Games Workshop

Games Workshop, with a market capitalisation of approximately £3bn, was introduced to the portfolio in the period under review. The unique mid-cap company has very strong intellectual property through its fantasy wargame Warhammer series. The company designs, manufactures, distributes and sells high quality miniatures and related products via retail, trade and online channels. Around three-quarters of sales are outside the UK with significant growth opportunities in the United States and Asia. There are also opportunities to grow outside the core table-top product, for example in computer games and television and the company recently announced it would work with Amazon to develop film and television productions. High customer loyalty and strong IP means the business model has high margins, generating very high returns on capital employed. The company has no debt and an attractive dividend yield.

Companies selected for illustrative purposes only to demonstrate the investment management style described herein and not as an investment recommendation or indication of future performance.