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Video games Workshop (LSE:GAW) launched one other extraordinary buying and selling replace on Tuesday (29 July), sending its shares near latest report peaks.
Lengthy-term traders like me have realized to anticipate the sudden from the fantasy wargaming specialist. However bat-related information most likely wasn’t on anybody’s bingo card, and might be a primary for the London inventory market.
In a footnote to its replace, the FTSE 100 firm drew particular consideration to “the lovable trying pipistrelle bat that’s delaying our work on our new short-term automobile park“. Animal lovers needn’t be alarmed, by the best way–Video games Workshop added that “we’re rigorously taking care of the bat“.
Except for that nature replace, there have been another sudden issues for shareholders to digest, too. Each revenues and pre-tax income got here in forward of Metropolis forecasts, at £617.5m and £262.8m, respectively, within the monetary yr to Could 2025.
The corporate had forecast figures of no less than £610m and £255m two months in the past. And it despatched Video games Workshop’s share value near June’s all-time excessive of £167.30.
Income powerhouse
This week’s replace underlines why Video games Workshop is certainly one of my favorite FTSE 100 development shares. It simply retains delivering excellent buying and selling performances, even when financial circumstances are robust and shopper spending energy fades.
Gross sales have been up 18% yr on yr in 2025, whereas pre-tax revenue elevated 30%. Earnings per share, in the meantime, additionally elevated 30% to 594.9p per share.
The corporate’s merchandise — spearheaded by the well-known Warhammer 40,000 sci-fi franchise — are in excessive demand in any respect factors of the financial cycle. Their high quality and model energy supplies an financial moat that helps sturdy revenues development even throughout broader market downturns.
These benefits additionally imply Video games Workshop enjoys the posh of world-class margins. Final yr, the core gross margin rose 10 foundation factors yr on yr to 69.5%. This fatty share gave the underside line one other substantial enhance.
Licence to develop
It’s nice to see the corporate’s field units, paints, and different game-related merchandise proceed flying off the cabinets. However what’s bought me particularly excited is the speed at which licensing revenues are rising.
Whereas gross sales throughout its core operations rose a wholesome 14% final yr, licencing income development of 69% was really excellent.
This mirrored forecast-beating gross sales of its Area Marine 2 online game. Video games Workshop is sitting on a goldmine of mental property (IP), and is ramping up partnerships and licensing offers with media producers to capitalise on it and turbocharge long-term development.
Monetary 2025’s sturdy numbers bode properly, with Area Marine 3 within the works and Amazon beginning work on a Warhammer 40,000 movie and TV collection.
A prime FTSE share
Annual earnings have risen 34% on common at Video games Workshop during the last decade. And I’m assured it would maintain delivering spectacular yearly development over the long run.
There are some risks it should navigate, although, equivalent to rising protectionism in key markets. It has warned that commerce tariffs will wipe £12m off pre-tax income this yr alone. Rising competitors is one other hazard to gross sales and margins.
However I’m hopeful it would nonetheless maintain delivering gorgeous returns, underpinned by its dominant market place and people formidable licencing plans.
