Games Workshop FY profit set to fall; £25m overdraft secured
Miniature wargames manufacturer Games Workshop said on Tuesday that full-year profit will be lower than in 2019 as it takes a hit from the coronavirus pandemic, but that it has secured a £25m overdraft facility and online operations will resume.
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The company said its performance has been affected since the outbreak of Covid-19 and subsequent closure of its operations. "As we are now re-opening our sales channels as discussed above, we estimate our profit before tax for the year ended 31 May 2020 to be no less than £70m," it said. In 2019, pre-tax profit was £81m.
Games said it will start making trade sales in Europe and North America this week and online orders from 1 May. While most of its stores remain closed, a small number have re-opened in China, the Netherlands and Scandinavia in line with local guidance and subject to their local social distancing measures.
"Our stores will continue to re-open across the world as local restrictions are lifted and all required health and safety measures are met," it said.
In addition, the company said it has agreed in principle with its bank, Santander, to secure an overdraft facility of £25m for a six-month period with a potential six-month extension, if required.
"This will be drawn, as needed, to meet operational cash flow requirements," it said.