The Works reports 'resilient' end of year results with total sales up 6%

Books, stationery, craft and toy retailer The Works saw its total sales increase by 6.1% to £316.6m in the year to 30th April 2023, compared to the same period last year. 

Gavin Peck, chief executive officer, said: “Our performance in FY23 was delivered against a challenging backdrop. The business traded well through difficult external conditions, most notably the inflationary environment, and the recovery from the cyber security incident at the start of the year. The store performance was strong throughout the period, demonstrating the enduring value of our store network in communities across the UK and Ireland."

Stores, which represented 88.8% of total sales, delivered 7.5% growth in sales this year on a like for like basis. However, online sales declined by 15%, resulting in overall sales growth of 4.2% on a like for like basis.

Peck added: "Online sales continued to lag behind, partially reflecting the normalisation trend seen more widely. We delivered good strategic progress in the second half of FY23 and have now laid the foundations to continue on this trajectory in the year ahead."

The company expects to report an Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) result for the year in line with its compiled estimate of the market’s forecast, which is approximately £9m.

The Works said it ended the period in a "strong" financial position, with net cash of £10.2m, lower than the previous period’s £16.3m, which included higher than normal creditor balances that unwound as expected.