Premium content from Motley Fool Share Advisor UK
Our monthly Fire Best Buys Now are designed to highlight our team’s three favourite, most timely Buys from our growing list of growth-focused Fire recommendations, to help Fools build out their portfolios.
“Best Buys Now” Pick #1:
Games Workshop (LSE:GAW)
- Unique British business Games Workshop manufactures miniatures used for wargaming under the Warhammer brand. After a meteoric long-term rise in the share price, it was announced as a new FTSE 100 constituent late last year.
- The vertically integrated business has no real competitors that can match its control over the design, manufacture and distribution of its models and rule books.
- The business delivered record results in FY 25, with sales jumping nearly 20% to £628.7m and operating profits up nearly 30% to £261m.
- In late 2022, the company recently reached an agreement with Amazon Content Services to turn its intellectual property into film and TV products. Recent TV and game content has helped licensing revenues jump from £31m to £52.5m – and the success of these projects also boosts core revenue as an increase in foot traffic to Games Workshop stores followed.
- Greater exposure from newcomers to the Warhammer IP could create a longer run growth tailwind for a relatively limited additional cost, potentially growing the base of tabletop miniature players.
- Improving demand has led to the company expanding its production capacity, with a fourth UK factory set to open next summer and a further site ready for expansion.
