Games Workshop say they are making progress cutting costs (overheads) however...
...while revenue remained static for the 6 months (in comparison with the previous year) there was a loss before tax of £0.2 million, compared to a profit of £0.1 million in 2006. Operating profit remained at £0.5 million.
The Chairman (and former CEO I think) Tom Kirby and Mark Wells (the new CEO) said: “These half-year results are encouraging; we have re-established constant currency sales growth in the UK, the Americas and Asia Pacific, our gross margins remain strong, and our cost reduction programme is delivering the overhead reductions we expected.
“We remain a growth business and are now getting benefits from the efforts our staff have been making. There is still much to do, and we are united in our determination to do it”.
I'm not sure I like the sound of all of this....
Personally, I think they would be onto a winner if they just cut costs by selling through other shops and online and lowered the prices a lot to encourage more new starters (£8 is a lot of cash for a single metal hero model on foot !)
Still, I suspect they have now recovered from the shock in falling LOTR sales. When (if) I can get some kind of management accounts, I'll let you know what they are making their money on - I just pray they never back out of the Warhammer Fantasy World !!!!
Everyone get down the shops and buy some figures quickly - try the new Vampire Counts Spearhead set - that should keep everyone happy :)
Comments anyone ?
