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Looks like Failcast and the Great Southern Hemisphere Boycott hasn't hurt Gee-Dub not hardly at all

Games Workshop Group PLC

DIVIDEND AND TRADING UPDATE


For immediate release 17 May 2012

Games Workshop Group PLC announces that the Board has today declared a dividend of 16 pence per share. This will be paid on 26 June 2012 for shareholders on the register at 25 May 2012.

Games Workshop further announces that pre-tax profits in respect of the year to 3 June 2012 are likely to be ahead of current market expectations.

http://www.iii.co.uk/investment/detail?code=cotn:GAW.L&display=news&action=article&articleid=8588893

Of course that is just "profits". What has happened to turnover and volume sales, which is far more important for the longer term output has yet to be revealed...

Seeing as how their sales have dropped yet they've declared a profit in the past. Usually not meant to work that way...

Now that they've gotten away with all they did over the past year they're going to feel bold enough to dissolve the galactic senate. The Regional managers will now have direct control over their territories. Fear will keep the local customers in line.

Remember they save alot of money using Fesin than Metal
And they jacked up all prices
And they came out with the paint

I'm not sure the paints will count into it yet.


Automatically Appended Next Post:
Looking at it again it says "pre-tax" profits and mentions the usual copy pasted "exceeding market expectation" as it always does. We'll probably need something more detailed to discuss it properly and to determine just how well they actually went.

Isn't that dividend down compared to the previous one? And market expectations would be anything from 0% upwards growth in this economic climate.

Oakenshield wrote:Now that they've gotten away with all they did over the past year they're going to feel bold enough to dissolve the galactic senate. The Regional managers will now have direct control over their territories. Fear will keep the local customers in line.

Don't be so proud of this oligarchical terror they've constructed. The ability to control the HHHobby is insignificant next to the power of the its customer base.

I can imagine Kirby going "UNLIMITED POWAAH" though while zapping some bean counter that may have suggested against that move.

Will be interesting to see if there has been a big from in production costs when the full report comes out.

Looks like business as usual for GW. Borrow money to give out dividends. Consider the whine thread on warseer to be 'market expectations' and you're exceeding them.

1.) GW's main economic purpose is to generate hundred thousands of income for its board. So they pay dividends even when they have to loan the money.
2.) It is not surprising that Tom Kirby voted to get 310.000 GBP extra.
3.) Good thing that every GW store and Indy had to buy a completely new range of 145 colours (6 each -> 1300 € per store extra plus 4 new paint sets and a compendium) in April. Subtract this and you see the real numbers.

Osbad wrote:Looks like Failcast and the Great Southern Hemisphere Boycott hasn't hurt Gee-Dub not hardly at all

1. Declaring a dividend does not mean your company is strong. In the case of Games Workshop, whose best product lines (their plastics) have a high development cost and thus require more floating capital, it is just as likely to be a sign of weakness. It means that you've run out of new products to invest in before you've run out of capital.

2. "Likely to be ahead of current market expectations" is a phrase that is empty of meaning. It's unfalsifiable PR speak, and that's exactly why it is used.

Kroothawk wrote:
3.) Good thing that every GW store and Indy had to buy a completely new range of 145 colours (6 each -> 1300 € per store extra plus 4 new paint sets and a compendium) in April.

Just to clarify, Indies were in no way obligated to do this, nor were they forced to buy into the entire range at once.

Oakenshield wrote:Now that they've gotten away with all they did over the past year they're going to feel bold enough to dissolve the galactic senate. The Regional managers will now have direct control over their territories. Fear will keep the local customers in line.

Excellent

This is the same as its' been for years- likely less sales, but higher profits, and more dividends.

They only have to make it to The Hobbit, after all- that's going to give them a huge sales boost. As will 6th edition 40k, likely. Possibly temporary boosts, the way they handle things, but it will still look good on the report.

AlexHolker wrote:. "Likely to be ahead of current market expectations" is a phrase that is empty of meaning. It's unfalsifiable PR speak, and that's exactly why it is used.

All it tells you is that they have done better than they would have done had they posted the phrase "broadly in line with expectations", which is what they have used at the pre-release stage in previous years. It tells you little, but not nothing.

However, as I and others have said earlier, profit, and dividends are good news in that they mean that the company isn't going down the pan tomorrow. However, for us as fans of the product, what really matters is turnover - and more specifically volume sales - which indicates the level of popularity of their product. For the last 8 years, that measure has been declining in real terms, and there is nothing to say at this stage whether this decline has halted or not yet. All we *can* say is that the issues the company have faced this year have not been so severe as to make them unprofitable.

Why is everyone so annoyed that a business is making money?

I'd rather they made money than folded, i bet 95% of the the GW hating moaning bitches would cry if they shut down.

AlexHolker wrote:2. "Likely to be ahead of current market expectations" is a phrase that is empty of meaning. It's unfalsifiable PR speak, and that's exactly why it is used.

GW's fiscal year ends at the end of May. This statement is a projection based on current performance as a "preview." Most companies release tidbits like this ahead of their earnings release.


That being said, GW's stock price has been increasing since the beginning of the year. Investors don't seem to be worried about the future of GW.

Ajroo wrote:Why is everyone so annoyed that a business is making money?

I'd rather they made money than folded, i bet 95% of the the GW hating moaning bitches would cry if they shut down.

I hate it when people reply and quote and then just write "this" but... this.

But the sound of all the wailing would be like music to my years and all the tears would give me nourishment for decades to come!

Ajroo wrote:Why is everyone so annoyed that a business is making money?

I'd rather they made money than folded, i bet 95% of the the GW hating moaning bitches would cry if they shut down.

I don't think it's that. More likely is that people liking being proved right. The common criticisms in all Wacky Workshop (GW) debate threads (ignoring White Knights and Doom Mongers) boil down to GW making very poor business decisions. Every year these are vindicated somewhat when sales show another decline. Essentially, its the internets way of saying "I told you so!"

Ajroo wrote:Why is everyone so annoyed that a business is making money?

I'd rather they made money than folded, i bet 95% of the the GW hating moaning bitches would cry if they shut down.

I don't think anyone is annoyed that a business is making money.

I do see a fair few people laughing at a business that isn't making much money, and is trying to mask that with vague business-speak and corporate tactics.

Ajroo wrote:Why is everyone so annoyed that a business is making money?
I'd rather they made money than folded, i bet 95% of the the GW hating moaning bitches would cry if they shut down.

1.) Total revenue is flat or declining for years (not considering the 10% price hike per year, so total sales decline massively).
2.) All net profit is given to the shareholders, a.o. Tom Kirby. Often more than total net profit, sometimes they loan money to pay shareholders. So the company is drained each year.
3.) If all management decisions would be made random, GW's total renevue would easily increase 10% per year without the need for price hikes. A decent manager could achieve even more.

Oakenshield wrote:Now that they've gotten away with all they did over the past year they're going to feel bold enough to dissolve the galactic senate. The Regional managers will now have direct control over their territories. Fear will keep the local customers in line.

Best dakka post in a while. You win the thread.

As for people being upset they're "making money", while I doubt most here want to see GW collapse, if their profits became effected they would be forced to seriously look at their policies and rectify them.

Kroothawk wrote:
3.) If all management decisions would be made random, GW's total renevue would easily increase 10% per year without the need for price hikes. A decent manager could achieve even more.

With your brilliant financial mind, why aren't you a billionaire already then and buy GW?

DarknessEternal wrote:
With your brilliant financial mind, why aren't you a billionaire already then and buy GW?

Ahhh Sarcasm.

Bringing you the internet since 1982.

Iranna.

Kroothawk wrote:
1.) Total revenue is flat or declining for years (not considering the 10% price hike per year, so total sales decline massively).

Looking at their annual reports....yes, revenue has not been steadily growing. However, In 2006/2007, GW downsized, and spent a lot on automated tooling equipment and software. This reduced their operating costs and has allowed them to increase profit with nearly flat revenue. Royalties have also been a boost to profit (especially this year with Space Marine).

The annual reports also show sales over time (though I don't believe they are adjusted for inflation). You can see that sales decreased from 2004-2007, but since then have been increasing.

For the first half of FY2012, GW has done very well compared to the same period last year, and are on track for a very good year.

Kroothawk wrote:2.) All net profit is given to the shareholders, a.o. Tom Kirby. Often more than total net profit, sometimes they loan money to pay shareholders. So the company is drained each year.

Tom Kirby owns only 6.7% of GW. Furthermore, it's the board's policy (stated multiple times in the annual reports) to pay out all surplus cash in the form of dividends. This is not an uncommon practice, as idle cash does nothing for the company. Given that they just overhauled their manufacturing facility in 2007, what else should they spend their cash on?

DarknessEternal wrote:

Kroothawk wrote:
3.) If all management decisions would be made random, GW's total renevue would easily increase 10% per year without the need for price hikes. A decent manager could achieve even more.

With your brilliant financial mind, why aren't you a billionaire already then and buy GW?

Why the need to make it personal?

As for people being upset they're "making money", while I doubt most here want to see GW collapse, if their profits became effected they would be forced to seriously look at their policies and rectify them.

This is it exactly. Some acknowledgement that they are not the sole miniature game producer in market for 1 might make them sort out Finecast, or perhaps even go a year without a price rise. Perhaps some new and exciting games, and put some more money into games development and things like that.

@elrabin GW is not succeeding despite falling revenue. It is failing because it is causing falling revenue.

If you adjust to take into account price rises, sales are falling for their retail chain.

Cost cutting, forgeworld and licensing revenue keep them profitable. Virtually 100% of the profit paid as dividend last time round came from licensing.

This is not a sustainable business model.

They could possibly use the surplus cash to hire some QA folks for Finecast management?

@All: Please remember that personal attacks are against the rules. Polite discourse is a requirement for participation on this site. Thanks.