Games Workshop, which makes and sells fantasy model games such as Warhammer, the Hobbit and Lord of the Rings, has had a bad Christmas and predicted lower annual profits.
The company said December sales were below expectations, and warned that pretax profit for the year to 29 May was unlikely to exceed £16m. Last year, it made profits of £16.6m.
Sales fell at its global network of 430 shops, where customers can paint and play with figurines, while online sales increased 5.3%. Its miniature figures are made in Nottingham and exported all over the world, with nearly three-quarters of sales outside the UK.
Pretax profits were flat at £6.3m in the firm’s first half, the six months to 29 November. Sales fell by 2.2% to £55.3m.
The company’s chief executive, Kevin Rountree, said: “We have made some good progress on our strategic initiatives all focused on delivering long-term growth.”
Games Workshop, which caters mainly for teenage boys and male adults, said it had launched some new products and its new visitor centre performed well. It has appointed a recruitment expert to ensure a constant supply of store managers.
The company has been restructuring, closing its European regional headquarters and shifting to smaller stores. It is rebranding its stores as “Warhammer” – because that is what its customers call it. It also froze staff pay last year to keep down costs.
