created : about 1 year ago

Games Workshop shares tumble

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Hello there,

https://www.thisismoney.co.uk released a post about GW and we learnt a few thing.

1) Sales are ahead of last year

2) Profit are staying the same (so they spend more money ?if sales are ahead)

3) They are afraid of 2018/2019 (Brexit?)

4) Former chairman Tom Kirby's £20.3million disposal of Games Workshop stock last month. Did he know something was up? One would suspect not, given that he retired more than a year ago and shouldn't be privy to information regarding the day-to-day running of the business.'

ps : Before going in conspiracy theory frenzy. 20 millions worth of share is not that much for him. The 18 sept 2018 TK still had 1 552 349 shares (each one worth 3000 (GBX). He sold around 6000 of them ^^

source :
https://investor.games-workshop.com/shareholder-statistics/
https://www.londonstockexchange.com/exchange/prices-and-markets/stocks/summary/company-summary/GB0003718474GBGBXSTMM.html

Games Workshop spooked investors today with an unscheduled trading update warning of 'uncertainties in the trading periods ahead'.

The terse, 70-word announcement from the stock market darling, unsettled investors and triggered a 10 per cent slump in its shares to £30.15 - making it the worst performer in the FTSE 250.

The company, which makes and sells miniature fantasy characters and is best-known for table-top game favourite Warhammer, said today that sales were tracking ahead of last year's and its profits were broadly flat.

But it added: 'However, the Board remains aware that there are some uncertainties in the trading periods ahead for the rest of the 2018/19 financial year. A further update will be given as appropriate.'

Retail analyst Nick Bubb pointed out that, having updated the markets just last month, it is unclear why the firm has issued another trading update today, 'bar the fact that its share have been under a bit of pressure'.

'Make of that what you will,' Bubb said.

When This is Money contacted the firm for more clarity on the mysterious statement, a spokesperson declined to comment and said 'no one is available to speak with regards to your query.'

Russ Mould, investment director at AJ Bell, said: 'Sadly the retailer's latest trading update is a reminder that no company is invincible.

'The market rarely likes brevity and it hates uncertainty, hence why the retailer's shares have taken a hit on the news. It is better to spell out the issues rather than keep investors guessing.'

He added: 'Some questions may also be asked as to the timing of former chairman Tom Kirby's £20.3million disposal of Games Workshop stock last month. Did he know something was up? One would suspect not, given that he retired more than a year ago and shouldn't be privy to information regarding the day-to-day running of the business.'

The Nottingham-based company, which has around 400 UK stores as well as operations in the United States, Australia, China and Japan, has seen its shares rocket by more than 500 per cent over the last two years.

This is despite its exposure to the embattled UK High Street, a squeeze in consumer spending and the perennial threat of computer games.

The firm, which is re-branding some of its Games Workshop stores to 'Warhammer', said last month that trading was in line with management expectations, despite tough comparables.

And at its most recent results, half-year profits surged to £38.8million on sales of of £108.9million - up 54 per cent.

Games Workshop generates three quarters of its sales overseas, so has benefited from a weaker pound since the Brexit vote, as well as its fast growing online business.

It has pumped out figurines to a fanatical audience since its formation in the 1970s, providing the parts for customers to assemble and paint their own 'armies'.

/Cheers.
Bob.