The Works has cast off the gloom and is now forecasting that it will return to profit growth, having reduced its costs during the financial year 2023-24.
Its revenues for the 53-week period ending May 5th were £282.6m, an increase of 0.9 per cent over the previous period, but this was down 0.9 per cent on a like-for-like basis.
Notably, the listed business has moved from the Main Market to AIM to benefit from reduced audit fees, moved its online fulfilment contract to a new service provider, and dispensed with its customer loyalty programme. It has also agreed rent savings with certain of its landlords and improved its profit margins. It has closed 24 stores, opened 9 new stores, relocated 5 stores, and refitted 21 stores.
Gavin Peck, CEO, The Works said: “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 will 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.”
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