The Works cuts losses as it launches new growth strategy
The Works cuts losses as it launches new growth strategy
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Crafts and books retailer The Works has slashed its losses for the past half-year, as it launched a new strategy to continue its recovery. The high street firm saw shares lift in early trading on Friday as it also hailed strong trading late in the festive period and into January.
Nevertheless, the company said it expects consumer confidence to “remain fragile” in the coming months. The Works reported a £6.9 million pre-tax loss for the six months to November 3, trimming down from a £16.5 million loss over the same period a year earlier.
It said the reduction was due to actions taken to improve profit margins and its cost-saving programme over the past year. Meanwhile, total revenues grew by 1.3% to £124.2 million for the half-year, although like-for-like revenues were 0.8% lower. Store sales grew over the period as it was boosted by positive fiction book sales and “improved seasonal ranges”.
It added that sales have continued to meet targets in the second half of the financial year, with like-for-like sales up 1% over the 11 weeks to January 19. This was supported by a “strong end to Christmas trading”, which it said continued into January.
On Friday, the group said it hopes to grow sales further with a new strategy. It said it plans to grow annual sales to £375 million – from £282.6 million in the previous full year – within five years by growing its brand recognition, improving customer convenience and becoming more lean and efficient.
