- Pre-tax profits tumble 84% to £4.1m
- Sales fall 6.2% to £813.1m
- Current trading “in line” with group plans
Game’s pre-tax profits have plunged 84% in what boss Martyn Gibbs described as an “undoubtedly tough” year.
Pre-tax profits plummeted to £4.1m in the 52 weeks to July 30 while sales fell 6.2% to £813.1m. Those figures are unaudited as the audited figures refer to 53 weeks.
The business’s turnaround programme continued to progress and its diversification initiatives are on track.
Last year, 27% of profit came from diversified areas such as digital content, accessories and pre-owned phones and tablets. This year, that sat at 32.2%.
Its events, e-sports and digital gross transaction values were up 45.2% to £6.1m while its gaming arena rollout is underway and has attracted “strong initial customer engagement”.
Game also acquired Ads Reality and Social Nat in its second half.
The retailer said trading for its first 10 weeks was “in line” with plans and that it remained “encouraged” by the forthcoming new releases and consoles as well as virtual reality technology over the coming year.
It added: “These developments will provide impetus to our markets and fresh opportunities to engage with both existing and new customers. Nevertheless, the group needs to balance these positive future market events with the prevailing trading conditions.”
“The board retains a cautious outlook and expects adjusted EBITDA for [the current year] to be broadly level to the current year.”
Chief executive Martyn Gibbs said: “Market dynamics in the UK have undoubtedly been tough in the past year. The management team responded quickly to these new market conditions and have made significant progress with its action plan since January.
“We recognise that we need to continue to reposition and transform the business. We have a clear vision to build a company that combines multichannel retail, live gaming and digital services to deliver a highly compelling and unique combination of products and services for gamers. This planning is being implemented quickly across the business.
“I am confident that by organising ourselves effectively, delivering for our customers and building ever stronger and more collaborative partnerships with our key suppliers, we are positioning the business to deliver on our strategy and transition to sustainable earnings growth.”