Strong H1 Results and Confidence Amid Omicron Uncertainty

  • The Works’ H1 sales rise 30.6% to £116.1m
  • Revenues increased by 30.6% from pre-pandemic levels (H1 FY20)
  • Pre IFRS 16 Adjusted EBITDA of £2.5m for H1 FY22
  • Loss before tax reduced to £1m, an improvement from £4.3m in prior year
  • Like-for-like sales grew 14.5% on a two-year basis
  • Overall store sales increased by 7.3%, online sales by 80.7%
  • Record Christmas sales with 9% growth on a two-year basis
  • Store sales up 0.6%, online sales up 71.9% from pre-Covid levels
  • Good trading performance offsets increased container freight costs
  • CEO Gavin Peck: ‘improved customer proposition’ and strategy delivering results
  • Confident in delivering improved performance in FY22

The Works has announced a significant increase in its revenues for the first half of FY22, with sales rising by 30.6% to £116.1m compared to pre-pandemic levels (H1 FY20). The company’s Pre IFRS 16 Adjusted EBITDA reached £2.5m in H1 FY22, and the loss before tax reduced to £1m from £4.3m in the prior year. Like-for-like sales grew by 14.5% on a two-year basis, with overall store sales increasing by 7.3% and online sales by 80.7%. The company also delivered a record Christmas period, with sales growing by 9% on a two-year basis. CEO Gavin Peck attributes the success to an improved customer proposition and strategy execution, despite ongoing supply chain challenges.

Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about The Works’ financial performance, including revenue growth, EBITDA, loss before tax, like-for-like sales, and online sales. It also includes quotes from the CEO that support the company’s positive outlook for the future.
Noise Level: 3
Noise Justification: The article provides relevant information about The Works’ financial performance and the CEO’s perspective on the company’s growth and strategies. It includes specific numbers and comparisons to previous years, which supports its claims with evidence. However, it could benefit from more analysis or context on industry trends and potential risks beyond the company’s control.
Financial Relevance: Yes
Financial Markets Impacted: The Works, a retail company
Financial Rating Justification: The article discusses the financial performance of The Works, including revenue growth, EBITDA, and loss before tax, as well as its expectations for future performance. This information is relevant to investors and stakeholders in the company and can impact its stock price.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk