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The Works has seen its profit-before-tax fall to £6.9m for the year ended 5 May 2024, down from £9m last year.
Despite this, the company believes it is “well-positioned” for profit growth in FY25, especially as it enters the Christmas period.
The company’s revenue edged up 0.9% to £282.6m compared with the £280.1m it posted in the same period last year.
However, its total like-for-like sales fell 0.9% compared with a 4.2% increase in the same period in the previous year.
The Works believes it remains on track to deliver improved profitability in FY25 and meet Group compiled market forecasts of pre-IFRS16 adjusted EBITDA of £8.5m.
During the period the company stated that it improved the quality of its overall store portfolio.
This came in the shape of nine openings, 24 closures of mostly loss-making or low-profit stores, five relocations and 21 refits.
As a result of this the company now operates from 511 stores at the end of FY24, of which 96% are profitable.
Gavin Peck, CEO, said: “Against a persistently challenging consumer backdrop and tough Christmas trading, we were pleased to end FY24 in line with market expectations. This was a direct result of the continued dedication and strong response of colleagues, the decisive action taken to improve product margins, reduce costs and scale back non-essential investments, supported by improved sales in the final quarter.
“Good strategic progress was made during the year and whilst we believe this continues to be the right high level strategic direction for The Works, we also believe that now is the right time to evolve the strategy. Work is therefore underway to refine our plans to transform the business and drive an improved performance and shareholder returns in the years ahead.”
He added: “Although consumer confidence remains subdued and we continue to face tough cost headwinds, the cost and operational action we have taken and the trajectory of recent trading means we are well positioned to offset these and return to profit growth in FY25.
“Operationally we are in a much stronger position this year as we head into the upcoming peak Christmas trading period and we look forward to supporting customers to have a Christmas well spent courtesy of The Works.”
