January 6, 2010 / 10:41 AM / 10 years ago

STOCKS NEWS EUROPE-Games Workshop up after trading update

Shares in Games Workshop Group Plc (GAW.L) rise 25 percent after the British fantasy gaming company says it expects full-year pretax profit to be ahead of market estimates by about 5 million pounds ($7.98 million), prompting KBC Peel Hunt to raise its rating on the stock to “buy” from “hold”.

“The key driver has been a significant increase in gross margins (from 71 percent to 73.5 percent) due to improved factory efficiencies, in particular on stock management and greater efficiencies on plastic moulding,” KBC Peel Hunt analyst Charles Hall says in a note.

Hall also says the business has been substantially de-risked and investors can now look at the potential more clearly.

Reuters messaging rm://kumar.alagappan.reuters.com@reuters.net

$1=.6267 Pound

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