Endless says exit talk is not in The Works

Private equity firm Endless has rebuffed rumours that it is planning a stock market float for Sutton Coldfield-based retailer The Works.

The Sunday Times reported that Endless had enlisted the help of Investec to begin preparing a sale or listing.

The private equity house, which has backed The Works since 2008, said: “Endless has no plans to exit The Works in the foreseeable future and the management team remains focused on continuing to expand the business and drive the excellent growth delivered over the last few years. Beyond that, we do not comment on rumours or speculation.”

The discount stationery and books retailer delivered the “most profitable year in The Works history”, in the year to May 1, 2016. EBITDA, a measure of operational profitability, came in at £12.7m on revenues of £154.4m.

That has grown from revenues of £88.8m and EBITDA of £3.1m in the 2009 financial year, the first set of results after Endless’s investment.

The Leeds-based PE house invested in The Works in 2008 and went on to become the majority shareholder in 2015 after taking the stake of executive chairman Anthony Solomon.

He was replaced by Card Factory founder Dean Hoyle, in his first major retail industry position since the sale of Card Factory to Charterhouse Capital in 2010.

It was also announced today that Leeds-based communications agency Finn has been appointed by The Works to handle its corporate PR brief.

Reporting in to CEO Kevin Keaney, Finn said it will deliver a communications campaign designed to raise The Works’ business profile and communicate its proposition within national and retail trade media and online channels.

The agency team will be led by Finn corporate communications partner and director Alison Puente.

The appointment marks the latest chapter in a five-year relationship between Finn and The Works, with the agency previously appointed to handle consumer and trade PR for the retailer.