The Works posts first half loss
The Works, the book, stationery and arts and crafts retailer, has reported a first half loss despite achieving strong sales.
In a statement, the company said it delivered a strong performance in the 26 weeks to 28 October, with revenue up 15% to £91.5 million and like-for-like sales up 3.8%.
However, the company made an adjusted EBITDA loss of £0.9 million and reported a statutory pre-tax loss of £7.9 million for the period.
The Works attributed the losses to the seasonal nature of its business and the fact that it currently makes all of its profit in the second half of its financial year.
Kevin Keaney, The Works chief executive, said: “We’re really pleased to be reporting a strong maiden set of interim results today. We have continued to delight our customers with our wide and constantly refreshed range of great value products through our flexible and convenient multichannel offering.”
The company also gave an update on more recent trading and said that like-for-like sales in the 11 weeks to 13 January increased by 4.5%. This included growth both in-store and online.
Keaney added: “This is a record performance for us, with customers recognising our great value and exciting product range that made us a go-to choice for Christmas.”
The Works opened a net 32 new stores in the period and said it is on track to have 50 net new stores open by the year-end.
Looking ahead, Keaney said: “In 2019 our focus will be on introducing our unique multi-channel value proposition to even more customers by expanding our store portfolio and our online offer whilst remaining flexible and nimble traders whatever the economic environment may be.”
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