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(Sharecast News) - The Works lifted its full-year profit outlook on Thursday following a strong first-half performance.
In an update for the 26 weeks to 1 November, the retailer hailed a strong performance in the first half, with effective execution of its 'Elevating The Works' growth strategy driving increased customer demand for its screen-free proposition.
Total sales from continuing operations rose 10.1% to £128.8m, with like for like sales up 9.8%. This was driven by growth across all core categories, reflecting "the growing year-round appeal" of the company's screen-free proposition. The Works said this was a "significant" outperformance versus the wider UK non-food retail market, which declined by 1%.
The group ended the period with £3.5m of net cash, versus net debt of £5.3m in the same period a year earlier, driven by increased levels of profit and improved stock management.
The Works now expects pre-IFRS 16 adjusted earnings before interest, tax, depreciation and amortisation for the current financial year to be ahead of market expectations and "at least" £17m. It had previously guided to £16m.
Chief executive Gavin Peck said: "We are delighted to report a strong H1 performance with like for like sales growth of 9.8%, driven by strong customer demand across all our key categories. We also delivered strong performances during the Back to School and Halloween trading periods.
"Reflecting this, we are further upgrading our FY27 pre-IFRS 16 adjusted EBITDA expectations, to at least £17m. This outcome is a testament to the continued progress towards achieving our 5 year plan, the growing year-round appeal of our differentiated screen-free proposition, simplified store-focused model, and the hard work and commitment of our colleagues.
"We are well positioned as we enter the key Christmas trading period and focussed on giving our customers more inspiration and choice for enjoying Time Well Spent together this Christmas."
At 1315 GMT, the shares were up 5.3% at 116.34p.
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