RNS Number : 6048Y
14 May 2021
14 May 2021
("The Works", the "Company" or the "Group")
Full year trading update for the 53 weeks ended 2 May 2021
TheWorks.co.uk plc, the multi-channel value retailer of arts,
crafts, toys, books and stationery, announces its pre-close update
for the 53 weeks ended 2 May 2021 (the "Period" or "FY21").
The Works has delivered a resilient performance, with lower
sales than in FY20 reflecting Government restrictions, partially
offset by good growth online and strong customer demand when stores
were allowed to trade. During the 53 week Period, there were 16
weeks when all stores were closed and a further 8 weeks when at
least 75% of the stores were closed, as required by Government
restrictions. This included our peak Christmas trading period and,
as a result, total sales (1) declined by 19.0% to GBP206.2m (FY20:
Store LFL sales (2) during the period grew by 6.0% and online
sales grew by 120.9% compared with FY20, demonstrating the value of
The Works' multi-channel model, the appeal of the proposition and
the loyalty of our customers. Throughout the year our online
performance was supported by the investment we made to increase
online capacity and our new customer website.
Immediately following the Government's announcement of the most
recent lockdown in early January 2021, the Company revised its
internal profit forecast. The final FY21 figure is expected to be
in line with this forecast.
In line with our revised strategy, during the year our focus was
on optimising our existing store estate rather than pursuing a
targeted number of new store openings. At the Period end the Group
traded from 527 stores across the UK and Ireland (FY20: 532
Despite sales levels being significantly lower than normal,
through the tight control of costs allied to careful cash
management and use of the available Government support schemes, the
Group ended FY21 in a strong financial position, having generated
cash of approximately GBP7.5m during the year. On a pre IFRS 16
basis and excluding finance leases, the Group held net cash
balances of approximately GBP0.5m at the end of the period (FY20
year end: net bank debt of GBP7.1m), resulting in headroom of
GBP30.0m within its bank facility limit.
Sales since the majority of stores reopened have been very
encouraging (the Group's stores in the Republic of Ireland are due
to reopen on Monday 17 May). It is probably too soon to judge the
extent to which these encouraging sales reflect strong underlying
performance as opposed to pent up demand. As expected, with the
reopening of the stores, online sales have reduced but remain
significantly ahead of pre COVID-19 levels.
The Board's view is that the level of uncertainty at the
beginning of FY22 related to COVID-19 and its potential impacts on
the business is lower than it was at the beginning of FY21.
Nevertheless, a higher than normal degree of uncertainty remains,
and is expected to persist for some time particularly regarding the
shape of the consumer recovery. In this context, the Group is not
publishing profit guidance but, due to its strong financial
position, and the evident appeal of its proposition, the Board is
confident in the future prospects of the business.
Steve Alldridge, who joined the business in June 2020 as Interim
CFO, has been formally appointed to the Board as CFO with effect
from the date of this announcement (3) . His expertise and
leadership have been invaluable during the pandemic and the Board
congratulates Steve on his appointment.
Gavin Peck, Chief Executive Officer of The Works, commented:
"Like many retailers, the last 12 months have been incredibly
challenging for The Works, which has historically relied mainly on
in-store sales. Our business was severely impacted by successive
lockdowns and forced closures of our entire store estate.
"Despite this, the period has highlighted the resilience of the
business and our ability to both adapt our offer and leverage our
multi-channel model. Since we couldn't control store closures we
focused on the things we could, keeping tight control of costs,
optimising our operations and vastly improving our online offering.
As a result, our financial position remained strong, online growth
exceeded our expectations, and when stores re-opened we saw
customer demand returning quickly to pre-COVID levels.
"I am incredibly proud of our colleagues who have supported each
other so brilliantly and the unique culture at The Works that has
enabled us to withstand this difficult year and emerge quickly and
optimistically as a stronger business. Although uncertainty
remains, particularly around the shape of the consumer recovery,
the Board expects the early progress to continue and remains
confident in the future prospects of the business."
Full year results notification
Our current intention is to announce the full year results for
FY21 and an update on trading on Tuesday 20 July 2021. If it
becomes necessary to alter this date, we will issue a notice
TheWorks.co.uk via Sanctuary
Gavin Peck CEO
Ben Ullmann +44 7944 868288 email@example.com
Rachel Miller |
+44 7918 606667
() "Sales" include VAT and are stated before making
adjustments required to arrive at statutory revenue. The sales
figures quoted above form the basis of the Group's like for like
("LFL") sales comparisons and are calculated on a basis consistent
with the "Total gross sales" line included in the Financial Review
section of the Group's FY20 Annual Report and Accounts.
() The Group does not typically quote separate LFL figures
for stores and online, as this would be inconsistent with the ethos
of a multi-channel business. However, the introduction and
subsequent lifting of trading restrictions throughout FY21, and the
consequential disruption to sales patterns, prevents the
calculation of a meaningful combined store and online LFL sales
figure. Therefore, in the current exceptional circumstances and, to
provide an indication of the trading performance adjusted for
periods when the stores were closed, individual LFLs are quoted in
respect of FY21.
LFL sales are normally defined by the Group as the year-on-year
growth in gross sales from stores which have been opened for a full
63 weeks (but excluding sales from stores closed for all or part of
the relevant period or prior year comparable period), and from the
Company's online store, calculated on a calendar week basis. Store
LFL sales for FY21 are for the 53 weeks ended 2 May 2021, excluding
periods when stores were required to be closed to comply with
COVID-19 restrictions on trading. Online LFL sales are for the
entire 53 week period, including when the stores were closed.
() Pursuant to the requirement of LR 9.6.13R it is noted that
Steve Alldridge was CFO of Bonmarché Holdings plc until August
2019. Bonmarché Holdings plc was placed into administration in
October 2019. There is no further information to be disclosed under
the requirements of LR 9.6.13R.
Notes for editors:
TheWorks.co.uk plc is one of the UK's leading multi-channel
value retailers of, arts, crafts, stationery, toys and books,
offering customers a differentiated proposition as a value
alternative to full price specialist retailers.
The Group operates a network of 527 stores in the UK &
Ireland with a variety of location types including traditional
high-streets, retail parks, shopping centres, factory outlets and
concessions. In FY21 the Group opened 7 stores and closed 12. The
Works also has a significant online presence that complements the
store offer and enables customers to shop any time of the day, and
from an extended range of products not always available in
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(END) Dow Jones Newswires
May 14, 2021 02:00 ET (06:00 GMT)
Grafico Azioni Theworks.co.uk (LSE:WRKS)
Da Ago 2021 a Set 2021
Grafico Azioni Theworks.co.uk (LSE:WRKS)
Da Set 2020 a Set 2021