Games Workshop to hand £2,500 bonus to staff ahead of Christmas
- Games Workshop said trading had been 'in line with expectations'
- But the FTSE 250-listed firm's shares sank over 10% on Thursday
Games Workshop employees will each receive a £2,500 cash bonus in time for Christmas, as part of the group's profit share scheme.
The company said trading since September had been 'in line with expectations', with group on track to post solid half-year profit growth.
But Games Workshop shares fell sharply and were down 11 per cent to 9,430p on Thursday morning, having risen over 30 per cent in the last year.
Bonus: Games Workshop employees will each receive a £2,500 cash bonus in time for Christmas
Core operating profit is forecast to come in at not less than £82million for the six-months to 26 November, up from £70.7million a year ago, on core revenue of at least £235million, up from £212.3million.
But licensing profits are expected to fall from £12.9million to £11million for the period, as revenues slip from £14.3million to £12million.
Analysts at Peel Hunt explained Games Workshop royalty payments 'can be volatile', especially 'given the timing of upfront payments, and the success and timing of customer games launches'.
Nevertheless, Peel Hunt said Games Workshop is set for a 'strong' first half, helped by its the group's Warhammer 40k launch in the first quarter.
It reiterated its 'buy' rating with a target price of 12,000p, roughly 27 per cent ahead of its current trading price.
Games Workshop said it expects a pre-tax profit of no less than £94million, compared with £83.6million a year earlier.
Dividends declared and paid in the period came in at 195p per share, totalling £64.2million, up from £54.2million a year ago.
In September, the group announced sales boomed in the three months to 27 August, bringing in core revenues of £121million, up from £106million during the same period last year.
At the time. the Nottingham-based Warhammer owner declared a dividend of 50p per share, taking dividends declared so far this fiscal year to £1.95 per share, up £1.20 per share in 2022.
But In July Games Workshop admitted that it accidentally paid investors millions in illegal dividends.
Games Workshop said that due to a 'minor technical breach' a 45p per share dividend was paid out last November before it filed its half-year accounts with Companies House.
That meant the payment amounted to an 'unlawful dividend'.
While the mishap meant the firm could serve legal claims against its shareholders and directors, it said it would not do so and would table a resolution at its AGM in September to remedy the issue.
