Shares in TheWorks.co.uk PLC (LSE:WRKS) rose 15% after the retailer said earnings for the year to 4 May would come in ahead of expectations, driven by strong trading in the final quarter and sustained margin growth.
The company expects pre-IFRS 16 adjusted earnings before interest, tax, depreciation and amortisation to reach around £9.5 million, up from £6 million the previous year.
Total revenue dipped 2% to £277 million, reflecting the absence of an extra trading week and a smaller but more profitable store estate.
Like-for-like sales rose 0.8%, led by a 2.3% increase in stores, which make up over 90% of sales.
Online revenue fell 12.1% due to earlier fulfilment issues, though sales recovered to flat by the fourth quarter. The company also reported a 200 basis point rise in product margins and ongoing operational efficiencies.
The stock rose 4.67p to 35.07p.