LONDON (ShareCast) - (Sharecast News) - Arts, crafts, books and stationery retailer The Works trimmed losses in the first half on the back of cost savings and actions taken to grow product margins, as the company reiterated profit guidance for the full year.
The company reported an adjusted EBITDA loss of £2.8m for the six months to 3 November, compared with a £8.5m loss the year before, helped by a 220-basis point margin improvement.

Revenues totalled £124.2m in the first half, up 1.3% on last year but down 0.8% on a like-for-like basis as store LFL sales of 0.9% was met with a 14.7% LFL decline online.

Since the end of the first half, LFL sales were down 0.9% over the 11 weeks to19 January, with ongoing growth in-store outweighed by declines online.

Looking ahead, The Works said it expects that ongoing improvements in margins and cost savings should help to offset the ongoing cost headwinds associated with changes to National Insurance contributions and higher minimum wages, freight costs and business rates.

"As a result, we are on track to deliver FY25 profits in line with compiled market forecasts (Pre-IFRS16 Adjusted EBITDA of £8.5m) and further profit growth in FY26," the company said.

Commenting on the results, chief executive Gavin Peck noted "fragile consumer confidence and significant cost headwinds", but expressed optimism. "We expect that our action to grow revenue, increase margins and reduce costs will deliver improved results in the remainder of this financial year and in FY26," Peck said.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE