TheWorks.co.uk PLC (LSE:WRKS), the arts and crafts retailer, said it expects full-year profit to meet analysts’ forecasts, sending its shares 9.6% higher to 32.5p on Thursday morning.
In a trading update, the company said total sales in the year to 30 April 2023 rose by 6.1% to £316.6mln, in “challenging” conditions.
Like-for-like (LFL) sales grew by 4.2%, comprising a 7.5% increase in store sales and a 15% drop in online sales. Stores represented 88.8% of total sales.
Full-year underlying profit (adjusted EBITDA) is expected to be in line with the market consensus forecast of £9mln.
Looking ahead, the company said it is “comfortable” with the current market estimate for full-year 2024 adjusted EBITDA of £10mln.
Gavin Peck, chief executive officer of The Works, commented:
"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. 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. This progress is testament to the passion and commitment of our brilliant colleagues, who continue to go above and beyond to deliver for our customers."
The Works ended the year to net cash of £10.2mln.