Games Workshop trading 'well', profit and revenue ahead of last year
Games Workshop said on Friday that trading since its update in September had continued "well", with profit and sales ahead of the previous year.
The company, which makes miniature wargames, said royalties receivable were "significantly" ahead of the prior year, driven by the timing of guarantee income on signing new licences.
It expects to report sales of at least £140m for the six months to 1 December and profit of at least £55m. In the same period a year prior, Games Workshop reported pre-tax profit of £41m on sales of £125m.
At 1220 GMT, the shares were up 16.5% at 5,251.24p.
Russ Mould, investment director at AJ Bell, said: "Games Workshop continues to be a master in the art of brevity with its latest trading statement. The message is fairly simple: earnings are growing which is a commendable feat in the troubled world of retail.
"Having a niche focus can help certain retailers be isolated from the pains facing general merchandisers. In Games Workshop’s case, it couldn’t be any more niche if it tried. Its customers are fanatical, loyal and part of a vibrant community whose hobby is centred on miniature figures."
Following the update, Edison lifted its pre-tax profit forecast for FY20 from £85.2m to £92.7m and for FY21 from £89.8m to £98.2m. Its earnings per share estimate for FY20 was boosted from 210.3p to 228.8p and for FY21 from 221.7p to 242.5p.