The Works expects return to profit growth
The Works has said it expects to return to profit growth in its new financial year it looks to benefit from “significant changes” implemented across the business.
In a trading update for the 53 weeks to 5 May, the retailer announced that total revenue edged up 0.9% to £282.6 million and that like-for-like sales fell by the same percentage.
The Works said it improved the overall quality and profitability of its store portfolio in the period, with nine new stores, 24 closures, five relocations, and 21 refits. It added that 96% of its 511 stores were profitable.
In January, the company announced that it was focusing on stabilising profitability by improving margins and reducing costs.
Gavin Peck, chief executive of The Works, said in the update today: “We are pleased to have finished FY24 in line with market expectations, which reflects action taken to reset our cost base and improve margins, supported by improving store sales in the final quarter.
“Significant changes implemented across the business make us well-placed to offset cost headwinds and we expect to return to profit growth in FY25.
“In a year of considerable change at The Works I am incredibly grateful to our colleagues for their ongoing dedication to our business and to our customers.”
The Works expects to report pre-IFRS 16 adjusted EBITDA of approximately £6 million in FY24 and deliver £8.5 million in FY25.
