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Games Workshop (LSE:GAW) released another extraordinary trading update on Tuesday (29 July), sending its shares close to recent record peaks.
Long-term investors like me have learned to expect the unexpected from the fantasy wargaming specialist. But bat-related news probably wasn’t on anyone’s bingo card, and is probably a first for the London stock market.
In a footnote to its update, the FTSE 100 company drew special attention to “the cute looking pipistrelle bat that is delaying our work on our new temporary car park“. Animal lovers needn’t be alarmed, by the way–Games Workshop added that “we are carefully looking after the bat“.
Aside from that nature update, there were some other unexpected things for shareholders to digest, too. Both revenues and pre-tax profits came in ahead of City forecasts, at £617.5m and £262.8m, respectively, in the financial year to May 2025.
The company had forecast figures of at least £610m and £255m two months ago. And it sent Games Workshop’s share price close to June’s all-time high of £167.30.
Profits powerhouse
This week’s update underlines why Games Workshop is one of my favourite FTSE 100 growth shares. It just keeps delivering outstanding trading performances, even when economic conditions are tough and consumer spending power fades.
Sales were up 18% year on year in 2025, while pre-tax profit increased 30%. Earnings per share, meanwhile, also increased 30% to 594.9p per share.
The company’s products — spearheaded by the famous Warhammer 40,000 sci-fi franchise — are in high demand at all points of the economic cycle. Their quality and brand power provides an economic moat that supports strong revenues growth even during broader market downturns.
These advantages also mean Games Workshop enjoys the luxury of world-class margins. Last year, the core gross margin rose 10 basis points year on year to 69.5%. This fatty percentage gave the bottom line another substantial boost.
Licence to grow
It’s great to see the company’s box sets, paints, and other game-related products continue flying off the shelves. But what’s got me especially excited is the rate at which licensing revenues are growing.
While sales across its core operations rose a healthy 14% last year, licencing revenue growth of 69% was truly outstanding.
This reflected forecast-beating sales of its Space Marine 2 video game. Games Workshop is sitting on a goldmine of intellectual property (IP), and is ramping up partnerships and licensing deals with media producers to capitalise on it and turbocharge long-term growth.
Financial 2025’s strong numbers bode well, with Space Marine 3 in the works and Amazon starting work on a Warhammer 40,000 film and TV series.
A top FTSE share
Annual earnings have risen 34% on average at Games Workshop over the last decade. And I’m confident it will keep delivering spectacular yearly growth over the long term.
There are some dangers it must navigate, though, such as rising protectionism in key markets. It has warned that trade tariffs will wipe £12m off pre-tax profits this year alone. Rising competition is another danger to sales and margins.
But I’m hopeful it will still keep delivering stunning returns, underpinned by its dominant market position and those ambitious licencing plans.
