In key news on UK stocks, Games Workshop Group PLC’s (GB:GAW) soared by almost 9%, as of writing, following the company’s release of strong preliminary financial numbers for Fiscal 2023-24. As per the latest trading update, the company is expecting a 17% year-over-year jump in its annual profits before tax. It will publish its annual results for FY24 on July 30.
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Games Workshop designs and manufactures miniature wargames. The company is known for its flagship product, Warhammer 40000, which is the most popular wargame in the world.
Games Workshop’s Trading Update
According to the latest trading update, Games Workshop projects its core revenue to be at least £490 million for FY 2023-24 (ended on June 2, 2024), up from £445 million in the prior year. Additionally, the company estimates profit before tax to be at least £200 million compared to £171 million in Fiscal 2022-23.
The company’s licensing income is expected to reach £30 million, up from the £25 million reported in the prior year.
Games Workshop further stated that the profit estimate incorporates an allocation of £18 million to the staff profit-share scheme, distributed equally to each employee in cash. Furthermore, dividends amounting to £138 million were distributed during the year, with a payout of 420p per share. This payment was higher than £136 million or 415p per share paid in the previous year.
Is Games Workshop a Good Stock?
According to TipRanks, GAW stock has a Moderate Buy consensus rating based on one Buy recommendation from Jefferies analyst Andrew Wade. He predicts a downside of 14.2% at a share price target of 8,700p.
Year-to-date, Games Workshop’s share price has gained 3.45% in trading.
