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FINANCIALS: Games Workshop Annual Report – 2013

2 Minute Read
Jul 30 2013
Warhammer 40K

It’s that time of year again.  Lets see how Games Workshop is doing.

Some highlights:

Sales and cost of sales 
Reported sales increased by 2.7% to £134.6 million for the year. On a constant currency basis, sales were up by 3.5% from £131.0 million to £135.6 million; progress was achieved in North America (+7.8%), Export (+2.3%), Asia (+10%) and in Other sales businesses (+27.2%) while sales in the UK (-1.4%), Continental Europe (-0.3%) and Australia (-4%) were in decline. To be consistent with how we manage the business, we now report development costs within cost of sales. In the year we reclassified £4.8 million (2012: £4.7 million) to cost of sales from operating expenses. This reclassification gave rise to a decrease in gross margin of 3.5% (2012: 3.6%).

Operating profit 
Core business operating profit (operating profit before royalty income) increased by £4.6 million to £20.2 million (2012: £15.6 million). On a constant currency basis, core business operating profit increased by £5.2 million to £20.8 million (2012: £15.6 million). This result was delivered by sales growth of 2.7%, with maintenance of our gross margin, and a £2.5 million decrease in operating expenses; included in the period reported is the cost of £1.1 million related to payment of the profit share and cost of £0.2 million related to payment of performance related pay to Hobby centre managers. Costs remain a key area of focus. After royalty income of £1.0 million (2012: £3.5 million) operating profit increased by £2.1 million to £21.3 million. On a constant currency basis, operating profit increased by £2.7 million to £21.8 million. During the year, we continued with our retail store programme designed to improve our retail profitability and converted a further 82 stores to the one man format. This takes our total to 274 out of 412 stores (UK: 93, Continental Europe: 80, North America: 76, Australia: 22, Asia: 3). This programme will continue in 2013/14.

Revenue by Segment (Pound Sterling)
UK  30,922,000
Continental Europe  39,452,000
North America  36,688,000
Australia  10,943,000

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Operating Profit by Segment (Pound Sterling)
UK  5,227,000
Continental Europe  4,689,000
North America  3,336,000
Australia  756,000

Hmm, first half year (Q3-4 2012) sales up strongly, second halfyear (Q1-2 2013) down slightly. It would seem the release of Warhammer 40,000 6th Edition was very well recieved.

Go ahead – chime it, you know you want to.

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Author: Larry Vela
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