The £4.2bn UK-Based Business Going From Strength To Strength

📰 Industry News

Here's a roundup of this week's top headlines shaking up the UK business world.

• Britain’s unemployment rate has risen unexpectedly and the number of workers on payrolls has fallen by the most since the height of the pandemic, according to official figures. (Business Live)

• Digital driving licences will be introduced later this year under plans to use tech to "overhaul" public services after a report finds public services are missing out on £45bn in productivity savings due to outdated technology. (Sky News)

• The UK is the second most attractive country for investment behind the US, signalling a climb up the rankings, according to an annual survey of global business leaders by the consultancy PwC. (The Guardian)

• Aldi is to open nine stores in London this year as part of a £55 million investment within the M25. (The Retail Bulletin)

🎨 Warhammers World Domination: The Rise of Nottingham Founded Games Workshop

Once a niche mail-order company, Games Workshop has become one of Britain’s most remarkable business successes. The Nottingham-based maker of Warhammer miniatures is riding high, fuelled by surging sales, blockbuster licensing deals, and a fiercely loyal global fanbase. Now, the company plans to open a fourth UK factory and has acquired land for further expansion, underscoring its unstoppable growth.

A Miniature Giant

Founded 50 years ago by three school friends, Games Workshop’s rise from humble beginnings to a £4.2 billion FTSE 100 titan is nothing short of extraordinary. Its valuation has more than tripled in the last four years, eclipsing major brands like EasyJet and B&Q owner Kingfisher.

What’s behind this meteoric success? A perfect storm of pandemic-era hobby trends, cost-of-living-friendly “small treats,” and clever diversification. The Warhammer maker boasts over 500 retail stores around the world, with around 70% of sales coming from outside the UK. The chain has not only dominated tabletop gaming but has successfully capitalised on media and gaming. Deals with Amazon for a Warhammer 40,000 TV series and the launch of hit video games like Warhammer 40,000: Space Marine 2 have created lucrative new revenue streams.

Scaling Up for Demand

Games Workshop’s half-year results revealed a 20.9% rise in sales to £299.5m and a one-third jump in profits to £127m. CEO Kevin admitted demand has sometimes outpaced supply, with the company struggling to keep popular products in stock. To address this, the company is fast-tracking a new manufacturing site in Nottingham, set to open this July, while planning for two additional facilities to ramp up production of figurines and paints.

A Hobbyists Dream

At the heart of Games Workshop’s success lies a business model that prioritises its loyal customers. Its extensive Warhammer universe, with intricately detailed figurines and richly developed lore, has become a hobbyist phenomenon.

From its first store in Hammersmith in 1978 to a global retail network, the company’s ethos has remained the same: delivering “the best hobby in the world.” This sentiment is shared by its enthusiasts and a growing community of investors. And the whole business is pretty neat.

A Financial Juggernaut

Beyond impressive sales, Games Workshop has kept shareholders happy, declaring £100m in dividends so far this financial year and paying staff £8m in profit shares. Its pragmatic approach to growth, grounded in humility, ensures it isn’t rushing into the limelight despite its booming popularity.

While Warhammer’s painted armies may be small in scale, the future for Games Workshop is nothing short of colossal - a triumph of British ingenuity, passion, and creativity - and long may it continue.

🌐 Are We Running Out of Space Online?

This week’s trivia nugget? Around 10,500 websites are created every hour. That’s roughly three websites springing to life every second - faster than you can say, “Do we really need another blog?”

We all know online is the place to be… but if you think every website is a bustling hub of activity, think again. Out of the staggering 1.1 billion websites out there, only 193.5 million are actually active. (Rest in peace, your cousin’s long-forgotten food blog.)

Here are some quick stats to put this in perspective:

• 2.52 million websites are launched every single day.

• 72% of small businesses have leapt online - a figure that’s only climbing.

• Unsurprisingly, Google and YouTube top the charts as the most visited websites worldwide.

So, whether you’re building the next big eCommerce empire or just need a corner of the web for your holiday snaps, keep this in mind: the internet may feel infinite, but attention spans certainly aren’t. With 97% of the UK population online, competition for those precious clicks is fiercer than ever. Plan wisely, or risk getting lost in the noise.

🚫 Meat & Dairy Ban: Will It Leave UK Shelves Bare?

This week’s surprise? Germany has confirmed its first outbreak of foot and mouth disease (FMD) in nearly four decades, forcing a halt on meat and dairy exports to the UK. The highly contagious virus - discovered in a herd of water buffalo near Berlin - has sent shockwaves through the agricultural sector, with fears of looming shortages as retailers scramble for alternatives.

What’s Happened?

• Germany’s loss of FMD-free status means they can no longer issue veterinary certificates for exports outside the EU.

• The UK has banned imports of German cattle, pigs, sheep, and related products to “protect farmers and their livelihoods,” according to Defra.

• Germany is the UK’s third-largest supplier of pork (18% market share) and second-largest supplier of dairy (12%).

Between January and October 2024 alone, German exports to the UK included 117,340 tonnes of pork worth £448m and 130,000 tonnes of dairy worth £283m. That's a hefty slice of our supply chain now disrupted.

What’s the Impact?

• UK retailers are already facing “temporary impacts” on the availability of German products like bacon, gammon, and salami.

• Finding alternative suppliers takes time, as sourcing vets and necessary certifications can’t happen overnight.

• Importers fear short-term shortages as the sector adjusts.

Defra and the Agriculture & Horticulture Development Board (AHDB) are implementing contingency measures to safeguard Britain’s livestock.

To put things in perspective, the 2001 FMD outbreak in the UK led to the slaughter of over six million animals and caused £8bn in losses. No one wants a repeat of that.

What Happens Next?

Germany’s agriculture minister has pledged to contain the outbreak, with infected animals already culled and transport bans imposed in the Brandenburg region. While Germany can still export to the EU, the UK’s restrictions will remain in place until further notice.

In the meantime, keep an eye on your local butcher’s counter - those German salami slices might just be on an extended holiday. And for a government so keen on food security, perhaps it’s finally time to really back British farmers.

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