Discount Retailer The Works Experiences Significant Profit Decline
- Pre-tax profits at the Warwickshire-based discount retailer plummeted to £5m
- Earnings were negatively impacted by the absence of business rates relief and increased freight costs
- The Works also announced that CFO Steve Alldridge will be leaving later this year
The Works has witnessed a significant decline in annual profits due to weak sales growth and the discontinuation of publicly-funded pandemic support.
For the 12 months ending in April, pre-tax profits at the Warwickshire-based discount retailer dropped to £5 million, compared to £14.2 million in the previous year.
This decline in earnings was primarily caused by the absence of business rates relief, as well as increased costs in freight, energy, and salaries.
Earnings: The Works saw profits hit by weak sales growth and the end of business rates relief
Despite this decline, turnover increased by 5.8% to £280.1 million as decreasing online demand was offset by a recovery in in-store trade resulting from the lifting of Covid-related restrictions.
However, like-for-like revenues only grew by 4.2% in a more challenging economic environment, as elevated inflationary pressures caused many consumers to reduce their spending.
The company also attributed the decline in profits to a strong comparative performance in the prior
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Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
