Games Workshop recently announced that pre-tax profits in respect of the year to 29 May 2011 are likely to be below current market expectations.
Sales were down 4% in the first half to 28 November 2010. Difficult trading conditions since that time mean that this shortfall is unlikely to be recovered by the year end. The Group’s gross margin and costs remain under firm control and cash generation remains healthy. In addition, the outlook for royalties receivable in the current year remains good, although not as significant as in the year to 30 May 2010.
According to Games Workshop’s board, as a result of reduced volumes, pre-tax profits in respect of the year ending 29 May 2011 are “unlikely to meet current market consensus estimates.” The Board will announce the Group’s half-yearly results for the six months to November 28, 2010 on January 25, 2011.