The Works optimistic after ‘resilient performance’
Books-and-stationery retailer TheWorks has said its loss of £10.7m before tax in the first half of 2023, was driven by the seasonal nature of the business.
The Sutton Coldfield firm said however it typically makes a loss in H1, with the year’s profit generation being strongly focused on the peak Christmas trading period in H2.
In the first half of the year, TheWorks says its results were impacted by residual impact of the cyber security incident in March 2022 and cost headwinds including freight, inflation and the normalisation of business rates charges which represented around £3.9m of additional cost.
Total revenue grew by 2.4% to £118.9m – a “resilient sales performance” given the challenging consumer conditions. Its outlook for the remainder of the year is unchanged.
Chief Executive Gavin Peck said”: Whilst the trading environment remains uncertain, we are encouraged by the strength of our performance during and after the key Christmas period and believe there is significant value to be created from delivering on our strategy in the medium-term. This is what we will be focusing on during the upcoming period, and we feel well placed to capitalise on the many attractive opportunities that lie ahead”.