TheWorks.co.uk PLC (LSE:WRKS) slumped by over 10% in early trading on Tuesday after reporting a drop in profits and announcing the departure of chief financial officer Steve Alldridge.
Results for the year to 30 April 2023 showed revenue rose 5.8% to £280.1 million, the books, stationery, toys and arts & crafts chain said in its earnings statement.
Store sales, which represent 88.8% of total sales, strengthened as the year progressed, with a like-for-like (LFL) increase of 7.5%. Online sales declined by 15.0%, resulting in overall LFL sales growth of 4.2%.
Underlying profit fell 46% to £9 million, as product profit margin declined due to a "strategic change" in sales mix to increase the weighting of front-list books and higher freight costs, along with a rise in business rates costs.
The company called it a "resilient performance ...against a challenging backdrop".
Alldridge, who joined initially on an interim basis in 2020, is leaving with his head held high, said chair Carolyn Bradley.
“The fact that TheWorks is now a more financially robust business is in no small part due to Steve's efforts,” she said.
Rosie Fordham, who served as the company’s interim chief financial officer before Alldridge, will take his place, with the handover expected to be completed by late this year.
Shares slipped 10.4% to 28.9p on the news.