Chairman claims a return to growth
Games Workshop has revealed a 73 per cent drop in full-year profits, but said it was beginning to see growth after the 'short-term difficulties of the year'.

Pre-tax profits at the wargames retailer were£3.7 million for the year to May 28, compared with£13.9 million last year. Sales were down 20 per cent in the first-half and 12 per cent in the second. Sales in continental Europe showed the greatest decline - down by£11.4 million to£48.1 million.

The group said the continued sales declines followed an exceptional period of trading in 2004 and a reduction in sales to independent toy and hobby retailers, particularly in the US.

Chairman and chief executive Tom Kirby said: 'We believe that the business is now returning to growth. Throughout spring 2006 our year-on-year performance has been improving and - by the end of the year, our Games Workshop Hobby stores in seven out of nine sales territories, including both the US and the UK - our two largest businesses - were recording growth.'

The group has 119 stores in the UK, 106 in Europe, 83 in the Americas, as well as significant businesses in the Asia Pacific region. It operates also operates an internet direct sales business and wholesale division.

Topics