21st Jan 2022 10:11
(Alliance News) - TheWorks.co.uk PLC on Friday said it expects an "improved" full-year performance, due to a strong performance in its first half and during the crucial Christmas trading period.
Shares were up 14% at 64.50 pence each on Friday morning in London.
For the six months to October 31, Birmingham-based stationery retailer TheWorks.co.uk reported a pretax loss of GBP1.0 million, narrowed from GBP4.3 million a year earlier.
This was on revenue of GBP116.1 million, a 31% increase from GBP88.9 million recorded in the half-year period a year earlier.
TheWorks.co.uk attributed this down to a rise in store revenue, with significant growth in average transaction values. Online sales running at almost double of pre-pandemic levels also boosted results.
"Towards the end of the period, we also benefited from customers bringing forward their Christmas purchases into September and October," it added.
The company noted that it delivered a "record" performance over its key Christmas trading period.
Sales also have remained "strong" since then and as a result, TheWorks.co.uk expects an "improved" full-year performance.
Annual adjusted earnings before interest, tax, depreciation, and amortization are expected to come in at approximately GBP15.0 million, it said. This would be a marked jump from GBP4.3 million the year before.
However, this is subject to no further Covid-19 related impact on trading, the company noted.
TheWorks.co.uk noted ongoing supply chain issues, inflationary pressures and uncertainty surrounding possible Covid-19 related restrictions. Nonetheless, it affirmed that it entered the new year in a "strong" financial position and was confident in growth.
"This better-than-expected trading provides confidence that we will deliver an improved performance for the full year 2022. We are now a much stronger business than we were two years ago and believe that delivering on our refocused strategy will have a transformational effect on our business," Chief Executive Gavin Peck commented.
By Abby Amoakuh; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
Theworks.co.uk.