Warhammer enthusiasts offer to paint miniatures for cash, as players may refuse to face off against opponents without intricately painted figures.
“We’ve driven growth through the deep lore, story, narrative and fan base behind our games,” Ford said. “This game is not only a financial investment for fans, but also an emotional one. They spend a lot of time drawing, reading, and understanding the military and the backstory of the Warhammer world. Masu.”
Games Workshop designs, manufactures, distributes, and sells fantasy miniatures. We have two main factories, a paint shop, two warehouses, a Warhammer studio and back office space in or near Nottingham.
The debt-free company aims to “distribute genuine surplus cash to shareholders” and has paid out £428.8m in dividends since 2021, according to Peel Hunt research. But it hasn’t been a consistent success, with its stock plummeting in 2007 after receiving two profit warnings.
The company makes money from licensing intellectual property such as the Space Marines video game, but profits can be difficult to model for the few analysts covering the company.
“The company is profitable because the cost of licensing is relatively low,” said Edison Group’s Poynton, but added that “revenues are very bulky.”
Jefferies has previously said that Games Workshop is expected to have a budget of between £20m and £30m, a 10-part series, plus increased fees and bonuses for subsequent seasons, and a partnership with Amazon to generate $1m per episode. I estimated that I would make money.
