Profits slip at Games Workshop after cost increases
Games Workshop has revealed a dip in profits for the past six months as higher costs offset sales growth.
The Warhammer retailer reported that pre-tax profits fell by 3.7% to £88.2 million for the six months to November 28.
It came as the business highlighted £2 million in extra shipping and freight costs during the period due to Brexit, as well as a £2.9 million increase in warehouse and logistics costs over the year.
It told investors that its cash position was also hit by £15.1 million worth of outstanding VAT receipts following Brexit.
Meanwhile, Games Workshop also reported that sales grew during the period following the easing of pandemic restrictions.
It said total revenues increased by 2.5% to £191.5 million for the six-month period.
The firm added that it has continued “to trade in line with expectations” in recent months but warned of continued uncertainty due to the unpredictable economic backdrop.
Chief executive Kevin Rountree said: “We are on the front foot and confident in our ability to continue to deliver our strategy.
“Our commitment to focus on real cash returns and return on capital continues to deliver honest and consistent returns to our owners.
“We will continue to try our best. In the period reported, we have delivered just that.
“We have proven once again that the Warhammer hobby creates exciting experiences and allows people around the world to come together and have some fun.
“We continue to focus on making the best miniatures in the world and to document and deliver an exciting operational plan.”