The following is from the GW six monthly report.
Revenue and Profits Down
Six months to
1 December 2 December
2013 2012
Revenue £60.5m £67.5m
Revenue at constant currency* £59.8m £67.5m
Operating profit pre-royalties receivable £6.6m £10.6m
Royalties receivable £1.0m £0.4m
Operating profit £7.7m £11.0m
Pre-tax profit £7.7m £11.1m
Cash generated from operations £8.9m £12.0m
Basic earnings per share 17.7p 25.6p
Dividend per share declared in the period - 18p
Breakdown by Region
Six months to
1 December 2013
£m
Six months to
2 December 2012
£m
UK 13.7 15.6
Continental Europe 16.9 19.6
North America 15.6 18.1
Australia 4.6 5.6
Export 0.8 0.8
Asia 0.9 1.1
All other sales businesses 7.3 6.7
Summary
First half performance
Sales in the first half of the year were down against the comparable period in the prior year, continuing
the trend that developed in the second half of 2012/13. During the first half, the rapid transition from
multi-man stores to one-man stores and the reduction of trading hours across the Group caused
disruption in our retail chain. We also experienced some decline in sales through independent
stockists.
We view these as short-term issues and expect to see growth return in both channels. We continue
with our store opening programme (27 stores opened, 20 closed in the period) secure in the
knowledge that our one man model allows us to ensure new openings are profitable. In the future we
expect to benefit from the more focussed selling operation across all channels against the background
of a materially lower cost base.
Interesting sentence:
Trade sales will be consolidated into a global business, operating from Lenton, Nottingham.
So the retrenchment continues. The markets were not impressed. The company lost a quarter of its value in a day.
So the retrenchment continues. The markets were not impressed. The company lost a quarter of its value in a day.
Very interesting, thanks John. I hope that forces a relook at the business processes which they have adopted which has taken them away from a gaming focus. At the end of the day though, nobody wants these guys to fold, that would be detrimental to our our hobby overall I think, whether you play their games or not.
ReplyDeletePaul, I guess wargaming will survive if GW implodes but it will be a sad day for many us who have a fondness for the brand. John
DeleteIt looks like they've taken a bath to me - gathered up up the restructuring costs into one set of results - it's generally better to do that when you have a poor result - best to put all the bad news into one set of results - take the hit - and then the next set of results starts to look like a turn round. With GW a lot will depend upon Xmas sales - which are not covered in this set of results. As far as I can gather they wil be losing a lot of sales and admin staff from their non-UK business as they centralise sales, so there will be costs to absorb. Knowing that - they may have worked those costs into these figures as provisions - not sure about that - but I would if it were possible. The full year results will be the clincher.
ReplyDeleteInteresting point. I guess that redundancy payments raise costs temporarily. Nevertheless, profits seem to depend on cutting costs and increasing margins against a background of falling sales.
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