Magister Militum - Selling Up

[T13A]

Hi

Richard Clewer (one of the co-founders of Magister Militum) is the Leader of Wiltshire Council. He seems to have made at least one apperance every week this year on our local BBC TV news programme! So I'm not surprised at the news and I do not remember him mentioning wargaming once. 

Cheers Paul

[Big Insect]

This is surprising news. And reading the press release, I can understand the need to focus on other areas, but as they have several people working for MM it is a bit surprising that the business can't continue to run with some of these people taking a wider role. I suppose this is always the challenge of owner run businesses.

For the ranges they are distributors for, I would hope these could be picked up elsewhere fairly easily.

For their own ranges I do hope these stay in production, I have bought various bits over the years and their recent fantasy expansion added a lot of unique figures to the 10mm space.

Their historical 10mm figures don't mix great with Pendraken due to differences in style more than height. But they do have extensive ranges.

Does feel a bit like the MM team have had enough, as otherwise you would have hoped they could have kept the business running whilst finding a buyer.

MM were very conspicuous by their absence at the 'Attack' Devizes show earlier in July - having been a staple trader there for as long as I can remember (possibly since the show started) but I gather that the demands of 'political' life are not really compatible with trading at shows. I am sure that somebody will pick up the various ranges but I am not sure there will be a buyer for the whole business as it is a bit of eclectic mix of scales, own-brand and supplier merchandise.

But sad to see another long established trader pack things in.

[Sunray]

From a quick decco at the books,they had a drop in sales/profits during Covid- which is suprising as many wargamers became model painters on an industrial scale, but(year ending Jan 22), they were churning £181,332 turnover.
Materials were £47,650 and wages £37,179 gross (just 3 employees?) Other running costs were £62,746.

A modest margin of £33,757.

A lot of their 12,000 odd products are 'prepacked' in the manufacture's blister packs. This incurrs holding high levels of stock as opposed to casting to order and a corollary of lower margins.

[Leon]

I know from speaking to Richard and Zoe that their roles in the council had become too much for them to continue doing the shows so I imagine this is a continuation of that. 

There's some interesting stuff in the summary accounts there, such as only turning a profit in 2 of the last 6 years, a lower than expected turnover, plus an ongoing creditor entry of -£200,000 that would usually be something like corporation tax or money owed to the directors.

[Sunray]

Indeed. Perhaps as you suggest, a cash investment by Director's to launch the Company into trading that has never been recovered. Relevant to turnover levels and profits before tax, a lot of money.

Brexit uncertanity won't have helped in a business where goods are imported from EU for retail, with end of "grace periods".

Three things strike me about the GB wargame market: First, there are traders who are just traders, and then you have traders who have become a "brand"and generated a unique customer loyality and relationship.This forum is a classical example of how that relationship is nurtured. In the 1980s hayday of the hobby, you had the big fish like the Perry twins whose Foundry was the epitomy of being a brand.  That is where Pendraken is now. That loyality is recipocated as was demonstrated in the "BKC crisis" a few years back.

Secondly, I note no existance of any Wargame Trades Federation - like you have in other sectors such as say "angling". Hence no collective body to lobby MPs or promote a unique and very British domestic industry.

Finally, I would also comment that, in general the Wargame traders are all of a certain age. Leon is one of the few 'second generation'. Lawrence Kay at IM would be another. What happens when- as is current with Timecast- the time comes for the present generation want to retire? 

[Big Insect]

Indeed. Perhaps as you suggest, a cash investment by Director's to launch the Company into trading that has never been recovered. Relevant to turnover levels and profits before tax, a lot of money.

Brexit uncertanity won't have helped in a business where goods are imported from EU for retail, with end of "grace periods".

Three things strike me about the GB wargame market: First, there are traders who are just traders, and then you have traders who have become a "brand"and generated a unique customer loyality and relationship.This forum is a classical example of how that relationship is nurtured. In the 1980s hayday of the hobby, you had the big fish like the Perry twins whose Foundry was the epitomy of being a brand.  That is where Pendraken is now. That loyality is recipocated as was demonstrated in the "BKC crisis" a few years back.

Secondly, I note no existance of any Wargame Trades Federation - like you have in other sectors such as say "angling". Hence no collective body to lobby MPs or promote a unique and very British domestic industry.

Finally, I would also comment that, in general the Wargame traders are all of a certain age. Leon is one of the few 'second generation'. Lawrence Kay at IM would be another. What happens when- as is current with Timecast- the time comes for the present generation want to retire? 

Very poignant observations there Sunray.

I am aware of at least 2 other highly regarded 28mm modelers and manufacturers who are both making noises about potentially giving up the industry (& trying to sell up) in the next 2 years.
Both state the challenges of Brexit - they have seen their European sales "fall off a cliff" - lower margins due to fuel and material cost increases and also the competition (as they see it) from digital sculpting and 3D printed plastics/resin figures, specifically via Etsy.
The 3D printing issue I thought was an interesting comment, as my perception of 3D printed figures was that they appear to be expensive (especially if buying in any quantity) and fragile. Originally they also had a strange sort of 'roundedness' to the sculpts, but more recent ones I've actually physically seen appear to be much more realistic. Also a move to printing them with closed hands that can be drilled to take metal spear, javelins, pikes etc. seems to be a sensible development.
But time (& tide) waits for no-man and the hobby seems to be getting older, as are our traders/manufacturers. Whilst I think that being a wargames trader/manufacturer is probably more a 'calling' or vocation than a day-job, I also think we will be bound to see more change in the next few years, as retirement beckons for some of the longer established players.

[Duke Speedy of Leighton]

In answer to the Timecast question
Barrie has retired (ill health), Mark is running the company still as a solo project, and moving it the way he wanted to for many years.
New walls for 28mm soon folks!

[Ben Waterhouse]

Very poignant observations there Sunray.

I am aware of at least 2 other highly regarded 28mm modelers and manufacturers who are both making noises about potentially giving up the industry (& trying to sell up) in the next 2 years.
Both state the challenges of Brexit - they have seen their European sales "fall off a cliff" - lower margins due to fuel and material cost increases and also the competition (as they see it) from digital sculpting and 3D printed plastics/resin figures, specifically via Etsy.
The 3D printing issue I thought was an interesting comment, as my perception of 3D printed figures was that they appear to be expensive (especially if buying in any quantity) and fragile. Originally they also had a strange sort of 'roundedness' to the sculpts, but more recent ones I've actually physically seen appear to be much more realistic. Also a move to printing them with closed hands that can be drilled to take metal spear, javelins, pikes etc. seems to be a sensible development.
But time (& tide) waits for no-man and the hobby seems to be getting older, as are our traders/manufacturers. Whilst I think that being a wargames trader/manufacturer is probably more a 'calling' or vocation than a day-job, I also think we will be bound to see more change in the next few years, as retirement beckons for some of the longer established players.

Front Rank being the one that shouldn't have surprised me, but did; when they sold up to Gripping Beast.

[Big Insect]

Yes - the challenge of trying to integrate two very characteristic and different sculpting styles under the same manufacturer will be interesting to watch. Others manage it - Fighting 15's is a good example - but generally they tend not to add to existing ranges, and to market them under their original brand names - as MM did with Chariot.

It could be argued that with Front Rank, Gripping Beast got a number of complete ranges (although with Napoleonics can that ever be said to be the case!). The challenge comes when your customers demand additions to a range that you've not sculpted yourself. 'Ancient & Modern' have balanced this by splitting the old Donnington ranges (of which I am a big fan) from their 'New Era' sculpts (which are also very good). The new owners of the old 'vintage' Lamming ranges - East Front - are attempting to replicate Bill Lammings style and also trying to stay true to the original Lamming multi-part approach. From what I have seen so far, they appear to be achieving this.

So it will remain to be seen as to who snaps up the various MM ranges or if the business is bought as a whole.

[Chad]

Having looked at the accounts filed by MM since it's inception the following things stand out:

1. The accounts are unaudited and show only a minimum of information. That is normal for a small
  business, but a prospective purchaser would need to look into more detail.
2. The company has reported losses in nearly every year so the large Creditor sum will not
  include any liability for Corporation Tax.
3. The large Creditor figure would need to be examined in detail. For the majority of the years
  it has been described as due within one year. As such it would be expected to include a
    combination of monies owed to suppliers, bank overdraft, PAYE and VAT in the main.

    For the year ended January 2022 it has now been stated as due in more than 12 months, which
    suggests something has changed in the nature of that Creditor balance, which would need to be
    understood.

Overall there appears to be little evidence that the company has been a successful venture financially since day one.

[streetgang]

Quite disappointing news. While Pendraken is my number one love for 10mm, I love the scale so much I have affairs with several other manufacturers. My Crimean War and Early WW1 projects are entirely MM and I freely mix MM into my 10mm Pict, Irish and Saxon dark ages armies  (which are predominantly Pendraken). I was also planning a foray into Biblical era armies...

I was planning an order for Pendraken soon, looks like I will have to double down and make an order from Magister Militum to fill any gaps in the event  the ranges disappear. Need to take inventories, make priority lists and see what the butcher's bill will cost me. Nothing quite like panic shopping!

[FierceKitty]

Do remember that Newline also do a few good chariot-era ranges, and that Lancashire has a few too (though there's something about their genetic make-up I don't trust).

[Big Insect]

Do remember that Newline also do a few good chariot-era ranges, and that Lancashire has a few too (though there's something about their genetic make-up I don't trust).

Lancashire used to have real issue with their metal. Maybe it had too much lead in it, but it resulted in them getting 'lead-rot' quite quickly or breaking off at the ankles. However, I understand that this may have been rectified in recent years, not that I have bought any for a while now.

[mmcv]

Funnily enough my first order from Lancashire arrived yesterday with a few packs to check them out, some bronze age and medieval command figures. Look fairly nice though haven't had a chance to paint up or see how they look along side other ranges. 

Newline do a nice bronze age range and Fogg of War are in the process of getting their shop up which will include some bronze age stuff too. 

[steve_holmes_11]

This news (combined with Pendraken's own problems) seems gloomy.

I'm seriously low on marketing savvy, but I believe we have two rather different businesses here.
    Pendraken "Scale leader - with supporting sidelines".
    Magister Militum "Aggregator - without a dominant theme".


The marketing types around my job (Information technology) were obsessed that any new business needed it's "Killer App".
One thing they delivered with excellence, which set them apart from hundreds of similar offerings.

In our extended hobby Warhammer are a classic example (I should have said Games Workshop - Warhammer is the killer app).
Pendraken has that in its 10mm ranges.

I can't think of many times Magister Militum was my first choice of supplier.
Their extensive ranges were handy for filling gaps in collections.
But I have never envisaged a project - even the most speculative - and throught "I'll get all the stuff form Magister Militum".


But I never