23rd Sep 2022 11:02
(Alliance News) - TheWorks.co.uk PLC on Friday reinstated its dividend, as it swung to a full-year profit and revenue climbed.
Shares in the Birmingham-based toys, crafts and stationary retailer surged 40% to 40.55 pence each in London on Friday morning.
In the financial year that ended May 1, revenue climbed 47% to GBP264.6 million from GBP180.7 million the year before.
Pretax profit swung to GBP10.2 million from a loss of GBP2.8 million in the same period the year before.
The company said that its strong performance was due to its "better not bigger strategy".
"We want to ensure we operate efficiently and in a cost-effective way, as well as providing better product choice and availability for our customers," the company explained.
On the back of this, TheWorks declared a dividend of 2.4p per share, after having suspended dividends in financial year 2020 and 2021 during the Covid-19 pandemic.
In the future, the company said it will look to maintain twice yearly dividend payments and a progressive payout policy.
Looking ahead, TheWorks expects to make "good" strategic progress and to deliver growth in the medium term, despite inflationary pressure and lower consumer confidence.
However, the company said that it expects adjusted earnings before interest, tax, depreciation and amortisation for financial year 2023 to be lower than the recent year's result of GBP16.6 million.
Chair Carolyn Bradley said: "Our success this year reflects the ongoing appeal of our proposition and the resilience of our business and was achieved despite some significant external challenges. In the current economic environment, characterised by ongoing inflationary pressure and subdued consumer sentiment, our value proposition is more relevant than ever."
By Sophie Rose; sophierose@alliancenews.com
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