TheWorks.co.uk PLC (LSE:WRKS) rallied more than 8% despite lower annual profits as it said trading had picked up in the current year to date.
Th stationery, gifts and artists materials retailer added two non-executives from major shareholder Kelso had also decided to step down as they see the group as strong enough to stand on its own.
John Goold and Mark Kirkland from Kelso, which has a 6.15% stake, said: "We joined The Works Board temporarily to provide additional guidance as the business underwent a period of change.
“Since then, significant progress has been made, namely transferring from the Main Market to AIM and strengthening the leadership team.”
Changes implemented at the group have included relocating its online fulfilment centre new processes at its distribution centre and new terms with suppliers and landlords.
Revenues in the year to 5 May 2024 rose slightly to £282.6 million with profits down to £6.9 million from £ 9 million.
In the first 21 weeks of this year like-for-like sales are up 0.2%, despite subdued trading across its sector, TheWorks added.
“We are well-positioned heading into our peak Christmas trading period having addressed the capacity issues faced in our Distribution Centre last year, our new brand strapline #TimeWellSpent launching, “ said Gavin Peck, chief executive.
Peck was also optimistic about new product ranges including 2 for £12 gifts and new book releases in fiction and non-fiction ranges.
“As such, we remain on track to deliver improved profitability in FY25 and meet group compiled market forecasts of pre-IFRS16 Adjusted EBITDA of £8.5m.”
Shares rose 2p to 26p.