Warhammer Maker Joins U.K. Stock Market's Billionaires Club
(Bloomberg) -- The U.K. maker of Warhammer battle games saw its market value reach 1 billion pounds ($1.3 billion) for the first time on Friday, capping a spectacular share price increase over the past two years.
Games Workshop Group Plc shares rose as much as 1.6 percent to a record high after the company reported higher sales and profit, before reversing gains as analysts pointed to the likelihood of lower sales in the first quarter of the new financial year.
Warhammer table-top games have a cult following among fans internationally, and continue to attract hundreds of thousands of enthusiasts about 35 years after the game’s creation. Last year’s launch of the Dark Imperium edition of the game’s 40K version led to a sales surge, meaning the company faces demanding comparisons this time around, analysts say.
“We continue to like the long-term prospects, but the shares feel toppy given that first-quarter sales are likely to be lower than last year,” Peel Hunt’s Charles Hall wrote in a note. He has a hold recommendation on the stock.
After initially gaining as much as 1.6%, taking the market value through the 1 billion-pound barrier, the shares fell back, trading down 4.9 percent at 9:45 a.m. in London. Long-term investors needn’t worry: the stock is still up almost sixfold over the past two years.
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