Games Workshop Annual Report---due this month

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**Ivan Isaaks**

WD300 Dec 2004
Chief librarian Tigurius £8
Space marine whirlwind £20
Space marine veterans (2 models) £6

WD304 April 2005
Marneus Calgar and honour guard (5 models) £25
Space marine terminator squad (5 models) £20

WD307 July 2005
Tyranid Carnifex £20
Tyranid broodlord £9
Tyranid lictor £12
Tyranid Zoanthrope £9
Space marine Tyranid hunters (2 models) £6
Tyranid hive tyrant £20
Genestealers (8 models) £15
Tyranid battleforce £50
Tyranid Tyrant guard £10
Space marine combat squad (5 models) £9

WD311 Nov 2005
Black templars space marine crusader squad (10 models) £20
Black templars Space marine assault squad (5 models) £18
Black templars space marines command squad (5 models) £20
Space marine chaplain £6
Space marine terminator close combat squad (5 models) £20

WD312 Dec 2005
Space marine scouts (5 models) £10
Black templars Rhino £18
Black templars High marshal Helbrecht £9
Chaplain Grimaldus £15
Terminator Chaplain £7
Black templars sword brethren squad £15
Battle for Macragge £40
Tau battleforce £50

You can actually try and get all the data you need from the waybackmachine: http://web.archive.org/web/20041011032700/http://uk.games-workshop.com/storefront/store.uk?do=List_Models&code=300866&orignav=10

**infinite_array**

keezus wrote:

This suggests an overall decrease in volume of 34% between 2002 and 2010. However, as GW has been implementing "efficiencies" in order to raise the yields per unit sale, I fear that the decrease in unit sales is probably slightly bigger than that. (edit +/- 2%).

Wow! I mean... wow! That's quite a decrease.

**keezus**

@infinite array: It only takes a compound decrease of 5.7% each year from 2002-2010 to get to an overall 33% decrease.

Extrapolating a bit however - as I am too lazy to do any real number crunching at the moment - assuming that the price increase trend accelerated post 2005 (which is my recollection), when the LOTR bubble burst... We'll use an arbitrary value assuming of 2/3 of the increases happened post 2005, roughly 36% increase in price. Using the same methodology before (someone correct me if I'm making a fundamental mistake here...) resulting in adjusted 89.56M units vs. 128.9M units. That's a decrease of 30.52% - over 5 years. Based on the above - assuming a linear decrease for simplicity's sake, compounding losses of just 13.25% a year would result in 30.25% overall decrease from 2005.

Purely speculation of course.

**AgeOfEgos**

Good stuff guys, thanks for the number crunching.

**keezus**

Investor Relations | Games Workshop
investor.games-workshop.com/ - Cached
On 26 July 2011 Games Workshop announced its full year results for the year ended 29 May 2011. The complete annual report can be downloaded here: XXX ...

The blurb off of Google seems to suggest that the new report hits the streets tomorrow, though the site doesn't show it yet. This should be interesting.

Automatically Appended Next Post:
N/M... it is tomorrow. c/o http://investor.games-workshop.com/financial-calendar/

Financial calendar
Upcoming events

26 July 2011 – Announcment of final results

**Kroothawk**

Finally:
http://investor.games-workshop.com/wp-content/uploads/2011/07/2011-Full-Year-Report-and-Accounts-full-25-July.pdf

Revenue £123.1m (2010: £126.5m)
Revenue at constant currency* £122.8m

Sales

Reported sales decreased by 2.7% to £123.1 million for the year. However, on a constant currency basis, sales were down by 2.9% from
£126.5 million to £122.8 million; progress was achieved in Emerging Markets and Japan (+2.1%) and in the Other business units (+7%) while
sales in Continental Europe (+0.6%) were flat. UK (-6.3%), North America (-4.8%) and Australia (-11.8%) were in decline.

Dividend

During the year we followed our principle of returning truly surplus cash to shareholders and paid dividends of 25 pence per share in
October 2010 and 20 pence per share in May 2011. The board now recommends a further dividend of 18 pence per share which, subject to
shareholder approval, will be paid in October 2011.

CHAIRMAN’S PREAMBLE

We like to think of ourselves as a young company, eagerly entering the world of commerce bristling with ideas and ambition. Our staff
bring the energy and optimism of youth to every problem we face, don't they? It is a salutary reminder for me to remember we will be
making 30-year-service awards at our veteran's night dinner again this year. It won't be long before I get mine. Danielle Gaudry, who
founded and ran our French business for many years and is surely the definition of that youthful vigour, retires this year. Retires.
We are no longer so young, either as a business or the people who run it. Two things flow from this.

Firstly, we now know (more by trial and error than sophisticated analysis - 'the wisdom of years') how this business works. We know what it
takes to run a good Hobby centre, we know how to run a good trade sales department, we know how to recruit people who have great
attitudes, we know how to make the best miniatures in the world and how to surprise and delight our customers over and over again. (Go
take a quick look at Citadel Finecast - awesome!) What we are now learning is how to spread that knowledge around the far flung world of
Games Workshop. We are also learning that we are not doing it fast enough or thoroughly enough.

Secondly, the generation which built Games Workshop is beginning to wonder what a 'pension' is. We wake up in the morning with the
same aches we had yesterday. We wear glasses. We have learned patience (is that always a good thing and does it come from wisdom or
exhaustion?). Some of us have a Senior Railcard. Nonetheless, we remain passionate about the potential for the Hobby and the Group.
So, in addition to the normal running of the business, we will also be turning our gaze upon the problems of succession. We will be rolling
out a programme aimed at getting everyone at Games Workshop to understand how we do business.

The challenges are as real as ever and our full responsibility is as well. Despite the exigencies of the 'real' world our destiny is still in our
own hands. We have to ensure that the best practices we know about are followed everywhere within the Group. We have done much to
improve our profitability and the return on your capital but we still have work to do on re-establishing growth, particularly in our Hobby
centres.

Dividends have returned. I am as pleased as you are. Does this herald in a new era of progressive dividends on an assured yield? Hardly. We
return truly surplus cash to shareholders. 'Truly surplus' means the cash we can not use because we have already spent all we need for the
growth of the business. It would sit in a bank account if we didn't return it. Working this way means the payment of dividends will be fairly
happenstance; I can see us having surplus cash in the future and when we have (assuming it is a sensible sum) it will be returned, not
according to a schedule, but right then and there.

Tom Kirby
Chairman
25 July 2011

My first comment: Sales down again, even with Dark Eldar release and the new Warhammer edition (where everyone has to buy new things in principle). To celebrate this: More dividends. Sales declining in UK, USA and Australia, mission accomplished. Sales slightly up in Japan so we close 5 of 7 stores. Sales up in emerging markets, so we boykott mail order to them, that should teach them.

Okay, News thread with discussion already here: http://www.dakkadakka.com/dakkaforum/posts/list/385538.page

**sarpedons-right-hand**

Went for positive sales, much growth yadda yadda bull**it bull**it blah......

Because it won't cover the recent PR cock up and the seeming unending slew of 'failcost', ummmm, failures.
They will be still trying to gloss over the fall in sales right up to the bitter end. Just to avoid spooking the shareholders.
Speaking of which did anyone see that 'Mr' Wells dropped another £600,000 pay packet in his own lap? When his company is spewing losses internationally??
He is merely feathering his retirement nest until the situation reaches critical mass. At which point he will sell for a quite ridiculous price and sod off to Switzerland or A N Other tax haven.
Idiot.

**The Foot**

They really are good at glossing over pertinent information like, yeah sure sales are down but look over here! This lady is retireing, isn't that sweet. I wish someone would slap some sense into them. I'm trying with my wallet but I am only one man, and my wallet isn't very heavy.

**odinsgrandson**

The Foot wrote:They really are good at glossing over pertinent information like, yeah sure sales are down but look over here! This lady is retireing, isn't that sweet. I wish someone would slap some sense into them. I'm trying with my wallet but I am only one man, and my wallet isn't very heavy.

Sales are up for pretty much every other miniatures market. Privateer Press is becoming a pretty large company (with both Warmachine and Hordes individually outselling WFB, but trailing to 40k). Malifaux sales are trailing right behind Warhammer Fantasy Battle right now.

And Infinity and Helldorado recently got distribution through Alliance, and that's a huge step of growth.

Altogether, we're living in an age where quitting GW games doesn't mean you have to quit the hobby. And that's a big deal.

**The Foot**

Honestly it is a good thing too. If GW would realise that things are beggining to go south then they can shake up their buisness practices and probably bring a lot of growth back to their own company. As it stands, I think they have simply gone stagnant. They didn't really see the other guys until they hit them in the back of the head, drug them in an alley, and stole their pants.

**AgeOfEgos**

odinsgrandson wrote: Privateer Press is becoming a pretty large company (with both Warmachine and Hordes individually outselling WFB, but trailing to 40k). Malifaux sales are trailing right behind Warhammer Fantasy Battle right now.

I agree that PP is doing exceedingly well---however where are you getting your numbers?

**keezus**

The Foot wrote:Honestly it is a good thing too. If GW would realise that things are beggining to go south then they can shake up their buisness practices and probably bring a lot of growth back to their own company. As it stands, I think they have simply gone stagnant. They didn't really see the other guys until they hit them in the back of the head, drug them in an alley, and stole their pants.

As far as I can tell, GW has been stagnant - (on the rules front) for 4-5 years now. The models make great strides, but any new excitement produced by new releases is more than countered by the uneven way they release them, combined with high prices and the resentment over neglect heaped upon the armies NOT receiving regular updates.

**The Foot**

Their models are (overall) very good. They also have an intersting background for WHFB and 40k, but yes I would agree that it is mostly rules wise that they are lacking severly. Unfourtunatly, I would like good and balanced rules for the game that I put money into, as well as good models.

**Kilkrazy**

Yes, I have to agree with that.

As primarily a Tyranids and Tau player, I don't care how many awesome SM or Deldar models are produced. It's great news for the players who are interested in those armies but useless for me.

**Kouzuki**

Kilkrazy wrote:Yes, I have to agree with that.

As primarily a Tyranids and Tau player, I don't care how many awesome SM or Deldar models are produced. It's great news for the players who are interested in those armies but useless for me.

And if tyranid and tau models were produced, players who are interested in SM and Deldar would not be interested in those either.

Don't be so selfish.

----------

Just doing a quick look at the financial reports:
1.) Yes sales are down, about 2.7% from 2010. Operating profit is only down 1.5% though. This is good.
2.) Operating profit pre-royalties receivable is only about 10% of revenue for both 2010 and 2011. This goes to show that the price increases were a NECESSARY step, not just to increase profits.
3.) Royalties receivable is down about 0.5M. A HUGE straight 16.6% drop in royalties receivable in one year. First of all what does this consist of -.-?

---------
pt.2

1.) Looking at the historical sales graph on page 7, it seems sales and operating profits were on an up-trend from 2007-2010, basically showing how the financial crisis+credit crunch+whatever is NOT the cause of a drop in sales. Profits however, have also grown, from a mere 2.5ish% in 2007 to >15% in 2010.

meh. Will look at in further detail when I get home from work.

**insaniak**

Kouzuki wrote:2.) Operating profit pre-royalties receivable is only about 10% of revenue for both 2010 and 2011. This goes to show that the price increases were a NECESSARY step, not just to increase profits.

Well, no... it shows that something needed to be done to improve their margin. Increasing prices is the easy answer, but not the only one.

3.) Royalties receivable is down about 0.5M. A HUGE straight 16.6% drop in royalties receivable in one year. First of all what does this consist of -.-?

Royalties would presumably include whatever they are entitled to from sales of FFG's licenced games, computer games and the Ultramarines movie.

**Kilkrazy**

Kouzuki wrote:
Kilkrazy wrote:Yes, I have to agree with that.

As primarily a Tyranids and Tau player, I don't care how many awesome SM or Deldar models are produced. It's great news for the players who are interested in those armies but useless for me.

And if tyranid and tau models were produced, players who are interested in SM and Deldar would not be interested in those either.

Don't be so selfish.

It's not selfish to want models and books for your armies.

**odinsgrandson**

AgeOfEgos wrote:
odinsgrandson wrote: Privateer Press is becoming a pretty large company (with both Warmachine and Hordes individually outselling WFB, but trailing to 40k). Malifaux sales are trailing right behind Warhammer Fantasy Battle right now.

I agree that PP is doing exceedingly well---however where are you getting your numbers?

The ICV2 Website often ranks sales of the larger miniatures companies. Also, PP had to double their production.

**notprop**

Is that unit sales or actual cash figures that they use?

**AgeOfEgos**

odinsgrandson wrote:
AgeOfEgos wrote:
odinsgrandson wrote: Privateer Press is becoming a pretty large company (with both Warmachine and Hordes individually outselling WFB, but trailing to 40k). Malifaux sales are trailing right behind Warhammer Fantasy Battle right now.

I agree that PP is doing exceedingly well---however where are you getting your numbers?

The ICV2 Website often ranks sales of the larger miniatures companies. Also, PP had to double their production.

Hey that's a terrific website, thanks for that!

Interesting---looks like WM is outselling Fantasy (according to their formula).

**Kroothawk**

odinsgrandson wrote: Also, PP had to double their production.

And GW in their "continuous growth so big that they can't put more money into it", had to reduce production by about a third since 2005. So everyone has his problems

**Cane**

I like that GW is spreading their IP around to DVD's and big budget video games.

What I don't like the most? Price hikes like everyone else. I would've purchased many more starter sets for example as that was one of the few remaining good deals they had until a few months ago.

GW needs to stop raising prices and add more bang for our bucks or they'll slowly bleed to death. Oh yea and more Imperial Guard plastics please.