British Games Workshop is behind the popular miniature game Warhammer where players fight with their respective armies of dwarves, orcs and elves in a medieval fantasy world. The company, which was an early importer of the iconic role-playing game Dungeons and Dragons, also sells miniatures that players spend hours painting to perfection.
And the company is listed. The Petroleum Fund can be happy about that.
Surprises
As income has risen sharply and the result has doubled to one billion kroner from 2017 to 2020 (deviating financial year), the share price has also accelerated. Earlier in September, Games Workshop announced that the results for the last three months were far better than expected, and that a nice dividend would be paid.
A chore from the game Warhammer. Here from the video game fair E3 Expo in Los Angeles, USA in 2010. (Photo: AP Photo / Jae C. Hong)
The stock rose ten percent the same day.
In the last six months, the share price has risen 136 per cent on the London Stock Exchange.
The Petroleum Fund, which for a long time has been among the largest shareholders in the gaming company, owned 3.17 per cent of the shares six months ago. Recently, the Petroleum Fund reduced its holdings somewhat and now owns 2.96 per cent.
During that period, the Petroleum Fund has a paper gain of around NOK 650 million.
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Rising more than Tesla
The Petroleum Fund is invested in more than 9,000 companies worldwide in 74 countries. On average, the fund owns 1.5 percent of all listed companies in the world.
The Petroleum Fund has been a shareholder in Games Workshop for a number of years, but it is only in the last few years that the share price has really picked up speed. In the last five years, the share has risen 1550 percent. The total return, ie the return you would have received if you had also reinvested all the dividend in the company, is 2300 percent in the same period.
That is far more than what Amazon, Tesla, Netflix, Apple and other technology companies have risen in the last five years.
The old school
It’s not just the products of the Games Workshop that are “old school”. According to Bloomberg, the business model of the old school is also without financial tricks. The accounts are devoid of adjustments, the company has no debt and all new investments are financed exclusively from its own cash flow, according to Bloomberg.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other form of use of all or part of the content, can only take place with written permission or as permitted by law. For additional terms look here.
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