gamesworkshoplogo.jpgOn Thursday, Games Workshop released its Half-Yearly Report and the financial results were extremely disappointing. The company reported £60.5 million in revenue for the 6 months ending December 1, 2013, compared to £67.5 million for the same period the previous year. Earning per share fell a dramatic 31 percent, from 25.6p to 17.7p.

The report included the following statement from Tom Kirby, board chairman and acting CEO:

Our costs are well under control and margins remain strong.

Games Workshop stock decline Jan 2014Obviously then, sales volumes must be way off, a fact not at all surprising to gamers and independent retailers. Games Workshop’s customer base continues to suffer rising prices, poor product selection, heavy-handed legal measures, and reduced quality in print products, while at the same time having more alternatives available to them in the marketplace. Retailers too have had to deal with a number of measures that make it increasingly difficult for them to support Games Workshop’s products.

Immediately following the report’s release, the stock market took notice. Games Workshop’s share price dropped 24 percent in one day.