Games Workshop returns to profit for the 6 months to November 08
It seems that GW are battling through the economic downturn and our gaming hobby is, for the moment, safe from the ravages of the "crunch" (probably a product of the Chaos Gods !)
In fact GW have turned the tide on previous loss incursions and are now reporting healthy gold crown returns...
"Gaming model specialist Games Workshop jumped into profit for the half year as its niche business continues to escape the econmic downturn.
Pre-tax profit for the six months to November came in at £3.1m against the loss of £136,000 in the same period last year. Revenue rose to £61.2m from £53.9m before.
'As a niche business we do not usually suffer or benefit from, macro-economic factors," said the group. "Whilst we are pleased with our half-year results, it would be foolish not to sound a note of caution for the short term as we sell through many independent retailers all over the world most of whom are far less well protected than we are."
The group said significant progress has been made in this half-year where, with the exception of Continental Europe, it has been able to deliver local currency sales growth in all territories.
Despite increase in input costs, the group increased its gross margin from 70.1% in the last half-year report to 71.4% in this one.
"Games Workshop's core fundamentals remain strong. We continue to grow our sales, our gross margins are improving, our costs are under control, our return on capital is increasing and our cash flow is good. The board remains confident in the future growth and profitability of the group," it said.'