(OT) GW Profit Statement

From: Toma Diener <peyoterattle_at_...>
Date: Sun, 10 Apr 2005 12:59:16 -0000

This is Cross Posted from the WarMaster YahooGroup: I am finding
three different interpretations of it being discussed:

1) GW stock is down 40%

2) GW stock has _not_ lost value: only their Profit Projection was
less than expected

3) GW's stock is in fact Down because of the release of the revised
Profit Projections....


Anyone out there able to actually interpret what all this means?
High Finance is not my strong suit...


<below is quoted from warmaster_yahoo>

Yes it's true. In the last 7 days GW shares have fallen from ~720 pence to
438 pence, following a profits warning issued on 4th April.

Basically, sales have been disappointing compared with budget, which is a
fairly common experience amongst UK retailers at the moment (Boots,
Jessops,
M&S, etc). I've pasted the full statement below.

Ian...

"Games Workshop Group PLC
04 April 2005


TRADING STATEMENT

In the interim results released by Games Workshop Group PLC ("Games
Workshop" or
the "Company") on 25 January 2005, we reported a slowdown in UK sales
growth;
this was against a background of a period of very strong growth in this
market,
which we had described in our 2003 and 2004 Annual Report & Accounts as a
'bubble effect, which may not be sustainable in the future'.

Trading in the period since our interim announcement has continued to be
difficult. This slowdown in sales has been most significant in the UK
and in
Continental Europe. In particular sales in the Company's March 2005
trading
period, a five week period which included the Easter holiday, were well
below
budget.

As a result, the Company is unlikely to achieve market estimates of sales
for
the current year ending 29 May 2005. These currently range between
approximately
£151 million and £162 million compared with sales in the 2004 year of
£151.8m.
After analysing trading in March, we expect group sales in the 2005
financial
year to fall below this range, although we do expect sales to exceed
comfortably
the 2003 sales figure of £129 million.

Besides working hard to improve on this sluggish sales experience, Games
Workshop continues to focus on maximising operational efficiencies so
as to
maintain the higher gross margins reported at the interim stage. In
spite of
this, the sales shortfall described above is likely to impact
materially on
the
Company's profits and earnings per share in the current year.

Games Workshop remains a highly profitable and cash generative
business. It
is
currently the intention of the Board to recommend a maintained final
dividend
for the 2005 year at the 2004 level of 14.025 pence per share. Despite
this
short-term disappointment the Directors continue to view the long-term
prospects
for the Company with great confidence.



Games Workshop Group PLC Today only: 01756 770
376
Tom Kirby, Chairman and Chief Executive Thereafter: 0115 900
4003
Michael Sherwin, Finance Director

Rawlings Financial PR Limited Tel: 01756 770
376
John Rawlings
Catriona Valentine"
Received on Sun Apr 10 2005 - 12:59:16 UTC