Highlights

  • Jefferies issued a buy rating on Games Workshop with a GBP 18,300 target price.
  • Annual revenue rose to GBP 617.5 million, with growth in both core and licensing income.
  • Core operating profit increased to GBP 211.8 million, while licensing operating profit nearly doubled.
  • The company recorded a GBP 197.5 million net cash increase and paid out GBP 171.4 million in dividends during the year.
  • Core ROCE improved to 191%.

Jefferies has issued a buy rating on Games Workshop Group PLC (LSE:GAW), setting a target price of GBP 18,300 per share. Recently, the company had released its annual report for the 52-week period ending 1 June 2025.

Record Revenue and Profit Growth

Games Workshop reported a remarkable year, with total revenue increasing to GBP 617.5 million, up from GBP 525.7 million in the previous 53-week period. On a constant currency basis, revenue reached GBP 628.7 million. Core operating profit rose sharply to GBP 211.8 million, compared to GBP 174.8 million in 2023/24, representing 37.5% of core sales. Excluding Group Profit Share, core operating profit margins improved from 39.1% to 41.0%.

Licensing revenue also saw significant growth, climbing to GBP 52.5 million from GBP 31.0 million, with licensing operating profit reaching GBP 49.5 million, up GBP 22.5 million from the previous year. On a constant currency basis, licensing operating profit increased to GBP 51.8 million.

Cash Position and Shareholder Returns

Games Workshop maintained a cash position, reporting a net increase in cash before dividends of GBP 197.5 million, compared with GBP 155.9 million in the prior year. Dividends paid during the year amounted to GBP 171.4 million, up from GBP 138.3 million, reflecting the company’s policy of returning truly surplus cash to shareholders.

Return on Capital Employed

Return on capital employed (ROCE), a long-term measure of efficiency and profitability, showed a significant increase. The core business ROCE rose to 191% from 176% in the previous year. Average capital employed increased modestly to GBP 110.9 million, supporting the higher profits achieved during the period.

Outlook and Strategy

Following a record year, Games Workshop remains focused on executing its operational plans and enhancing product quality and manufacturing processes. The company emphasizes continuous improvement while acknowledging the importance of maintaining encouraging relationships with hobbyists, trade accounts, and stakeholders.

The management expressed optimism about the year ahead, noting that while challenges may arise, the company will continue to innovate and improve its position in the market.