The Works faces a challenging economic landscape, yet remains optimistic for Christmas.
- Despite declining profits, The Works anticipates improved performance in the upcoming financial year.
- Strategic initiatives aim to stabilise operations and enhance profitability.
- Store sales showed resilience, though online sales experienced a drop.
- Leadership changes and strategic shifts are positioning The Works for future growth.
The Works has navigated a demanding year, marked by flat sales and decreased profits. However, the company expresses confidence in its strategic direction as it prepares for the festive season. Adjusted EBITDA has dropped from £9 million to £6 million, influenced by high costs and tough Christmas trading in the past year.
Despite these challenges, the retailer remains optimistic about the upcoming financial year, expecting profitability to rebound with a forecasted adjusted EBITDA of £8.5 million. This expectation is bolstered by efforts to refine product margins, reduce costs, and stabilise business operations.
Sales for the year marginally increased by 0.9% to £282.6 million, despite a 0.9% decline in like-for-like sales. Store sales, comprising 90% of total revenue, grew by 0.6%, while online sales saw a significant decline of 12.4%.
Gavin Peck, CEO of The Works, stated, ‘Against a persistently challenging consumer backdrop and tough Christmas trading, we were pleased to end FY24 in line with market expectations.’ He emphasised the need to evolve strategy further to transform the business and enhance shareholder returns.
Meanwhile, board changes have occurred with two representatives from The Works’ shareholder, Kelso Group, stepping down. John Goold and Mark Kirkland of Kelso Group expressed satisfaction with the company’s progress, citing leadership reinforcement and a transition to AIM as key achievements.
Strategically positioned, The Works aims to overcome economic challenges and improve profitability by next year.
