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(Alliance News) - TheWorks.co.uk PLC on Friday reported a narrowed loss for the first half of its financial year, despite a decline in revenue due to the temporary closure of the group's retail stores for the first seven weeks of the period.
Shares in the stationery retailer were up 4.5% at 35.00 pence on Friday in London.
For the 26 weeks ended October 25, its pretax loss narrowed to GBP4.3 million from GBP8.5 million the year before. The company said other operating income - consisting of Covid-19 business rates relief and Job Retention Scheme grants - was GBP12.3 million, versus none a year earlier.
However, group revenue dropped by 7.8% to GBP88.9 million from GBP96.4 million the year before, due to the closure of retail stores at the start of the period.
On a like-for-like basis, sales declined by 8.6% during the period, but grew by 11% excluding the seven weeks during lockdown.
TheWorks.co.uk declared no interim dividend for the period, compared to the 1.2p per share a year earlier.
For the 11 weeks ended January 10, sales have continued to be affected by further restrictions imposed by the UK government with total sales down by 25% year-on-year due to continued store closures.
Looking ahead, TheWorks said that significant uncertainties remain in the near-term, however the group remained optimistic about its prospects once restrictions are eased.
"With our stores temporarily closed, we are, once again, focussed on maximising sales through our online operations and carefully controlling costs whilst ensuring that we are able to reopen safely when restrictions allow. We are in a strong financial position to face the current challenges and we remain confident in the medium-term growth potential of the business, particularly given the evident ongoing relevance of our proposition," said Chief Executive Officer Gavin Peck.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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