TIDMGAW
RNS Number : 6845T
Games Workshop Group PLC
26 July 2022
PRESS ANNOUNCEMENT
GAMES WORKSHOP GROUP PLC
26 July 2022
ANNUAL REPORT
Games Workshop Group PLC ("Games Workshop" or the "Group")
announces its annual report for the 52 week period to 29 May
2022.
Highlights
52 week period 52 week period
to to
29 May 2022 30 May 2021
GBPm GBPm
---------------------------------------- --------------- ---------------
Core revenue 386.8 353.2
Licensing revenue 28.0 16.3
Revenue 414.8 369.5
Revenue at constant currency 418.6 369.5
Core operating profit 131.7 136.7
Licensing operating profit 25.4 15.0
Operating profit 157.1 151.7
Operating profit at constant
currency 161.5 151.7
Profit before taxation 156.5 150.9
Net increase in cash - pre-dividends
paid 79.3 93.4
Earnings per share 391.3p 372.7p
Dividends per share declared
in the period 235p 235p
Dividends per share paid in the
period 285p 185p
Kevin Rountree, CEO of Games Workshop said:
" It's been another astonishing year. I once again take great
comfort that some things don't change - our staff and customers
love Warhammer. I thank you all for helping make this another very
successful year."
For further information, please
contact:
Games Workshop Group PLC investorrelations@gwplc.com
Kevin Rountree, CEO
Rachel Tongue, CFO
Investor relations website investor.games-workshop.com
General website www.games-workshop.com
The full 2022 annual report can be downloaded from the investor
relations website at investor.games-workshop.com
See the glossary for details on the alternative performance
measures (APMs) used by the Group. Where appropriate, a
reconciliation between an APM and its closest statutory equivalent
is provide d.
STRATEGIC REPORT
Strategy and objectives
Games Workshop is committed to the continuous development of our
IP and making the Warhammer hobby and our business ever better.
Our ambitions remain clear: to make the best fantasy miniatures
in the world, to engage and inspire our customers, and to sell our
products globally at a profit. We intend to do this forever. Our
decisions are focused on long-term success, not short-term
gains.
Let me go through our strategy part-by-part:
The first element is that we make high quality miniatures. We
understand that what we make may not appeal to everyone, so to
recruit and retain customers we are absolutely focused on making
our models the best in the world. In order to continue to do that
forever and to deliver a decent return to our owners, we sell our
miniatures for a price that we believe represents the investment in
their quality.
The second element is that we make fantasy miniatures based in
our endless, imaginary worlds. This gives us control over the
imagery and styles we use, and ownership of the intellectual
property ('IP'). Aside from our core business, we are constantly
looking to grow our licensing income from opportunities to use our
IP in other markets.
The third element is that we are customer focused. We aim to
communicate in an open, fun way. Whoever and wherever our customers
are, and in whichever way they want to engage with Warhammer, we
will do our utmost to support them.
The fourth element is the global nature of our business. Our
customers can be found anywhere, and we seek them out all over the
world. They're a passionate bunch with an interest in science
fiction and fantasy. They're collectors, painters, model builders,
gamers, book lovers and much more. And while no two customers
engage with Warhammer in exactly the same way, they're all deeply
invested in the rich characters and settings of our IP.
To reach them, we have two key tools: our retail chain and our
digital content. In retail, we showcase the Warhammer hobby and
offer a fantastic customer experience. Our digital offering has
never been richer. Through warhammer-community.com and social media
we reach thousands of people every day, showing them the very best
aspects of the Warhammer hobby and inviting them to join our global
community of enthusiastic fans.
Our retail channel is supported by our own online store (it has
the full range of our products) and our independent stockist and
trade accounts across the world. These independent accounts do a
great job supporting our customers in parts of the world where we
either have not yet opened one of our stores or where it is not
commercially viable for us to have one. Our long-term goal is to
have all three channels (retail, trade and online) growing in
harmony. We will always have more independent accounts than our own
stores. Our strategy is to grow our business through geographic
spread, growing all of the three complementary channels.
The fifth element is being focused on cash. By delivering a good
cash return every year we can continue to innovate, surprise and
delight our loyal existing customers and new customers with great
products. To be around forever we also need to invest in both
long-term capital and short-term maintenance projects every year,
pay our staff what they have earned for the value they contribute
and deliver surplus cash to our shareholders. Our dedication and
focus should ensure we deliver on time and within our agreed cash
limits.
We measure our long-term success by seeking a high return on
investment. In the short term, we measure our success on our
ability to grow sales whilst maintaining our core operating profit
margin at current levels. The way we go about implementing this
strategy is to recruit the best staff we can. We look for those
with the appropriate attitude and behaviour a given job requires
and for those who are aligned with our principles and who are
quality obsessed. It is also important that everyone we employ has
a real desire to learn the skills needed to do their job and has a
great attitude towards change (there's never a dull moment here!).
To support them, we offer all of our staff both personal
development and skills training.
We continue to believe there are great opportunities for our
business to grow, particularly in North America and Asia, the
latter being on a longer timeframe.
Our brands
We have originated and are in control of a number of strong,
globally recognised brands with their own identities, associations
and logos.
Our key consumer facing brand is 'Warhammer'.
We design, make and sell products under a number of brands and
sub-brands, which denote setting, tone and product type, the key
ones being:
-- Warhammer: Age of Sigmar - our unique fantasy setting
-- Warhammer 40,000 - our most popular and recognisable brand is a space fantasy setting
-- Horus Heresy - an offshoot of Warhammer 40,000, the Horus
Heresy brand is presented as a 'fictional history' of that
universe
We believe our IP to be among the best in the world.
The Warhammer settings are incredibly rich and evocative
backdrops. They're populated by more than three decades of
fantastical characters and comprise thousands of exciting
narratives. We are committed to making it easier than ever for
people to discover, engage with and immerse themselves in our IP.
Aided by a small, senior team we have already begun to find new
partners, and new ways to help us bring the worlds of Warhammer to
life like never before. Together, we'll continue to explore
animation, live action and more. We'll present the very best
aspects of our rich IP, delighting audiences while always ensuring
we do no harm to our core miniatures business.
Business model and structure
We design, manufacture, distribute and sell our fantasy
miniatures and related products. These are fantasy miniatures from
our own Warhammer 40,000 and Warhammer: Age of Sigmar universes. We
are an international business centrally run from our HQ in
Nottingham, with 78% of our sales coming from outside the UK. We
added a small dedicated factory, just for paint, which
operationally went live in May and this, together with our two main
factories, two warehouse facilities, design studios and back office
support functions are all based in or near Nottingham.
Design
We design all of our products at our HQ in Nottingham. Employing
284 people, the design studio creates all the IP and all the
associated miniatures, artwork, games and publications that we
sell. Annually, these specialist staff produce hundreds of new
sculpts, illustrations, rules, stories etc. enabling us to deliver
new products every week and continue to keep our customers engaged
and excited. In 2021/22 we invested GBP16.7 million in the studio
(including software costs) with a further GBP5.7 million spent on
tooling for new plastic miniatures. We are committed to investing
in these areas at an appropriate level every year.
All of our plastic miniatures are branded as Citadel Miniatures,
a mark with an unparalleled reputation for quality. It denotes both
a style and level of detail that we apply to both our own worlds
(Warhammer 40,000, Warhammer: Age of Sigmar, etc.) and those of
others, e.g. Lord of the Rings.
Our resin miniatures, designed for more experienced customers,
are branded as Forge World and are less widely available than their
plastic counterparts.
Many customers love personalising their miniatures and our
Citadel Colour paint range, brushes and accompanying painting
system are designed to help everyone from the complete beginner to
the most experienced painters in the world achieve great results.
In the pursuit of ever better, we continually develop new types of
paint and ways of using them. The result - our paints are used the
world over. And for painting more than just our miniatures!
When not interacting with our miniatures, many customers enjoy
reading stories set in our rich and immersive worlds. Under our
Black Library imprint we publish new titles every year, from short
stories and audio dramas through to full length novels and audio
books. These we make available in physical bookstores, third party
digital platforms and through our own retail and other specialist
stores.
Manufacture
We are proud to manufacture our product in Nottingham. It's
where we started and where we intend to stay.
Logistics
Our product is distributed from our main warehouse at our HQ or
our new rented warehouse facility approximately 25 minutes away.
These facilities supply our two hubs; one in Memphis, Tennessee and
one in Sydney, Australia. Between these four facilities, we are
able to directly supply our independent retailers, our own retail
stores and fulfil our online orders.
Sell
Our core revenue is generated via three channels, our own stores
'Retail', third party independent retailers 'Trade' and our online
store 'Online'. We also sell via our licensing partners. We support
these channels and activities via our digital and marketing
team.
Retail - our stores provide the focus for the Warhammer hobby in
their geographical areas. Our stores only stock Games Workshop
product. They are where we probably recruit the majority of our new
customers. To do so, the stores don't offer the full range of our
product, only starter sets, new release products and the
appropriate extended range. At the period end, we had 518 of our
own retail stores in 23 countries. Our stores contributed 23% of
the year's sales. We have 400 single staff stores: small sites,
each one operated by only one store manager. We also have 118
multi-staff stores, which, like our single staff stores, are
constantly reviewed to ensure they remain profitable. If not, they
will probably be converted to single staff stores.
Trade - we sell to third party retailers under closely
controlled terms and conditions. Independent retailers are an
integral part of our business model helping us to sell our products
around the world and importantly in areas where we don't have our
own stores. Games Workshop strives to support those outlets which
help to build the Warhammer hobby community in their local areas.
The bulk of our sales to independent retailers are made via our
telesales teams based in Memphis and Nottingham. We also have small
telesales teams in Sydney, Tokyo, Shanghai, Singapore, Hong Kong
and Kuala Lumpur. In 2021/22 we had 6,200 independent retailers
(2021: 5,400) in 72 countries. We strive to deliver excellent
service, operating in 23 languages covering all time zones. 55% of
our core revenue came from sales to independent retailers in the
period reported. These sales are from their physical stores as well
as their own online web stores.
Online - sales via our own web stores accounted for 22% of total
core revenue in 2021/22. All of our retail stores also have a web
store terminal that allows our customers to access the full range
from within the store. Our web stores are run centrally from our
HQ.
Licensing - we grant licences to a number of carefully chosen
partners. This allows us to leverage our IP to broaden the presence
and brand exposure of Warhammer around the world, often entering
new markets such as board games, apparel or accessories and media
and entertainment. It also allows us to generate additional income.
Currently, the majority of this income is generated by video games
sales in North America, the UK and Continental Europe.
Marketing - keeps us customer focused. This team acts as the
bridge between our other business areas, ensuring we have a joined
up approach between product (design to manufacture) and sales.
Marketing spends a lot of time listening and developing a two way
dialogue with our customers to make sure we keep their needs at the
forefront, championing the Warhammer hobby around the globe and
injecting our content and communications with a real sense of
passion and fun.
Structure
We control the business centrally from our HQ in Nottingham; it
is where the majority of people with experience and knowledge of
running our business work. I have put in place a flat structure:
the people with senior responsibility that make all of the big
decisions, report directly to me. My structure is now split into
two teams: a core business team and a licensing business team.
The core business is split into five parts: product design and
IP creation, manufacturing and supply chain, sales, marketing, and
operations and support. Licensing is now split into two main areas:
media and video games. I also have an executive assistant, who
supports me, and runs a team that supports the day to day running
of the teams above.
We have a global IP and product design director who is
responsible for our design studios (miniatures, books and box
games, specialist systems, Warhammer hobby product and our
publishing business - Black Library). They work very closely with
our new creative director who manages our licensing team. Together,
they ensure any content that is produced, whether physical or
virtual, truly represents our IP.
The responsibility for our retail chain is split between two
retail territory heads, one for North America and Asia and one for
the rest of the world. Our trade sales are the responsibility of a
single head of trade sales. Our online store (our biggest store) is
now the responsibility of our rest of the world retail manager, who
also manages our biggest physical store, Warhammer World.
These sales channels are supported by a merchandising team,
managed by the global manufacturing and supply chain director, and
by the marketing team that sits under the group marketing manager.
The global manufacturing and supply chain director also manages the
factories and our four main warehouse facilities in Nottingham,
Memphis and Sydney.
Our operations and support structure includes a chief financial
officer for Games Workshop who is responsible for accounts, HR,
legal and compliance and IT.
Key performance indicators
The board and management team use a number of key performance
indicators to provide a consistent method of analysing performance,
in addition to allowing the board to benchmark performance against
our forecast. The key performance indicators utilised by the board
can be split into key financial performance indicators and key
non-financial performance indicators.
Our key financial performance indicators are:
Monthly and year to date core business sales growth by
channel
This measures the core business sales growth achieved in each of
our core channels on a monthly and year to date basis.
Monthly and year to date core gross margin
This measures the core gross margin achieved on core sales after
taking account of the direct costs and depreciation of
manufacturing equipment and shipping our product to
customers/stores on a monthly and year to date basis.
Year to date core operating profit percentage
The ratio of core operating profit against core revenue, as a
percentage. This is considered to be a measure which reflects sales
under our direct control.
Monthly and year to date core operating profit
This measures gross profit less operating expenses for the core
business on a monthly and year to date basis. This is considered to
be a measure which reflects sales under our direct control.
Year to date licensing revenue
This measures licensing revenue earned from licensing. This is a
measure which reflects revenue which is not under our control.
Our key non-financial performance indicators are:
Number of own stores by territory
This measures the number of our own stores which is an indicator
of our global reach.
Number of ordering stockist accounts by territory
This measures the number of trade outlets that have ordered from
us in the last six months. It is an indicator of our global reach
and the health of our trade account base: see 'Trade'
paragraph.
Customer engagement
We measure this through our owned content channel
Warhammer-community.com and reach delivered through our social
platforms.
S hareholder value
We believe shareholder value is created, primarily, by not
destroying it. We have no intention to acquire other companies, nor
to dispose of any of those we own.
We return our surplus cash to our owners and try to do so in
ever increasing amounts. A 'working cash buffer' of three months'
worth of working capital requirement has been set aside alongside
six months' worth of future tax payments before deciding how much
cash is truly surplus for the purpose of declaring dividends.
Review of the year
Another record year for Games Workshop - the business and the
Warhammer hobby are in great shape. Another amazing team effort -
thank you all!
Our annual report seems to get longer and longer and my job more
and more bureaucratic (I have duties and obligations that may seem
onerous and tiresome - they are not), however, one thing remains
constant - we love Warhammer, and we continue to deliver on our
strategy: to make the best miniatures in the world. Thanks again to
our design to manufacture teams; the quality and product range have
again been incredible, sales of our miniatures have grown for the
seventh year in a row.
More Warhammer. More Often - core business
This year has been exceptional, we not only beat the record
revenue of a Warhammer 40k launch year, we did it with some ongoing
operational growing pains (thankfully reducing) and the additional
cost pressures from Covid, Brexit and the war in Ukraine. As an
international business, somewhere in our Group we are still feeling
the emotional and financial pain of these - we hope the horrendous
war in Ukraine ends soon. The light at the end of the tunnel was
that as the year evolved, the impact from Covid significantly
reduced.
We finished the year making up for what seems like some lost
time on face to face collaboration, staff development, improving
our processes and some team fun. We are still working on improving
general morale to pre-Covid levels in some countries: we will be
trying new ways to improve our communication and ongoing support at
a local and global level in the new year. I got caught watching a
little in Australia and Asia, sorry to our staff and customers. We
had to reduce our service levels due to some of the lingering
effects of Covid and international shipping challenges . I didn't
do a great job managing expectations. It's a priority to put that
right. Australia seems to be improving and we wait to respond to
the ever changing announcements coming out of China. We have put in
more regular Q&A sessions with our staff globally.
Morale is good but we are checking levels more often. We are
more mindful that it's been a tough few years for most people.
There has been lots of change. We put our staff at the heart of
everything we do well, so to help monitor morale in a mostly post
Covid world, we try to ensure that our business units al ways feel
fully supported and are a fun place to work. We will do more to
help foster a workplace that consists of people with our shared
values and beliefs and ensure that everyone recognises that
compassion towards each other and appreciation of individual
efforts in a team help us deliver consistent results. We champion
diversity and equality: Games Workshop and the Warhammer hobby are
for everyone.
As mentioned above, it has been a challenging year in parts;
they all are these days. We are pragmatically getting used to this
new normal and remain focused on delivering the day job. Whether
that's full time at our sites or working remotely, our staff have
delivered another fantastic year.
Most external factors affecting Games Workshop are not new. My
best guess is losing Russia sales for a full year is c.GBP4 million
lost in net revenue. Additional freight and carriage costs is
c.2.4% of sales.
Major highlight:
Our relentless focus on producing the highest quality miniatures
continues to deliver results. That combined with a customer focused
approach helped us sell more miniatures than any year before.
Low point:
Stuff not in our control - Brexit has added GBP3.4 million of
additional supply chain costs, we have an outstanding GBP11 million
VAT receivable (a timing difference as we now pay VAT on entry to
Europe and submit a reclaim) with the French tax authorities and we
are trying to mitigate staff recruitment gaps especially those with
language skills in the UK based European trade team. We look
forward to the Brexit benefits promised.
The results: we have again delivered a consistent financial
performance built on investing in the things that drive net cash
generation. This is driven by making the best miniatures in the
world supported by strict cost control and working capital
management; ensuring we have sufficient cash to purchase the
resources we need to give us the best chance of delivering our long
term and short term goals and to pay a fair return to our
shareholders and pay to our staff. We continue to pay our taxes and
suppliers on time and we thank our trade accounts for paying us on
time too. We continue to take some risks and we don't forecast too
far out and are careful not to fool ourselves that forecasting too
far out in time brings any certainty.
In line with our Group profit share scheme, we have paid in
total GBP9.9 million (2021: GBP2.6 million profit share plus
GBP10.6 million discretionary payment) to staff to further reward
their exceptional performance in helping to increase our
profitability in the period reported. Total dividends declared in
the period were GBP77 million, 235 pence per share (2021: GBP77
million, 235 pence per share).
Some more detail:
In the year we have increased our design, factory and warehouse
capacity - it's slightly late but it's always better to go live
when we're ready rather than not. As a team we took the easy
decision to pause our ERP project in January 2022 (we were not
spending money wisely) while we delivered the final parts of the
projects that add real value: our Memphis warehouse project, which
I'm delighted to report has now gone live, and also phase one of
our online webstore project started well and is on track to be
completed later this year. That should ensure we are on a stable
online platform. We will restart the ERP project again soon. I'm
told it will be a project ongoing in the background for some time.
I may have been more than a little optimistic to think otherwise.
Our IT and support teams are doing a great job keeping things
business as usual and have welcomed the break from the project. I'm
sure they'll be refreshed and ready to go again later this year.
Our new global head of IT will, I'm sure, be a breath of fresh
air.
We continue to deliver through a multi-channel approach - our
retail and trade channels were in growth again in the period
reported. Most significant countries were in growth - with only
Australia, China and Russia falling short.
Our online store broadly maintained the step change from GBP50
million in 2019/20 to GBP90 million delivered in 2020/21 and GBP85
million in 2021/22 and with retail and trade in double digit
growth, I see that as a success (a reminder our online store does
not offer a discount off the RRP, most trade accounts do).
Our retail stores continue to recover sales levels back to
pre-Covid closure levels at different rates, more importantly for
us, 92% of our own stores are profitable - proving again our low
cost model is fairly robust.
Our trade accounts have supported us well during the year. We
are delighted we have added more outlets in the most significant
countries we trade in and continue to grow our export countries. We
again thank them for their ongoing support and patience when our
delivery service levels fell short. Our service levels are now very
close to being back to normal levels.
As a team we care passionately about people and the world around
us. Our people team, with the support from staff across the
business, have been working on improving our induction programmes,
staff development and checking our recruitment processes are free
from any bias. We are also making good progress on ESG topics. I
can see we are doing ever more to focus on topics like diversity
and inclusion, delivering on our legal requirements and ensuring
our suppliers meet industry ethical supply standards as well as our
commitments on health and safety.
We are also committed to supporting best practice - there are
lots of things to evaluate and the list grows every year. The key
areas on our agenda: we are documenting a new science-based target
approach to do what's in our control to keep global warming to
below 1.5degC and looking at how we can reduce waste. I promise to
report progress on those in our normal open and honest way. It will
take some time for these to have a significant impact, however, we
are absolutely committed to making progress. During the period we
have started to recycle plastic - our granulator can take in
finished goods and turn them back into raw materials. It's early
days but a major step in the right direction.
Design
It's been another great year for IP development and miniature
design at Games Workshop. Our extended team, up 21 in the year to
284, have mostly migrated back to the HQ. We will continue to
strengthen our IP and miniatures creation teams, scouring the world
for talent. It will be several years before these additional
investments deliver their full return, but they are fundamental to
our strategy of ensuring we deliver the best miniatures and IP in
the world, forever. Over the last few years, we have been working
towards offering a full experience of Warhammer to our key export
territories: official translations and marketing support. We have
made some great progress and await the chance to exploit these
fully. Our in-house Chinese translation team is now fully
operational and delivering under very challenging lockdown
conditions. Our Russian translation team, based in the UK, is
operational and working hard pending a wider decision about our
future in Russia, although currently all trading is suspended.
After a great launch in July 2021, subsequent Warhammer: Age of
Sigmar releases were affected by shipping delays meaning we lost
some momentum. That said, Age of Sigmar remains in good shape and
we have an exciting roadmap of releases going forward.
Warhammer 40,000 continues to perform. Our new style launch
boxes are proving very popular with customers who want to buy
everything new in a single purchase. The UK release of 'Imperium,'
the Warhammer 40,000 magazine partwork, designed and made by us but
sold and distributed by a licensing partner, was followed by
successful launches in Spain, Germany and, a first for us, the US.
It is proving another route into our hobby for both new and lapsed
hobbyists.
The financial period closed with the release of Necromunda: Ash
Wastes, adding more background and fantastic new models to one of
our lesser known, but no less rich, IPs.
Painting is a hugely important part of our hobby for the
majority of our customers and a key focus for us. Covid lockdowns
slowed our paint development plans but next year will mark a step
change in the pace at which we will develop the range.
Our monthly magazine 'White Dwarf' is again growing in
readership and reach, now appearing on shelves of over 2,300
locations in the UK alone.
After a record performance last year, Black Library, our novel
publishing division, struggled in the face of global supply
disruption with many key new releases arriving later than planned.
Underlying sales continue to grow, especially in the digital space,
with sales of electronic and audio books exceeding those of
physical for the first time ever.
The strategy of keeping customers engaged by broadening and
deepening our offer sees us continue to invest in IP and design
with studio payroll costs increasing by GBP1.1 million to GBP10.0
million; as a percentage of core revenue, they have fallen by 0.5%
to 2.8%. This additional investment will allow us to broaden our
miniatures range and provide additional intellectual property for
exploitation through our licensing team.
Manufacturing
Our manufacturing team has for the seventh year in a row
delivered record output. They continue to work on a 24/5 shift
pattern and we are keeping our overtime to a minimum and leaving
weekends for our staff to enjoy.
Our manufacturing facilities and capabilities have continued to
expand with the installation of more machinery in our UK factories
enabling 2021/22 to be a year of record factory output. In total
Factories 1 and 2 now operate 43 injection moulding machines (up 4
on last year) and these have enabled weekly volumes to regularly
exceed record cycles per week. At the end of the period, we
successfully opened a third Nottingham factory dedicated to paint
production (note: to help you understand the scale it is 1,000 sqm
versus our main Factory 1 at 5,500 sqm). Consolidating all paint
production into this new specialised facility not only opens the
door to greater efficiency, it also releases space within Factories
1 and 2 for future injection moulding growth.
CCC product safety registration for China continues in the
background as our third party warehouse in Shanghai starts to
reopen. We have had to pragmatically pause, in line with local
government restrictions, any efforts on growing our hobby
communities in this region. We will start as soon as we can.
The land we purchased in 2020 near our Factory 2, will be
cleared to get it ready for increasing space for packing,
manufacturing, tooling or in the short term, car parking space. In
the meantime, we are pursuing options for additional space close to
our main HQ to allow us to begin the work on optimising our Factory
1 and Factory 2 space.
Production payroll costs rose in the year in line with volume
with costs increasing by GBP2.0 million to GBP12.0 million,
increasing to 3.1% of core revenue.
Warehousing
Another exciting year of investment at our main facilities. We
have significantly increased our capacity in the year and by the
end of summer 2022, we will have the best facilities Games Workshop
has had, ever.
North America
The new systems and automation are fully operational. This
brought immediate benefits enabling long standing order backlogs to
be cleared. The investments we have made mean that the number of
orders we can pick and dispatch each day has quadrupled. Customer
orders that previously might have taken up to two weeks to dispatch
will now typically be shipped within 24 hours (note:
postal/shipping times remain two to four days depending upon
destination and carrier). It's worth noting the new warehouse
system still interfaces with our legacy IT systems, which continue
to cause us daily operational processing challenges; thanks to our
team most problems go unnoticed by our customers. We apologise for
the poor customer service we offered for much of the year and are
confident that with this milestone project now delivered, service
will be much improved going forward.
UK
The East Midlands Gateway (EMG) distribution facility has been
improving month on month since opening in July 2020. It continues
to support our manufacturing process with storing components and
distributing our major new releases. We are planning for a fully
operational go live in summer 2022. It will mirror the technology
and process we have been using successfully for six months at
Memphis.
In a period of increasing scarcity and rising costs of
short-term warehousing across the UK, the EMG facility has reduced
our reliance on third party storage. Currently we have 13%
(2020/21: 16%) of physical inventory offsite. Working closely with
our haulage partner, our original Eurohub facility in Nottingham
has been able to offer a markedly improved service to European
customers shopping on games-workshop.com. Work to reconfigure and
repurpose the original Eurohub facility to become our primary
component facility is ongoing.
Australia
Global sea freight has remained highly disrupted and this has
had a direct impact upon product availability and new miniature
launches with 8% of our new releases delayed. There has been a slow
and gradual improvement in availability and we expect this trend to
continue. We look forward to our facility based in Sydney getting
back to its normal rhythm in 2022/23.
Total warehousing costs have increased by GBP4.0 million to
GBP20.3 million, the majority of the increase being staff costs; as
a percentage of core sales they have increased from 4.8% to
5.2%.
Services
We continue to invest in the core support functions of the
business.
During 2021/22 we have transitioned our staff to new ways of
working with a mix of hybrid or office based working depending on
the requirements of each job. We have improved the tools available
to managers to manage their teams effectively by improving
training, from IT security through to mental wellbeing, using our
learning management system. We have expanded our health, safety and
wellbeing function to 9 people, to ensure we look after everyone
who works at Games Workshop in the best way possible.
Our IT team successfully transitioned our pre-Covid office based
staff back to office based or hybrid working during the year. They
have also worked alongside other business areas to help deliver the
Memphis and EMG warehouse projects as well as the upgrade to the
webstore.
As we discussed last year, we have continued our focus on ESG
areas by appointing a senior manager to help bring all of our good
work together and help move it forward.
Customer focused
Our goal remains to reach, engage and inspire Warhammer fans
everywhere.
As lockdown eased, we returned to hosting physical location
events. This return to getting together and celebrating all things
Warhammer allowed us to make good on our promise to continue to
support event organisers across the wider Warhammer community and
enable thousands of new people to experience Warhammer for the
first time. In the year, we engaged with around a thousand
independent events helping them grow their local Warhammer
community and giving our core customers more opportunities to enjoy
their Warhammer collections.
We also attended many of the largest tabletop events in the
world, interacting with tens of thousands of people through
introductory Warhammer activities such as paint-and-take and demo
games, and at these, we had some additional fun launching an all
new location experience - Kill Team Live. This saw thousands of
players take part in a specially created game of laser tag using
custom blasters imitating those from the 41(st) millennium.
Finally, the Golden Demon returned. This, our world-renowned
painting competition which celebrates the modelling and painting
aspect of Warhammer in all its glory. Not only was this the first
Golden Demon since lockdown, but this was the first time we'd held
the competition in the US for over a decade. Our fans in North
America were delighted.
In the year we delivered more rich online content than ever
before:
The Space Marine armouring vignette explored a seminal piece of
our IP, our Kill Team trailer unveiled a range of new miniatures
and propelled a new edition of our Warhammer 40,000 skirmish game
to an exciting start, and the Horus Heresy trailer showcased the
full spectacle of mass battle in the far future, announcing to our
legion of fans that something special was coming this summer. These
pieces of animated content racked up c. 9 million views on our own
channels alone, to say nothing of the millions of views generated
elsewhere through reposting, watch alongs etc. We think it is safe
to say that Warhammer content has never been viewed more than it
has this year.
Our goal is to give Warhammer fans a safe and welcoming online
environment. We continue to focus our efforts on four of our own
key spaces:
Warhammer Community
Warhammer-community.com remains the cornerstone of our online
presence. Over the year, the team again put out over ten thousand
pieces of content to engage, inform and inspire Warhammer fans
globally. There are more people reading about Warhammer than
ever!
My Warhammer
Registrations continue to grow at pace and are up +140% on
2020/21.
Warhammer+
In the year we launched Warhammer+. It is only now approaching
its first anniversary and so it is still in very early development.
The exciting content delivered through Warhammer+ will remain an
integral part of our digital offer and how we share our IP.
Email
Our email campaigns continue to be one of our most effective
methods of communication. The team has worked hard to understand
our customers and develop the tools to ensure we're talking to them
about the parts of Warhammer they value most. Subscribers increased
by 39%. We continue to look for more ways to surprise and delight
our loyal fans.
More Warhammer. More Often - licensing business
Towards the end of the year, I appointed a new creative
director, putting IP nous at the heart of our licensing
opportunities. Warhammer IP is rich, vast and endless so as we do
more projects, it's important that we are focused on exploiting it
all and that its representation continues to be respectfully
maintained.
Our strategy is to exploit the value of our IP beyond our core
tabletop business, leveraging multiple categories and markets
globally. We intend to ensure Warhammer's place as one of the top
fantasy IPs globally. The main areas of focus are:
Entertainment
It is our intent that any new partner/s will become the home of
Warhammer on screen for many years to come. We acknowledge that
given that they will need sufficient time to invest and deliver the
quality we believe our IP deserves. A g reater slice of our IP a nd
direct access to the experts in our IP development team will allow
them to invest in Warhammer with the confidence that they have our
full support on the interpretation of the IP. We will keep you
updated with any significant progress.
Video games
During the year our licensing partners launched six new games;
four PC/console, one virtual reality and one mobile. We also saw
revenue from established games that continued to perform well, many
years after launch, through a mixture of added content and
continued marketing. Particular launches of note were the highly
anticipated Total War: Warhammer 3, and Warhammer 40,000: Chao s
Gate Daemonhunters.
Eight new games were announced in the year including Space
Marine 2, which has been the most consistently requested game since
the first game came out in 2011. Fan response was overwhelmingly
positive.
New games launching in 2022/23 include major franchises
Warhammer 40,000: Darktide and Bloodbowl 3, plus four more still
awaiting release dates. In total there are 12 unreleased games in
development and four new licences were signed in the year. We
recognised one significant one in the income statement this year at
GBP7.5 million with Nexon - note this is not all paid in cash at
the time it is recognised. The cash is paid throughout the lifetime
of the licence.
Priorities for 2022/23
Core business
We have made some reasonable progress with our key priorities.
Each of these is designed to ensure we deliver our exciting
operational plan and continue to engage and inspire our loyal
customers.
To summarise - our current areas of operational focus are:
-- keeping our loyal hobbyists engaged in their Warhammer hobby,
-- recruiting more hobbyists,
-- mitigating a c.2% (c.GBP8 million) decline in core gross
margin, which is a fair challenge. In the year we reviewed our
input price increases and they looked more permanent, so we
increased our prices on a broader existing range by c.5%. We will
always, in the short term, continue to absorb some of the cost
pressures ourselves - we prefer to only increase prices for the
additional quality of new miniatures. We are focusing our efforts
on efficiency improvements everywhere and further volume
growth.
-- getting our major projects over the line: our investments in
a new finished goods warehouse near Nottingham (estimated go live
date summer 2022) and our new ERP system (estimated delivery date -
plan pending) restarted.
Of course, as a vertically integrated international company, we
have lots of other things to worry about. We will continue to
monitor and deal with those as a team in our normal way - through
hard work, grit and determination with a little humour too. Life's
never dull at Games Workshop and that's why we enjoy it so
much.f
As part of our overall strategy, six key initiatives will be
prioritised in 2022/23. These are designed to deliver further sales
growth whilst maintaining our core operating profit margin and
continuing to surprise and delight our customers. They are in
addition to our investment in new product quality and ensuring our
new factories and warehouses deliver the appropriate cash
payback.
Staff training and development
We care passionately about our global team. We have ambitious
long-term plans, but we also run the business with only the
resources we need. We will continue to only recruit essential new
jobs or where we need to back-fill positions. Like last year, many
of these recruits will be in order to scale - in our factories and
warehouse facilities as well as in our support functions, mainly
IT.
We will continue to support lifelong learning and training to
develop the skills needed to enable all our staff to be successful.
We are also more active in developing orderly succession plans of
both the board and senior management. We continue in our commitment
to diversity and inclusion at Games Workshop.
Growth
We are planning for all of our existing 518 stores to be fully
operational and, to add a further 21 new stores: 15 in North
America and 5 in Europe (in France, after another successful year)
with our new Warhammer café in Tokyo opening too. This will be our
first large store in Japan. Warhammer World is a long way away, so
we hope this goes some way to immersing our hobbyists in our
broader offer. I can't wait to see how well it launches and is
received by our relatively small but ever growing hobby community
in Japan.
We again aim to grow in every major country in the world, and
via all of our three sales channels with all of our core IP. Our
online store will have a new platform and will be rebranded for
launch in the summer. Phase one will have no major bells or
whistles but will be a more stable technical solution. We look
forward to more hobbyists signing up to My Warhammer, the gateway
into our fantasy worlds.
We will continue to open more independent retailer accounts.
Selling via physical outlets remains an important sales channel for
us. Some have their own online store, some not. We have seen sales
grow in both. We will have a broader range of products to offer
with the launch of our third range, Horus Heresy.
We will continue to search for and engage with hobbyists
everywhere.
Customer focus
We will also continue to be customer focused - better engaging
our existing ones and reaching whole new audiences with the
Warhammer hobby, and the rich worlds it is set within.
Social responsibility
We now have our first joined up draft* plan. We will continue to
focus on ethical sourcing and staff wellbeing, diversity and
inclusion - delivering our legal requirements. We are reviewing the
business consequences of collecting and reporting on race and
ethnicity - to date we have never collected that data from our
staff. We are not sure it is the right thing to do or have legal
authority in some countries to request it without failing some
other legal requirement. It's a complex problem to solve and we
don't discriminate.
We continue our work on TCFD reporting, our first attempt is
detailed in the annual report 2022. We will report progress on
science-based targets next year. The team are working on driving
more value through well thought through and deliverable sustainable
site waste reduction and extending our sustainable packaging
initiatives. We care about the planet and the people that live on
it. We will report with clarity and be very honest about our
progress - we don't intend to do any greenwashing.
Committed to diversity, we will continue to performance manage
and recruit for the personal qualities you need to do a particular
job as well as the necessary skills. We do not select based on any
other criteria. I will continue to do my best to ensure this is the
case and that we are fair and free from any bias and/or
prejudice.
Sustainability - climate change has enormous implications for
society. We acknowledge that fully. We are committed to doing our
bit. We won't make any long-term promises - we never do on any
topic. We will guarantee to take it seriously and make progress
every year. By continuing to do the right thing, we will deliver
change. More recently we have created a new 'sustainability action
list' which aligns our approach of just doing the right thing with
better external reporting. The action list will focus our efforts
on where we can make the biggest difference. We believe that we
create long-term value for our stakeholders through delivering on
each of these elements: growth, good cash returns and by having a
positive impact on others.
Licensing business
The priority remains the same to deliver on our digital strategy
by licensing our IP to partners who will successfully launch high
quality video games, live action or animation shows.
Media
Our IP is huge and there are many opportunities, we will keep
you informed appropriately in line with any agreement with
potential partners. We will also seek the appropriate legal support
on what we can say and what we can't...it's quite complex and we
don't wish to slip up on any of our legal duties or misrepresent
progress when this industry works at a different pace to our core
business. I continue to remind our team, it's a long process and we
can fail at many hurdles. We remain confident we will bring the
worlds of Warhammer to the screen like you have never seen before.
We are pragmatically patient, it's not in our complete control.
Video game partners
We are looking to add more long-term partners to help us
globally reach even more fans of our IP. The year ahead looks
reasonably exciting with three major launches in the period. The
efforts it takes to bring a video game to launch is incredible - we
take this opportunity to thank our current partners for their
ongoing investment in Warhammer, their hard work and dedication in
representing our IP true to their artistic and literary form and
wish them continued success.
*This will be an investment we commit to every year. Often
long-term commitments like these are paused when financial KPIs
need to be maintained. To deliver a long term change we really need
to commit for the long term.
Sales
This year we have reclassified royalties receivable from other
operating income within the income statement to licensing revenue,
given the growing prominence of this income stream. Core revenue is
the revenue earned from the designing, making and selling our
hobby.
Reported core revenue grew by 10% to GBP386.8 million for the
period. On a constant currency basis, sales were up by 11% from
GBP353.2 million to GBP391.5 million; split by channel this
comprised: Trade GBP218.1 million (2021: GBP194.8 million), Retail
GBP88.1 million (2021: GBP70.7 million) and Online GBP85.3 million
(2021: GBP87.7 million).
Licensing revenue from royalty income increased in the year by
GBP11.7 million to GBP28.0 million. This was largely due to a high
level of guarantee income on multi-year contracts signed in the
year; this income is recognised in full at the inception of the
contract in line with IFRS 15 'Revenue from contracts with
customers' following assessment of the performance obligations of
the contract. Reported income is split as follows: 83% PC and
console games, 7% mobile and 10% other. In the period, guarantee
income was GBP15.0m (2021: GBP4.3m).
Revenue by sales channel
52 weeks
52 weeks 52 weeks ended 52 weeks
ended ended 29 May ended
29 May 2022 30 May 2021 2022 30 May 2021 2022 2021
Constant Constant Actual Actual rates % of % of core
currency currency rates GBPm core revenue
GBPm GBPm GBPm revenue
-------------- ------------- ------------- --------- ------------- --------- ----------
Trade 218.1 194.8 214.3 194.8 55% 55%
Retail 88.1 70.7 87.2 70.7 23% 20%
Online 85.3 87.7 85.3 87.7 22% 25%
-------------- ------------- ------------- --------- -------------
Core revenue 391.5 353.2 386.8 353.2
-------------- ------------- ------------- --------- -------------
Licensing
revenue 27.1 16.3 28.0 16.3
-------------- ------------- ------------- --------- -------------
Revenue 418.6 369.5 414.8 369.5
-------------- ------------- ------------- --------- -------------
Trade
Trade achieved significant growth of 10% with growth in all key
countries. In the period, our net number of trade outlets increased
by c.800 accounts to 6,200 which helped drive forward sales in this
channel. It's worth noting that a large number of independent
retailers now also sell our products online, meaning our customers
have more choice than ever about where to buy Warhammer.
Retail
Store openings and closures during the year:
Number Number
Number Number of single of single
of stores of stores staff staff
at Opened Closed at stores stores
30 May 29 May at at
2021 2022 29 May 30 May
2022 2021
-------------------- ------------ --------- --------- ------------ ----------- -----------
UK 138 3 6 135 93 96
North America 161 5 1 165 145 142
Continental Europe 153 - 2 151 111 113
Australia 49 1 1 49 37 37
Asia 22 1 5 18 14 18
-------------------- ------------ --------- --------- ------------ ----------- -----------
523 10 15 518 400 406
-------------------- ------------ --------- --------- ------------ ----------- -----------
We believe our stores are the best place to start your Warhammer
hobby journey with us. Our stores are filled with staff who have
extensive Warhammer knowledge, build local communities and offer
Warhammer hobby guidance and support. It is an essential and unique
customer service offer that we are proud of.
In the period, we opened, including relocations, 10 stores.
After closing 15 stores, our total number of stores at the end of
the period is 518. As most of our stores across the globe were open
for the majority of the year, retail performed well except for
Australia which had Covid related closures across the region in
2021/22. The performance of each store will be kept under review
and any stores that do not meet our financial model will be
closed.
We opened our second café store in California in June 2021 and
are planning a further 15 new stores in North America in the new
year too alongside five in France. Our new store openings will
continue to follow our low cost single staff model where
appropriate, alongside opening a café store in Tokyo in the next
year. We will continue to review the format of our stores
pragmatically. Ensuring we always recruit great store managers and
offer our customers an exceptional in-store experience, remains a
priority for us.
Online
Online sales declined slightly by 3% compared to the same period
last year. As noted above, our customers have a lot of options when
it comes to shopping for Warhammer online and are able to buy our
products both through our own web stores (reported in Online) and
through those of independent retailers (reported in Trade). We are
part way through the first phase of upgrading our online store
which will go live in 2022/23.
Core gross margin
Core gross margin percentage declined in the year by 5.6% points
(2022: 67.1%; 2021: 72.7%). It was negatively impacted by; an
increase in inventory provisions of GBP10.6 million as we failed to
get the right stock in the right place at the right time, GBP9.2
million additional freight and carriage costs including GBP3.4
million of costs into Europe; and GBP2.5 million additional staff
costs.
Operating expenses
Core operating expenses have increased by GBP7.5 million in the
year (2022: 33.0% of core revenue; 2021: 34.0%): GBP4.6 million
additional spend on our operations, support and marketing teams
(including staff costs of GBP1.7 million and IT related operational
costs of GBP1.7 million). Online costs have increased by GBP1.9
million relating to investment in the new webstore and GBP1.2
million increase in support and hosting costs. Other variable
selling costs have increased by GBP1.6 million. Retail and events
costs have increased by GBP2.0 million as stores reopened and we
restarted events following Covid closures. This is partially offset
against the prior period by savings of GBP3.3 million as we
rewarded all our staff with a GBP3,500 profit share payment each
(2022: GBP9.9 million; 2021: GBP13.2 million). Bonuses to the
senior management team were GBP0.6 million (2021: GBP1.1
million).
Licensing operating expenses have increased by GBP1.3 million in
the year as we moved some costs from the core creative team into
the licensing team .
Operating profit
Core operating profit decreased by GBP5.0 million to GBP131.7
million (2021: GBP136.7 million). On a constant currency basis,
core business operating profit increased by GBP0.2 million to
GBP136.9 million. As a percentage of core sales, core business
operating profit was 34.0% (2021: 38.7%).
Licensing operating profit grew by GBP10.4 million to GBP25.4
million (2021: GBP15.0 million). On a constant currency basis,
licensing operating profit increased by GBP9.6 million to GBP24.6
million. These numbers are income less costs; they do not include
any costs related to using the IP created in the core business.
Cash generation
During the year, the Group's core activities generated cash of
GBP106.1 million after tax payments (2021: GBP118.5 million) which
includes group profit share payments of GBP9.9 million (2021:
GBP13.2 million), an increase in inventory of GBP12.2 million
(2021: GBP6.2 million) and an increase in the VAT debtor of GBP5.9
million (2021: GBP5.4 million). Licensing cash receipts were
GBP15.4 million (2021: GBP14.2 million). After purchases of
tangible and intangible assets of GBP18.4 million (2021: GBP20.3
million) and product development costs of GBP13.9 million (2021:
GBP9.7 million), dividends paid of GBP93.5 million (2021: GBP60.5
million), lease payments of GBP11.1 million (2021: GBP10.0
million), proceeds from the issue of ordinary share capital
relating to the sharesave scheme of GBP1.8 million (2021: GBP1.4
million), there was cash at the period end of GBP71.4 million
(2021: GBP85.2 million).
Dividends
We followed our principle of returning truly surplus cash to
shareholders. Dividends of GBP77.1 million (2021: GBP76.9 million)
were declared during the year. A 'working cash buffer' of three
months' worth of working capital requirement alongside six months'
worth of tax payments has been set aside before deciding how much
cash is truly surplus for the purpose of declaring dividends.
Return on capital employed - core business
A long-term measure of our performance has been return on
capital employed (ROCE). During the year our core business return
on capital has declined from 185% to 118%. The prior period result
was exceptional and ROCE has returned to a more typical historical
level. If ROCE was calculated using the period end values, it would
be 113% (2021: 156%).
Capital employed
Core average capital employed increased by GBP37.6 million to
GBP111.3 million. This was driven by the average book value of
tangible and intangible assets increasing by GBP14.5 million,
average inventories increasing by GBP11.8 million and trade and
other receivables increasing by GBP11.1 million. Average balances
are calculated over the 12 month period.
Investments in assets
This is what we have been spending your money on:
2022 2021
GBPm GBPm
------------------------- ------ ------
Shop fits for new and
existing stores 1.3 0.6
Production equipment
and tooling 10.1 7.5
Computer equipment
and software 2.9 5.2
Site 3.4 7.3
--------------------------
Total capital additions 17.7 20.6
-------------------------- ------ ------
In 2021/22, we invested GBP4.1 million in tooling, milling and
injection moulding and paint machines and a further GBP6.0 million
on moulding tools. The investment in computer equipment and
software includes GBP0.9 million on the new warehousing facility in
Nottingham and work on the ERP system of GBP0.6 million. The
investment in Site includes GBP2.7 million to expand our
production, warehousing and office capacity in Nottingham.
Inventories
Inventories have increased by GBP10.9 million as a result of the
logistical difficulties of getting the right stock in the right
place and my poor forecasting. Inventory before inventory
provisions increased to GBP44.8 million (2021: GBP32.2 million) and
inventory provisions increased by 0.4% to 1.7% of core revenue
(2022: GBP6.4 million; 2021: GBP4.6 million). We continue to offer
a broad range of price points. The average increase in the price of
product varies by product category and ranges from 2% to 10%.
Trade and other receivables
Trade and other receivables increased by GBP21.1 million, which
includes a GBP13.3 million increase in royalty income receivable,
GBP5.9 million increase in VAT receivable, GBP0.8 million increase
in trade debt, GBP0.5 million increase in accrued digital income
and GBP0.6 million in rent and rates prepayments.
Trade and other payables
Trade and other payables decreased by GBP2.8 million, including
a GBP2.5 million decrease in trade payables and a decrease of
GBP2.8 million in PAYE, rates and VAT liabilities. This was
partially offset by a GBP2.7 million increase in deferred
income.
Taxation
The effective tax rate for the period was 18.0% (2021: 19.2%).
The rate is lower than in the prior period as a result of the
increase in overseas profit in inventory provisions together with
the impact of super deductions.
Treasury
The objective of our treasury operation is the cost effective
management of financial risk. The relationship with the Group's
bank is managed centrally. It operates within a range of board
approved policies. No transactions of a speculative nature are
permitted.
Funding and liquidity risk
The Group pays for its operations entirely from our cash
flow.
Interest rate risk
Net interest receivable for the year was GBP0.2 million (2021:
GBP0.2 million).
Foreign exchange
Our big currency exposures are the euro and US dollar:
euro US dollar
2022 2021 2022 2021
Period end rate used for the
balance sheet 1.18 1.16 1.26 1.42
Average rate used for earnings 1.18 1.13 1.34 1.34
The net impact in the year of exchange rate fluctuations on our
operating profit was a gain of GBP1.8 million (2021: loss of GBP4.0
million).
Risks and uncertainties
The board has overall responsibility for ensuring risk is
appropriately managed across the Group and has carried out a robust
assessment of the principal risks to the business. The key
strategic risks to the Group are regularly reviewed by the board.
The principal strategic risks identified in 2021/22 are discussed
below. These risks are not intended to be an extensive analysis of
all risks that may arise but more importantly are the ones which we
believe could cause business interruption.
-- IT strategy and delivery - with a number of significant
business projects in play, all of which are dependent on IT
support, there is a requirement for a robust IT strategy which
enables us to deliver key strategic projects as well as supporting
day to day activities. We are keeping the structure of our global
IT team under review to ensure the IT support needs of the business
can be delivered.
-- Media - whilst this remains an area for future growth, it is
imperative that exploitation of our IP through media channels does
no harm to our core business. Our IP steering team meets every
month to discuss ongoing and future exploitation, to ensure that
all use of our IP, through all channels, is approved, correct and
consistent. It is fully supported by our in-house legal team who
will act when needed.
-- Social responsibility - we don't intend to 'greenwash' or to
be 'politically correct'. We believe we are already good corporate
citizens and we have been making some good progress quietly in the
background. We are looking for ways we can support global
initiatives including climate change, diversity and equality and we
are documenting a realistic plan to make some progress,
forever.
We consider that Covid is not a specific risk that we can
mitigate against but we are managing our response to it alongside
our operational risks. We also do not consider that we have
material solvency or liquidity risks.
Outlook
We are on the front foot, have a clear strategy for our core and
licensing business, a culture built on long standing proven
principles, a pretty good operational plan building on the progress
we have made, a work ethic built on trust and a hobby that is fun
and engaging. We look forward with a great deal of confidence. Our
goal remains the same to deliver our strategy and share our love
for Warhammer, globally.
It's been another astonishing year. I once again take great
comfort that some things don't change - our staff and customers
love Warhammer. I thank you all for helping make this another very
successful year.
Approved by the board, and signed on behalf of the board
Kevin Rountree
CEO
25 July 2022
Statement of directors' responsibilities
The directors confirm that this condensed consolidated financial
information has been prepared in accordance with international
accounting standards in conformity with the requirements of the
Companies Act 2006 and UK-adopted International Accounting
Standards and that the management report herein includes a true and
fair review of the information required by DTR 4.2.7 and DTR 4.2.8,
namely:
-- an indication of important events that have occurred during
the period and their impact on the condensed financial information,
and a description of the principal risks and uncertainties; and
-- material related-party transactions in the period and any
material changes in the related-party transactions described in the
last annual report.
A list of all current directors is maintained on the investor
relations website at investor.games-workshop.com .
By order of the board
Kevin Rountree Rachel Tongue
CEO CFO
26 July 2022
CONSOLIDATED INCOME STATEMENT
Restated
52 weeks 52 weeks
ended ended
29 May 30 May 2021
2022 GBPm
Notes GBPm
------------------------------------- ------------ ------- ----------- ------ --------------
Core revenue 386.8 353.2
Licensing revenue 28.0 16.3
Revenue 3 414.8 369.5
Cost of sales (127.4) (96.3)
------------------------------------- ------------ ------- ----------- ------ --------------
Core gross profit 259.4 256.9
Licensing gross profit 28.0 16.3
------------------------------------- ------------ ------- ----------- ------ --------------
Gross profit 287.4 273.2
Operating expenses 3 (130.3) (121.5)
------------------------------------- ------------ ------- ----------- ------ --------------
Core operating profit 131.7 136.7
Licensing operating profit 25.4 15.0
------------------------------------- ------------ ------- ----------- ------ --------------
Operating profit 157.1 151.7
Finance income 0.2 0.2
Finance costs (0.8) (1.0)
------------------------------------- ------------ ------- ----------- ------ --------------
Profit before taxation 156.5 150.9
Income tax expense 4 (28.1) (28.9)
------------------------------------- ------------ ------- ----------- ------ --------------
Profit attributable to owners of
the parent 128.4 122.0
------------------------------------- ------------ ------- ----------- ------ --------------
Comparative financial information for revenue and gross profit has
been restated for the reclassification of licensing revenue, previously
included as royalties receivable in other operating income.
Earnings per share for profit attributable to the owners of the parent
during the period (expressed in pence per share):
52 weeks 52 weeks
Notes ended ended
29 May 30 May 2021
2022
------------------------------------- ------------ ------- ----------- ------ --------------
Basic earnings per ordinary share 5 391.3p 372.7p
Diluted earnings per ordinary share 5 390.6p 370.5p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
52 weeks
ended 52 weeks
29 May ended
2022 30 May 2021
Notes GBPm GBPm
----------------------------------------- --------- --------- -------------
Profit attributable to owners of
the parent 128.4 122.0
Other comprehensive income/(expense)
Exchange gains/(losses) on translation
of foreign operations 0.8 (3.1)
Other comprehensive income/(expense)
for the period 0.8 (3.1)
----------------------------------------------------- --------- -------------
Total comprehensive income attributable
to owners of the parent 129.2 118.9
----------------------------------------------------- --------- -------------
The following notes form an integral part of this condensed
consolidated financial information.
CONSOLIDATED BALANCE SHEET
29 May 30 May
Notes 2022 2021
GBPm GBPm
---------------------------------- -------- -------- -------
Non-current assets
Goodwill 1.4 1.4
Other intangible assets 7 25.6 23.7
Property, plant and equipment 8 55.0 49.8
Right-of-use assets 9 48.1 46.0
Deferred tax assets 17.8 10.1
Trade and other receivables 19.4 6.3
---------------------------------- -------- -------- -------
167.3 137.3
---------------------------------- -------- -------- -------
Current assets
Inventories 38.4 27.5
Trade and other receivables 39.6 30.6
Current tax assets 4.4 1.1
Cash and cash equivalents 10 71.4 85.2
---------------------------------- -------- -------- -------
153.8 144.4
---------------------------------- -------- -------- -------
Total assets 321.1 281.7
---------------------------------- -------- -------- -------
Current liabilities
Lease liabilities (9.2) (8.6)
Trade and other payables (33.5) (35.4)
Current tax liabilities (1.1) (0.1)
Provisions for other liabilities
and charges 11 (0.8) (0.6)
---------------------------------- -------- -------- -------
(44.6) (44.7)
---------------------------------- -------- -------- -------
Net current assets (109.2) 99.7
---------------------------------- -------- -------- -------
Non-current liabilities
Lease liabilities (39.7) (38.4)
Other non-current liabilities (0.6) (0.6)
Provisions for other liabilities
and charges (1.5) (1.7)
---------------------------------- -------- -------- -------
(41.8) (40.7)
---------------------------------- -------- -------- -------
Net assets 234.7 196.3
---------------------------------- -------- -------- -------
Capital and reserves
Called up share capital 1.6 1.6
Share premium account 16.3 14.5
Other reserves 2.9 2.1
Retained earnings 213.9 178.1
---------------------------------- -------- -------- -------
Total equity 234.7 196.3
---------------------------------- -------- -------- -------
The following notes form an integral part of this condensed
consolidated financial information.
CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY
Called
up Share
share premium Other Retained Total
capital account reserves earnings equity
GBPm GBPm GBPm GBPm GBPm
---------------------------------------- --------- --------- ---------- ---------- --------
At 30 May 2020 and 1 June 2020 1.6 13.1 5.2 113.8 133.7
Profit for the 52 weeks to 30
May 2021 - - - 122.0 122.0
Exchange differences on translation
of foreign operations - - (3.1) - (3.1)
Total comprehensive income for
the period - - (3.1) 122.0 118.9
Transactions with owners:
Share-based payments - - - 1.2 1.2
Shares issued under employee sharesave
scheme - 1.4 - - 1.4
Deferred tax credit relating to
share options - - - 0.1 0.1
Current tax credit relating to
exercised share options - - - 1.5 1.5
Dividends declared and paid to
Company shareholders - - - (60.5) (60.5)
---------------------------------------- --------- --------- ---------- ---------- --------
Total transactions with owners - 1.4 - (57.7) (56.3)
At 30 May 2021 and 31 May 2021 1.6 14.5 2.1 178.1 196.3
Profit for the 52 weeks to 29
May 2022 - - - 128.4 128.4
Exchange differences on translation
of foreign operations - - 0.8 - 0.8
Total comprehensive income for
the period - - 0.8 128.4 129.2
Transactions with owners:
Share-based payments - - - 1.6 1.6
Shares issued under employee sharesave
scheme - 1.8 - - 1.8
Deferred tax debit relating to
share options - - - (1.4) (1.4)
Current tax credit relating to
exercised share options - - - 0.7 0.7
Dividends paid to Company shareholders - - - (93.5) (93.5)
Total transactions with owners - 1.8 - (92.6) (90.8)
At 29 May 2022 1.6 16.3 2.9 213.9 234.7
---------------------------------------- --------- --------- ---------- ---------- --------
The following notes form an integral part of this condensed
consolidated financial information.
CONSOLIDATED CASH FLOW STATEMENT
52 weeks 52 weeks
ended ended
Notes 29 May 30 May
2022 2021
GBPm GBPm
---------------------------------------- -------- --------- ---------
Cash flows from operating activities
Cash generated from operations 13 159.2 164.8
UK corporation tax paid (34.0) (28.8)
Overseas tax paid (3.7) (3.3)
---------------------------------------- -------- --------- ---------
Net cash generated from operating
activities 121.5 132.7
---------------------------------------- -------- --------- ---------
Cash flows from investing activities
Purchases of property, plant and
equipment (17.0) (17.4)
Purchases of other intangible assets (1.4) (2.9)
Expenditure on product development (13.9) (9.7)
Interest received 0.2 0.2
---------------------------------------- -------- --------- ---------
Net cash (used in)/generated from
investing activities (32.1) (29.8)
---------------------------------------- -------- --------- ---------
Cash flows from financing activities
Proceeds from issue of ordinary
share capital 1.8 1.4
Repayment of principal under leases (11.1) (10.0)
Lease interest paid (0.8) (0.9)
Dividends paid to Company shareholders (93.5) (60.5)
---------------------------------------- -------- --------- ---------
Net cash used in financing activities (103.6) (70.0)
---------------------------------------- -------- --------- ---------
Net (decrease)/increase in cash
and cash equivalents (14.2) 32.9
Opening cash and cash equivalents 85.2 52.9
Effects of foreign exchange rates
on cash and cash equivalents 0.4 (0.6)
---------------------------------------- -------- --------- ---------
Closing cash and cash equivalents 71.4 85.2
---------------------------------------- -------- --------- ---------
The following notes form an integral part of this condensed
consolidated financial information.
NOTES TO THE FINANCIAL INFORMATION
1. General information
The consolidated financial information of Games Workshop Group
PLC is prepared under the going concern basis and in accordance
with both international accounting standards in conformity with the
requirements of the Companies Act 2006 and UK-adopted International
Accounting Standards.
The financial information set out above does not constitute the
company's statutory accounts for the periods ended 29 May 2022 or
30 May 2021 but is derived from those accounts. Statutory accounts
for 2021 have been delivered to the registrar of companies, and
those for 2022 will be delivered in due course. The auditors have
reported on those accounts; their reports were (i) unqualified,
(ii) did not include a reference to any matters to which the
auditors drew attention by way of emphasis without qualifying their
reports and (iii) did not contain a statement under section 498 (2)
or (3) of the Companies Act 2006. Copies will also be available
from Ross Matthews, Games Workshop Group PLC, Willow Road, Lenton,
Nottingham, NG7 2WS. This information is also available on the
Company's website at http://investor.games-workshop.com.
The annual general meeting will be held at Willow Road, Lenton,
Nottingham, NG7 2WS at 10am on 21 September 2022.
The annual financial report is prepared in accordance with the
Listing Rules and Disclosure and Transparency Rules of the
Financial Conduct Authority and accounting policies consistent with
those used in the 2022 annual report.
The preparation of the consolidated financial information
requires management to make estimates and assumptions that affect
the reported amounts of revenues, expenses, assets and liabilities,
and disclosure of contingencies at the balance sheet date. If in
future such estimates and assumptions, which are based on
management's best judgement at the date of the consolidated
financial information, deviate from actual circumstances, the
original estimates and assumptions will be modified, as
appropriate, in the period in which the circumstances change.
Management do not consider there to be any critical accounting
estimates or judgements that have a significant risk of causing a
material adjustment to the carrying amounts of assets and
liabilities within the next financial period.
2. Change in accounting policy
The Group has applied amendments to IAS 1 and IAS 8 'Definition
of Material' for the first time in the financial information
commencing 31 May 2021. The application of these new standards and
amendments did not have a material impact on the financial
information in either the current or prior periods. The Group
considers that there are no new accounting standards, amendments or
interpretations issued by the IASB, but not yet applicable, which
have had, or are expected to have a significant effect on the
financial information.
3. Segment information
As Games Workshop is a vertically integrated business,
management assesses the performance of sales channels and
manufacturing and distribution channels separately. Segment
information for the 52 weeks ended 30 May 2021 has been restated to
better reflect the structure of the Group. Segments have been split
into core and licensing as described below. Costs previously
reported within 'Design to manufacture', 'Merchandising and
logistics', and 'Operations and support' have been combined to
create the 'Design, manufacture, logistics and operations' segment.
Share-based payment charges, profit share scheme charges and
discretionary payments to employees were previously included
outside of segment operating expenses, these have now all been
included in core operating expenses.
At 29 May 2022 Games Workshop has two segments, core and
licensing, as described below:
- Core: the core segment includes all revenue and expenditure
relating to the design, manufacture and sales of our fantasy
miniatures and related products.
- Licensing: the licensing segment includes all revenue and
expenditure relating to licences granted to external partners,
including the development of digital content for animation and
TV.
We provide further information on revenue and expenses within
the core segment below. The core segment has been divided into
channels as follows:
- Trade: this sales channel sells globally to independent
retailers, agents and distributors. It also includes the Group's
magazine newsstand business and the distributor sales from the
Group's publishing business (Black Library).
- Retail: this includes sales through the Group's retail stores,
the Group's visitor centre in Nottingham and global events.
- Online: this includes sales through the Group's global web
stores, our online subscription service (Warhammer+) and digital
sales through external affiliates.
- Design, manufacturing, logistics and operations, which includes costs for:
- the design studio (that creates all of the IP and the
associated miniatures, artwork, games and publications);
- the production facilities;
- the warehouses and logistics costs;
- charges for inventory provisions. This includes adjustments
for the profit in stock arising from inter-segment sales;
- support services (marketing, IT, accounting, payroll,
personnel, procurement, legal, health and safety, customer services
and credit control) provided to activities across the Group;
- Group: this includes the Company's overheads
The chief operating decision-maker, identified as the executive
directors, assesses the performance of each segment based on
segmental operating profit. This has been reconciled to the Group's
total profit before taxation below.
Core Licensing Total
---------------------------------------- ------------------ --------------------- ------------------
2022 2021 2022 2021 2022 2021
GBPm GBPm GBPm GBPm GBPm GBPm
---------------------------------------- -------- -------- ---------- --------- -------- --------
Trade 214.3 194.8 - - 214.3 194.8
Retail 87.2 70.7 - - 87.2 70.7
Online 85.3 87.7 - - 85.3 87.7
Licensing - - 28.0 16.3 28.0 16.3
Revenue 386.8 353.2 28.0 16.3 414.8 369.5
---------------------------------------- -------- -------- ---------- --------- -------- --------
Cost of sales (127.4) (96.3) - - (127.4) (96.3)
Gross Profit 259.4 256.9 28.0 16.3 287.4 273.2
Trade (10.7) (9.1) - - (10.7) (9.1)
Retail (52.4) (50.2) - - (52.4) (50.2)
Online (11.7) (7.8) - - (11.7) (7.8)
Design, manufacturing, logistics
and operations (37.6) (35.2) - - (37.6) (35.2)
Licensing - - (2.6) (1.3) (2.6) (1.3)
Group (3.8) (3.5) - - (3.8) (3.5)
Share-based payment charge (1.6) (1.2) - - (1.6) (1.2)
Profit share scheme and discretionary
payment charge (9.9) (13.2) - - (9.9) (13.2)
---------------------------------------- -------- -------- ---------- --------- -------- --------
Operating expenses (127.7) (120.2) (2.6) (1.3) (130.3) (121.5)
---------------------------------------- -------- -------- ---------- --------- -------- --------
Operating profit 131.7 136.7 25.4 15.0 157.1 151.7
Finance income 0.2 0.2 - - 0.2 0.2
---------------------------------------- -------- -------- ---------- --------- -------- --------
Finance costs (0.8) (1.0) - - (0.8) (1.0)
---------------------------------------- -------- -------- ---------- --------- -------- --------
Profit before tax 131.1 135.9 25.4 15.0 156.5 150.9
---------------------------------------- -------- -------- ---------- --------- -------- --------
Additional revenue analysis
Segment revenue and segment profit include transactions between
business segments; these transactions are eliminated on
consolidation. Sales between segments are carried out at arm's
length. The revenue from external parties reported to the executive
directors is measured in a manner consistent with that in the
income statement. For information, core external revenue is
analysed further below:
52 weeks 52 weeks
ended ended
29 May 30 May 2021
2022 GBPm
GBPm
----------------------------- --------- -------------
Trade
UK and Continental Europe 90.4 82.3
North America 96.5 85.4
Australia and New Zealand 11.4 10.2
Asia 8.5 9.0
Rest of world 5.9 5.6
Black Library 1.6 2.3
-------------------------------- --------- -------------
Total Trade 214.3 194.8
-------------------------------- --------- -------------
Retail
UK 25.7 13.3
Continental Europe 18.5 16.4
North America 33.6 28.2
Australia and New Zealand 7.3 10.3
Asia 2.1 2.5
-------------------------------- --------- -------------
Total Retail 87.2 70.7
-------------------------------- --------- -------------
Online
UK 19.0 22.2
Continental Europe 16.3 18.0
North America 31.4 30.6
Australia and New Zealand 4.4 5.5
Asia 0.4 0.5
Rest of world 1.4 1.3
Digital 12.4 9.6
-------------------------------- --------- -------------
Total Online 85.3 87.7
-------------------------------- --------- -------------
Total external core revenue 386.8 353.2
-------------------------------- --------- -------------
External core revenue analysed by customer geographical location
is as follows:
52 weeks 52 weeks
ended ended
29 May 30 May 2021
2022 GBPm
GBPm
--------------------------- --------- -------------
UK 83.4 80.5
Continental Europe 95.6 82.1
North America 169.7 145.5
Australia and New Zealand 23.3 26.1
Asia 11.8 12.1
Rest of world 3.0 6.9
------------------------------ --------- -------------
External core revenue 386.8 353.2
------------------------------ --------- -------------
The Group is not reliant on any one individual customer.
Additional operating expenses analysis
Operating profit as reported above includes impairment, depreciation
and amortisation charges as follows:
52 weeks 52 weeks
ended ended
29 May 30 May 2021
2022 GBPm
GBPm
--------------------------------------------------------- ------------- -------------
Retail 11.0 10.8
Online 2.8 0.2
Design, manufacturing, logistics and
operations 22.2 15.6
Total group charges for impairment,
depreciation and amortisation 36.0 26.6
------------------------------------------------------------ ------------- -------------
Non-current asset analysis
Non-current assets (excluding deferred tax and non-current
financial instruments) located within the UK were GBP120.6m (2021:
GBP100.0m) and all other countries was GBP28.5m (2021: GBP27.2m).
Tangible, intangible and right-of-use asset additions included
within the UK were GBP34.5m (2021: GBP45.2m) and all other
countries were GBP9.0m (2021: GBP8.1m).
Other non-cash charges
Other non-cash charges and significant costs included in
operating profit are as follows:
Redundancy costs
Charge to inventory and compensation
provisions for loss of office
52 weeks 52 weeks 52 weeks 52 weeks
ended ended ended ended
29 May 2022 30 May 2021 29 May 30 May 2021
GBPm GBPm 2022 GBPm
GBPm
------------------------------- ------------- ----------------- --------- -------------
Core (10.6) (0.9) (0.5) (1.2)
Licensing - - (0.1) -
Total group charge (10.6) (0.9) (0.6) (1.2)
-------------------------------- ------------- ----------------- --------- -------------
4. Taxation
52 weeks 52 weeks
ended ended
29 May 30 May 2021
2022 GBPm
GBPm
----------------------------------------------------------- --------- -------------
Current UK taxation:
* UK corporation tax on profits for the period 31.3 28.1
Adjustments to tax charge in respect
of prior periods (0.4) (0.6)
-------------------------------------------------------------- --------- -------------
30.9 27.5
Current overseas taxation:
* Overseas corporation tax on profits for the period 4.3 2.9
Adjustments to tax charge in respect
of prior periods 0.8 (0.3)
-------------------------------------------------------------- --------- -------------
Total current taxation 36.0 30.1
-------------------------------------------------------------- --------- -------------
Deferred taxation:
Origination and reversal of timing
differences (7.3) (2.0)
Adjustments to tax charge in respect
of prior periods (0.6) 0.8
-------------------------------------------------------------- --------- -------------
Tax expense recognised in the
income statement 28.1 28.9
-------------------------------------------------------------- --------- -------------
Current tax credit relating to
sharesave scheme (0.7) (1.5)
Deferred tax debit/(credit) relating
to sharesave scheme 1.4 (0.1)
-------------------------------------------------------------- --------- -------------
Debit/(credit) taken directly
to equity 0.7 (1.6)
-------------------------------------------------------------- --------- -------------
The tax on the Group's profit before taxation differs in both
periods presented from the standard rate of corporation tax in the
UK as follows:
52 weeks 52 weeks
ended ended
29 May 30 May 2021
2022 GBPm
GBPm
--------------------------------------------------- --------- -------------
Profit before taxation 156.5 150.9
------------------------------------------------------ --------- -------------
Profit before taxation multiplied by the standard
rate of corporation tax in the UK of 19% (2021:
19%) 29.7 28.7
Effects of:
Items not assessable for tax purposes (1.3) (0.3)
Different tax rates on overseas
earnings (1.1) 0.5
Tax rate changes 1.0 0.1
Adjustments to tax charge in respect
of prior periods (0.2) (0.1)
------------------------------------------------------ --------- -------------
Total tax charge for the period 28.1 28.9
------------------------------------------------------ --------- -------------
On 3 March 2021, the Chancellor announced that the UK
corporation tax rate will be increased from 19% to 25% from 1 April
2023. This change had been substantively enacted at the balance
sheet date at 29 May 2022 and its impact has therefore been
included in these condensed consolidated financial information.
Items not assessable for tax purposes include the release of
provisions no longer considered a risk to the Group as well as tax
relief for other taxes paid.
5. Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit
attributable to owners of the parent by the weighted average number
of ordinary shares in issue during the period.
52 weeks 52 weeks
ended ended
29 May 30 May 2021
2022
------------------------------------- --------- -------------
Profit attributable to owners of
the parent (GBPm) 128.4 122.0
---------------------------------------- --------- -------------
Weighted average number of ordinary
shares in issue (thousands) 32,813 32,733
---------------------------------------- --------- -------------
Basic earnings per share (pence
per share) 391.3 372.7
---------------------------------------- --------- -------------
Diluted earnings per share
The calculation of diluted earnings per share has been based on
the profit attributable to owners of the parent and the weighted
average number of shares in issue throughout the period, adjusted
for the dilutive effect of share options outstanding at the period
end.
52 weeks 52 weeks
ended ended
29 May 30 May 2021
2022
--------------------------------------------- --------- -------------
Profit attributable to owners of
the parent (GBPm) 128.4 122.0
------------------------------------------------ --------- -------------
Weighted average number of ordinary
shares in issue (thousands) 32,813 32,733
Adjustment for share options (thousands) 60 194
------------------------------------------------ --------- -------------
Weighted average number of ordinary shares
for diluted earnings per share (thousands) 32,873 32,927
----------------------------------------------- --------- -------------
Diluted earnings per share (pence
per share) 390.6 370.5
------------------------------------------------ --------- -------------
6. Dividends per share
Dividends of GBP16.4m (50 pence per share) were declared in the
prior period and paid during the current period. Dividends of
GBP13.1m (40 pence per share), GBP8.2m (25 pence per share),
GBP11.5m (35 pence per share), GBP21.3m (65 pence per share) and
GBP23.0m (70 pence per share) were declared and paid during the
current period.
Dividends of GBP9.8m (30 pence per share), GBP16.3m (50 pence
per share), GBP19.7m (60 pence per share) and GBP14.7m (45 pence
per share) were declared and paid during the prior period.
7. Other intangible assets
2022 2021
GBPm GBPm
-------------------------------------------- ------- ------
Net book value at the beginning
of the period 23.7 17.6
Exchange differences 0.1 -
Additions 15.3 12.6
Disposals (0.3) (0.1)
Reclassifications (0.2) -
Amortisation charge (11.7) (6.0)
Impairment (1.3) (0.4)
---------------------------------------------- ------- ------
Net book value at the end of
the period 25.6 23.7
---------------------------------------------- ------- ------
8. Property, plant and equipment
2022 2021
GBPm GBPm
-------------------------------------------- ------- ------
Net book value at the beginning
of the period 49.8 42.0
Exchange differences 0.5 (0.6)
Additions 16.3 17.7
Disposals (0.1) (0.1)
Reclassifications 0.2 -
Depreciation charge (11.7) (9.2)
Net book value at the end of
the period 55.0 49.8
---------------------------------------------- ------- ------
9. Right-of-use assets
2022 2021
GBPm GBPm
------------------------------------------ ------- -------
Net book value at the beginning
of the period 46.0 36.8
Exchange differences 1.4 (2.3)
Additions 11.9 23.0
Disposals - (0.5)
Depreciation charge (11.2) (11.0)
Net book value at the end of
the period 48.1 46.0
-------------------------------------------- ------- -------
10. Cash and cash equivalents
Cash and cash equivalents include the following for the purposes
of the cash flow statement:
2022 2021
GBPm GBPm
------------------------------------ ------ ------
Cash at bank and in hand 71.4 85.2
Cash and cash equivalents 71.4 85.2
-------------------------------------- ------ ------
11. Provisions for other liabilities and charges
Analysis of total provisions:
2022 2021
GBPm GBPm
--------------------------------------------------- ---------- ----------- --------
Current 0.8 0.6
Non-current 1.5 1.7
---------------------------------------------------- ---------- ----------- --------
Total provisions for other liabilities
and charges 2.3 2.3
---------------------------------------------------- ---------- ----------- --------
Employee
benefits Property Total
GBPm GBPm GBPm
--------------------------------------------------- ---------- ----------- --------
At 31 May 2021 2.3 - 2.3
Charged/(credited) to the income
statement:
* Additional provisions 0.1 0.1 0.2
* Unused amounts reversed (0.5) - (0.5)
Additional provision charged
to right-of-use assets - 0.4 0.4
Utilised (0.1) - (0.1)
---------------------------------------------------- ---------- ----------- --------
At 29 May 2022 1.8 0.5 2.3
---------------------------------------------------- ---------- ----------- --------
12. Commitments
Capital expenditure contracted for at the balance sheet date but
not yet incurred is GBP4.3m (2021: GBP3.5m). Inventory purchase
commitments contracted for at the balance sheet date are GBP6.7m
(2021: GBP4.5m). Lease commitments at the balance sheet date were
GBPnil (2021: GBP0.2m).
13. Reconciliation of profit to net cash from operating
activities
2022 2021
GBPm GBPm
----------------------------------------------- ------- -------
Profit before taxation 156.5 150.9
Finance income (0.2) (0.2)
Finance costs 0.8 1.0
Operating profit 157.1 151.7
Depreciation of property, plant and equipment 11.7 9.2
Depreciation of right-of-use assets 11.4 11.0
Net impairment charge of intangible
assets 1.3 0.4
Loss on disposal of intangible
assets 0.3 0.1
Amortisation of capitalised development
costs 10.1 4.8
Amortisation of other intangibles 1.6 1.2
Share-based payments 1.6 1.2
Changes in working capital:
- Increase in inventories (12.2) (6.2)
- Increase in trade and other
receivables (21.5) (10.8)
- (Decrease)/increase in trade
and other payables (2.2) 3.1
* Decrease in provisions - (0.9)
------------------------------------------------- ------- -------
Net cash from operating activities 159.2 164.8
------------------------------------------------- ------- -------
GLOSSARY
Alternative Performance Measures (APMs)
Reconciliation
to
closest
Closest IFRS
equivalent measure
APM IFRS where
definitions measure applicable
-------------------------- --------------------- ----------------------------------------------
Core revenue Revenue Core revenue is reconciled to revenue
Direct sales made in note 3 to the financial information.
of our core products
to external customers,
through the Group's
network of retail
stores, independent
retailers and online
through the global
web stores
Gross Core
Core profit gross
gross profit
profit is
Core reconciled
gross to
profit gross
is profit
core in
revenue note
less 3
all to
related the
cost financial
of information.
sales
Core operating expenses Operating expenses Core operating expenses are reconciled
Operating expenses to operating expenses in note 3 to
relating to the core the financial information.
business of selling
directly to external
customers
Core operating profit Operating profit Core operating profit is reconciled
Core operating profit to operating profit in note 3 to the
is core revenue less financial information.
all related cost of
sales and operating
expenses
-------------------------- --------------------- ----------------------------------------------
Revenue Licensing
Licensing revenue
revenue is
Income reconciled
relating to
to revenue
royalties in
earned note
from 3
third to
party the
licensees. financial
information.
Licensing gross profit Gross profit Licensing gross profit is reconciled
Licensing gross profit to gross profit in note 3 to the financial
is licensing revenue information.
less any related cost
of sales
-------------------------- --------------------- ----------------------------------------------
Operating Licensing
Licensing expenses operating
operating expenses
expenses are
Operating reconciled
expenses to
relating operating
to expenses
the in
licensing note
segments 3
to
the
financial
information.
Licensing operating Operating profit Licensing operating profit is reconciled
profit to operating profit in note 3 to the
Licensing operating financial information.
profit is licensing
revenue less all related
cost of sales and
operating expenses
-------------------------- --------------------- ----------------------------------------------
Revenue This
Revenue is
at calculated
constant by
currency converting
Revenue underlying
for revenue
the amounts
current at
and local
prior currency
period value
converted for
at both
a the
constant current
exchange and
rate. prior
period
at
the
prior
period
average
exchange
rate.
-------------------------- --------------------- ----------------------------------------------
Operating profit Operating profit This is calculated by converting underlying
at constant currency operating profit amounts at local
Operating profit for currency value for both the current
the current and prior and prior period at the prior period
period converted at average exchange rate.
a constant exchange
rate.
-------------------------- --------------------- ----------------------------------------------
Core average capital None This value is calculated by taking
employed monthly net assets and adjusting for
This is a measure any cash, borrowings, licensing receivables,
of the capital employed exceptional provisions, taxation and
in the core business dividends, for each of the 12 months.
averaged over a 12 These are then added together and
month period divided by 12 to give the core average
capital employed.
-------------------------- --------------------- ----------------------------------------------
Return on capital None Return is calculated by dividing the
employed (ROCE) core operating profit by the core
Measure of the profit average capital employed.
relative to the amount
of capital employed.
The higher the ROCE,
the greater the return
for the capital employed
Net Net
Cash increase/(decrease) increase
generated in in
- cash cash-pre
pre and dividends
dividends cash paid
paid equivalents can
Movement be
in calculated
cash by
in taking
the the
period net
before increase/(decrease)
any in
payments cash
of and
dividends cash
are equivalents
taken and
into adding
account back
the
dividends
which
have
been
paid
in
the
period.
-------------------------- --------------------- ----------------------------------------------
Net This
Cash cash is
generated generated calculated
from from by
core operating taking
activities activities the
Net net
cash cash
generated generated
from from
operating operating
activities activities
less in
the the
licensing cash
cash flow
received of
GBP121.5
million
(2021:
GBP132.7
million)
less
the
cash
received
in
respect
of
licensing
of
GBP15.4
million
(2021:
GBP14.2
million).
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR SEUFUIEESEEW
(END) Dow Jones Newswires
July 26, 2022 02:00 ET (06:00 GMT)
Games Workshop (LSE:GAW)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Games Workshop (LSE:GAW)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
