Heroic run for Games Workshop shares comes under fire

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ROFITS is slipping in the game workshop but the enthusiasm for its main product – Warhammer figurines – among devotees remains heroic.

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The miniature army action men who battle with aliens and orcs in the future are in their 35th year, almost the same age as fans.

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Share has been on an epic quest of his own, up tenfold in five years, a conquest mission a Space Marine would be proud of.

The stock retreated from 300p to 9450p today in the face of hostile fire, but it still leaves a magical £3.1bn business.

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From November through November, sales dropped slightly to £191 million, while profits fell from £3.4 million to £88.2 million. That hasn’t stopped war generals from paying dividends of 100p, up from 80p.

Games Workshop CEO Kevin Rountree said: “We’ve proven once again that the Warhammer hobby creates exciting experiences and allows people from all over the world to come together and have some fun.”

Analysts are concerned about supply chain problems and rising costs for freight, shipping and warehousing — the logistics problems facing all Warhammer players.

The cash position also suffered a major setback with £15.1 million worth of VAT receipts outstanding after Brexit.

Gemma Boothroyd at Freetrade thinks the Warriors have a strategy. He said: “Games Workshop not only controls the design, manufacture and distribution of its video games, but also owns the stores that sell them. This could mean risky business if one part of the supply chain goes awry.” In the same breath, vertical integration can be an opportunity if a firm cleverly manages problems when they arise.”

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