Discount retailer The Works has posted a 37% jump in full-year profits and is aiming to double the size of its store estate.
The retailer, whose chairman is Card Factory founder Dean Hoyle, revealed EBITDA in the 53 weeks to May 1 hit £12.7m.
Profits were helped by more than £1m of “cost efficiency savings”, the company said, but no further detail was given.
Total sales in the period rose 9% to £154.4m, according to accounts published at Companies House this week. A like-for-like sales figure was not disclosed.
The company – run by chief executive Kevin Keaney – branded it a “very strong operational and financial performance”.
The Sutton Coldfield-headquartered group, which has around 350 stores, said sales were driven by a “strong performance in key product categories”, the roll-out of new stores and “continued growth” from online.
Its products include arts and crafts items, gifts, toys, stationery, toys and books.
The Works, which was rescued from administration in 2008, opened 40 new stores in the period and said its “new format” stores “performed significantly ahead of plan”. It plans at least 50 new stores by next May.
A new purpose-built warehouse and office is planned at Hams Hall Distribution Park, near Birmingham, which will triple the business capacity and help it double its store estate, the company said.
On the living wage, The Works said it is “targeting a number of cost initiatives” to mitigate its effect, but did not give further detail.
Hoyle was appointed as chairman last September and also made a “sizeable” investment in the group. It said Hoyle’s experience will help as The Works goes through “rapid expansion”.
Hoyle replaced former majority shareholder Anthony Solomon, who sold his stake in the business to existing minority shareholder Endless in May.