The Works has said it expects to see a “return to profit growth” in the next financial year as it records flat revenue and sales.

The Works

The Works’ results are “in line with market expectations”

The variety retailer posted a slight growth in revenue of 0.9% and a slight like-for-like sales decline of 0.9% in the 53 weeks to May 5.

The group announced it would focus on “stabilising profitability” which included moving The Works from its main market listing to AIM.

It also moved its online fulfilment centre, ended its loyalty scheme to focus on affordable everyday prices and negotiated rents with landlords. The Woks ended the financial year with 511 stores, of which over “96% are profitable”.

The retailer expects to deliver “stable sales” in FY25, and is confident that action taken to reduce costs and improve margins will “offset the significant cost headwinds”.

It expects to deliver an improved pre-IFRS 16 Adjusted EBITDA of around £8.5m.

The Works chief executive officer Gavin Peck said: “We are pleased to have finished FY24 in line with market expectations, which reflects action taken to reset our cost base and improve margins, supported by improving store sales in the final quarter. 

“Significant changes implemented across the business make us well-placed to offset cost headwinds and we expect to return to profit growth in FY25. In a year of considerable change at The Works, I am incredibly grateful to our colleagues for their ongoing dedication to our business and to our customers.”