The Works: Discounter fails to benefit from cost of living crisis as profit slides
Discount retailer The Works has posted a slide in profits for the year as its chief financial officer, Steve Alldridge, announces his intention to leave the firm.
Alldridge joined the budget arts and crafts seller in June 2020 as interim CFO, a position that was made later made permanent in May 2021.
He will be replaced by Rosie Fordham who joined The Works in 2019 and has worked as both head of finance and interim CFO.
His departure comes as the retailer revealed that profit before tax for the full year sank to £5m down from £14m when compared to the same period last year.
Adjusted EBITDA was also down £9m from £16.6m, however the group said this was in line with the company’s revised expectations for the year.
The business blamed inflationary pressures and increased business costs for the dip.
However, The Works, which has over 500 sites across the UK, said revenues managed to increase during the year rising £280.1m up from £264.6m, thanks to a refreshed product offering.
“Although inflationary pressures increased business costs and dampened consumer confidence, we ended the year in line with our rebased expectations,” Gavin Peck, chief of The Works, said in a statement to markets this morning.
“FY23 also showcased the enduring appeal of our value proposition. I’d like to thank our colleagues who have demonstrated their ongoing dedication to The Works and have continued to show customers how they can read, learn, create and play more on a budget.”