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Made in gb
Stitch Counter






Rowlands Gill

Very interesting indeed.

No big surprises though!

The key message for me (other than more patronising BS from Kirby) is what has happened to group turnover.

Look at the five year summary.

Turnover in 2002 was £109m. Turnover in 2006 was £115m. That is an increase of only 6%. Now we know that GW prices have increased by a lot more than 6% in that time! That means the volume of product sold has reduced in that period!

Whatever flim flam Kirby wants to throw up he cannot hide the fact that they are selling less product now than they were 4 years ago! Given LotR contributes (even after the bursting bubble - just ask any GW retail staff) a larger slice of the pie than it did in '02, it seems 40k, WFB and the rest are still struggling.

One glimmer of hope was that sales in the second half of the year were greater than in the first half, so there may be the " green="" shoots="" recovery="" to="" be="" seen="" there="" still="" depends="" on="" success="" of="" wfb="" though="" lets="" hope="" 7th="" edition="" is="" a="" lot="" better="" produced="" and="" tested="" than="" 4th="" ed="" 40k="" or="" the="" one="" rulebook="" for="" lotr="" were="">

Leaving aside the numbers now, the two key messages I get from Kirby's own comments are that:

1/ They take the UK market for granted.
2/ They are blaming the US FLGS's for committing suicide and want to concentrate US stores in big Metro areas.

I forsee a lot more complaints and whinges on the Interweb Forae as these policies continue to bite...

Oh, go for the full story.

Cheers
Paul 
   
Made in gb
Stitch Counter






Rowlands Gill

P.s. I dunno what all the inverted commas are all about there.... I blame the text editor!!  Sorry!

Cheers
Paul 
   
Made in us
Plastictrees



Amongst the Stars, In the Night

Yes, blame the terrible text editor that won't let one actually edit their damn posts (wasn't that supposed to get fixed months ago?!?). Also, for some reason, your first link is off, but this one should work: Five Year Financials.

Wow. They are hemmorhaging sales! Only £1.9m total profit! That is terrible, terrible! Worse, their year end net (borrowed)/funds has them at a negative £2.2m! Raise them prices again, GW, and continue to cut out alternative revenue streams. That's been working really well for ya. More Tom Kirby snark for ya: "On the 'investor relations' section of our corporate web site (which has all our annual reports since 2001, and the institutional presentations we make) there is a place where people can post questions for me to answer. Mostly they are about what new models we are planning (read White Dwarf), or why we haven't got a store in Omaha, Nebraska (yet), or why we put our prices up all the time (we don't)" O rly?

Here's another whingdinger: "This year our sales and profits have fallen for two main reasons: firstly, the continuing decline in sales following an exceptional trading period *, and secondly, the continued reduction in our sales to independent toy and hobby retailers, notably in the US, where many smaller independent operators are ceasing to trade." Notice they are still trying to pawn off their lackluster sales on the LotR bubble! Oh, and it's the LFGS fault that they had been getting repeatedly screwed by GW, particularly with the US reorganization. Uh-huh. I understand that for some, this has changed (ie: Mikhalia has had exemplary support), but I still hear my LFGS grousing over GW (whether or not it's justified, I don't know). Not to mention GWUS's continuing ban on online sales.

Truly amazing stuff. I'll post more when I've finished reading.

OT Zone: A More Wretched Hive of Scum and Villany
The Loyal Slave learns to Love the Lash! 
   
Made in us
5th God of Chaos! (Yea'rly!)




The Great State of Texas

 

 

 

for the year to 28 May 2006

<TABLE cellSpacing=0 cellPadding=1 width=580 border=0> <TBODY> <TR> <TH class=small width=405> </TH> <TH class=small vAlign=bottom align=right width=35>Notes</TH> <TH class=small vAlign=bottom align=right width=70>2006
£000
</TH> <TH class=small vAlign=bottom align=right width=70>2005
£000</TH></TR> <TR> <TD class=small colSpan=4></TD></TR> <TR> <TD class=small>Revenue</TD> <TD class=small align=right>3</TD> <TD class=small align=right>115,150</TD> <TD class=small align=right>136,647</TD></TR> <TR> <TD class=small>Cost of sales</TD> <TD class=small align=right> </TD> <TD class=small align=right>(34,265)</TD> <TD class=small align=right>(42,126)</TD></TR> <TR> <TD class=small colSpan=4></TD></TR> <TR> <TD class=small>Gross profit</TD> <TD class=small align=right> </TD> <TD class=small align=right>80,885</TD> <TD class=small align=right>94,521</TD></TR> <TR> <TD class=small>Operating expenses</TD> <TD class=small align=right>4</TD> <TD class=small align=right>(77,838)</TD> <TD class=small align=right>(80,594)</TD></TR> <TR> <TD class=small>Other operating income - royalties receivable </TD> <TD class=small align=right> </TD> <TD class=small align=right>1,170</TD> <TD class=small align=right>374</TD></TR> <TR> <TD class=small colSpan=4></TD></TR> <TR> <TD class=small>Operating profit</TD> <TD class=small align=right>3</TD> <TD class=small align=right>4,217</TD> <TD class=small align=right>14,301</TD></TR> <TR> <TD class=small>Finance income </TD> <TD class=small align=right>6</TD> <TD class=small align=right>238</TD> <TD class=small align=right>348</TD></TR> <TR> <TD class=small>Finance costs </TD> <TD class=small align=right>7</TD> <TD class=small align=right>(797)</TD> <TD class=small align=right>(740)</TD></TR> <TR> <TD class=small colSpan=4></TD></TR> <TR> <TD class=small>Profit before taxation</TD> <TD class=small align=right>8</TD> <TD class=small align=right>3,658</TD> <TD class=small align=right>13,909</TD></TR> <TR> <TD class=small>Income tax expense</TD> <TD class=small align=right>9</TD> <TD class=small align=right>(1,660)</TD> <TD class=small align=right>(4,889)</TD></TR> <TR> <TD class=small colSpan=4></TD></TR> <TR> <TD class=small>Profit attributable to equity shareholders</TD> <TD class=small align=right> </TD> <TD class=small align=right>1,998</TD> <TD class=small align=right>9,020</TD></TR> <TR> <TD class=small colSpan=4></TD></TR> <TR> <TD class=small colSpan=4>Earnings per share for profit attributable to the equity shareholders of the Company during the year (expressed in pence per share):</TD></TR> <TR> <TD class=small>Basic earnings per ordinary share</TD> <TD class=small align=right>10</TD> <TD class=small align=right>6.5p</TD> <TD class=small align=right>29.4p</TD></TR> <TR> <TD class=small>Diluted earnings per ordinary share</TD> <TD class=small align=right>10</TD> <TD class=small align=right>6.4p</TD> <TD class=small align=right>29.0p</TD></TR></TBODY></TABLE>

 

<TABLE cellSpacing=0 cellPadding=1 width=580 border=0> <TBODY> <TR> <TH width=305 rowSpan=2></TH> <TH class=small vAlign=bottom align=right width=35 rowSpan=2>Notes</TH> <TH class=small align=middle colSpan=2>Group</TH> <TH class=small align=middle colSpan=2>Company</TH></TR> <TR> <TH class=small align=right width=60>2006
£000
</TH> <TH class=small align=right width=60>2005
£000</TH> <TH class=small align=right width=60>2006
£000
</TH> <TH class=small align=right width=60>2005
£000</TH></TR> <TR> <TD colSpan=6></TD></TR> <TR> <TD class=small colSpan=6>Non-current assets</TD></TR> <TR> <TD class=small>Goodwill</TD> <TD class=small align=right>12</TD> <TD class=small align=right>2,449</TD> <TD class=small align=right>2,468</TD> <TD class=small align=right>-</TD> <TD class=small align=right>-</TD></TR> <TR> <TD class=small>Other intangible assets</TD> <TD class=small align=right>13</TD> <TD class=small align=right>4,320</TD> <TD class=small align=right>4,008</TD> <TD class=small align=right>-</TD> <TD class=small align=right>-</TD></TR> <TR> <TD class=small>Property, plant and equipment</TD> <TD class=small align=right>14</TD> <TD class=small align=right>29,475</TD> <TD class=small align=right>28,959</TD> <TD class=small align=right>-</TD> <TD class=small align=right>-</TD></TR> <TR> <TD class=small>Investments in subsidiaries</TD> <TD class=small align=right>15</TD> <TD class=small align=right>-</TD> <TD class=small align=right>-</TD> <TD class=small align=right>30,281</TD> <TD class=small align=right>30,281</TD></TR> <TR> <TD class=small>Other receivables</TD> <TD class=small align=right>18</TD> <TD class=small align=right>712</TD> <TD class=small align=right>674</TD> <TD class=small align=right>3,900</TD> <TD class=small align=right>3,900</TD></TR> <TR> <TD class=small>Deferred income tax assets</TD> <TD class=small align=right>16</TD> <TD class=small align=right>2,121</TD> <TD class=small align=right>2,178</TD> <TD class=small align=right>30</TD> <TD class=small align=right>57</TD></TR> <TR> <TD colSpan=6></TD></TR> <TR> <TD class=small></TD> <TD class=small align=right></TD> <TD class=small align=right>39,077</TD> <TD class=small align=right>38,287</TD> <TD class=small align=right>34,211</TD> <TD class=small align=right>34,238</TD></TR> <TR> <TD colSpan=6></TD></TR> <TR> <TD class=small colSpan=6>Current assets</TD></TR> <TR> <TD class=small>Inventories</TD> <TD class=small align=right>17</TD> <TD class=small align=right>12,407</TD> <TD class=small align=right>12,838</TD> <TD class=small align=right>-</TD> <TD class=small align=right>-</TD></TR> <TR> <TD class=small>Trade and other receivables</TD> <TD class=small align=right>18</TD> <TD class=small align=right>9,081</TD> <TD class=small align=right>10,075</TD> <TD class=small align=right>2,841</TD> <TD class=small align=right>4,028</TD></TR> <TR> <TD class=small>Current tax assets</TD> <TD class=small align=right> </TD> <TD class=small align=right>382</TD> <TD class=small align=right>308</TD> <TD class=small align=right>-</TD> <TD class=small align=right>-</TD></TR> <TR> <TD class=small>Financial assets - derivative financial instruments</TD> <TD class=small align=right>21</TD> <TD class=small align=right>181</TD> <TD class=small align=right>476</TD> <TD class=small align=right>-</TD> <TD class=small align=right>-</TD></TR> <TR> <TD class=small>Cash and cash equivalents</TD> <TD class=small align=right>19</TD> <TD class=small align=right>6,444</TD> <TD class=small align=right>8,622</TD> <TD class=small align=right>-</TD> <TD class=small align=right>2,115</TD></TR> <TR> <TD colSpan=6></TD></TR> <TR> <TD class=small> </TD> <TD class=small vAlign=bottom align=right> </TD> <TD class=small vAlign=bottom align=right>28,495</TD> <TD class=small vAlign=bottom align=right>32,319</TD> <TD class=small vAlign=bottom align=right>2,841</TD> <TD class=small vAlign=bottom align=right>6,143</TD></TR> <TR> <TD class=small colSpan=6></TD></TR> <TR> <TD class=small>Total assets </TD> <TD class=small vAlign=bottom align=right> </TD> <TD class=small vAlign=bottom align=right>67,572</TD> <TD class=small vAlign=bottom align=right>70,606</TD> <TD class=small vAlign=bottom align=right>37,052</TD> <TD class=small vAlign=bottom align=right>40,381</TD></TR> <TR> <TD colSpan=6></TD></TR> <TR> <TD class=small>Current liabilities </TD> <TD class=small align=right></TD> <TD class=small align=right> </TD> <TD class=small align=right> </TD> <TD class=small align=right> </TD> <TD class=small align=right> </TD></TR> <TR> <TD class=small>Financial liabilities - borrowings</TD> <TD class=small align=right>20</TD> <TD class=small align=right>(1,705)</TD> <TD class=small align=right>(143)</TD> <TD class=small align=right>(808)</TD> <TD class=small align=right>-</TD></TR> <TR> <TD class=small>Financial liabilities - derivative financial instruments</TD> <TD class=small vAlign=bottom align=right>21</TD> <TD class=small vAlign=bottom align=right>(14)</TD> <TD class=small vAlign=bottom align=right>(109)</TD> <TD class=small vAlign=bottom align=right>-</TD> <TD class=small vAlign=bottom align=right>-</TD></TR> <TR> <TD class=small>Trade and other payables</TD> <TD class=small align=right>22</TD> <TD class=small align=right>(15,714)</TD> <TD class=small align=right>(17,726)</TD> <TD class=small align=right>(2,979)</TD> <TD class=small align=right>(3,016)</TD></TR> <TR> <TD class=small>Current income tax liabilities</TD> <TD class=small align=right></TD> <TD class=small align=right>(415)</TD> <TD class=small align=right>(2,005)</TD> <TD class=small align=right>-</TD> <TD class=small align=right>-</TD></TR> <TR> <TD class=small>Provisions</TD> <TD class=small align=right>24</TD> <TD class=small align=right>(584)</TD> <TD class=small align=right>(322)</TD> <TD class=small align=right>(3)</TD> <TD class=small align=right>(3)</TD></TR> <TR> <TD class=small colSpan=6></TD></TR> <TR> <TD class=small> </TD> <TD class=small align=right></TD> <TD class=small align=right>(18,432)</TD> <TD class=small align=right>(20,305)</TD> <TD class=small align=right>(3,790)</TD> <TD class=small align=right>(3,019)</TD></TR> <TR> <TD class=small colSpan=6></TD></TR> <TR> <TD class=small>Net current assets/(liabilities)</TD> <TD class=small align=right></TD> <TD class=small align=right>10,063</TD> <TD class=small align=right>12,014</TD> <TD class=small align=right>(949)</TD> <TD class=small align=right>3,124</TD></TR> <TR> <TD colSpan=6></TD></TR> <TR> <TD class=small>Non-current liabilities</TD> <TD class=small align=right></TD> <TD class=small align=right> </TD> <TD class=small align=right> </TD> <TD class=small align=right> </TD> <TD class=small align=right> </TD></TR> <TR> <TD class=small>Financial liabilities - borrowings</TD> <TD class=small align=right>20</TD> <TD class=small align=right>(6,960)</TD> <TD class=small align=right>(5,038)</TD> <TD class=small align=right>(2,600)</TD> <TD class=small align=right>(5,000)</TD></TR> <TR> <TD class=small>Other non-current liabilities</TD> <TD class=small align=right>23</TD> <TD class=small align=right>(1,317)</TD> <TD class=small align=right>(640)</TD> <TD class=small align=right>(1,503)</TD> <TD class=small align=right>(1,503)</TD></TR> <TR> <TD class=small vAlign=bottom>Provisions</TD> <TD class=small vAlign=bottom align=right>24</TD> <TD class=small vAlign=bottom align=right>(927)</TD> <TD class=small vAlign=bottom align=right>(881)</TD> <TD class=small vAlign=bottom align=right>(17)</TD> <TD class=small vAlign=bottom align=right>(13)</TD></TR> <TR> <TD class=small colSpan=6></TD></TR> <TR> <TD class=small> </TD> <TD class=small align=right> </TD> <TD class=small align=right>(9,204)</TD> <TD class=small align=right>(6,559)</TD> <TD class=small align=right>(4,120)</TD> <TD class=small align=right>(6,516)</TD></TR> <TR> <TD colSpan=6></TD></TR> <TR> <TD class=small>Net assets</TD> <TD class=small align=right></TD> <TD class=small align=right>39,936</TD> <TD class=small align=right>43,742</TD> <TD class=small align=right>29,142</TD> <TD class=small align=right>30,846</TD></TR> <TR> <TD colSpan=6></TD></TR> <TR> <TD class=small colSpan=6>
Capital and reserves
</TD></TR> <TR> <TD class=small>Called up share capital</TD> <TD class=small align=right>25</TD> <TD class=small align=right>1,556</TD> <TD class=small align=right>1,553</TD> <TD class=small align=right>1,556</TD> <TD class=small align=right>1,553</TD></TR> <TR> <TD class=small>Share premium</TD> <TD class=small align=right>25</TD> <TD class=small align=right>7,822</TD> <TD class=small align=right>7,592</TD> <TD class=small align=right>7,822</TD> <TD class=small align=right>7,592</TD></TR> <TR> <TD class=small>Other reserves </TD> <TD class=small align=right>26</TD> <TD class=small align=right>(536)</TD> <TD class=small align=right>(231)</TD> <TD class=small align=right>101</TD> <TD class=small align=right>101</TD></TR> <TR> <TD class=small>Retained earnings </TD> <TD class=small align=right>27</TD> <TD class=small align=right>31,094</TD> <TD class=small align=right>34,828</TD> <TD class=small align=right>19,663</TD> <TD class=small align=right>21,600</TD></TR> <TR> <TD colSpan=6></TD></TR> <TR> <TD class=small>Total shareholders' equity</TD> <TD class=small align=right></TD> <TD class=small align=right>39,936</TD> <TD class=small align=right>43,742</TD> <TD class=small align=right>29,142</TD> <TD class=small align=right>30,846</TD></TR> <TR> <TD colSpan=6></TD></TR></TBODY></TABLE>


-"Wait a minute.....who is that Frazz is talking to in the gallery? Hmmm something is going on here.....Oh.... it seems there is some dispute over video taping of some sort......Frazz is really upset now..........wait a minute......whats he go there.......is it? Can it be?....Frazz has just unleashed his hidden weiner dog from his mini bag, while quoting shakespeares "Let slip the dogs the war!!" GG
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-TBone the Magnificent 1999-2014, Long Live the King!
 
   
Made in us
Sneaky Kommando



Texas

GW management can try to spin this however they want, but the simple fact is Kirby and company continue to make bad business decisions, and it's being clearly reflected in their revenues and profits.  Their profits fell 73%!!!

Keep in mind this is during a strong economy where the Fed is raising rates to control inflation. What do you thinks going to happen when the economy slows as those rates take further effect?  Unless the latest edition of Warhammer is a major success, things don't bode too well for GW in late 2006/early 2007.


Copy at your own risk 
   
Made in gb
Longtime Dakkanaut





Isn't that borrowing subsumed under the operating costs?

Either way, the outlook isn't completely doom and gloom. Operating costs were a hug issue in the UK and Europe, and hopefully they are on top of those now. The investment in the Nottingham HQ is completed, more or less, and they ploughed a lot into that. Plus while Fidelity might not be thrilled, I've no objections to Tom Kirby perusing a long-term strategy rather than focusing on month by month share-price.

I can't really comment on the FLGS situation. If I was in charge at GW, though, I would do everything I could to stop internet tradings and ebay shops... I would, however, redevelop there website store so it looks somewhat less venerable.

Last year didn't have a huge amount of product for their core games. The only WFB release of the period were Wood Elves, while in 40K the new Carnifex is only major new line release that was going to sell multiple iterations. Black Templars got nothing, while Tau Empire simply used old models (and I don't see people rushing out to buy Skyrays somehow). WFB VII and Eldar, however, are major new products. Lets hope both look right and play right.

I still think they lack a buy-in game; something like 40K 'warbands' or 'confrontation' has to come eventually.


Hodge-Podge says: Run with the Devil, Shout Satan's Might. Deathtongue! Deathtongue! The Beast arises tonight!
 
   
Made in de
Rampaging Carnifex






Franconia

Wow... more GW to the malls ! Are that those mall stores everyone complains about because parents let their children run free in it until they've done their buyings ? And a free retailer suicide in the US ? I hope that does not happen in germany my free retailer has wife and kids.

I know when it is closing time. - Rascal Mod

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Made in gb
Regular Dakkanaut





Tom kirby is a drunken fool that deserves to be shot. at very least kicked out of his position.

Opening up stores and raising prices is a cheap way out!

Why don't you try putting money INTO the company like support and something new for each army every 2 or 3 months!

I bet mr kirby doesn't even play the games. It's just another wrecked buisness on his financial trophy wall
   
Made in gb
Longtime Dakkanaut





Uhh, yeah...

 

Well, the share price seems to be rising for a change, so perhaps those more financially astute than use know something... although the same happened last year and we all know what followed ...


Hodge-Podge says: Run with the Devil, Shout Satan's Might. Deathtongue! Deathtongue! The Beast arises tonight!
 
   
Made in us
Secretive Dark Angels Veteran




Baltimore, MD

Posted By torgoch on 07/25/2006 7:13 AM
I still think they lack a buy-in game; something like 40K 'warbands' or 'confrontation' has to come eventually.


What?!?!  You obviously haven't been sippin' the Kool Aid.  That's what 40k in a Flash/Kill Teams is for.  Now drink up. 

Proud owner of &


Play the game, not the rules.
 
   
Made in us
Sneaky Kommando



Texas

The share price may have increased slightly, recently, but sales continue to decline.  Kirby stated that, "In the first half of the year we reported a sales decline of 20%. In the second
half this decline slowed to 12%."  Double digit sales declines are bad, really bad, especially for several quarters in a row.

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Made in gb
Been Around the Block




Reading, UK

Revenue for the last six months was largely equal to the previous six, yet pre-tax profit went up from £0.1m to £3.6m. I don?t think Tom Kirby will be jumping out any windows soon.

Probably why the share price has risen. The full year results are irrelevant. The City already knows the first six months; they just care about the last six and the outlook for the future (if there is one).
   
Made in gb
Longtime Dakkanaut





Neither combat patrol nor Kill Team are products.

Games Workshop have this kind of dichotomy at their core, in that both they and gamers want to produce interesting figures, but currently the rules are for large armies of similar characterless models. A proper 40k 'warbands' game would be a useful intro point to the hobby, while giving people the excuse to really play around with their models and GW a reason to produce the moer characterful figures they hint at in the Demonhunters style forces

 


Hodge-Podge says: Run with the Devil, Shout Satan's Might. Deathtongue! Deathtongue! The Beast arises tonight!
 
   
Made in us
Sneaky Kommando



Texas

Well Kirby himself isn't willing to call a turnaround.  "We believe that the business is now
returning to growth. With 42% of our sales made to independent retailers,
however, 'calling the turn' is difficult." 

Those independent retailers that account for 42% of their sales continue to drop their product.  In the Americas, for example, the number of independent retailers that carry their products dropped from 875 to 729 (a 17% decline).  During that same time, GW added a whole 2 new GW stores in the Americas.

 


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Fireknife Shas'el





A bizarre array of focusing mirrors and lenses turning my phrases into even more accurate clones of

Nice. I looked at the Independent Auditors' report and they conclude the review was fair and true. So I don't want to hear it from any of you how people are lying around here!

WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS

2009, Year of the Dog
 
   
Made in us
Raging Rat Ogre




Off Exhibit

Posted By torgoch on 07/25/2006 7:13 AM
and I don't see people rushing out to buy Skyrays somehow


Well, since the Skyray box has the parts to make a hammerhead or ionhead as well, for the same price, I don't see the point in buying a hammerhead box anymore.

'Give me a fragging hand, Kage. Silence the fragging woman, Kage. Fragging eat the brains, Kage'

OT Zone - a more wretched hive of scum and villainy .
 
   
Made in us
Fireknife Shas'el





A bizarre array of focusing mirrors and lenses turning my phrases into even more accurate clones of

Well, since the Skyray box has the parts to make a hammerhead or ionhead as well, for the same price, I don't see the point in buying a hammerhead box anymore.


I think the point he was trying to make is that since virtually everything in the "new" tau line is still the same old models, everyone already has their hammerheads and the skyray's practically useless.

WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS WARHAMS

2009, Year of the Dog
 
   
Made in gb
Been Around the Block




Reading, UK

Yeah, it?s misleading to go on about a sales decline. Yes, the last six months were worse than the six months to May 05, but they were better than the six months to November 05.

That?s the first half vs previous half increase in three years.

There isn?t really a lot for the doom mongers to on here.
   
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On the 'investor relations' section of our corporate web site (which has all our annual reports since 2001, and the institutional presentations we make) there is a place where people can post questions for me to answer. Mostly they are about what new models we are planning (read White Dwarf), or why we haven't got a store in Omaha, Nebraska (yet), or why we put our prices up all the time (we don't) but every now and then I get one that touches on something that needs to be explained. Blair Svendson from Missouri asked '[why am I] seeing my favorite independent hobby stores going out of business?'. He was referring to the United States, and so is my response. This is a question that concerns all of us at Games Workshop - staff, managers, customers and owners. I'm not certain I know THE answer, but I have an explanation that fits the facts. Most of these small owner-manager hobby stores have thrived over the last 20 years or so on role play games, collectible card games (CCGs) and niche merchandise from fantasy movie imagery. Role play games and movie merchandise are in decline; CCGs can now be bought in mass market outlets which hurts hobby store sales. Many of these stores carry our products very successfully, but they are not enough to support the whole store. Additionally many of these stores are run as lifestyle enterprises rather than as for profit businesses; when times get hard they sometimes respond slowly and weakly which can be, and has been in many cases, disastrous.


I think this bit is bang on the money. I know a LOT of hobby store owners and I hear a LOT more complaints about players buying their cards by the case at Walmart on the cheap. CCG and RPG revenues account for a lot of independant store business (especially where there's competitive gaming). The CCG business for example can turn a huge amount of revenues as it has been designed to be release driven. Most competitive CCG's are built around a set tournament system that updates every quarter when a new set comes out. When that happens, if a proportion of your gaming community buys their cards in bulk somewhere else that's going to hurt. People are selling singles on Ebay and online and it has become cheaper than buying them from a independant retailer.

Now of course this is only a part of the problem, but I think that the internet and large retail outlets (Walmart, Target, etc) are definately responsible for the decline of ALL small niche businesses. I think the death of the FLGS has to do with all the factors Kirby mentions, not just the fact that they carried GW stuff. It's a more complex picture than just one product line.

An interesting report!

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Bucharest, Romania

Posted By torgoch on 07/25/2006 7:13 AM
I can't really comment on the FLGS situation. If I was in charge at GW, though, I would do everything I could to stop internet tradings and ebay shops... I would, however, redevelop there website store so it looks somewhat less venerable.

Last year didn't have a huge amount of product for their core games. The only WFB release of the period were Wood Elves, while in 40K the new Carnifex is only major new line release that was going to sell multiple iterations. Black Templars got nothing, while Tau Empire simply used old models (and I don't see people rushing out to buy Skyrays somehow). WFB VII and Eldar, however, are major new products. Lets hope both look right and play right.
 
 

I disagree. I think GW would actually be smarter if they set up their own "Ebay" seller store. The Ebay market is just too huge to fight, especially with something as pricey as GW products. If GW were smart, they would try to compete with FLGS and locals who sell GW products on Ebay at a slight discount. I say slight, because alot of the items the Ebayers sell are not too discounted compared to what you can but at a FLGS. (I'm only talking boxed models).

GW should also rework their bitz market. Make it easier for blokes to buy bitz and not have to pay alot of $$$ for S&H of a couple of small bitz.

Looking at the financials, the good news is GW is still making a profit. I think they still can blame the LOTR bubble to some extent. They didn't have alot of new products coming on-line recently to help cushion the fall after the bubble burst, and so we see this significant drop in profits. But, the bottom-line is still black, which means GW is still doing something right.

-Jmz


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Posted By Bombot on 07/25/2006 9:42 AM
Yeah, it?s misleading to go on about a sales decline. Yes, the last six months were worse than the six months to May 05, but they were better than the six months to November 05.

That?s the first half vs previous half increase in three years.

There isn?t really a lot for the doom mongers to on here.
 
 
Sales have declined by 32% over the past year and profits went down by 73%.  There's nothing misleading or good about either of these facts.  What that means in plain terms is the hobby is currently shrinking. 
 
 



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I've already explained why those figures dosn't show the relevant picture. The first half of the year had all the bad news. You can ignore what I say but the City is following my view. It's happy enough with the results.
   
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Texas

Posted By derekatkinson on 07/25/2006 9:23 AM
Posted By Tazok on 07/25/2006 7:28 AM
The share price may have increased slightly, recently, but sales continue to decline.  Kirby stated that, " second
half this decline slowed to 12%."  Double digit sales declines are bad, really bad, especially for several quarters in a row.


Yeah the shares going up 11% off of earnings on an illiquid name is surely a sign that the company has been doing something wrong. LOL  I'll take your slight returns any day of the week. GW released earnings after the close so it wasn't traded after hours, only indicated higher. 

Remember, GW is a small company with very few shares available for trade.

 

GW was down graded today by Altrium Securities. 

Looking at the stock's performance for one day is idiotic.  Here's a link to GW's stock performance its been horrible for the past few years.  http://mwprices.ft.com/custom/ft2-com/html-quotechartnews.asp?symb=UK%3AGAW&

 

 

 

 




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Reading, UK

Looking at the stock's performance for one day is idiotic. Here's a link to GW's stock performance its been horrible for the past few years. http://mwprices.ft.com/custom/ft2-com/html-quotechartnews.asp?symb=UK%3AGAW&


That?s because GW?s results have been on the slide for the past three years. As I?ve already said, that trend has stopped. Tom Kirby wasn?t actually completely lying when talking about the LOTR bubble. Imagine that?
   
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Posted By Bombot on 07/25/2006 10:52 AM
I've already explained why those figures dosn't show the relevant picture. The first half of the year had all the bad news. You can ignore what I say but the City is following my view. It's happy enough with the results.



Well, as an accountant in both England and USA, I can tell you I don't like the look of those results, the balance sheet still remains relatively strong. The net profit %age drop I definitely don't like, but if they cut enough costs that will recover.

I would however buy any shares offerred up for sale if I had that much money spare because at some point some-one is going to get it and fix it. Lets have the this discussion in 10 days time when the euphoria that they didn't lose money drops off.

Maybe they told some people they were going to release some FAQ's and everyone would stop playing WM and FOW and come back to the light.


2014 will be the year of zero GW purchases. Kneadite instead of GS, no paints or models. 2014 will be the year I finally make the move to military models and away from miniature games. 
   
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Somewhere in southern England.

GW UK seems quite happy to allow internet sales via independent sellers on eBay. There are several shops (they may physically be shops which also do mail order, or just virtual shops) who list themselves as official resellers of GW stuff. Track94 for example. They've been going at least a couple of years.

GW make money on every GW item sold at retail (not secondhand, obviously) whoever sells it. As such I don't understand why GW US seems to be so anti-independent sellers.

Petition to stop ratification of EU Article 13 on Internet Copyright

We're not very big on official rules. Rules lead to people looking for loopholes. What's here is about it. 
   
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The Great State of Texas

I still would like to see an indendent report on this sector. I am not convinced that there is not an overall downward trend in the sector itself. I don't see new GW stores, but I don't see new independents either.

-"Wait a minute.....who is that Frazz is talking to in the gallery? Hmmm something is going on here.....Oh.... it seems there is some dispute over video taping of some sort......Frazz is really upset now..........wait a minute......whats he go there.......is it? Can it be?....Frazz has just unleashed his hidden weiner dog from his mini bag, while quoting shakespeares "Let slip the dogs the war!!" GG
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jfrazell: If the sector was in significant decline I doubt that Warmachine and Flames of War would have enjoyed the impressive gains they've made in the past year.
   
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Posted By fullheadofhair on 07/25/2006 11:11 AM

Maybe they told some people they were going to release some FAQ's and everyone would stop playing WM and FOW and come back to the light.

 

If that's the light, I'm perfectly happy with the darkness of my pirate eyepatch.  In fact, I'll wear two.  Privateer Press FTW!



   
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Posted By Jeff on 07/25/2006 11:35 AM
jfrazell: If the sector was in significant decline I doubt that Warmachine and Flames of War would have enjoyed the impressive gains they've made in the past year.

 

I would not mind betting that the mini sector is in decline, but at the same time you are seeing cannibalisation as veterans move away from GW (75% because of the GW attitude I would say) , and it is also a safe bet that same veterans in FLGs and guiding newbies away from GW as well.

The sector is also facing big pressures from other forms of gaming - mainly electronic (xbox 360 anyone ? + also various types of  mmog'ing)

That is the bit that is the killer for me - it is the long term base that GW has undermined.

Also, lets not forget the cost of everything else is rising - impact on disposable dollar.


2014 will be the year of zero GW purchases. Kneadite instead of GS, no paints or models. 2014 will be the year I finally make the move to military models and away from miniature games. 
   
 
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