Games Workshop lifts profits as sales stall

27th Jul 2010 07:59

Fantasy war games group Games Workshop saw sluggish sales in the year to May 30, but managed to lift profits as it cut back on costs.The company saw revenues of £126.5m, up from £125.7m the previous year, although on a constant currency basis revenues fell to £121.8m. Pre-tax profits more than doubled to £16.1m from £7.5m and Games Workshop is proposing a dividend of 25p a share having not paid one last year. Cost-cutting measures such as a staff pay freeze were implemented during the year and the company says it is continuing to look for ways to improve profitability.The sluggish sales were in spite of the fact the company opened 27 new stores during the year. 'The growth from these was not able to offset the decline in existing stores,' it said. 'Although there was some improvement in the second half, achieving consistent like for like growth in Hobby centres is currently our main focus.'Games Workshop said it saw growth in Northern Europe and North America, though continental Europe continues to decline and Australia was disappointing.