Financial Analyst – Falling Out of Love with Games Workshop
This market analyst is not optimistic about investing in GW…
This week company financial analyst Mr. Richard Beddard did an interview with Lee Wild – editor of Interactive Investor – to talk about the most recent numbers. You can check that out that video interview here:
Falling Out of Love with Games Workshop
You many remember Mr. Beddard from his previous columns on Interactive Investor:
Games Workshop: In Denial
“Operating profit was flat too, although it was rescued by royalty income from other firms, for example app and computer game producers who use Games Workshop’s fantasy worlds. Profit from the sale of miniatures and games, the company’s core business, fell 15%. Irritatingly, Games Workshop didn’t provide an explanation, which is surprising since, in its previous full-year results, it had promised a sales drive.”
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“Maybe that’s all there is to it. But maybe the company can’t recruit managers of sufficient calibre because running a one-man store is too much work for one man. Maybe one man cannot show people how to model, run games, and serve paying customers at the same time. Trials of larger multi-man stores in Sydney, Munich, Paris and Copenhagen suggest, at least for locations where there are lots of customers, one man stores are not the answer.”
“Perhaps by focusing too much on maximizing profit through cost cutting, the company is neglecting the recruitment of new hobbyists. Or perhaps the much smaller armies of rival fantasy wargaming and modeling companies and the armies of illegal clones sold on the Internet are chipping away at Games Workshop’s franchise.”
~Have at it folks…
