Games Workshop FY2026 Annual Results

Annual report 2026

1 Games Workshop Group PLC
FINANCIAL HIGHLIGHTS

52 weeks ended
31 May 2026
£m
52 weeks ended
1 June 2025
£m
Core revenue
Licensing revenue
Revenue
Revenue at constant currency
Core operating profit
Core operating profit at constant currency
Licensing operating profit
Licensing operating profit at constant currency
Operating profit
Profit before taxation
Net increase in cash – pre-dividends paid

Earnings per share
Dividends per share declared and paid in the period

626.8
32.9
659.7
666.9
245.1
247.6
29.9
29.9
275.0
275.7
210.3

624.0p
485p
565.0
52.5
617.5
617.5
211.8
211.8
49.5
49.5
261.3
262.8
197.5

594.9p
520p

The above, with the exception of revenue, operating profit, profit before taxation and earnings per share are alternative performance
measures (APMs) used by the Group. See the glossary on pages 95-96 for details on the APMs and, where appropriate, a reconciliation
between the APM and its closest statutory equivalent is provided.

CONTENTS

Chair’s statement
Strategic report
Directors’ report
Corporate governance report
Audit and risk committee report
Remuneration report
Directors’ responsibilities statement
Company directors and advisers
Independent auditor’s report to the members of Games Workshop Group PLC
Consolidated income statement
Consolidated statement of comprehensive income
Consolidated and Company balance sheets
Consolidated and Company statements of changes in total equity
Consolidated and Company cash flow statements
Notes to the financial statements
Five year summary
Financial calendar
Glossary
Notice of annual general meeting

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95
97

2 Games Workshop Group PLC
CHAIR’S STATEMENT

I am delighted the Games Workshop team has delivered another great year.

Revenue and profit before tax were at record levels, following strong performance in our core business. We continued to expand our
presence globally, creating and inspiring new legions of fans. We saw healthy growth in all our sales channels at constant currency and are
increasing manufacturing capacity in our proud Nottingham home. We weathered the storm of global instability, which continues to throw
more challenges at us – all of which the team takes in its stride. I am proud of our team’s dedication, love of the hobby, and tenacity, not
only in overcoming challenges, but in growing the business in absolute harmony with our core values. A big thank you.

I wrote in last year’s annual report that we were seeking to augment our board of directors. Nilufer Kheraj, a global legal expert, joined us
as a non-executive director and has proven an asset with her perspicacity and enthusiasm. We were also delighted to welcome Neil
Tomlinson and Max Bottrill as executive board directors, both of whom greatly enriched board conversations. Max stepped down from the
board following a recent reorganisation, and I thank him for his committed board contributions last year and his continued dedication.

As one of the board’s designated non-executive directors for staff engagement, I had the pleasure of meeting many of our teams during
the year, including in North America and Europe. I continue to be wowed by our staff’s ambition, total focus on success, and – above all –
passion for the hobby. It is this passion that drives us to make the best fantasy miniatures in the world, delighting and thrilling fans
everywhere.

Mark Lam
Non-executive chair
27 July 2026

3 Games Workshop Group PLC
STRATEGIC REPORT

Strategy and objectives
We are committed to the continuous development of our intellectual property (IP) and making the Warhammer hobby and our business
ever better.

Our ambitions remain clear: to make the best fantasy miniatures in the world, to engage and inspire our customers, and to sell our
products globally at a profit. We intend to do this forever. Our decisions are focused on long-term success, not short-term gains.

Let me go through our strategy part-by-part:
The first element is that we make high quality miniatures. We nurture a craft based hobby. We understand that what we make may not
appeal to everyone, so to recruit and retain customers we are absolutely focused on making our models the best in the world. In order to
continue to do that forever and to deliver a decent return to our owners, we sell our miniatures for a price that we believe represents the
investment in their quality.

The second element is that we make fantasy miniatures based in our endless, imaginary worlds. This gives us control over the imagery and
styles we use, and ownership of our IP. Aside from our core business, we are constantly looking to grow our licensing income from
opportunities to use our IP in other markets.

The third element is that we are customer focused. We aim to communicate in an open, authentic and fun way. Whoever and wherever
our customers are, and in whichever way they want to engage with Warhammer, we will do our utmost to support them.

The fourth element is the global nature of our business. Our customers can be found anywhere, and we seek them out all over the world.
They’re a passionate bunch with an interest in science fiction and fantasy. They’re collectors, painters, model builders, gamers, book lovers
and much more. And while no two customers engage with Warhammer in exactly the same way, they’re all deeply invested in the rich
characters and settings of our IP.

To reach them, we have two key tools: our retail chain and our digital content. In retail, we showcase the Warhammer hobby and offer a
fantastic customer experience. Our digital offering has never been richer. Through warhammer-community.com and owned social media
we reach hundreds of thousands of people every day, showing them the very best aspects of the Warhammer hobby and inviting them to
join our global community of enthusiastic fans.

Our retail channel is supported by our own online store (it has the full range of our products) and our independent stockist and trade
accounts across the world. These independent accounts do a great job supporting our customers in parts of the world where we either
have not yet opened one of our stores or where it is not commercially viable for us to have one. Our long-term goal is to have all three
channels (Retail, Trade and Online) growing in harmony. We will always have more independent accounts than our own stores. Our
strategy is to grow our business through geographic spread, growing all of the three complementary channels.

The fifth element is being focused on cash. By delivering a good cash return every year we can continue to innovate, surprise and delight
our loyal existing customers and new customers with great products. To be around forever we also need to invest in both long-term capital
and short-term maintenance projects every year, pay our staff what they have earned for the value they contribute and deliver surplus
cash to our shareholders. Our dedication and focus should ensure we deliver on time and within our agreed cash limits.

We measure our long-term success by seeking a high return on investment. In the short term, we measure our success on our ability to
grow sales whilst maintaining our core operating profit margin at current levels. The way we go about implementing this strategy is to
recruit the best staff we can to fit the job, and the team. The team is more important than the individuals. We look for those with the
appropriate attitude and behaviour a given job requires and for those who are aligned with our beliefs and who are quality obsessed. It is
also important that everyone we employ has a real desire to learn the skills needed to do their job and has a great attitude towards
change. To support them, we offer all of our staff both personal development and skills training.

Our brands
We have originated and are in control of a number of strong, globally recognised brands with their own identities, associations and logos.
Our key consumer facing brand is ‘Warhammer’ – this unites all aspects of the Warhammer hobby – collecting, building, painting, playing,
reading, watching, gaming, etc. in the worlds of Warhammer.

We have two primary universes: a fantasy universe and a space-fantasy universe. Each is a uniquely owned and created setting, populated
with hundreds of characters, events and conflicts and multiple dedicated game systems that allow hobbyists to bring these worlds to life on
the tabletop:
 Warhammer 40,000 is a grimdark space-fantasy, home to the indomitable Space Marines, who struggle tirelessly to defend
humanity against the myriad of alien horrors that threaten to engulf it.
 Warhammer: The Horus Heresy is the prequel to Warhammer 40,000, set 10,000 years previously it details how, at its point of
greatest triumph, a key betrayal plunges humanity into a galactic civil war.
 Warhammer: The Old World, the most venerable (its first incarnation was in 1983) of our settings, follows the fates of multiple
empires all struggling to survive and dominate in a fantasy world of legend.
 Warhammer: Age of Sigmar, our youngest setting at just over 10 years old, depicts a ‘post apocalyptic’ fantasy setting where the
forces of death and destruction have triumphed. It details the fight back.

4 Games Workshop Group PLC
STRATEGIC REPORT continued

Strategy and objectives continued
Our brands continued
In addition, we have several smaller brands – Necromunda, Blood Bowl and, our only licensed property, The Lord of the Rings. These
complement the four primary brands, ensuring we have something to appeal to most hobbyists.

Millions of words and thousands of illustrations and miniatures already exist for all these settings and we continually add and expand them
through a steady stream of new products, created both in-house and with our licensed partners. We can safely say we will never run out of
things to explore and detail in our truly unique settings.

The Warhammer settings are set against incredibly rich and evocative backdrops. They’re populated by more than four decades of
fantastical characters and comprise thousands of exciting narratives. We are committed to making it easier than ever for people to
discover, engage with and immerse themselves in our IP. Aided by a small senior team, we have already begun to find new partners, and
new ways to help us bring the worlds of Warhammer to life like never before. Together, we’ll continue to explore animation, live action,
video games and more. We’ll present the very best aspects of our rich IP, delighting audiences while always ensuring we do no harm to our
core miniatures business.

Business model and structure
We are a vertically integrated business. We design, manufacture, distribute and sell our fantasy miniatures and related products. These are
fantasy miniatures from our own sci-fi and fantasy universes. We are an international business centrally run from our HQ in Nottingham,
with 79% of our core sales coming from outside the UK. The Warhammer studio is at our HQ in Nottingham.

Design
Employing c.460 people, the Warhammer studio creates all the IP and all the associated miniatures, artwork, games and publications and
manages all the translation into the languages in which we sell. Annually, these specialist staff produce hundreds of new sculpts,
illustrations, rules, stories etc. enabling us to deliver new products every week that continue to keep our customers engaged and excited.
In 2025/26 we invested £21.9 million in the Warhammer studio with a further £7.6 million spent on tooling, the majority of which was for
new plastic miniatures. We are committed to investing in these areas at an appropriate level every year.

All of our plastic miniatures are branded as Citadel Miniatures, a mark with an unparalleled reputation for quality. It denotes both a style
and level of detail that we apply to both our own Warhammer worlds and those of other licensed third party IP e.g. The Lord of the Rings.

Many customers love personalising their miniatures and our Warhammer Colour paint range, brushes and accompanying painting system
are designed to help everyone from the complete beginner to the most experienced painters in the world achieve great results. In the
pursuit of ever better, we continually develop new types of paint and ways of using them.

When not interacting with our miniatures, many customers enjoy reading stories set in our rich and immersive worlds. Under our Black
Library imprint we publish new titles every year, from short stories and audio dramas through to full length novels and audio books. These
are available in physical bookstores, on third party digital platforms and through our own retail and other specialist stores – in the last
financial period we sold over five million novels.

Manufacture
We are proud to manufacture our product in Nottingham which is the centre of expertise for our global business. It’s where we started and
where we intend to stay. We own our core factory capacity and it is split between two facilities. F1 is a tool room and has 40 injection
moulding machines. F2 has 17 injection moulding machines and also has our main packing cells. The property we purchased in Easter Park
(adjacent to Willow Road, Lenton) during 2025 is in use for paint activity and innovation projects. We also retained the small, leased facility
in Easter Park. We have a new factory (F4), which we own, in fit out phase. In the year ahead injection moulding machines and a tool room
will be installed; in the meantime it will be a packing location.

Logistics
Our product is distributed from our East Midlands Gateway (EMG) site which is a leased warehouse approximately 25 minutes away from
our HQ in Nottingham. EMG supplies our two hubs; one in Memphis, Tennessee and one in Sydney, Australia. Between these three
warehouses, along with small third party operated warehouses in China, Japan and South Korea, we are able to directly supply our
independent retailers, our own retail stores and fulfil our online orders. During the period reported we signed a lease for a new warehouse
near EMG at Sawley.

Sell
Our core revenue is generated via three channels, our own stores ‘Retail’, third party independent retailers ‘Trade’ and our online store
‘Online’. We support these channels and activities via our digital and marketing team. Our licensing partners also sell Warhammer IP
related products which we report as licensing revenue.

5 Games Workshop Group PLC
Sell continued
Retail – our stores provide the focus for the Warhammer hobby in their geographical areas. Our stores only stock Games Workshop
products. They are focused on the recruitment of new hobbyists. To do so, the stores don’t offer the full range of our product, only starter
sets, new release products and the appropriate extended range. At the period end, we had 598 of our own retail stores in 24 countries. We
have 465 low cost stores: small sites, each one operated by only one store manager. We also have 133 multi staff stores, including three
café format stores, which, like our low cost stores, are constantly reviewed to ensure they remain profitable. If not, they will probably be
closed.

Trade – we sell to third party retailers under closely controlled terms and conditions. Independent retailers are an integral part of our
business model helping us to sell our products around the world and importantly in areas where we don’t have our own stores. Games
Workshop strives to support those outlets which help to build the Warhammer hobby community in their local areas. The bulk of our sales
to independent retailers are made via our telesales teams based in Memphis, Nottingham and Barcelona. We also have small telesales
teams in Sydney, Tokyo, Shanghai, Seoul and Singapore. In 2025/26 we had 9,100 independent retailers (2024/25: 8,100) in 71 countries.
We strive to deliver excellent service, operating in 21 languages covering 17 time zones. Independent retailers sell from their physical
stores as well as their own online web stores.

Online – sales via our own web stores. All of our retail stores also have a web store terminal that allows our customers to access the full
range from within the store.

Licensing – we grant licences to a number of carefully chosen partners. This allows us to exploit our IP to broaden the presence and brand
exposure of Warhammer around the world, often entering new markets such as media and entertainment. It also allows us to generate
additional income. We endeavour to place the right licence with the right licensee, i.e. one capable of delivering high quality products to
Warhammer fans, in areas we don’t make ourselves. These licence contracts often include a minimum guaranteed payment, part paid on
signing, a performance based royalty payment and an ongoing approval process where we support licensees in delivering a great product
(their skill set) that is representative of our great IP. Currently, the majority of this income is generated by video games sales in North
America, the UK and Continental Europe.

Marketing – keep us customer focused. This team acts as the bridge between our other business areas, ensuring we have a joined up
approach between product (design to manufacture) and sales. They listen and develop a two way dialogue with our customers to make
sure we keep their needs at the forefront, championing the Warhammer hobby around the globe and injecting our content and
communications with a real sense of passion and fun. The team is split into two areas of focus: customer engagement and sales support.

Structure
We control the business centrally from our HQ in Nottingham; it is where the majority of people with experience and knowledge of running
our business work. I have a flat structure: the people with senior responsibility, that make all of the big decisions, report directly to me.

We have made some changes effective from 31 May 2026 to how we manage the business and this has been explained later on page 9. I’ll
leave the comments below to describe the structure that was in place for the majority of the period reported.

During the period reported I was supported by an operational board team and a much broader group of senior managers. The operational
board team included the three group executives: the group finance director, group product director, group operations director, together
with our operational sales director and our operational customer and creative media director.

Our group product director is responsible for our Warhammer studio (miniatures, books and box games, specialist systems, hobby product,
our publishing business – Black Library, and creative approvals for third party licences). Our operational customer and creative media
director is responsible for customer engagement activities: our Warhammer+ offer and service, brand trailers, media licensing, and our
global events – he reports to our group product director. They both ensure any content that is produced, whether physical or virtual, truly
represents our IP. They also support me in exploiting our IP by managing the licensing team.

Our operational sales director is responsible for our group sales and the channel marketing support for our three sales channels. He is
supported by his sales operations manager and:

 Trade – two heads of trade sales: one located in Memphis and one in Barcelona;
 Retail – two heads of retail sales: one for North America and one for the UK/Europe/ANZ area;
 Online – warhammer.com store manager. This excludes digital sales (which falls under the remit of our group product director),
with that product content, mostly our books produced by our Black Library, being largely written by third party licensed authors;
 in-country managers – four country managers support him in the Asia Pacific region: ANZ, Japan, South Korea and China as well as
a sales manager responsible for South East Asia; and
 channel marketing – a small team managed by the sales operations manager delivers weekly internal product support to our sales
and support staff in our sales channels.

6 Games Workshop Group PLC
STRATEGIC REPORT continued

Business model and structure continued
Structure continued
The group operations director manages the four factories in Nottingham and our main warehouse facilities in Nottingham, Memphis and
Sydney as well as the service levels at our third party run warehouses in Tokyo, Shanghai and Seoul. He is also responsible for some of our
key support service teams: stock forecasting, merchandising and IT.

Our group finance director is responsible for our financial strategy and planning, risk and cash management, reporting, accounts, people,
human resources, legal and all compliance areas. She is also responsible for the accuracy, completeness and validation of all the data we
use.

The senior management structure has 19 members. It includes the members of the operational board together with most of their direct
reports:

 Group finance director – head of tax, head of finance, group company secretary/general counsel and head of people.
 Group product director – two studio managers and our operational customer/creative media director.
 Group operations director – head of manufacturing, head of logistics/central operations support, head of IT and head of
merchandising/planning.
 Operational sales director – two heads of trade sales (NA and UK/Europe/emerging markets) and two heads of retail sales (NA,
UK/Europe/ANZ).

In addition, my executive assistant helps me by running a team which supports the day to day running of the teams above. This structure is
likely to evolve in 2026/27 as we implement some changes to help succession planning which is a key area of focus.

Key performance indicators
The boards and management team use a number of key performance indicators to provide a consistent method of analysing performance,
in addition to allowing the boards to benchmark performance against our forecast. The key performance indicators utilised by the boards
can be split into key financial performance indicators and key non-financial performance indicators.

Our key financial performance indicators are:
Monthly and year to date core sales growth by channel
This measures the core sales growth achieved in each of our core channels on a monthly and year to date basis: see page 13.

Monthly and year to date core gross margin
These measure the core gross margin achieved on core sales after taking account of the direct costs, depreciation of manufacturing
equipment, the costs of shipping our product to customers/stores and design costs on a monthly and year to date basis: see page 16.

Monthly and year to date core operating profit
These measure gross profit less operating expenses for the core business on a monthly and year to date basis: see page 16. These are
considered to be measures which reflect sales and costs under our direct control.

Year to date core operating profit percentage
The ratio of core operating profit against core sales, as a percentage: see page 16. This is considered to be a measure which reflects sales
and costs under our direct control.

Year to date licensing revenue and cash received
These measure licensing revenue and cash earned from licensing: see page 13. These measures reflect revenue which is not under our
control.

Our key non-financial performance indicators are:
Number of own stores by territory
This measures the number of our own stores which is an indicator of our global reach: see page 14.

Number of ordering stockist accounts by territory
This measures the number of trade outlets that have ordered from us in the last six months. It is an indicator of our global reach and the
health of our trade account base: see page 13.

Customer engagement
We measure this through interaction with our own content channel, warhammer-community.com: see page 11.

7 Games Workshop Group PLC
Shareholder value
We believe shareholder value is created, primarily, by not destroying it. We have no intention to acquire other companies, nor to dispose
of any of those we own.

We return our surplus cash to our owners and try to do so in ever increasing amounts. A cash buffer of three months’ worth of working
capital requirement (in total £120 million), any large planned capital investment and Group Profit Share payments or bonuses over £1
million, have been set aside before deciding how much cash is truly surplus for the purpose of declaring dividends.

Graph of shareholder value
Shareholder value for this graph is calculated as the price of our shares at period end plus the dividend per share declared in the period.

Review of the period
Games Workshop and the Warhammer hobby are in great shape.

We continue to run the business for the long term and, more importantly, ego free. We delivered Group revenue and profit before tax at
record levels thanks to another good performance from the core business. Licensing revenue declined as expected (2024/25 included a
surprise but very positive product release). Most of the team have worked tirelessly to maintain our core business profit percentage at
c.40% and to reward their huge efforts, and in line with our remuneration policy, we made a Group Profit Share cash award at £5,000 per
staff member. We also operate an employee sharesave scheme as a means of further encouraging the involvement of employees in the
Group’s performance. Thank you and well done to everyone at Games Workshop.

Performance
We had a relatively normal year for us; delivering the operational plan and planning for the future to deliver higher quality products and
geographical sales volume growth. All at the right level of cash spend. Easy for us to write, never easy to deliver.

We once again have designed, made and sold in record quantities the best fantasy miniatures in the world. We delivered constant currency
year on year sales growth: in all three channels, all of our established countries and growth via our export team to 46 countries globally. It
is not all great news, not all of our Warhammer stores have performed at a level that we are satisfied with. We understand what the issues
are that need to be addressed and we’re discussing with our store managers (great ambassadors of our Warhammer hobby) the solutions
that need to be delivered consistently in 2026/27. All but a few are profitable.

All of our channels were helped by better (still room for improvement) forecasting of stock availability and the manufacturing and
warehouse teams working at record volume levels. We are also, in the UK, building our exciting new Factory 4, which is part of the
programme of work to increase our capacity. The aim, once up and running, is then to deliver further efficiencies across all our factories.

Managing cash
To manage fixed costs for the long term we build and own our factories and we lease logistics capacity. Logistics at Games Workshop
requires significantly more physical space for packing cells, holding product components and finished goods stock, than the space we need
in our factories. Our longer term warehousing plan includes our hubs at EMG and Memphis supported by complementary capacity
elsewhere. We have just signed the lease of a new additional logistics facility at Sawley near Nottingham. We will get the keys soon and it
will be up and running in summer 2027.

A useful measure for me to judge our financial progress each year, but one not classified as a key performance indicator on page 6, is our
profit growth percentage, calculated as ‘core business profit growth £value divided by the core business sales growth £value’. The
percentage we achieved in the period reported at 53.9% was significantly better than last year’s 12 month reported core business profit %
of 37.5%. This highlights what we can achieve when we stay focused on profitable sales growth.
0
50
100
150
200
250
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
£ per share
Share price
Dividend

8 Games Workshop Group PLC
STRATEGIC REPORT continued

Review of the period continued
Managing cash continued
We have managed our costs well. Core operating expenses (excluding Group Profit Share costs which are more an allocation of surplus
cash) as a percentage of sales has been delivered in line with our plans. They have increased slightly from 28.4% to 29.2% of core sales. To
ensure we are delivering incremental profit, as noted above, as we continue to invest in our facilities, IT systems, new jobs and the
necessary expenditure to open the business in new countries we monitor the growth in operating expenses across every department too.
In the period reported, at 13.8%, it is a little higher than core sales growth of 10.9%. It does not concern me this year. However, I will
continue to ensure any new senior managers or executives understand that continued relentless cost management is a key driver of our
return on capital. Just because we spent money last year doesn’t mean it gets carried forward into the next year.

We continue to keep things simple: a debt free balance sheet with only the necessary amount of cash tied up in stock. We could add all
sorts of financial treasury policies e.g. share buybacks, progressive dividends, forex hedging, but we won’t; we believe staying focused on
what we’re good at i.e. running your vertically integrated company well and delivering consistent and significant rates of return which not
only rewards you but also gives us some headroom if times are tough. Our job is to manage the business under all scenarios. So far so
good.

Sales growth – more Warhammer, more often
We succeed when more people take part in the Warhammer hobby. We have always believed that they live in every country in the world,
and that our job is simply to find them.

To support the ever growing list of countries where we are targeting growth we have been reviewing our structures and plans. It was a fun
exercise. We concluded, on important topics like product range and customer engagement marketing activities, we can and will do much
more.

We also concluded, for the period 2026/27, we are going to pilot managing our sales into smaller regions:

Sales area North America Latin America UK Europe
Australia &
New Zealand Asia Export
Regions Canada Latin America UK Central Europe Australia &
New Zealand
East Asia Export
USA Eastern Europe South East Asia
Northern Europe
Southern Europe
Western Europe

It will give our relatively new operational head of sales a different view of sales performance. It should give him (and our new broader
group of senior management) more timely insight so we can deliver better customer engagement and service levels that improve sales
performance in each region. It will create some development opportunities for some ambitious managers with a proven track record too.

Note: We are not updating our segmental reporting just yet, let’s see if it’s a permanent change first.

Often the hobby is more developed in a newer region than the headline numbers on page 77 might suggest. The countries have a different
channel mix e.g. the value of reported net sales by us in a new country with only one channel, often just Trade, is not directly comparable
to a country that has all three sales channels – we sell at full RRP (net of sales tax) in our own channels and at a trade discount (RRP less
discount and sales tax) in trade accounts.

We aim to continue to expand geographically and grow core sales every month. After ten consecutive years doing this, it gets more
challenging, bring it on. Our rolling three-year plan, reviewed often and adjusted to stay relevant, is ambitious, and if implemented well we
can all celebrate. Our key risk is not the execution of our plans across a vertically integrated business, it is all of your executives having the
right level of ambition when we write them. The most likely things we are aware of at this stage that could temporarily stall our operational
plans is still the replacement of our old IT systems and, due to conflict situations, supply chain disruptions. Both are highlighted later under
our principal risks on pages 20-21.

To give ourselves the best chance of year on year core business sales growth our operational plan is designed to spread the growth over
the full 12 months of a year. We then track monthly, year to date and also moving average 12 month trends. We don’t track quarters or
halves and we are not that seasonal. Over the ten year period ended May 2026 we have delivered 102 out of 120 months of year on year
core business sales growth, a reminder that the Games Workshop team is sensational. We missed a few due to COVID, a few due to Brexit,
a few when we were up against a particularly high prior year new release launch and two this year. One was in January 2026 due to snow
fall at our distribution hub in Memphis (the team were amazing – picking the held sales orders in a few days once the snow was cleared).
The other one this year was in May 2026, we missed by £1.5 million, that still hurts. That was due to a poor execution of our plan in the
final week of the year. The operational directors were distracted by the detailed planning for the launch of the 11th edition of Warhammer
40,000 in June 2026. But still, no excuses, lessons have been learnt.

9 Games Workshop Group PLC
Supply chain
Conflicts around the world increase our risk of supply chain disruption, as highlighted in our principal risks page 21. We are monitoring
ongoing conflicts. Our plastic suppliers will be holding more raw material stock to help us manage an important risk, supply of plastic. We
have ensured we have secured more than enough plastic to deliver our plans for 2026/27. Our raw material stock will temporarily increase
by c.£2 million. We are exposed to raw material price fluctuations as we do not manage this risk by hedging in line with our long standing
treasury policy.

Tariffs
Well, I thought this would be drama free, how wrong I was. During the period we paid c.£12 million in new US tariffs. Following the US
Supreme Court ruling we reclaimed £7.8 million of tariffs for the period to February 2026. We have recognised all of this reclaim in the
period to May 2026; of which £1.0 million was received during the period and £6.8 million following the period end. Since February 2026
there have been further changes to US tariff legislation; our current estimate is that we will pay c.£13 million of new US tariffs in 2026/27.
The continuous hard work on efficiency gains to improve our gross margin has continued. Unlike some companies, we do not consider
tariffs as an exceptional item, but rather part of the uncertainty of operating globally.

Pay
We have continued to invest in our staff: a c.3% increase has been awarded for 2026/27, as well as increasing the base pay in the UK to
£13.14 per hour, above the national living wage. We also pay at least the local statutory minimum wage in all countries where we employ
staff. Our life insurance, and in the US, healthcare cover, is part of our standard remuneration policy. As we open in new countries and
recruit locally, we ensure we pay at or above market rates in all locations.

RRPs
We increase our product pricing every year. The average increase in RRPs on products this year was 3% in line with normal levels.

Cash
Our new cash buffer increased, out of surplus cash generated this year, from £100 million at May 2025 to £120 million at May 2026, in line
with the new three-monthly cash cost of running Games Workshop and investment plans. Our job is to run the business under all
scenarios, some not so positive ones are highlighted in the directors’ report on page 35 under our going concern test scenarios, our cash
buffer levels ensure we pass all these scenarios.

Climate change – supporting global temperature reduction
We have made good progress on this strategic priority. In the 2023 annual report we set targets for scope 1 and scope 2 carbon dioxide
equivalent emissions and we are ahead of the milestones presented. We also focus on our scope 3 emissions however these are more
challenging to both measure and reduce as they are not from sources under our direct control. This year we have seen an increase in our
upstream transport and distribution emissions as some of our suppliers changed their methodology to calculate the emissions. More on
that later.

Culture
I think it is better for Games Workshop to make significant structural changes when we are winning. On 29 May 2026 I, with the support of
the non-executive directors, created a new job, chief operating officer (COO). The job, put simply, is to run our design to manufacture
teams. Individually they were run well, the change will ensure we focus on the most important strategic topics, for us, as a joined up team.
Our group product director (who stepped down from the board on 29 May) returned to his previous job, operational IP and design director.
This job now reports directly to our COO (who was previously our group operations director). More on that in the November 2026 half year
report.

The key changes we made last year have gone well. The key ones were:
 moving the responsibility for all channel sales growth to our operational sales director;
 moving the responsibility for customer engagement marketing activities to the Warhammer studio team. This team has
continued to be led by our operational IP and design director with the support of our operational customer and creative media
director; and
 moving the responsibility for delivering our IT investment to our operational manufacturing and supply chain director (from 31
May 2026 our COO) has helped bring all of the internal departments together. Our Systems Improvement Plan (SIP) is on track
with very clear milestones for us all to support and deliver.
AI
As noted in our November 2025 half year report, we are not being complacent on the topic, we are carefully monitoring what others are
saying and doing. We are not using AI at Games Workshop in our product design nor on the creation of our IP, this will protect the integrity
and ownership of our IP. We have made a few human errors on the depiction of our products in our product marketing in the year, they
were investigated fully to ensure that AI had not been used and that all our staff are following our internal policies.

An added complexity is the need to monitor and protect ourselves from a data compliance, security and governance perspective. AI or
machine learning engines now seem to be automatically included in third party software whether we like it or not. So it gets difficult for us
to say we are not using AI outside of the Warhammer studio, something we are just going to have to potentially live with and monitor
carefully.

We are proud to deliver consistent great returns employing great people (many of them hobbyists themselves) celebrating with other
hobbyists in the real world. Our business performance is still built on staff development and hard work with very little waste.

10 Games Workshop Group PLC
STRATEGIC REPORT continued

Review of the period – core business
Design
Our Warhammer studio has remained focused, as always, on designing the best fantasy miniatures in the world for all the wonderful
Warhammer worlds. Some highlights from the year:

Warhammer 40,000
Space Marines are at the heart of Warhammer 40,000, and likely the most recognisable Warhammer image. We began the year with a
release dedicated to one of the most famous Space Marine chapters, the ‘Space Wolves’, which set a new record in terms of launch sales.
This was followed by releases for other Space Marine chapters as well as new miniatures for almost all the Warhammer 40,000 factions.

Announced in March 2026, the launch of a new edition creates new opportunities to collect, build, paint and play with Warhammer 40,000
miniatures. For those hobbyists that enjoy gaming, we make rules free to download in our eight core languages and a further thirteen
additional languages. Warhammer is for everyone. The Warhammer studio ensures they are accurate and consistent throughout the world.

Warhammer: Age of Sigmar
‘Spearhead’ battle forces made up a good portion of the new releases for the first half of the year. ‘Spearhead’ is the name for small, fast
play games of Warhammer: Age of Sigmar, with each battle force containing a set of miniatures perfectly suited to playing those types of
games. They are proving popular with both beginners and established hobbyists alike, providing a simple way to get started with a new
faction. Later in the year the ‘Cities of Ash’ box set, which combined two new Spearhead forces, was the most successful Age of Sigmar box
set (outside of new editions) to date. Brand new faction, the ‘Helsmiths of Hashut’, and the truly wonderful ‘Cogfort’ miniatures also
proved very popular.

‘Warhammer Quest: Darkwater’, launched in December 2025, is a stand alone co-operative game where players work together to
overcome a dark, forbidding foe. The box contains some of the most characterful miniatures for Warhammer: Age of Sigmar.

Warhammer: The Horus Heresy
A new edition in July 2025 provided some never seen before miniatures from this deep, rich story along with an updated version of the
rules. Ongoing sales show that hobbyists are busy bolstering their armies with new additions to take advantage of new tactics that come
with the new rules.

Another stand out moment was the release of the new Custodes miniatures in the last quarter of the year. Ever popular amongst hobbyists
the new miniatures were received exceptionally well. We are only three years in – just getting started with our Horus Heresy offer.

Warhammer: The Old World
The Old World was released in January 2024 and the team are working hard to design and release as many new miniatures as they can.
Highlights of the year were the ‘Chaos Warriors’, Warhammer’s oldest faction with its first incarnation in the early 1980s, and ‘Grand
Cathay’, one of the very newest, first released in 2025.

Manufacturing
Our manufacturing focus has remained, as always, on producing the best fantasy miniatures in the world.

During the reporting period our project to build an additional factory in Lenton (Nottingham) progressed as expected. The major
construction work is largely complete and Factory 4, at a footprint of 49,500 sq.ft., was handed over to us in July 2026. The next phase
includes the installation of injection moulding machines, commencing in 2026/27, and the building out of a tool room.

We have expanded our manufacturing research and development team to work closely with the design studio on topics including greater
use of recycled and alternative plastics, and preparing for future packaging legislation. Our continuous improvement team has
implemented a range of initiatives to improve our efficiency across all areas of production and tooling.

The good progress on stock management previously highlighted has continued. Our merchandising (stock and forecasting) team
maintained tight control of stock, continuing the principle of aiming to sell what we make. This has helped us maintain our stock write-off
charge at c.£7 million on increased volumes. We expect stock levels to increase modestly going forward as we both invest for growth in
non-English language countries and temporarily increase raw material stock levels to mitigate the impacts of increased risk to external
supply chain disruption.

Total production costs have increased by £4.7 million to £31.5 million, mainly due to increased staff costs of £3.5 million, and an increased
depreciation charge of £0.4 million; as a percentage of core sales, production costs have increased from 4.7% to 5.0%.

11 Games Workshop Group PLC
Warehousing
Our warehousing, logistics and distribution focus has been on improving the service offered to our customers.

All sites have delivered some of the best performance levels for some time. Memphis and EMG have been consistently above 98% on time
dispatch to our customers. Our product components operations have been close to 100% on time fulfilment to our factories for the last 12
months.

UK
Our Lenton and EMG facilities have both delivered increased volumes at agreed service levels during the year. They have also remained
focused on finding end-to-end efficiencies to help reduce our total warehousing costs as we invest in new facilities.

To future-proof our service levels we have signed a lease on an additional warehouse facility in the UK, at Sawley, close to our existing EMG
facility. This new site, which will run alongside our existing facilities, will be equipped with a later generation of robotics when it opens in
2027. Both facilities will be managed by the same operations manager to ensure the new site delivers to the high standards set by EMG.
Although overseas conflicts have increased costs in the later part of the period, we have experienced less physical external supply chain
disruption than in previous periods.

North America
Our Memphis team has performed well, they have implemented an array of upgrades to improve our efficiency and reduce costs. They
have invested carefully delivering improvements in workflow as well as the working environment. This has raised safety standards to new
levels. The growth in volumes has given a few staff members the opportunity to move to shift manager roles.

Australia
The Australian team has delivered a significant amount of change during the period, and maintained much improved service levels for
customers compared to the prior year. Their efforts in supporting the implementation of new core systems across the Australian business
were hugely appreciated. It was a great team effort.

Total warehousing costs have increased by £2.2 million to £34.5 million, including increased staff costs of £1.4 million; as a percentage of
core sales they have reduced from 5.7% to 5.5%.

Service centres
Our group finance director and her teams have continued to support the global business supporting staff to succeed in their jobs, advising
the business on global compliance requirements, helping us expand into new countries as well as guiding us through the significant tax
reporting and returns we do in 40 countries. They work alongside our trade accounts to manage the c.£13 million of credit limits we have
across c.9,100 accounts, paying the c.4,000 suppliers and our c.3,700 staff on time across 25 countries.

IT
We finally achieved a key milestone in the delivery of our multi year Systems Improvement Programme in the period. In Australia we
successfully transitioned to new systems for sales ordering, order management, retail tills, and finance. It doesn’t sound much but the
implementation was well managed and has laid the groundwork for the subsequent roll out of these systems across Games Workshop. The
team is now developing the platforms for implementation in North America and Europe, with the aim of completing the North America go
live in summer 2027. As previously highlighted, the investment in SIP will be completed in the financial year 2028/29 and we will continue
to use our existing legacy system during this period.

We have expanded our cyber security team, adding new external expertise to work alongside our external security partners.

Total IT costs have increased by £2.0 million to £24.1 million including increases in staff costs of £1.0 million (from £6.9 million to £7.9
million) and increases in software and related costs of £1.9 million (from £6.9 million to £8.8 million), including software purchased on
multi-year contracts, offset by a reduction in consultancy costs of £0.9 million (from £4.0 million to £3.1 million). Web hosting costs were
£2.7 million in both periods. As a percentage of core sales total IT costs have reduced from 3.9% to 3.8%.

Customer engagement
Our goal remains to reach out and find new hobbyists, and engage and inspire existing Warhammer enthusiasts, wherever in the world
they may be. We continue to focus our efforts on six of our own key areas:

Our stores
Our stores continue to be the best place to start your hobby journey with us. We continue to offer free introductory experiences: receive
your first model, learn how to build and paint it, and play an exciting game with store staff. Of our 598 stores, 457 are low cost, 138 are
multi person operating extended hours and we have three café format stores: two in the US and one in Japan. The Warhammer Alliance
schools programme has c.6,200 active school and library clubs signed up worldwide, supporting young people in improving their
engineering, arts, and maths skills.

Warhammer community
Warhammer-community.com remains the cornerstone of our online presence. The best place to come for all the latest news from our
Warhammer universes. We have invested further in our online content, including support for non-English language markets, to better
support the global nature of our wonderful hobby.

12 Games Works