Warhammer creators Games Workshop will once again be giving staff 拢2,500 under its group share scheme this month to reward their 鈥渆xceptional contribution鈥 to its trading performance.
However shares in the tabletop gaming firm, headquartered in Lenton, Nottingham, were down 6 per cent this morning on news that it expects sales and profits on a par with last year.
The business said sales for the six months to the end of last month would be at least 拢190 million - 拢3.2 million up on the same time last year.
Pre-tax profits, it said would be at least 拢86 million, compared to 拢91.6 million in the second half of 2020.
The business said it had been helped by its shops opening post-lockdown, but last year鈥檚 鈥渆xceptional performance鈥 had been affected to foreign exchange movements, increased supply chain costs and the costs of paying more to its 鈥済reat staff鈥.
Founded in 1975, the firm, which began life as a mail-order business for fantasy role-playing games, now makes tens of millions of models a year.
In a trading update the business said: "As in the prior year, we are paying 拢2,500 in cash to each employee under the Group Profit Share Scheme in December.... to reward their exceptional contribution to our performance."
Since early September shares in the business have dropped from around 拢122.20 to 拢92.05.
Russ Mould, investment director at stockbroker AJ Bell, said things had looked better for the business.
He said: 鈥淎fter upsetting many of its loyal fans by saying they couldn鈥檛 create films or animations using its intellectual property, nor make 3D printed versions of its products, Games Workshop has now left shareholders feeling glum.
鈥淧rofit has been hit by unfavourable foreign exchange rates and higher costs for shipping goods and paying staff.
鈥淎dmittedly these issues are plaguing lots of companies but nonetheless it means a blot on Games Workshop鈥檚 track record for under-promising and over-delivering.
鈥淭his time it hasn鈥檛 been able to live up to expectations. When you鈥檙e a business who makes money from creating exciting fantasy worlds, delivering a harsh reality can be brutal.
鈥淕ames Workshop has commanded a premium rating for its shares in recent years after delivering impressive earnings growth.
鈥淪adly, the current news flow from the company has led some investors to question this high rating.
鈥淏ut equally, there will be other investors taking a longer-term view who might look at the current share price weakness as a chance to buy a quality business at a more affordable price.
鈥淎 key attraction is Games Workshop鈥檚 intention to boost income from licensing its intellectual property for use in games, films and TV 鈥 hence why it has been taking a harsh stance on people using its assets without permission and payment.
鈥淟icensing income more than doubled in its most recent half-year period, year-on-year, to circa 拢19 million thanks to important computer games deals. The market will want to see more of this good news in 2022.鈥
