TheWorks FY revenues grow slightly in FY24

21st May 2024 11:49

(Sharecast News) - Art and craft supplies retailer TheWorks said on Tuesday that revenues had modestly improved in the 53 weeks ended 5 May despite experiencing a slight decline in like-for-like sales.

TheWorks said total revenues were up 0.9% at £282.6m in FY24, while total LFL sales declined by 0.9% over the year.

The AIM-listed group now expects to report pre-IFRS 16 adjusted underlying earnings of approximately £6.0m in FY24 and £8.5m in FY25, in line with market forecasts. It also noted that its medium-term ambition was to return to pre-IFRS 16 EBITDA margins of 5%.

TheWorks added that most of the benefits from recent cost-cutting exercises were expected to come into effect in FY25, but stated that some had already started to deliver improved margins and lower costs in Q4. As a result, internal expectations for FY24 adjusted EBITDA of approximately £6.0m remained unchanged.

Chief executive 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 TheWorks, I am incredibly grateful to our colleagues for their ongoing dedication to our business and to our customers."

As of 1120 BST, TheWorks shares were up 4.65% at 27.0p.

Reporting by Iain Gilbert at Sharecast.com