The Works expects to see a return to growth in the next financial year after enduring “a year of considerable change”.
It comes as the value retailer reported flat revenue of 0.9% to £282.6m and a slight 0.9% decline in like-for-likes in the 53 weeks to May 5.
The Works said that since January it had made “significant progress” on its plan to stabilise profitability by improving margins and reducing costs.
This includes switching its listing from the main market to AIM, which it said will result in a “significantly lower audit fee”, and moving its online fulfilment centre to a more efficient facility.
It scrapped its loyalty scheme in March to focus on maintaining everyday affordable prices.
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During the year, The Works said it improved the “quality and profitability of our store portfolio”, with 9 new store openings, 24 closures, 5 relocations and 21 store refits. It said out of the 511 stores, more than 96% are profitable.
As a result, the retailer said it expects to deliver “stable sales” for the next financial year and an pre-adjusted EBITDA of £8.5m.
The Works chief executive Gavin Peck said: “We are pleased to have finished FY24 in line with market expectations, which reflects action taken to reset our cost base and improve margins, supported by improving store sales in the final quarter.
“Significant changes implemented across the business make us well-placed to offset cost headwinds and we expect to return to profit growth in FY25.
“In a year of considerable change at The Works I am incredibly grateful to our colleagues for their ongoing dedication to our business and to our customers.”
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