TheWorks.co.uk PLC (LSE:WRKS) has unveiled a new strategy to arrest the decline in sales at its underperforming online arm.
Revenues in the half year to 3 November rose by 1.3% to £124.2 million with store sales up by 1% like-for-like in the subsequent eleven weeks though online sales dropped 14.9%.
Interim losses were cut to £6.9 million from £16.5 million, with underlying losses [adjusted EBITDA] down to £2.8 million from £8.5 million.
For the full year, the family-focused hobbies and stationery retailer said that underlying profits should hit £8.5 million and grow further in the 2026 trading year.
Gavin Peck, chief executive, added that the group faced persistently difficult market conditions over Christmas but focused on the factors within its control.
“We delivered a resilient store performance and saw strong customer demand for our festive ranges, with our giant The Grinch soft toy standing out as a Christmas bestseller.”
He added the new strategy will be based on growing brand awareness and improving customer convenience, with the aim growing sales to £375 million and margins to 6% within five years.
Shares rose 8% to 21.2p.