Sunday, 2 August 2015
GW Financial Results
The only British public wargaming company is GW so we inevitably look at them - to be fair they apparently no longer see themselves as a game company but a model company.
The key results are summarised in the table above by Sandwyrm and I reproduce them here without permission. The figures are inflation adjusted.
Operating profit has crept up infinitesimally but has barely reached 2010 levels despite the massive cost cutting in shop and design staff and the move to larger high-margin models.
Revenue as taken another tumble - despite the upward rise of cost per model and the move to cheaper plastic - supposedly because of the high value of the Pound Stirling.
I have noticed that both the flagship stores in the south east regional shopping centres at Bluewater and Lakeside have closed, presumably to save on rents, and the rest have moved to a one person semi-open basis.
Anyway, the markets like it with a small jump in share price following a buy recommendation on Motley Fool, who see cost reductions as the key to profit and are unconcerned by the concomitant revenue fade.
Worth a punt on the shares or not?