Shares round-up: why Games Workshop and Raspberry Pi tumbled

A wargamer’s models are arranged before they compete in the Warhammer 40,000 International Team Tournament in Northampton, England, in 2022. Photo: OLI SCARFF/AFP via Getty Images.

Praise for Games Workshop Group (LSE:GAW) and the forecast-beating Raspberry Pi Holdings (LSE:RPI) today failed to inspire a fresh charge for the Warhammer owner or stop the tech firm falling below its flotation price.

Games Workshop, which started the day with a market valuation of £6.2 billion, lost a slice of the past year’s 40% advance as investors locked in profits in the wake of record half-year results.

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City firm Jefferies called the trading figures an “outstanding” performance and even better than it had anticipated following strong guidance from the company in November.

It said: “We continue to anticipate upgrades in the second half of the year, and see Games Workshop as a compelling long-term growth opportunity.”

The bank has a price target of 21,000p, a level in excess of the record high of 19,970p set in early December and this afternoon’s lower price of 18,310p.

Core revenues for the half year rose 17% to £316.1 million, which compared with the company’s autumn guidance of at least £310 million. Pre-tax profits rose 11% to £140.8 million as Jefferies said the company had made “extraordinary” progress in an off-year in its release cycle.

It noted one negative as chief executive Kevin Rountree said some of the company’s most established stores in the UK and US finished the period in like-for-like decline.

Rountree said: “Yes, they had tough comparatives, but we all had plenty of time to get together and plan for the period. I might be being a bit harsh on us, but I know we are way better than these results.

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Overall, Rountree said the hobby remains in good shape after profitable sales growth in its 23 core trading countries and across its three channels. 

He added: “Our operational plan was delivered exceptionally well, pretty much drama free, but as always not free from its challenges.”

Peel Hunt increased its price by 2,000p to 20,000p following the results, which it described as impressive. 

It highlighted the hobby’s continued popularity, including a 20% increase in Warhammer+ subscribers to 248,000 and 14% rise in MyWarhammer registrations to 790,000.

The bank added: “At the recent Warhammer World Championship, there were nearly 1,000 participants from 49 countries with over 1.5 million unique viewers watching online.”

In a further sign of its strong cash flows, Games announced that it will pay a dividend of 110p a share on 27 May. This increased the year-to-date figure to 485p compared with 420p a year earlier.

Raspberry Pi shares spent much of today’s session below their June 2024 flotation price of 280p, even though the maker of high-performance, low-cost general-purpose computing platforms reported a strong finish to its 2025 financial year.

Full-year underlying earnings are expected to be no less than $45 million (£34 million), representing a 20% year-on-year rise and at least 10% ahead of the forecast of analysts at Jefferies.

Unit shipments were four million in the second half and a total of 7.6 million across the year.

Chief executive Eben Upton said he was delighted by “our standout performance in 2025”, which he said was due to the flexibility and resilience of the business model and accelerating adoption of the company’s compute platforms by high volume industrial customers. 

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However, the outlook continues to be impacted by the recent rise in spot prices for the dynamic random-access memory (DRAM) used in single-board computers and compute modules.

Raspberry Pi said in September’s interim results that it had sufficient DRAM supply to support its full-year goals, adding that if elevated pricing persisted it held several strategic options.

It warned today that there remains significant uncertainty as to the timing of a return to more normal DRAM pricing and availability. 

Based on current customer backlogs and inventory levels, it is confident that first-half unit shipments will grow versus the same period of 2025. However, visibility beyond that is limited.

It said second-half profitability will depend on DRAM pricing trends, high-density supply availability, the effectiveness of product variants to mitigate the issue and customer reaction to any further price increases.

Recognising the medium-term DRAM-related uncertainties, Jefferies cut its forecasts and price target from 610p to 420p. It added: “Beyond near-term DRAM-related uncertainty, the longer-term outlook remains robust in our view.”

The FTSE 250-listed shares today fell as far as 260p before settling 9.4p lower at 280.6p. They had been as high as 766p last January, when interest was boosted by a pipeline of opportunities among industrial-focused original equipment manufacturers.