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The Retail King: Games Workshop

Karl Ahlstedt profile picture
Karl Ahlstedt


  • Games Workshop continues to experience strong (but slowing) growth.
  • Retail channel has been transformed in recent years.
  • Cash-flows remain high, thus dividends remain stable with an outlook for further growth.

Investment Thesis

Games Workshop (GAW) continues to deliver high growth and exceptional margins through 2018, with an outlook for continued (but slowing) growth through 2019 across all major segments of the business. Noteworthy is the continued underlying strength of the retail division during otherwise uncertain times for the British high-street.

(Games Workshop, 2018)

Background of Games Workshop

Games Workshop has been perfecting the art of high-quality miniatures since 1975, and this 43-year tenure has positioned the company for exceptional performance as growth in gaming continues at record rates throughout much of the developed world (Claremont, 2014). During this time, it has developed some of the most complex and complete fantasy and sci-fi universes that rival the likes of Star Wars and Lord of the Rings.

Kevin D. Rountree took over the role of CEO in 2015 and has exceeded expectations ever since. Since then, a number of successful changes have been made across the group.

A Volatile Retail Record


Retail Operating Profit:


Retail Operating Expenses:

Retail Revenues

















+1458% / £6.7m













(Games Workshop, 2018)

Operating profit above is inclusive of impairment, depreciation and amortization charges. Furthermore, absolute values are used in negative years as percentages would not fairly represent material changes in the business. There is a case that this argument should be extended to 2018, due to the percentage growth from a small base, hence the inclusion of both absolute and percentage data during this year.

Forward looking projections during 2019 and 2020 are based on conservative estimates. There are a number of headwinds facing the retail segment this year, including Brexit and upward cost pressures due to

This article was written by

Karl Ahlstedt profile picture
Karl holds a degree in business management and studied post graduate investment management at a top UK university. He has since worked at some of the largest Welsh investment companies as an Investment Analyst and delivered guest lectures in Finance at the University of Wales. I can be reached on LinkedIn or directly at karl@hioim.com.

Analyst’s Disclosure: I am/we are long GMWKF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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