Traders took a war-hammer to Games Workshop’s (LON:GAW) share price after changes to its business model prompted a slump in sales.

Revenue in the six months to 1 December tumbled to £60.5mln from £67.5mln at the halfway point a year earlier, with the fantasy miniature war games specialist blaming the decline on the rapid transition from multi-man stores to one-man stores and the reduction of trading hours across the group, which caused disruption in its retail chain.

Sales through independent stockists also declined.

Pre-tax profit fell to £7.7mln from £11.1mln the year before and the company continued with its erratic interim dividend policy by opting not to recommend one this year.

Last year it paid out an interim dividend of 18p, plus a special dividend of 24p; the year before that it paid out 29p plus a special dividend of 16p; the preceding year it paid no interim divi other than a special dividend of 20p and the two years before that it paid no interim dividends.

Management made no reference to the dividend in the interim results but did say it regarded the firm's current problems as being of a short-term nature. Tom Kirby, chairman and acting chief executive officer, said management expects to see growth return in both its own shops and in independent retail outlets.

The group has just announced a major re-organisation of its sales businesses to allow management by channel: retail, trade and direct.

Shares plunged 24% to 550.2p, wiping out all of the gains – and more – of the last year. Some investors appear to have seen the writing on the wall, as the shares had fallen from 768p at the end of November to 690.5p at the end of 2013.

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