Fantasy miniatures maker Games Workshop (GAW) has warned its full-year profit will be lower than last year following disappointing December sales.

The £190.8 million cap, which makes and sells fantasy model games like Warhammer, says pre-tax profit for the year to 29 May 2016 is unlikely to exceed £16 million. Last year it made a profit of £16.6 million and analysts had forecast £17.5 million for FY2016, according to Bloomberg.

Reported sales fell by 2.2% to £55.3 million in the six months to 29 November while its return on capital – which it calls a key measure of performance – fell from 38% to 36%.

The news sends the shares 9.2% lower to 540p.

GAMES WORKSHOP - Comparison Line Chart (Rebased to first)

On a constant currency basis sales are up by just 0.7%, with growth in its non-core retail business – which includes its visitor centre, licensing and digital – offset by declines in the core retail business.

Other games companies like GAME Digital (GMD) have also had a difficult festive period. GAME Digital issued a profit warning in December, blaming challenging trading conditions in the UK video games market.

Retailers generally have suffered from lower high street and shopping centre footfall.

Issue Date: 08 Jan 2016