FTSE 100 round-up: Games Workshop, ConvaTec, Entain
This trio is heading in the right direction, with the multi-billion-pound fantasy games firm leading the way. City writer Graeme Evans explains their popularity.
29th July 2025 13:19
by Graeme Evans from interactive investor
The £5 billion-valued Games Workshop Group (LSE:GAW) today powered to the top of the FTSE 100 index as more record-breaking figures capped another bumper year for shareholders.
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The Warhammer hobby firm’s profit advanced a bigger-than-expected 29.5% to £262.8 million, having executed a strategy to “make the best fantasy miniatures in the world, to engage and inspire our customers, and to sell our products globally at a profit.”
Games Workshop added in today’s annual report: “We intend to do this forever. Our decisions are focused on long-term success, not short-term gains.”
The continued momentum of its vertically integrated business model today helped shares to top 16,000p, having surged from 5,880p in October 2022 and 10,000p in September.
The group plans to distribute 55p a share to shareholders on 3 October., lifting the sum declared so far in relation to 2025/26 to 140p a share from 100p at the same stage the year before.
Nottingham-based Games Workshop, which joined the FTSE 100 in December, added that its aim is to return surplus cash to its owners in ever increasing amounts.
It added: “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.”
The core business performed at the top end of expectations during the financial year, lifting revenues by 14.2% to £565 million. Royalties from the company’s intellectual property jumped to £52.5 million thanks largely to the Space Marine 2 video game.
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Non-executive chair Mark Lam said it has been a whirlwind year for the group. He added: “Key to what makes us special is engaging with our very own community of hobbyists, now worldwide and buzzing.
“We don't need a lot of marketing data to tell us when we get something right or wrong. We don't need huge spreadsheets of customer data or complicated data algorithms.”
The group’s strong performance came against the backdrop of major geopolitical uncertainty, most recently in relation to US tariffs.
Chief executive Kevin Rountree warned of a profit hit of £12 million in 2025/26 before any mitigating action. He said: “This new problem will be dealt with in our normal pragmatic way.
“We will not change our operational plans too much. We already have a US corporate entity and we are investing in our base in Memphis and opening stores across most states.
“Some of our trade partners, staff and customers are nervous. So to be clear - it is business as usual for Games Workshop, once again a new normal has to be accepted.”
Broker Peel Hunt, which has an Add recommendation and price target of 16,500p, notes that engagement statistics such as Warhammer registrations and email subscriptions show that the hobby continues to grow strongly.
It added: “The business had a strong year, with all geographic regions in growth. There is good momentum in the business in both core and royalties.”
Elsewhere in the FTSE 100, ConvaTec Group (LSE:CTEC) rose 5.2p to 244p after half-year results and an unchanged outlook statement helped boost confidence following a poor run for shares.
The group, whose four divisions are focused on products in wound, ostomy, continence and infusion care, continues to target medium-term organic revenue growth of 5%-7% and a mid-20s adjusted operating margin by 2026 or 2027.
Today’s half-year results showed organic revenue growth of 6% and an adjusted operating margin up 130 basis points to 21.3%.
The shares fell earlier this month after the US Centers for Medicare & Medicaid Services published a draft payment proposal for skin substitutes.
The company, whose Innovamatrix product is used in the treatment of chronic, surgical and trauma wounds, recently estimated a potential 2026 headwind of about 1-2% of group revenue.
UBS, which has a price target of 390p, said the results were in-line with a high bar and that the company had provided reassurance on potential reimbursement headwinds in the US.
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Meanwhile, Entain (LSE:ENT) shares traded above £10 for the first time in over a year after its BetMGM joint venture in North America reported a strong second quarter.
Improved BetMGM guidance for the full year now points to net revenue of at least $2.7 billion and underlying earnings of $150 million or more.
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