Press releases

Preliminary Results for the year ended 31 January 2009

22/04/2009

All figures in £’m (unless stated) 53 weeks
ended
31 January 2009
52 weeks
ended
31 January 2008
Var%
Group turnover 1,971.9 1,491.9 32.2%
Gross profit margin (%) 26.2% 24.8%
Operating profit before non-recurring costs 133.1 82.3 61.7%
Non-recurring costs * 6.6 7.1
Operating profit 126.5 75.2 68.3%
Profit before non-recurring costs and tax 126.2 75.5 67.2%
Profit before tax 119.6 68.4 74.9%
Basic earnings per share before non-recurring costs (pence) 26.61p 15.88p 67.6%
Basic earnings per share (pence) 24.70p 13.79p 79.1%
Annual dividend per share (pence) 5.50p 4.40p 25.0%
Trading store numbers (including franchises) 1,342 1,161 15.6%
Trading square footage (sq. ft. thousands) 1,392.8 1,170.2 19.0%

* The non-recurring costs relate to the acquisition of Gamestation.

Operational and financial highlights

  • Record sales and profits.
  • Group sales growth of 32.2% and like for like (‘lfl’) sales up by 8.8%.
  • The Group’s gross margin improved by 140 basis points.
  • Strong UK and International profit performance with UK operating profits up by 63% to £112.7m (before non-recurring items) and International up by 54% to £20.4m.
  • eCommerce sales and operating profits rose by 85% and 109% respectively.
  • Gamestation integration progressing in line with expectations with synergies of £10m delivered for FY08/09 and a further £6m expected for FY09/10.
  • Final dividend increased by 25% to 3.71p.

Current trading

  • Current trading is ahead of expectation coupled with gross margin improving by around 150 basis points compared to last year.
  • For the 11 weeks to 18 April 2009, Total Group sales are up by 1.0% with Group lfl sales down, against very strong comparatives, by 6.3%.
  • In the UK and Ireland, total sales and lfl sales were down by 2.4% and 6.6% respectively. In our International business, total sales were up by 9.9% and lfl sales on a constant currency basis were down by 5.7%. On a reported currency basis, Group lfl sales were down by 3.7%.

Peter Lewis, Chairman, said:

“These were exceptional results for the Group with a 67% increase in profit before taxation and non-recurring costs to £126.2m (2008: £75.5m) and continue a consistent growth trend for our business. The Group’s basic earnings per share before non-recurring costs in the last four years have increased by a compound annual average of over 44%. The principal drivers have been third generation formats with many products now having a wider demographic appeal, the further development of our specialist credentials, successful international expansion and the many benefits arising from our acquisition of Gamestation.

Current trading performance is ahead of our expectations and this is particularly pleasing when set against the double digit growth achieved last year. Year to date margin has also improved, up 150 basis points as a result of higher margin products within the sales mix.

The Board is confident in the outlook for the year to 31 January 2010.”

A presentation to investors and analysts will be held today at 9.00am (BST) at The Lincoln Centre, 16 Lincolns’ Inn Fields, London, WC2A 3ED.

A live webcast of the presentation to investors and analysts will be available on the Company's website at www.gamegroup.plc.uk from 9.00am (BST) today and will be available to view on demand from approximately 2.00pm (BST).

An Interview with Lisa Morgan, Chief Executive, will be available from 7.00am (BST) on www.gamegroup.plc.uk and on www.cantos.com.

Enquiries:

The GAME Group plc Lisa Morgan
Group Chief Executive
+44 (0)1256 784050
David Thomas
Deputy CEO & Group Finance Director
+44 (0)1256 784085
Ben White
Reporting and Investor Relations Director
+44 (0)1256 784122
Brunswick Jonathan Glass
Nina Coad
+44 (0)20 7404 5959

www.gamegroup.plc.uk

View the full press release in PDF format.

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