Warwickshire-based retailer The Works upbeat as it outlines new strategy

Warwickshire-based stationery, crafts and toy retailer The Works said it saw a strong end to Christmas trading in December, which has continued into this month (January), as it launched a new strategy to continue the firm's recovery.
The Coleshill company revealed it had cut its losses, made significant margin growth, and reduced its cost base in its first half of fiscal 2025 to November 3 last year.
In that period, the firm posted a loss before tax of £6.9 million (m), down from £16.5m in the year-earlier period. Total like-for-like (LFL) sales were down 0.8% however, compared to a 1.6% increase in H1 FY24.
The company also updated on its current trading for the 11 weeks to January 19, which saw total LFL sales decline by 0.9% but the store estate, accounting for over 90% of sales, was resilient over the festive period, delivering LFL sales up 1%.
"We faced persistently difficult market conditions this Christmas but did not let this dampen our enthusiasm, instead focusing on the factors within our control," said Gavin Peck, the chief executive of The Works, in a stock market statement.
"We delivered a resilient store performance and saw strong customer demand for our festive ranges, with our giant The Grinch soft toy standing out as a Christmas bestseller," he added.
"Looking ahead, we are mindful of the need to navigate fragile consumer confidence and significant cost headwinds but believe there is much to be optimistic about at The Works," he added.
"We expect that our action to grow revenue, increase margins and reduce costs will deliver improved results in the remainder of this financial year and in FY26."
The company also unveiled its new "Elevating The Works" strategy, aimed at making the firm the "favourite destination for affordable, screen free activities for the whole family".
Underpinning the new plan is growing brand fame, improving customer convenience, and being a "lean and efficient" operator, it said.
"We are confident that delivery of this strategy will have a transformative impact on the business and will enable us to deliver sales in excess of £375m and an EBITDA margin of at least 6% within five years," it told investors.
The company added that its cash position had improved following Christmas, with £14.7m of cash as at January 19 and it expected to end the financial year with net cash of around £4m.