UK's Games Workshop falls as tariff, cost concerns overshadow record profit
Products sit on display at a Warhammer store, a brand owned by Games Workshop, in London, Britain, November 17, 2021. REUTERS/May James
July 28 : Shares in Games Workshop fell as much as 6.5 per cent on Tuesday after the British miniature wargames maker flagged tariff headwinds and higher plastic prices stemming from the Iran war, overshadowing record annual profit.
Here are some details:
• Games Workshop said new U.S. tariffs are expected to create an annualised cost of around £13 million ($17.29 million), although the company expects mitigation measures, including price increases and operational changes, to offset part of the impact.
• The Warhammer maker also flagged higher plastic input costs, estimating a roughly £2 million hit from supply-chain disruption and inflationary pressures linked to volatility in global energy markets.
• The company, known for its premium, in-house produced fantasy miniatures, has built a cult-like following for Warhammer, which has expanded into video games, books and a film.
• It reiterated that AI is not used in creating Warhammer miniatures, artwork or lore, but said the growing inclusion of AI tools in third-party software means it may be used in some non-creative business functions.
• Profit before tax rose 4.9 per cent to a record £275.7 million for the fiscal year ended May 31, driven by continued growth in the core Warhammer busine
• Games Workshop, the only publicly listed pure-play miniatures company globally, last traded at £195.64 per share around 0755 GMT, valuing it at about £6.46 billion.
($1 = 0.7519 pounds)
