LONDON (ShareCast) - Gaming model specialist Games Workshop returned to the black for the full year as it continues its cost reduction programme.

Full-year pre-tax profit came in at £1.1m compared with a loss of £2.6m the year before. Revenue for the year ended 1 June rose to £110.3m from £109.5m.

Commenting on the results, chairman Tom Kirby said, "We have had a better year. Not as good as we would like, not as good as it will be, but better nevertheless."

The games retailer is not recommending a dividend payment in 2008/09, and said it will instead use the cash to continue its cost reduction programme, which has included the closure of 18 loss-making Hobby centres.

"This cost reduction programme has created a leaner and more responsive organisation, better equipped to face the growth opportunities which lie before it," the group said.

• News Channel