GW Annual Report is Up -- Report discussion starts on pg 12

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**loki old fart**

The share holders are waking up
http://www.lse.co.uk/ShareChat.asp?ShareTicker=GAW&share=games_workshop

**Kilkrazy**

Staff costs went down 4.7% between 2013 and 2014 (Financial years).

Cost of Sales represents the cost of producing items to sell. The costs of operating the retail chain and web site are in other costs.

**Blacksails**

Well that's not a happy report.

Now I'm interested in what new and exciting money grab-errr, products we'll see prior to the half year and full year reports.

**Da Boss**

Wow, not looking good. I really expected them to do a little better considering the release of Knights, all the DLC and the new edition.

I expect next year to be even worse though, because I think 7th edition shrank the customer base, from what I've seen online at least. I'm not able to check what the situation is like in my city because GW closed the awesome giant store they had there, leaving only independents for me to purchase from who don't stock much GW stuff.

Sheesh. It's difficult to credit the language and what's being said in these reports. I mean, a lot of us make jokes about GW and you get used to it and still have in your head that it's mostly hyperbole. And then you read what Kirby thinks is suitable for a professional publication and remember that actually, we pull our friggin' punches.

**H.B.M.C.**

Blacksails wrote:
Well that's not a happy report.

Now I'm interested in what new and exciting money grab-errr, products we'll see prior to the half year and full year reports.

8th Ed 40K, on pre-order this Saturday. 9th Ed 40K, on pre-order next Saturday.

**Blacksails**

I seriously wouldn't be shocked if we saw another edition prior to the next annual report.

**Accolade**

Blacksails wrote:
I seriously wouldn't be shocked if we saw another edition prior to the next annual report.

I would love to see someone defending it.

GW is a business guys, come on, you all act like they shouldn't make money!

**prowla**

If I'd be a random investor in GW, I'd be selling my stock, too. Kirby's rant gives me a very heavy impression that they are stacking their bets on defending what they used to have - often against tiny operators like Chapterhouse - instead of expanding and grabbing new opportunities. It feels like they have no vision where to take things, and that's going to stagnate their stuff even further. Kirby stepping down is a positive sign, IMO - I'm giggling at the thought that he tries to compare himself to Steve Jobs

**Kilkrazy**

I think that would be the final nail in the coffin.

**Blacksails**

Accolade wrote:
Blacksails wrote:
I seriously wouldn't be shocked if we saw another edition prior to the next annual report.

I would love to see someone defending it.

GW is a business guys, come on, you all act like they shouldn't make money!

I'm kind of surprised I haven't seen someone defend this current report.

They're still making money, and they have money in the bank. The sky isn't falling.

**H.B.M.C.**

Accolade wrote:
I would love to see someone defending it.

GW is a business guys, come on, you all act like they shouldn't make money!

I'm honestly surprised that the thundering hordes haven't arrived yet...

**Accolade**

Blacksails wrote:
Accolade wrote:
Blacksails wrote:
I seriously wouldn't be shocked if we saw another edition prior to the next annual report.

I would love to see someone defending it.

GW is a business guys, come on, you all act like they shouldn't make money!

I'm kind of surprised I haven't seen someone defend this current report.

They're still making money, and they have money in the bank. The sky isn't falling.

Stop hatin!

**Wayniac**

Blacksails wrote:
Accolade wrote:
Blacksails wrote:
I seriously wouldn't be shocked if we saw another edition prior to the next annual report.

I would love to see someone defending it.

GW is a business guys, come on, you all act like they shouldn't make money!

I'm kind of surprised I haven't seen someone defend this current report.

They're still making money, and they have money in the bank. The sky isn't falling.

You should read the BOLS article or the Warseer thread, there are a few there

Here's one in particular from a Warseer poster named "HelloKitty"

HelloKitty (Warseer) wrote:
The new 40k edition came right at the end of the reporting period. We aren't seeing everything from the release of 7th edition yet.

I think "disaster" is a little hyperbolic. Its certainly not glowing and great and super positive but neither was the report indicative of a disaster either.

I do wonder though if they're going to address this, or indeed if they could. What would it really take? Could a price drop actually happen, and if so would it really save them? I don't think it would; Kirby and his Kronies seem to be adamant about the idea that GW products are worth every penny and it would devalue the brand to lower costs even an iota, even in the face of declining sales.

**Blacksails**

Oh, I can imagine.

I just can't imagine what goes on in people's heads who feel the need to defend the honour of a corporation that continues to gak on a game we all love(d).

Regardless, this report is pretty hard to spin in any sort of positive light. I think I covered the only reasonable positive thing, which is that they're still technically profitable and they still have money in the bank.

The rest is pretty...telling.

*Edit* Just saw the edit above.

Dear lord, are you kidding? There were also pre order figures in that report. If the new edition of your flagship game can't help boost numbers in a two week time frame, you have problems.

And remember, each person not buying a 7th ed book is also a person likely to buy a lot less in the future.

**loki old fart**

H.B.M.C. wrote:
Accolade wrote:
I would love to see someone defending it.

GW is a business guys, come on, you all act like they shouldn't make money!

I'm honestly surprised that the thundering hordes haven't arrived yet...

They're still in shock

**Kilkrazy**

The sky isn't falling, but there are some ominous creaking noises from the vaults of heaven.

GW currently have £17.55 million cash in the bank to spend against actual losses, so they could survive for several years.

**Baragash**

WayneTheGame wrote:
Blacksails wrote:
Accolade wrote:
Blacksails wrote:
I seriously wouldn't be shocked if we saw another edition prior to the next annual report.

I would love to see someone defending it.

GW is a business guys, come on, you all act like they shouldn't make money!

I'm kind of surprised I haven't seen someone defend this current report.

They're still making money, and they have money in the bank. The sky isn't falling.

You should read the BOLS article or the Warseer thread, there are a few there

Here's one in particular from a Warseer poster named "HelloKitty"

HelloKitty (Warseer) wrote:
The new 40k edition came right at the end of the reporting period. We aren't seeing everything from the release of 7th edition yet.

I think "disaster" is a little hyperbolic. Its certainly not glowing and great and super positive but neither was the report indicative of a disaster either.

I do wonder though if they're going to address this, or indeed if they could. What would it really take? Could a price drop actually happen, and if so would it really save them? I don't think it would; Kirby and his Kronies seem to be adamant about the idea that GW products are worth every penny and it would devalue the brand to lower costs even an iota, even in the face of declining sales.

Beat me to it!

HelloKitty is possibly a banned Warseerite who previously went by IcedCrow, who any frequent Warseer visitors will know is pro-GW, fault is all the players blah blah

**Blacksails**

If they start operating at a loss, wouldn't that 17M only last a few months?

That seems like enough money to cover half a year if things go truly pear shaped.

**Wayniac**

Kilkrazy wrote:
The sky isn't falling, but there are some ominous creaking noises from the vaults of heaven.

GW currently have £17.55 million cash in the bank to spend against actual losses, so they could survive for several years.

Really though I don't think any of us want them to really collapse, just wake the feth up. Although at this point, I think it might be terminal. It's likely that a new CEO is just going to be another buttkissing yes man or Krony (new word!

) that will keep the ship in the same direction, and that's the problem. Two bad reports (I think it's just been two now) aren't that bad alone, but when you don't do anything to fix it and just hope things correct themselves...

What will happen when it's three bad reports? Four? Five? They're going to realize the problem too late, if they realize it at all. I wouldn't be surprised if they think the problem is something completely unrelated (Need more stores?), and not the combination of no marketing, ludicrous prices, gakky rules, no community engagement, etc.

**alphaecho**

Kilkrazy wrote:
The sky isn't falling, but there are some ominous creaking noises from the vaults of heaven.

GW currently have £17.55 million cash in the bank to spend against actual losses, so they could survive for several years.

I saw the same thing mentioned in an analysis of Nintendo. They continue to make losses but with a couple of billion in assets, they're not in danger yet.

Although a profit has been made by GW, it seems to be in spite of their decisions not because of them.

**Wolfstan**

I think that the problem for GW is that they are in a sector that even if all was going ok, the income would be steady. I would of thought that this would of made it attractive to long term investors, who knew that they could rely on the business still making money 5, 10, 20 years on.

Lets say that they got their release times sorted, that the rules were decent and updates were regular. This would leave you with a steady churn of people joining & leaving, as well as gamer's looking for a change of army. Apart from major releases, say like LoTR or major rule changes you would probably see a steady line when it comes to turnover, with some blips connected the afore mentioned updates.

But what do I know

**Accolade**

WayneTheGame wrote:
Kilkrazy wrote:
The sky isn't falling, but there are some ominous creaking noises from the vaults of heaven.

GW currently have £17.55 million cash in the bank to spend against actual losses, so they could survive for several years.

Really though I don't think any of us want them to really collapse, just wake the feth up. Although at this point, I think it might be terminal. It's likely that a new CEO is just going to be another buttkissing yes man or Krony (new word! ) that will keep the ship in the same direction, and that's the problem. Two bad reports (I think it's just been two now) aren't that bad alone, but when you don't do anything to fix it and just hope things correct themselves...

What will happen when it's three bad reports? Four? Five? They're going to realize the problem too late, if they realize it at all. I wouldn't be surprised if they think the problem is something completely unrelated (Need more stores?), and not the combination of no marketing, ludicrous prices, gakky rules, no community engagement, etc.

I will say I personally want to see the demise of the entire upper management of GW. Tom Kirby and others at the top have built a company of yes-men to replace anyone with a hobby interest and have been seeking exploiting the customer base ever since.

I don't care that they want to make money- that is the point of any company. What I do care about is how they try to make that money. Cutting edition lifespans and up'ing prices on models yearly (either through yearly price rises or the more subtle "new codex" updates) is not a way to build customer loyalty.

**loki old fart**

Wolfstan wrote:
I think that the problem for GW is that they are in a sector that even if all was going ok, the income would be steady. I would of thought that this would of made it attractive to long term investors, who knew that they could rely on the business still making money 5, 10, 20 years on.

Lets say that they got their release times sorted, that the rules were decent and updates were regular. This would leave you with a steady churn of people joining & leaving, as well as gamer's looking for a change of army. Apart from major releases, say like LoTR or major rule changes you would probably see a steady line when it comes to turnover, with some blips connected the afore mentioned updates.

But what do I know

I agree, but thats a big IF.

**derek**

WayneTheGame wrote:
KommissarKarl wrote:
Interesting that in North America, 56% of sales are through an independant store, whereas in the UK only 28% are. That is broadly in line with what I would have expected. The store opens/closures are interesting too, I really need to get my teeth into this.

Which is part of why their predatory treatment of independent retailers is so bad. There are very few overall GW stores in the US.

And the ones that do exist offer nothing that can't be found better elsewhere, usually within close proximity due to GW's habit of putting their own retail store in relatively close proximity to an existing game store. I've always wondered why they even continued to bother with North American stores, especially since they've been shrinking them in size for the last decade, do they just not understanding the culture difference?

**lord_blackfang**

Kilkrazy wrote:
GW currently have £17.55 million cash in the bank to spend against actual losses, so they could survive for several years.

Or commission 4 new websites!

Nah, I'm kidding. £17.55 million is probably Kirby's severance pay.

**Soggy Kittenz**

So do we all believe that Kirby stepping down is a good thing or not? Personally, I will impressed if whoever is next manages to do a worse job, so improvement?

**loki old fart**

lord_blackfang wrote:
Kilkrazy wrote:
GW currently have £17.55 million cash in the bank to spend against actual losses, so they could survive for several years.

Or commission 4 new websites!

Nah, I'm kidding. £17.55 million is probably Kirby's severance pay.

It would be worth it to be rid if him.

**Accolade**

Soggy Kittenz wrote:
So do we all believe that Kirby stepping down is a good thing or not? Personally, I will impressed if whoever is next manages to do a worse job, so improvement?

To me, it's like George Lucas giving up the rights to the new Star Wars movies- the new trilogy was terrible, so I'll take basically anything else!

loki old fart wrote:
lord_blackfang wrote:
Kilkrazy wrote:
GW currently have £17.55 million cash in the bank to spend against actual losses, so they could survive for several years.

Or commission 4 new websites!

Nah, I'm kidding. £17.55 million is probably Kirby's severance pay.

It would be worth it to be rid if him.

I'm sure his next Preamble will be making the argument why he deserves that amount for severance.

**agnosto**

From the Telegraph:

You can rely on Tom Kirby to enliven his company's results with a few interesting quotes

Here’s a new way to judge a company’s performance: totally ignore the numbers.

Games Workshop (LSE: GAW.L - news) , which makes miniature figurines and fantasy games played out in alternative universes, today reported that its pre-tax profits for the year fell 42.1pc, or £9m, to £12.3m as revenues slumped from £134.6m in 2013 to £123.5m this year.

That doesn’t sound great.

But Tom Kirby, the chairman and acting chief executive of Games Workshop who is usually well known for his straight talking, had another take. He said: "Games Workshop has had a really good year.”

However, he did concede that “if your measure of 'good' is the current financial year's numbers, you may not agree”.

Mr Kirby can always be relied on to liven up his company’s results with a few bon mots . Here are some of his best.

On Games Workshop’s strategy (July 2013) :

We run a tight ship, and do our damnedest to get more sales. Everything else is just whistling Dixie.

On the company’s 2014 capital investment numbers (July 2013) :

We think it many be £9.3m. But remember that, as [19th century German military strategist Helmuth] von Moltke said, ‘No plan survives contact with the enemy’.

On a 60pc rise in the company’s share price over two months in 2009:

I don't look at it too often. That way lies madness.

On the bursting of The Lord of the Rings bubble which led to a profits warning in 2007:

It was all a bit too easy. We forgot the basic skills.

On The Lord of the Rings (January 2007) :

Personally I preferred the book. But I suppose I shouldn't say that.

..

**Azreal13**

Soggy Kittenz wrote:
So do we all believe that Kirby stepping down is a good thing or not? Personally, I will impressed if whoever is next manages to do a worse job, so improvement?

Kirby stepping down is an irrelevance, he will still hold an influential position within the company, he will be instrumental in appointing a successor, who will conform to his ideas of how the company should be run, and will still be pervasive throughout upper management due to established, long term relationships with the remainder of staff who aren't going anywhere.

We might see some small signs of change, but don't expect revolution.