Games Workshop sales and profits up

Games Workshop Group reports sales and profit growth across all channels inthe six months to 27 November.

Reported sales grew by 28% to £70.9 million for the period. On a constant currency basis, sales were up by 13% from £55.3 million to £62.7 million; split by channel this comprised: retail £25.8 million (2015: £21.5 million), trade £24.9 million (2015: £22.4 million) and mail order £12.0 million (2015: £11.4 million).

Operating profit before royalty income increased by £5.0 million to £9.7 million (2015: £4.7 million) before the change in accounting estimates described below. On a constant currency basis, operating profit before the change in accounting estimates increased by £2.0 million to £6.7 million. With effect from 30 May 2016 the Group implemented a change in accounting estimates for the amortisation of development costs intangible assets and for the depreciation of moulding tools. The impact of the change for the six months to 27 November 2016 is an increase in operating profit of £0.8 million. On a constant currency basis, royalty income increased by £1.3 million to £2.8 million (2015: £1.5 million). Total operating profit increased by £7.6 million to £13.8 million (2015: £6.2 million). The net impact in the six months to 27 November 2016 of exchange rate fluctuations was a gain of £3.5 million.

Chief executive Kevin Rountree said: "Our business and our Hobby are in good shape. We are pleased to report sales and profit growth in the period across all channels. This improvement was built on a considerable team effort across the business."