Warhammer GW maker casts shadow over Brexit in annual report

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Warhammer 40k creator Games Workshop says that despite a record year of profits, Brexit costs have been at their lowest in 52 weeks. In its annual report last week, detailing revenue for the fiscal year ending May 29, the company reported additional supply chain costs of $4.1m/$3.4m caused by Britain’s withdrawal from the EU.

However, he seems to deal with this in a very British way: through jabs of sarcasm. “We look forward to the benefits promised by Brexit,” the report says, immediately after listing all the negative effects it claims have been brought about by Brexit.

In addition to supply chain costs, Games Workshop says it has a $13.3m / £11m VAT claim from the French tax authorities, writing that this is “a a time difference as we are now paying VAT on entry into Europe and submitting a claim”. GW also says it is “trying to alleviate the gaps in recruiting staff, particularly those with language skills in the UK-based European sales team”. In the report, he lists these issues as “things that are not in our control.”

Despite the impact of Brexit, things are looking bright for the miniatures business, which boasts total revenue of $470.4m / £386.8m (up 10% from compared to last year). In June, it announced plans to pay employees $12.3 as part of a profit-sharing program.

“This year has been exceptional” GW’s report states. “We not only beat Warhammer 40k’s record one-year launch year revenue, but we did so with continued operational growth challenges (thankfully reduced) and the additional cost pressures of Covid, the Brexit and the war in Ukraine.”

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