Shares up 20% as Online and Trade Channels Thrive
- Games Workshop shares jump almost 20%
- Sales up to £90m compared to £78m last year
- Operating profit at c.£45m, up from £28m in 2019
- Healthy growth in online and trade channels
- Retail channel recovering from Covid-19 closures
- Long term impact of pandemic still unknown
Games Workshop has seen its shares jump almost 20% in early trading after posting strong preliminary trading results for the three months ended 30 August 2020. The company’s sales have soared to an estimated £90m, compared to £78m during the same period last year, with operating profit before royalty income reaching around £45m, up from £28m in 2019. This growth has been attributed to a healthy increase in its online and trade channels. However, the retail channel is still recovering from Covid-19 closures earlier this year, and the long-term impact of the pandemic remains uncertain. The company acknowledges that its performance is better than the prior year but cautions it’s early in the financial year, with a further update to be provided as appropriate. Additionally, Games Workshop has declared a dividend of 50 pence per share, in line with their policy to distribute surplus cash.
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Games Workshop’s financial performance, including specific figures and a statement from the company. It does not include any digressions, sensationalism, redundancy, or personal perspective presented as fact.
Noise Level: 3
Noise Justification: The article provides relevant information about Games Workshop’s financial performance and its sales growth during the pandemic, but it lacks a detailed analysis of the factors behind the growth and potential long-term consequences or implications for the company and industry. It also does not offer much actionable insights or new knowledge.
Financial Relevance: Yes
Financial Markets Impacted: Games Workshop’s stock market
Financial Rating Justification: The article discusses Games Workshop’s strong preliminary trading results and the increase in its share price, which directly impacts the company’s financial performance and the stock market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
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