TheWorks.co.uk PLC Half-Year Trading Update
RNS Number : 0641G
11 November 2022
11 November 2022
("The Works", the "Company" or the "Group")
Half-year trading update for the 26 weeks ended 30 October
The Works, the multi-channel value retailer of arts, crafts,
toys, books and stationery, announces an update on trading for the
26 weeks ended 30 October 2022 (the "Period" or "H1 FY23").
The Works delivered a resilient trading performance against the
backdrop of an increasingly challenging consumer environment. Total
sales for the Period increased by 2.1%, with a total LFL(1) sales
increase of 0.6%. Store trading was positive, increasing by 3.5% on
a LFL basis, whilst online sales declined by 16.9% (but were still
50% above pre-COVID levels).
Sales in both channels were adversely affected during May by
operational issues in the aftermath of the cyber security incident
in March 2022. However, from June onwards, the store LFL
performance was positive, with particularly strong growth in the
summer, when the refreshed outdoor play range performed well,
followed by a record "Back to School" season . The expansion of our
front list book offer has been a great success, with recent new
titles such as Diary of a Wimpy Kid: Diper Överlöde by Jeff Kinney,
The Bullet That Missed by Richard Osman and It Starts With Us by
Colleen Hoover being particularly strong sellers. Online sales have
been weaker in comparison, primarily due to the normalisation of
shopping trends post-COVID, but have gradually improved throughout
During the six weeks since our previous trading update, store
LFL sales growth remained positive, although the rate softened
slightly. This was partly due to losing a full trading day for the
additional bank holiday, as well as the comparatives in September
and October 2021 being strong, when we believe Christmas shopping
was brought forward(2) . Online sales growth continued to track
behind stores, but we are encouraged that the rate of decline has
slowed progressively as trading through this channel stabilises,
and we continue to believe that there remains a significant
opportunity for growth in this channel in the medium term.
Whilst we are pleased with the overall trading performance in H1
and the resilience of our business and offering, we remain cautious
with regard to how consumer spending might be affected by external
factors such as higher inflation and interest rates during the key
Christmas season and the remainder of this financial year. However,
with our value proposition more relevant than ever and being
well-placed operationally for Christmas, the Board's expectations
for the FY23 result remain unchanged (3) .
The Group's operating cash cycle has now returned to normal
after the two previous years which exhibited an atypical pattern,
due to the effects of the COVID-19 pandemic.
The Group's financial position remains strong with net cash of
GBP11.0m(4) at the Period end. This cash position benefitted from
the timing of the Period end, as approximately GBP5.0m of October
payments were not due until 31 October, the first day of H2 FY23,
albeit the cash position also fully reflects the build of stock
prior to the peak trading season.
Gavin Peck , Chief Executive Officer of The Works,
"We have delivered a resilient performance in the first half
with positive sales growth overall, demonstrating continued
progress against our "better, not just bigger" strategy. Our more
customer-focused product proposition has continued to resonate,
supported by the hard work and fantastic customer service delivered
by our colleagues, helping to offset the challenging trading
conditions being seen across the market.
"Although it is very difficult to predict what Christmas will
look like this year, we believe that the great products and
fantastic value we offer will be more important than ever, with
families still looking to celebrate Christmas but in a more
affordable way. The Works has proven itself to be a resilient
business and we remain confident in our ability to make progress on
our strategy and deliver growth in the medium term, supported by a
robust balance sheet."
Interim results notification
The results for H1 FY23 and an update on Christmas trading will
be announced on Friday, 20 January 2023.
Enquiries: via Sanctuary
Gavin Peck CEO
Sanctuary Counsel | 020 7340 0395
Ben Ullmann | firstname.lastname@example.org
(1) The like for like (LFL) sales increase has been calculated conventionally with reference to
the FY22 comparative sales figures.
(2) As noted in the H1 FY22 trading update (published in November 2021) and the FY22 interim results
(published in January 2022) we believe that some Christmas shopping was brought forward into
September and October 2021 due to customer fears of limited stock as a result of supply chain
(3) For reference, the Company compiled estimate of the market's expectation for the FY23 Adjusted
EBITDA result is approximately GBP9.0m.
(4) Net cash at bank, excluding IAS 17 finance leases.
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(END) Dow Jones Newswires
November 11, 2022 02:00 ET (07:00 GMT)
Grafico Azioni Theworks.co.uk (LSE:WRKS)
Da Gen 2023 a Feb 2023
Grafico Azioni Theworks.co.uk (LSE:WRKS)
Da Feb 2022 a Feb 2023