GW September trading update

[Happy-inquisitor]

GW put out their September trading update ahead of their AGM

 

https://investor.games-workshop.com/2020/09/10/trading-update-and-dividend-3/

 

In advance of our AGM on 16 September 2020, Games Workshop Group PLC announces today that trading for the three months to 30 August 2020 (the “Period“) was ahead of the Board’s expectations. Current estimates show sales of c. £90 million in the Period against a prior year of £78 million for the same period. Operating profit for the Period before royalty income is estimated to be c. £45 million (2019: £28 million) and royalty income is estimated to be c. £3 million (2019: £2 million).

 

This has been driven by healthy growth in our online and trade channels. However, our retail channel is still recovering from the COVID-19 closures earlier in 2020. The longer term impact on the Group as a result of the ongoing pandemic is still unknown.

 

The Board recognises that this performance is better than the prior year but is also aware that it is still early in the financial year. A further update will be given as appropriate.

 

The Board has also today declared a dividend of 50 pence per share. This is in line with the Company’s policy to distribute truly surplus cash. This will be paid on 23 October 2020 for shareholders on the register at 18 September 2020, with an ex-dividend date of 17 September 2020. The last date for elections for the dividend re-investment plan is 2 October 2020.

 

Looks like their stores are still hurting, not surprising as you cannot hobby or play in them in most countries, the sales have moved online and into independent retail (my guess would be mostly online but there will be no way to tell from GW accounts).

 

Anyway yet another record quarter so our hobby is not going away any time soon.

[Xenith]

And a 12% jump in stock price accompanied this news, think it's at record highs. 

Edit: GW share price just broke £100. That's a huge milestone. To think this time in 2016 they were trading at ~£5...

Edited September 11, 2020 by Xenith

[smileyjim]

yeah their stock has done very well. Expect it to be slammed along with everything else if/when we get S&P shenanigans over the US presidential elections. However I would personally see it as a great time to buy the stock should someone be so inclined, i think the future of the company is bright.

[Xenith]

Unsure how that will affect the GW share price, though best kept to PM as politics is off topic. If you do see a large drop in price as we saw in March, best buy then. I wasn't daring and missed that boat unfortunately. 

[smileyjim]

Yeah noticed politics is a bit of a no no, bit like mentioning to a space marine there might be something to those tau guns.

 

Anyway wasn't referring to either side of politics more the general potential for a big market upheaval. If there is a similar situation to earlier this year as you say a great opportunity as many great companies get beaten down along with the trash.

 

Its interesting the companies that have done well from covid and the lockdowns.

[Happy-inquisitor]

yeah their stock has done very well. Expect it to be slammed along with everything else if/when we get S&P shenanigans over the US presidential elections. However I would personally see it as a great time to buy the stock should someone be so inclined, i think the future of the company is bright.

 

I am not sure that US shenanigans will affect a UK share that much. Brexit is more likely to do that - which is a whole other political topic I am not touching with a 10' pole.

 

If US matters did cause a dip in the share price I would be tempted to jump on in and buy a couple hundred more shares, I wish I had in March when they dipped. I just looked now and they are trading at over £100 per share.

[smileyjim]

Problem with US shares is they basicly are the market now. Any big move there forces money managers to take action, if you can't sell want you want to you sell what you can.

 

Great example was GFC gold tanked along with everything else due to the fact so many margin calls where flooding the market people had to access cash quickly and gold holdings provided that opportunity. After the panic for the doors was over you saw it rocket.

 

I find the brexit situation fascinating but yeah, best left alone I guess.