Games Workshop warns it may not meet profit estimates |
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Sat, 06 Jan 2007 12:52
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LONDON: Britain's Games Workshop Group Plc said it is likely to miss full year profit estimates as sales during Christmas did not pick up to compensate for the lagging sales during the earlier part of the financial year.
The company, which makes miniature models of movie icons and board games, said its sales fell 3.9 per cent to 54.8 million pounds in the fiscal first half ended 26 November, while pretax profit rose 7 per cent at 127,000 pounds.
It added sales have not improved in the first five weeks of the second half.
The company's chairman and chief executive Tom Kirby said full year sales, and therefore profits, will come in below market expectations. Saying the company had seen a slower summer than expected, he said December had been normal but the company wanted it to be spectacular.
He said although slow sales during the summer led to a fall in revenues in the six months, sales in September, October and November had reinforced confidence that the business is returning to growth.
The company's revenue and profit have dropped in the last two financial years since lesser number of people bought the company's Lord of the Rings-themed games and miniature figures as the last of the three-series film was released in 2003. The company is now opening new stores and hosting gaming events in order to boost sales.
The largest drop in sales was in continental Europe, falling 7.2 per cent to 32.1 million euros. Sales in the U.K. and Asia-Pacific region did not change much, while revenue in the U.S. rose 4.6 per cent to $22.9 million.
Games Workshop, established some 30 years ago, operates more than 300 hobby centers and 4000 toy shops around the world. It plans to open 20 stores each year.
The dividend for the first half remained unchanged at 4.95 pence a share.
The company's shares dropped 15 per cent in early trade, but recovered to be trading at 372.5 pence, a fall of 8.35 per cent.
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