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Retail

TheWorks.co.uk reinstates dividend as trading beats pre-pandemic levels

With a strong first half and a record Christmas trading performance, two-year LFL sales remained positive in the final months of the financial year

TheWorks.co.uk PLC (LSE:WRKS) said it will reinstate its dividend but that the cyber security incident last month will delay its final results to September.

While it enjoyed strong first half and a record Christmas trading performance, the books and stationary retailer said its sales growth rate was lower than before Christmas.

For the year to end-May it expects to make underlying earnings (EBITDA) of £15mln as like-for-like (LFL) sales were up 10.4% compared to two years ago due to strong online and in-store trading.

The reinstated dividend will see 2.4p per share paid in September alongside the results.

The company opened five new stores, closed seven, and relocated six during the year, ending with net cash of £16.3mln compared to £10.0mln six months ago.

"As we move into our new financial year, general trading conditions remain challenging. We will continue to focus on the factors within our control and ensure that, as customers face increasing cost-of-living pressures, they can continue to rely on The Works as a destination for great value products," said Gavin Peck, chief executive.

Shares jumped 14% to 57.5p in early trading on Friday.

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