Shares in Games Workshop were down on the FTSE after the fantasy game maker and retailer said it expected pre-tax profit in the full year to 29 May 2011to be below current market expectations.

In the first half of the year ended 28 November sales were reported as declining four per cent. The group said that difficult trading conditions since then meant that the "shortfall is unlikely to be recovered by the year end".

However the group said gross margins and costs were under control while cash generation "remains healthy" as does the outlook for royalties receivable.

Games Workshop is due to announce its half yearly results on 25 January 2011.

By 13:55 shares in Games Workshop were down 14.20 per cent to 362.50 pence per share.