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post #1 of 47 (permalink) Old 07-30-13, 08:54 PM Thread Starter
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Default GW Annual Report 2012-2013

Links with some excerpts:

Preliminary Announcement: http://investor.games-workshop.com/w...ement-2013.pdf
Quote:
PRELIMINARY RESULTS 2013
Games Workshop Group PLC (“Games Workshop” or the “Group”) announces its preliminary results for the year ended 2 June 2013.

Highlights

Revenue
- Revenue at £ 134.6m (2012: £131.0m)
- Revenue at constant currency* at £135.6m (2012:£131.0m)

Profit
- Operating profit pre-royalties receivable at £ 20.2m (2012: £15.6m)
- Operating profit at £21.3m (2012: £19.1m)
- Profit before taxation at £21.4m (2012: £19.5m)

Earnings per share of 51.5p (2012:46.8p)

Cash generated from operations of £31.9m (2012: £28.0m)

Dividends per share declaredin the year of 58p (2012: 63p)

Tom Kirby, chairman and acting CEO of Games Workshop, said:
“Games Workshop has had a mixed year. Sales were stronger in the first half than the second, but cost control and cash management have strengthened throughout the period. We finish the year with the most profit this company has generated since flotation and have returned £18.4 million to our owners.
Annual Report: http://investor.games-workshop.com/w...title-page.pdf
Quote:
CHAIRMAN’S PREAMBLE

During the year Mark Wells left Games Workshop. After more than ten years, five as chief executive, he has gone to graze in pastures new. His tenure as CEO saw our return on capital increase from around 10% to over 50%. He is a man who truly understands about shareholder value and put that understanding into good practice. Thank you Mark, and good luck.

We have also had a shift in the balance of our owners. For three entirely different reasons each of our largest holders has done some selling. This has allowed those who have wanted to own us for a while the opportunity to buy. The fact that we have been paying a lot of surplus cash out as dividends hasn’t put them off! We’ll see what happens when we have a bad year and stop.

I have written a great deal over the years about the ‘greatest danger’ facing Games Workshop. It has usually been in response to the expression of some fear of imminent doom. When will the world tire of miniatures? (It won’t; these are not fashion items, they are hobby collectibles.) Won’t all your customers move on to computer games instead? (They didn’t; most of our current customers weren’t born when the Atari ST came out.) How about other games like Pokémon or role-playing games? (Who can remember them, now?). The evidence is there for all to see, but when it wasn’t I was seen as complacent in the face of these real dangers. I don’t think that was complacency, it’s just that we here all make a living from serving collectors and we understand them and their needs. These are paper tiger dangers. The real danger is us.

The world will not tire of miniatures, nor fantasy. The world can and does play computer games, online and on phones now, not old-style computers. Other people will produce great games and products.

The dangers lie not in these realities, but whether we keep making fantastic models and providing great services, in our management skills and just as night follows day, in our ability to find the right people to carry the business forward. This is why we put so much energy into our management training programmes and in particular how we recruit.

Put at its bluntest: we recruit for attitude, not for skills.

It makes for a lot of hard work. First every manager in the business has to take personal responsibility for the recruitment process. All of it, from start to finish. No handing it off to Human Resources, outside agencies, or anyone else. Then they have to prepare a job specification. What value does this job bring to the business? Not what is nice about it, but exactly how does it help us sell more or spend less? Then it describes what kind of person is likely to be successful at the job. That’s right. What kind of person. It is centred on their character, on their attitudes and on the behaviour we expect to see. Then it lists the top few things they have to a chieve in order to be successful at it. And that’s it. No qualifications, no degrees, no reference to experience.

This is hard to do, and impossible alone. We spend hours on it, in groups, working at getting to the heart of the issue.

Then we advertise using that job specification as a template. All jobs, always. No ‘appointments’, no patronage. And we ask the applicants to write us a letter saying why they want this job. CV optional (but we won’t look at it if the letter is pants).

The knee-jerk response from outsiders is nearly always either you are doing it wrong or you will fail. Neither is true. Companies who seek out skills at the expense of attitude are destroying culture, continuity and morale and thereby shareholder value. That is wrong. And our way works well.

The effort put in rewards us in knowing who we want and why, knowing how to ask for that person, how to recognise them when we see them, and how to check that they are being successful. Win, win, win, win. Sadly it takes effort, so don’t expect to see our ways being adopted universally any time soon.

Risks. Management succession. Effort. I’ve managed to get all the key words in. Maybe the last of these is the most important.

Hard work. Accept no substitutes
.
Tom Kirby
Chairman and Acting CEO
29 July 2013
Quote:
That small increase in sales (3% or so) is a mix of strong performance in our more hobby oriented Forge World and Black Library businesses (our ‘Other businesses’) and the North American region and less good performances in Continental Europe and the UK.
(...)
Reported sales increased by 2.7% to £134.6 million for the year. On a constant currency basis, sales were up by 3.5% from £131.0 million to £135.6 million; progress was achieved in North America (+7.8%), Export (+2.3%), Asia (+10%) and in Other sales businesses (+27.2%) while sales in the UK (-1.4%), Continental Europe (-0.3%) and Australia (-4%) were in decline.
So, it looks like GW made money this last 6 months.

Last edited by Zion; 07-30-13 at 08:56 PM.
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post #2 of 47 (permalink) Old 07-30-13, 11:49 PM
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Good for them. Ive been happy with the direction theyve been taking recently. Glad its paying off for them, and hope it means more great product for us.
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post #3 of 47 (permalink) Old 07-31-13, 01:50 AM
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If reading the report correctly Australia had a net sales loss of 385,000 British Pounds.

2012 was 11,328 x 000 British Pounds
2013 was 10,944 x 000 British Pounds

But a before tax profit of 756,000 British Pounds, so just figuring this out, GW Australia slashed 1,141,000 British Pounds from their operational expenditure, this is shown as for operational expenses for Australia from.

2012 of 6,664,000 British Pounds
2013 of 5,449,000 British Pounds

This is consistant considering that many of GW Australian stores are reducing opening hours and reduction of staff, and converting some stores into one man operations. There is about 77,000 British Pounds that after reading the report that i can't locate, lost in translation.

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post #4 of 47 (permalink) Old 07-31-13, 02:08 AM
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Some interesting stuff there.

Thought provoking comments in regards of the change in the computer game market.

I see Oz is in for 4 shops to close and another 4 to open. It will be interesting to see which.

I also see that despite our higher prices, Oz revenue is 10 mill as compared to US at 36 mill, despite the US being more than 10 times our population.

US Profit is 9% of Revenue where Oz is 7% which indicates the higher overheads in Oz ?

I also see it as significant that nearly half of all revenues are generated by "product and supply" which I am guessing is the supply of stock to resellers. Which seems hardly in line with the notion that GW does not support indies or is somehow restricting their trade.
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post #5 of 47 (permalink) Old 07-31-13, 02:15 AM
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Quote:
Originally Posted by Magpie_Oz View Post
Some interesting stuff there.

Thought provoking comments in regards of the change in the computer game market.

I see Oz is in for 4 shops to close and another 4 to open. It will be interesting to see which.

I also see that despite our higher prices, Oz revenue is 10 mill as compared to US at 36 mill, despite the US being more than 10 times our population.

US Profit is 9% of Revenue where Oz is 7% which indicates the higher overheads in Oz ?

I also see it as significant that nearly half of all revenues are generated by "product and supply" which I am guessing is the supply of stock to resellers. Which seems hardly in line with the notion that GW does not support indies or is somehow restricting their trade.
Yeah considering that GW Australia had 385,000 British Pounds Sales Loss, if the report is correct, again meaning that to produce a profit they have slashed and burned their operational outlay to produce a before tax profit of 756,000 British Pounds, meaning that they slashed over 1,215,000 British Pounds from their operational side of things.

Eventually something has to give, they can't continue to gut their operation to counter sales loss.

Ultramarines are Pussies

Except Dark Angels, any chapter that sounds like a Death Metal Band can't be that bad.
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post #6 of 47 (permalink) Old 07-31-13, 02:29 AM
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Of course the report is correct.

They had a reduction in sales of about 3% but an increase in profits of about the same.

My guess is the drop in sales was due to an increase in import sales from the US and UK. I think that is what is driving the new supply agreements GW have brought in and the change to the US prices to be closer to the Oz ones on some of the newer kits.

The supply to Australian independent shops isn't shown in the summary it would be interesting to see what their results are.
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post #7 of 47 (permalink) Old 07-31-13, 02:36 AM
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Quote:
Originally Posted by Magpie_Oz View Post
Of course the report is correct.

They had a reduction in sales of about 3% but an increase in profits of about the same.

My guess is the drop in sales was due to an increase in import sales from the US and UK. I think that is what is driving the new supply agreements GW have brought in and the change to the US prices to be closer to the Oz ones on some of the newer kits.

The supply to Australian independent shops isn't shown in the summary it would be interesting to see what their results are.
Would be interesting to see, since they have had so many indies get out for whatever reason over the last few years.

Ultramarines are Pussies

Except Dark Angels, any chapter that sounds like a Death Metal Band can't be that bad.
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post #8 of 47 (permalink) Old 07-31-13, 02:51 AM
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Quote:
Originally Posted by Achaylus72 View Post
Would be interesting to see, since they have had so many indies get out for whatever reason over the last few years.
Have they tho' ? Last time I did a count in the White Dwarf (long weekend, raining, wife at work you know how it is) it showed an increase from the same month the previous year.

Last edited by Magpie_Oz; 07-31-13 at 04:04 AM.
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post #9 of 47 (permalink) Old 07-31-13, 03:35 AM
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When I first got into Warhammer 40k I remember I bought a kit of 30 marines (the cone shaped face shields and bumpy left shoulders) for $50ish. I would love to see some kits that offered a bit more bang for the buck.

But in the end its about profits and losses and if they took too many losses we would all lose
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post #10 of 47 (permalink) Old 07-31-13, 04:05 AM
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Quote:
Originally Posted by Magpie_Oz View Post
Have the tho' ? Last time I did a count in the White Dwarf (long weekend, raining, wife at work you know how it is) it showed an increase from the same month the previous year.
September 2011 they had over 135 indies.

Ultramarines are Pussies

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