FANTASY games group Games Workshop said the growing popularity of war games had driven a 12 per cent rise in half-year operating profits to £7.4m.

The Nottingham group, which makes the Warhammer battlegame and a table-top game based on the Lord of the Rings trilogy, said turnover had increased £13.9m to £72m.

The group attributed the success to good management of its 115 stores in the UK, where enthusiasts can buy the company's figurines.

The company is also increasing its overseas markets, such as the US, where it opened 19 stores in the six months to November 30.

Games Workshop had a particularly strong final quarter last year after an advertising campaign promoting a Lord of the Rings game in magazines featured some of its models.

Finance director Michael Sherwin said the extra business was welcome, but said Games Workshop was basing its future strategy on organic growth through its store network rather than advertising.

"We would far rather be masters of our own destiny," he said.

During the period, the group continued to develop its flagship Warhammer 40,000 brand with an Eye of Terror campaign concept, launched in the summer.

Games Workshop, which holds a global licence for the table-top version of the Lord of the Rings game, launched its third game based on the trilogy in November.

The group makes about 70 per cent of its sales outside the UK and has sales operations in the US, Canada, France, Germany, Spain and Australia.