The Works announces directorate change as it releases preliminary financial results

The Works, the value retailer of arts, crafts, toys, books and stationery, has announced a directorate change as two non-executive directors have stepped down. John Goold and Mark Kirkland, both non-independent non-executive directors of The Works, have decided to step down from the board with effect from today (1st October). 

Goold is chief executive officer and Kirkland is chief financial officer at Kelso Group Holdings PLC, which retains a 6.15% interest in The Works and remains a supportive shareholder.

Goold and Kirkland said: "We joined The Works Board on a temporary basis to provide additional guidance as the business underwent a period of change. Since then, significant progress has been made, namely transferring from the Main Market to AIM and strengthening the leadership team. We are content to step down now, knowing that the company is on a path to growth and with full confidence in the management team."

Steve Bellamy, chair of The Works, said: "On behalf of the Board, I would like to thank John and Mark for their contribution to The Works during this period of transition and look forward to working with Kelso as an ongoing shareholder."

The company has also released its preliminary results for the 53 weeks ended 5th May 2024. The company said it finished FY24 "in line with market forecasts of pre-IFRS16 adjusted EBITDA" of £6.0m. The report continued that it is well positioned for profit growth in FY25 and "to meet market forecasts of pre-IFRS16 adjusted EBITDA" of £8.5m, "with a process to evolve the strategy well underway". 

It delivered a total revenue growth of 0.9% to £282.6m in FY24 "against a challenging backdrop characterised by cost of living pressures and softened consumer demand". Store sales, which represent around 90% of total sales, continued to drive growth, increasing by 0.6% on a like-for-like basis. Online LFL sales declined by 12.4%,  resulting in an overall LFL sales decline of 0.9%. 

Gavin Peck, chief executive officer of The Works, said: "Against a persistently challenging consumer backdrop and tough Christmas trading, we were pleased to end FY24 in line with market expectations. This was a direct result of the continued dedication and strong response of colleagues, the decisive action taken to improve product margins, reduce costs and scale back non-essential investments, supported by improved sales in the final quarter. "

Good strategic progress was made during the year and while we believe this continues to be the right high level strategic direction for The Works, we also believe that now is the right time to evolve the strategy. Work is therefore underway to refine our plans to transform the business and drive an improved performance and shareholder returns in the years ahead.

"Although consumer confidence remains subdued and we continue to face tough cost headwinds, the cost and operational action we have taken and the trajectory of recent trading means we are well positioned to offset these and return to profit growth in FY25. Operationally we are in a much stronger position this year as we head into the upcoming peak Christmas trading period and we look forward to supporting customers to have a Christmas well spent courtesy of The Works."