Today’s Budget (28 October) could have significant implications for some FTSE 100 stocks. Banks may react depending on how much they’re taxed or not.
Some retailers may also get a boost if the Chancellor announces significant cost of living interventions. Then again, money’s too tight to mention, as the song goes. So nothing needle-moving is guaranteed.
Whatever happens though, I’m not selling shares in this fantastic FTSE 100 company…
Resilient growth
I’m talking about Warhammer-owner Games Workshop (LSE:GAW). Since Rachel Reeves’ Budget two years ago, the stock has returned about 43%, including dividends. This despite a 26% fall since June.
I mention that particular Budget because since then Games Workshop has faced Employer National Insurance increases, US tariffs, rising energy bills, and higher plastic costs arising from the Iran war. More consumers have been struggling.
Despite this, the company has kept performing well. Core revenue at constant currency jumped 16% to £574m in FY25, then 12.2% to £634m in FY26. Profits have reached record levels and dividends have been plentiful.
Indeed, on almost every metric, Games Workshop’s progressed over this period. There have been more sales, profits, stores opened, third-party independent partners, Warhammer+ subscribers, global Warhammer events and clubs, and additional warehousing capacity added.
Granted, licensing revenue dipped last year, from £52.5m to £32.9m. However, this was due to the timing of the uber-successful Warhammer 40,000: Space Marine 2 video game the year before. So this doesn’t worry me (there’s the Amazon content to come here in future years).
Fact is, despite the incredibly tricky backdrop since 2024, more customers than ever are collecting, building, painting, playing, reading (over 5m novels sold last year), watching, and gaming across the immersive worlds of Warhammer.
So I think this trend has some way to go globally.
Keeping thing simple
Our ambitions remain clear: to make the best fantasy miniatures in the world, to engage and inspire our customers, and to sell our products globally at a profit. We intend to do this forever. Our decisions are focused on long-term success, not short-term gains.
Games Workshop
For me, the quote (which is in every report) encapsulates why Games Workshop is an exceptionally well-run company. It never strays outside its core focus: to make the world’s best fantasy miniatures.
Things are kept simple. There are no share buybacks, acquisitions, foreign exchange hedging, progressive dividend, or quarterly earnings calls with analysts.
Needless to say, the firm operates a debt-free balance sheet, with only the necessary amount of cash tied up in stock at any point. And it has no plans to use AI in product design or the creation of intellectual property (IP).
Where next?
Of course, if household bills keep relentlessly rising, Games Workshop’s sales could take a hit. A premium market valuation heightens the risk here.
However, Games Workshop boasts incredibly high margins, carries zero debt, and has millions of loyal customers. There’s a long runway for customer growth in North America and Asia, alongside opportunities to further monetise Warhammer IP.
Fun fact to end: In the 10-year period to May, Games Workshop grew year-on-year sales in 102 out of 120 months. And the pandemic accounted for some of those misses!
After its 26% fall, I think the stock’s one to consider, whatever happens in today’s Budget.
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Ben McPoland owns shares of Games Workshop.
This story originally appeared on Motley Fool
