Fantasy miniatures maker Games Workshop’s (GAW) sales and profits for the financial year to 28 May 2018 are running ‘slightly above expectations’, extending its winning run of earnings upgrades. Yet investors should recognise sales and profits could decline in the next financial year.

Peel Hunt analyst Charles Hall has increased his year to May 2018 sales forecast for the FTSE 250 constituent by £6m to £217m and his adjusted pre-tax profit estimate by £4m to £74m (2017: £38.4m).

However he forecasts reduced sales and pre-tax profit of £200.2m and £58m respectively for the year to May 2019 due to currency issues and demanding comparatives.

Games Workshop had an exceptional first quarter last year due to the Warhammer 40K: Dark Imperium product launch and will now lap tough summer comparatives which ‘will inevitably result in lower sales in the first quarter’, says Hall, though ‘the underlying momentum should resume thereafter.’ (JC)

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