Arts and crafts store The Works plummets as profits take a hit in ‘successful’ year
Investors were unimpressed with what The Works called a “successful” financial year, as shares plummeted by nearly a fifth as political uncertainty hit profits.
Like-for-like sales growth has slowed in 2019, the company said, blaming “the widely reported economic and political uncertainty in the UK”.
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Adjusted profit before tax is now forecast at the lower end of expectations.
Shares fell 18.5 per cent today on the news to 97p.
The arts and crafts shop said that like-for-like sales growth had reached three per cent, with revenues up 13 per cent.
It established fifty new stores in the financial year ending April, and will open its 500th location tomorrow in Winchester. Meanwhile, the company said it remains confident of reaching 1,000 stores in the UK and Ireland, without giving a time frame.
“Overall, we have had a successful year as we continued to expand our store footprint and online proposition and introduce new customers to The Works,” said Chief executive Kevin Keaney.
The shop had a record Christmas period, it said, and improved cash margins.
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“Notwithstanding the more uncertain backdrop since January, the business has multiple growth levers and we remain confident in the future prospects for The Works.”
Preliminary results are expected on 3 July.