Preliminary results - 52 weeks ended 4 May 2025
22/07/2025 07:00
RNS Number : 9536R
TheWorks.co.uk PLC
22 July 2025
22 July 2025
TheWorks.co.uk plc
("The Works", the "Company" or the "Group")
Preliminary results for the 52 weeks ended 4 May 2025
Finished FY25 in line with recently upgraded market expectations, significant improvement in profitability underpinned by new strategy, well positioned to deliver further profit growth in FY26.
TheWorks.co.uk plc, the retailer of affordable, screen-free activities for the whole family, announces its preliminary results for the 52 weeks ended 4 May 2025 (the "period" or "FY25").
Financial highlights
| · | Delivered total revenue of £277m, a decrease of 2% from the prior year, which benefitted from an additional trading week. |
| · | Totallike for like (LFL) sales were ahead of the wider non-food retail market(1), increasing by 0.8%. |
| o Store sales, which represent over 90% of total sales, continued to be the primary driver of growth, increasing 2.3% on a LFL basis, driven by more customer-focussed events, new products across all categories, improved store standards and product availability. | |
| o Online sales declined by 12.1%, impacted by temporary capacity constraints at our third-party provider during peak and a focus on improving the profitability of this channel. | |
| o Delivered a strong performance post-Christmas, with Q4 total LFL sales up 6.4%. | |
| · | Pre-IFRS 16 Adjusted EBITDA rose 58% to £9.5m (FY24: £6m), which was in line with recently upgraded market expectations. Rising cost headwinds were offset through ongoing cost-saving action and sustained product margin growth (+210bps vs. FY24). |
| · | Profit before tax increased 20.3% to £8.3m (FY24: £6.9m). |
| · | Adjusted profit before tax of £4.6m (FY24: £3.2m) after adjusting for a £3.8m credit (FY24: £3.7m credit)(2). |
| · | The Group ended FY25 with net cash of £4.1m (FY24: £1.6m). |
| · | The Board is not proposing a final dividend for FY25 with focus on investing for future growth. Future shareholder distributions will be kept under consideration as profitability improves further and net cash allows. |
| · | Trading in the first 11 weeks of FY26 has been strong, with LFL sales up 5% and continued margin growth. |
| · | Further profit growth expected in the year ahead - the Group is comfortable with recently upgraded market forecasts of pre-IFRS 16 Adjusted EBITDA of £11.0m in FY26. |
| FY25 | FY24 | |
| £m | £m | |
| Revenue | 277.0 | 282.6 |
| Revenue growth | (2.0%) | 0.9% |
| LFL sales(3) | 0.8% | (0.9%) |
| Pre-IFRS 16 Adjusted EBITDA(2) | 9.5 | 6.0 |
| Pre-IFRS 16 Adjusted EBITDA margin(2) | 3.4% | 2.1% |
| Profit before tax(2) | 8.3 | 6.9 |
| Adjusted profit before tax | 4.6 | 3.2 |
| Basic and diluted earnings per share | 13.1 | 10.2 |
| Adjusted basic and diluted earnings per share | 7.1 | 4.2 |
| Net cash at bank(4) | 4.1 | 1.6 |
| · | Launched new strategy in January 2025, 'Elevating The Works', which has ensured the business has both a clear plan and ambitious targets to deliver a step-change in performance. The early success of the strategy is evident in the underlying sales growth, strong store performance and profit growth in FY25. |
| · | Notable progress against our three strategic drivers: |
| o Growing brand fame: Launched a new approach to our customer campaigns, including more customer-focussed events that drove footfall to stores and increased the all-year-round appeal of The Works, including a "Kids Favourites Event" featuring popular kids' characters (including Bluey and Peppa Pig) as well as a "Books are Magic" event, which was timed to coincide with World Book Day. | |
| o Improved customer convenience: Improved store standards and consistency across the estate, which has been a key driver of store LFL growth. Continued optimisation of store estate with 7 openings, 15 closures and 4 relocations, resulting in a higher quality and more profitable portfolio of 503 stores (FY24: 511 stores). | |
| o Being a lean and efficient operator: Drove sustained product margin growth of 210bps by reducing our cost of goods sold through negotiations with suppliers, reduced markdown activity, more targeted promotional activity and control of product mix. Delivered significant cost-savings in FY25 due to the annualised benefit of action taken in FY24. Undertook a cost transformation project in FY25, with over £2.0m of further annualised cost savings identified for FY26. | |
| · | Strengthened plc board with the appointment of Steve Bellamy as Chair and Simon Hathway as an Independent Non-Executive Director. |
| · | Placed 10th in the 'Best Big Company to Work For', up from 15th in the previous year, showing the strength of our culture and colleague engagement. |
| Enquiries: TheWorks.co.uk plc Gavin Peck, CEO Rosie Fordham, CFO | via Sanctuary Counsel | |
| Sanctuary Counsel Rachel Miller Hannah Butler Yasmine Fowler | 0207 340 0395 | theworks@sanctuarycounsel.com |
| Singer Capital Markets (Nomad and Broker) Peter Steel | 020 7496 3000 |
| (1) | Data from the British Retail Consortium (BRC) showed non-food retail LFL sales declined 0.1% in the 52-week period. |
| (2) | Adjusted profit figures exclude Adjusting items. See Note 2 (Alternative performance measures) and Note 3 (Adjusting items) of the condensed financial statements included in this RNS. |
| (3) | LFL sales growth is the growth in gross sales from stores which have been trading for the full financial period (current and previous year), and from the Group's online store. |
| (4) | Net cash at bank excludes finance leases and is stated on a pre-IFRS 16 basis. |
| (5) | Data from the British Retail Consortium (BRC) showed flat non-food retail LFL sales for May and June 2025. |
| · | Completed a brand project to provide greater clarity on who we are, what we want to be famous for and the role we can play for customers, culminating in the creation of our #TimeWellSpent strapline. |
| · | Launched a new approach to our customer campaigns, including more customer-focussed events, which successfully drove footfall to stores. In Spring 2025 we held a "Kids Favourites Event" featuring popular kids' characters (including Bluey and Peppa Pig) as well as a "Books are Magic" event, which was timed to coincide with World Book Day. |
| · | Ongoing evolution of our product proposition, including refreshing all product categories, with newness in Spring ranges capturing customers' imaginations and driving sales. There has been strong sales growth in our Toys & Games and adult fiction books categories, with the latter driven by the success of new releases, popular BookTok titles and exclusive editions. |
| · | Taken action to grow the all-year-round attraction of the brand and reduce the seasonality of the business. This includes improved Back-to-School and Halloween ranges, as well as cementing our reputation as the go-to destination for screen-free activities around the school holidays. |
| · | Improved product availability and better distribution of stock across the estate, with particularly strong performance in our top turnover stores, building on progress made since our investment in a new stock allocation system and our merchandising team. |
| · | Established enhanced space analysis to inform future space planning opportunities, including utilising larger stores to trial new ranges. Further trials are planned for H1 FY26, which will inform opportunities for the years ahead. |
| · | Improved store standards and consistency across the estate, driven by the retail leadership restructure at the start of FY25. This has significantly improved consistency of communication, execution and accountability across the store estate, which has been a key driver of store LFL growth. |
| · | Ongoing optimisation of the store estate, with 7 new openings, 15 closures and 4 relocations. We ended the year with a smaller, higher quality and more profitable portfolio of 503 stores (FY24: 511 stores). Over the last five years, 150 stores (c. 30% of the estate) have either been newly opened, relocated or refitted, helping to improve the consistency and the overall profitability of our store estate. |
| · | Further improvements to the online customer journey, including working to reduce key frictions, such as adding products to basket, and improving product pages and imagery to enhance customer experience and conversion. |
| · | Significantly reducing our cost of goods sold, through negotiations with suppliers. Together with reduced markdown activity, more targeted promotional activity and control of product mix this supported a 210bps improvement in product margin on FY24. |
| · | Delivered significant cost-savings in FY25 due to the annualised benefit of action taken in FY24, including restructuring the Distribution Centre (DC) management and successfully implementing a new way of working in our DC, ending the Together Rewards loyalty scheme, restructuring the Operating Board and transferring The Works' stock market listing to AIM. |
| · | Delivered further rent reductions on lease renewals in FY25, ensuring we remain competitive and profitable at store level. |
| · | In addition to ongoing cost saving action, we undertook a cost transformation project in FY25, with over £2.0m annualised further cost savings identified for FY26, which will help to offset ongoing cost headwinds. We expect to identify further savings in FY26 and beyond. |
| · | Completed rollout of new EPoS software in stores, a key enabler for exploring new hardware in FY26 and improving efficiency of colleagues on the shop floor. |
| FY25 | FY24 | |
| £m | £m | |
| Revenue | 277.0 | 282.6 |
| Revenue growth | (2.0%) | 0.9% |
| LFL sales growth(1) | 0.8% | (0.9%) |
| Pre-IFRS 16 Adjusted EBITDA(2) | 9.5 | 6.0 |
| Pre-IFRS 16 Adjusted EBITDA Margin(2) | 3.4% | 2.1% |
| Profit before tax | 8.3 | 6.9 |
| Adjusted profit before tax(2) | 4.6 | 3.2 |
| Net cash at bank(3) | 4.1 | 1.6 |
| (1) | LFL sales growth is the growth in gross sales from stores which have been trading for the full financial period (current and previous year), and from the Group's online store. |
| (2) | Adjusted profit figures exclude Adjusting items. See notes 2 (Alternative performance measures) and 3 (Adjusting items) of the condensed financial statements included in this RNS. |
| (3) | Net cash at bank excludes finance leases and is stated on a pre-IFRS 16 basis. |
| · | The prior year benefitting from an additional trading week (53 weeks in FY24 vs 52 weeks in FY25), which accounted for approximately half of the FY25 reduction. |
| · | Our focus on optimisation of the store estate, with 7 new openings, 15 closures and 4 relocations. We ended the year with a smaller, higher quality and more profitable portfolio of 503 stores (FY24: 511 stores). |
| LFL sales growth | Stores | Online | Total |
| Q1 | (1.6%) | 0.4% | (1.4%) |
| Q2 | 2.9% | (21.4%) | (0.3%) |
| H1 | 0.9% | (14.7%) | (0.8%) |
| Q3 | 1.5% | (13.5%) | (0.3%) |
| Q4 | 6.9% | 0.0% | 6.4% |
| H2 | 3.5% | (9.9%) | 2.1% |
| Full year | 2.3% | (12.1%) | 0.8% |
| (1) | Data from the British Retail Consortium (BRC) showed a non-food retail LFL decline of 0.1% for the 52-week period. |
| · | H1 - reported a 0.8% decline in LFL sales, reflecting the challenging external market, however sales remained ahead of the wider market (BRC reported non-food retail LFL had declined by 1.3% for the same period). Store LFL sales growth was strong in Q2, up 2.9% reflecting much improved Back to School and Halloween ranges and continued strong growth in Adult Fiction books, bringing store LFL sales growth for H1 to 0.9%. A planned reduction in September sale activity adversely impacted sales, particularly online, but delivered a much stronger margin rate. Online sales were also impacted by the operational challenges experienced at our third-party operated online fulfilment centre towards the end of the quarter and subsequent action taken to prioritise improving profitability. As a result, online LFL sales declined 14.7% in H1. |
| · | H2 - reported LFL sales growth of 2.1%, which continued to outperform the non-food retail market (BRC reported non-food retail LFL average growth of 1.2%). This reflected a resilient store performance over the festive period with store LFL sales growth of 1.5% in Q3, which was supported by much-improved Christmas across our stores and in our retail Distribution Centre. Online sales declined by 13.5% in Q3 as a result of constrained performance over the festive period due to the aforementioned online fulfilment issues. We delivered a strong performance post-Christmas, with Q4 store LFL sales growth of 6.9% and online improving to flat LFL sales. This strong performance was supported by the ongoing evolution of our product proposition and a new approach to our customer campaigns, including in-store events which drove increased footfall. |
| FY25 | FY24 | |
| Stores at beginning of period | 511 | 526 |
| Opened in the period | 7 | 9 |
| Closed in the period | (15) | (24) |
| Relocated (excluded from opened/closed above, NIL net effect on store numbers) | 4 | 5 |
| Stores at End of period | 503 | 511 |
| FY25 | FY24 | Variance | Variance | |||||
| £m | % of revenue | £m | % of revenue | £m | % | |||
| Revenue | 277.0 | 282.6 | (5.6) | (2.0) | ||||
| Less: Cost of goods sold | (112.5) | (120.5) | 8.0 | 6.6 | ||||
| Product gross margin | 164.5 | 59.4 | 162.1 | 57.3 | 2.4 | 1.5 | ||
| Store payroll | (49.9) | (18.0) | (50.2) | (17.8) | 0.3 | 0.5 | ||
| Store property and establishment costs | (50.3) | (18.2) | (49.3) | (17.4) | (1.0) | (2.0) | ||
| Store PoS and transaction fees | (2.5) | (0.9) | (2.7) | (1.0) | 0.2 | 7.4 | ||
| Online variable costs | (13.8) | (5.0) | (15.8) | (5.6) | 2.0 | 12.7 | ||
| Store depreciation (excluding IFRS 16) | (2.7) | (1.0) | (1.9) | (0.7) | (0.8) | (42.1) | ||
| Adjusting items | 4.4 | 1.6 | 3.7 | 1.3 | 0.7 | 18.9 | ||
| IFRS 16 impact (excluding Adjusting items) | 4.1 | 1.5 | 5.8 | 2.0 | (1.7) | (29.3) | ||
| Gross Profit Per Financial Statements | 53.8 | 19.4 | 51.8 | 18.3 | 2.0 | 3.9 | ||
| · | Significant growth as a result of negotiations with suppliers, focussed control of product mix, better stock management and reduced promotional activity. |
| · | The hedged FX rate on payments made in US dollars was favourable year-on-year. The FY25 hedged US dollar: GB pound rate was 1.26 versus 1.22 in FY24. |
| · | Adverse FY25 container freight rates versus FY24 rates, which created a headwind during the year due to the disruption in the Red Sea. Average container rates paid in FY25 were $4.4k versus FY24 of $1.9k. |
| · | Rents increasing by £0.8m. Savings from the renegotiation of leases expiring in FY25 across the LFL store estate were £0.7m partially offsetting a £1.7m headwind due to COVID-19 related rent relief credits released in the prior period. |
| · | An additional £0.8m dilapidation provision recognised with respect to expected costs for planned store closures as part of the store optimisation programme. |
| · | Inflationary rates and service charge costs were partially offset by reducing electricity costs. |
| FY25 | FY24 | Variance | Variance | |||||
| £m | % of revenue | £m | % of revenue | £m | % | |||
| Gross profit per financial statements | 53.8 | 19.4 | 51.8 | 18.3 | 2.0 | 3.9 | ||
| Distribution expenses | (11.5) | (4.2) | (12.6) | (4.4) | 1.1 | 8.7 | ||
| Distribution depreciation | (0.1) | (0.0) | (0.2) | (0.1) | 0.1 | 50.0 | ||
| Distribution Costs per financial statements | (11.6) | (4.2) | (12.7) | (4.5) | 1.1 | 8.7 | ||
| Administrative expenses | (26.9) | (9.7) | (25.6) | (9.0) | (1.3) | (5.1) | ||
| Administrative depreciation | (2.1) | (0.8) | (2.4) | (0.8) | 0.3 | 12.5 | ||
| Adjusting Items | (0.6) | (0.2) | 0.0 | 0.0 | (0.6) | (100.0) | ||
| IFRS 16 impact (excluding Adjusting items) | 0.6 | 0.2 | 0.3 | 0.1 | 0.3 | 100.0 | ||
| Administrative Costs per financial statements | (29.0) | (10.5) | (27.7) | (9.8) | (1.3) | (4.7) | ||
| Operating profit per financial statements | 13.1 | 4.7 | 11.4 | 4.0 | 1.7 | 14.9 | ||
| FY25 | FY24 | Variance | Variance | |||||
| £m | % of revenue | £m | % of revenue | £m | % | |||
| Operating profit per financial statements | 13.1 | 4.7 | 11.4 | 4.0 | 1.7 | 14.9 | ||
| Add back depreciation, amortisation included in Operating profit | 4.9 | 1.8 | 4.4 | 1.6 | 0.5 | 11.4 | ||
| Less IFRS 16 included in Operating profit (excl. Adjusting Items) | (4.7) | (1.7) | (6.0) | (2.1) | 1.3 | 21.7 | ||
| Less Adjusting items(1) | (3.8) | (1.4) | (3.7) | (1.3) | (0.1) | (2.7) | ||
| Pre-IFRS 16 Adjusted EBITDA | 9.5 | 3.4 | 6.0 | 2.1 | 3.5 | 58.3 | ||
| (1) | Adjusted profit figures exclude Adjusting items. See Notes 2 (Alternative performance measures) and 3 (Adjusting items) of theattachedcondensed financial statements. |
| FY25 | FY24 | Variance | |
| £'m | £'m | £m | |
| New stores and relocations | (1.5) | (1.6) | 0.1 |
| Store refits, lease renewal and maintenance | (1.5) | (2.3) | 0.8 |
| IT hardware and software | (1.7) | (1.7) | - |
| Warehouse | (0.2) | (0.1) | (0.1) |
| Other | (0.1) | (0.1) | - |
| Total capital expenditure | (5.0) | (5.8) | 0.8 |
| · | The net investment in new stores and relocations reduced by £0.1m compared with FY24. 7 new stores were opened and 4 stores relocated to new units (FY24: 9 new stores, 5 relocations), with the higher net investment per store reflecting reduced landlord contributions and cost inflation. |
| · | The net investment in store refits reduced by £0.8m compared with FY24. The quantity of refits was lower in FY25 (6 refits) vs FY24 (20 refits), reflecting the impact of the decision taken at the beginning of FY24 to reduce refits to conserve cash. This saving was offset, in part, by wider cost inflation increasing the relative cost per refit. |
| FY25 | FY24 | |
| £m | £m | |
| Gross stock | 30.1 | 28.4 |
| Less: provisions | (1.0) | (1.9) |
| Stock net of provisions | 29.1 | 26.5 |
| Stock in transit | 5.9 | 4.9 |
| Stock per balance sheet | 35.0 | 31.4 |
| FY25 | FY24 | Variance | |
| £m | £m | £m | |
| Operating profit | 13.1 | 11.4 | 1.7 |
| Other operating cashflows(1) | (5.7) | (8.3) | 2.6 |
| Net movement in working capital | 2.2 | (4.3) | 6.5 |
| Net Cash from Investing Activities | (5.1) | (5.8) | 0.7 |
| Tax paid | (0.5) | (0.1) | (0.4) |
| Interest and financing costs | (0.6) | (0.5) | (0.1) |
| Purchase of Shares into the Employee Benefit Trust | (0.5) | (0.3) | (0.2) |
| Cash Flow before Exchange Rate Movements | 2.9 | (7.9) | 10.8 |
| Exchange rate movements | (0.4) | (0.7) | 0.3 |
| Net increase /(decrease) in cash and cash equivalents | 2.5 | (8.6) | 11.1 |
| Opening net cash balance excluding IAS 17 leases | 1.6 | 10.2 | |
| Closing net cash balance excluding IAS 17 leases | 4.1 | 1.6 |
| (1) | Other operating cashflows relate to pre-working capital movements, excluding tax and interest. See Condensed consolidated cash flow statementof the attached condensed financial statements. |
| 52 weeks to 4 May 2025 | 53 weeks to 5 May 2024 | |||||||
| Note | Result before Adjusting items £000 | Adjusting items £000 | Total £000 | Result before Adjusting items £000 | Adjusting items £000 | Total £000 | ||
| Revenue | 277,039 | - | 277,039 | 282,585 | - | 282,585 | ||
| Cost of sales | 3 | (227,697) | 4,408 | (223,289) | (234,505) | 3,741 | (230,764) | |
| Gross profit | 49,342 | 4,408 | 53,750 | 48,080 | 3,741 | 51,821 | ||
| Other operating income | 8 | - | 8 | 8 | - | 8 | ||
| Distribution expenses | (11,628) | - | (11,628) | (12,725) | - | (12,725) | ||
| Administrative expenses | 3 | (28,392) | (640) | (29,032) | (27,685) | - | (27,685) | |
| Operating profit | 4 | 9,330 | 3,768 | 13,098 | 7,678 | 3,741 | 11,419 | |
| Finance income | 35 | - | 35 | 19 | - | 19 | ||
| Finance expenses | (4,790) | - | (4,790) | (4,520) | - | (4,520) | ||
| Net financing expense | (4,755) | - | (4,755) | (4,501) | - | (4,501) | ||
| Profit before tax | 4,575 | 3,768 | 8,343 | 3,177 | 3,741 | 6,918 | ||
| Taxation | 6 | (165) | - | (165) | (541) | - | (541) | |
| Profit for the period | 4,410 | 3,768 | 8,178 | 2,636 | 3,741 | 6,377 | ||
| Basic earnings per share (pence) | 8 | 7.1 | 13.1 | 4.2 | 10.2 | |||
| Diluted earnings per share (pence) | 8 | 7.1 | 13.1 | 4.2 | 10.2 | |||
| FY25 £000 | FY24 £000 | |
| Profit for the period | 8,178 | 6,377 |
| Items that may be recycled subsequently into profit and loss | ||
| Cash flow hedges - changes in fair value | (1,851) | 1,664 |
| Cash flow hedges - reclassified to profit and loss | 340 | 134 |
| Cost of hedging - changes in fair value | (273) | (415) |
| Cost of hedging - reclassified to profit and loss | 366 | 182 |
| Tax relating to components of other comprehensive income | (409) | (323) |
| Other comprehensive (expense)/income for the period, net of income tax | (1,827) | 1,242 |
| Total comprehensive income for the period attributable to equity shareholders of the Parent | 6,351 | 7,619 |
| Note | FY25 £000 | FY24 £000 | |
| Non-current assets | |||
| Intangible assets | 9 | 2,168 | 1,866 |
| Property, plant and equipment | 10 | 12,583 | 12,358 |
| Right-of-use assets | 11 | 61,830 | 57,703 |
| Deferred tax assets | 12 | 3,514 | 4,036 |
| 80,095 | 75,963 | ||
| Current assets | |||
| Inventories | 13 | 34,985 | 31,354 |
| Trade and other receivables | 14 | 6,149 | 8,384 |
| Derivative financial assets | - | 306 | |
| Current tax asset | 6 | 1,603 | 1,189 |
| Cash and cash equivalents | 15 | 4,118 | 1,619 |
| 46,855 | 42,852 | ||
| Total assets | 126,950 | 118,815 | |
| Current liabilities | |||
| Lease liabilities | 11 | 18,646 | 19,943 |
| Trade and other payables | 17 | 32,851 | 29,886 |
| Provisions | 18 | 798 | 543 |
| Derivative financial liabilities | 1,879 | 64 | |
| 54,174 | 50,436 | ||
| Non-current liabilities | |||
| Lease liabilities | 11,16 | 56,284 | 57,817 |
| Provisions | 18 | 650 | 476 |
| 56,934 | 58,293 | ||
| Total liabilities | 111,108 | 108,729 | |
| Net assets | 15,842 | 10,086 | |
| Equity attributable to equity holders of the Parent | |||
| Share capital | 625 | 625 | |
| Share premium | 28,322 | 28,322 | |
| Merger reserve | (54) | (54) | |
| Share-based payment reserve | 2,274 | 2,583 | |
| Hedging reserve | (2,122) | 129 | |
| Retained earnings | (13,203) | (21,519) | |
| Total equity | 15,842 | 10,086 |
| Attributable to equity holders of the Company | |||||||
| Share capital £000 | Share premium £000 | Merger reserve £000 | Share-based payment reserve1 £000 | Hedging reserve 2,3 £000 | Retained earnings £000 | Total equity £000 | |
| Balance at 30 April 2023 | 625 | 28,322 | (54) | 2,780 | (331) | (27,926) | 3,416 |
| Total comprehensive income for the period | |||||||
| Profit for the period | - | - | - | - | - | 6,377 | 6,377 |
| Other comprehensive income | - | - | - | - | 1,242 | - | 1,242 |
| Total comprehensive income for the period | - | - | - | - | 1,242 | 6,377 | 7,619 |
| Hedging gains and losses and costs of hedging transferred to the cost of inventory | - | - | - | - | (492) | - | (492) |
| Transfer to retained earnings | - | - | - | - | (290) | 290 | - |
| Transactions with owners of the Company | |||||||
| Reversal of share-based payment charges | - | - | - | (197) | - | - | (197) |
| Own shares purchased by Employee Benefit Trust | - | - | - | - | - | (260) | (260) |
| Total transactions with owners of the Company | - | - | - | (197) | - | (260) | (457) |
| Balance at 5 May 2024 | 625 | 28,322 | (54) | 2,583 | 129 | (21,519) | 10,086 |
| Total comprehensive (expense)/income for the period | |||||||
| Profit for the period | - | - | - | - | - | 8,178 | 8,178 |
| Other comprehensive expense | - | - | - | - | (1,827) | - | (1,827) |
| Total comprehensive (expense)/income for the period | - | - | - | - | (1,827) | 8,178 | 6,351 |
| Hedging gains and losses and costs of hedging transferred to the cost of inventory | - | - | - | - | (424) | - | (424) |
| Transfer to retained earnings | - | - | - | (662) | - | 662 | - |
| Transactions with owners of the Company | |||||||
| Share-based payment charges | - | - | - | 353 | - | - | 353 |
| Own shares purchased by Employee Benefit Trust | - | - | - | - | - | (524) | (524) |
| Total transactions with owners of the Company | - | - | - | 353 | - | (524) | (171) |
| Balance at4 May 2025 | 625 | 28,322 | (54) | 2,274 | (2,122) | (13,203) | 15,842 |
| Note | FY25 £000 | FY24 £000 | |
| Profit for the period (including Adjusting items) | 8,178 | 6,377 | |
| Adjustments for: | |||
| Depreciation of property, plant and equipment | 10 | 3,854 | 3,663 |
| Impairment of property, plant and equipment | 10 | 463 | 1,589 |
| Reversal of impairment of property, plant and equipment | 10 | (975) | (1,272) |
| Depreciation of right-of-use assets | 11 | 18,385 | 18,224 |
| Impairment of right-of-use assets | 11 | 2,180 | 3,394 |
| Reversal of impairment of right-of-use assets | 11 | (7,807) | (4,620) |
| Amortisation of intangible assets | 9 | 1,213 | 632 |
| Impairment of intangible assets | 9 | 141 | 442 |
| Reversal of impairment of intangible assets | 9 | (471) | (850) |
| Derivative exchange loss | 424 | 494 | |
| Financial income | (35) | (19) | |
| Financial expense | 689 | 536 | |
| Interest on lease liabilities | 11 | 4,101 | 3,984 |
| Loss on disposal of property, plant and equipment and intangibles | 9, 10 | 282 | 202 |
| Loss/(profit) on disposal of right-of-use asset and lease liability | 11 | 845 | (3,537) |
| Effect of modifications on right-of-use asset | (193) | - | |
| Share-based payment charges | 353 | (197) | |
| Taxation | 6 | 165 | 541 |
| Operating cash flows before changes in working capital | 31,792 | 29,583 | |
| (Increase)/decrease in trade and other receivables | 2,081 | (963) | |
| (Increase)/decrease in inventories | (3,396) | 1,149 | |
| Increase/(decrease) in trade and other payables | 3,037 | (3,672) | |
| Increase/(decrease) in provisions | 18 | 429 | (844) |
| Cash flows from operating activities | 33,943 | 25,253 | |
| Corporation tax paid | (466) | (97) | |
| Net cash inflow from operating activities | 33,477 | 25,156 | |
| Cash flows from investing activities | |||
| Acquisition of property, plant and equipment | 10 | (4,691) | (6,078) |
| Capital contributions received from landlords | 10 | 842 | 1,460 |
| Acquisition of intangible assets | 9 | (1,185) | (1,208) |
| Interest received | 35 | 19 | |
| Net cash outflow from investing activities | (4,999) | (5,807) | |
| Cash flows from financing activities | |||
| Payment of lease liabilities (capital) | 16 | (20,330) | (22,471) |
| Payment of lease liabilities (interest) | 16 | (4,101) | (3,984) |
| Payment of fees from loans and borrowings | - | (60) | |
| Interest paid | (579) | (434) | |
| Repayment of bank borrowings | 16 | (9,000) | (6,000) |
| Proceeds from bank borrowings | 16 | 9,000 | 6,000 |
| Own shares purchased by Employee Benefit Trust | (524) | (260) | |
| Net cash outflow from financing activities | (25,534) | (27,209) | |
| Net increase/(decrease) in cash and cash equivalents | 2,944 | (7,860) | |
| Exchange rate movements | (445) | (717) | |
| Cash and cash equivalents at beginning of period | 16 | 1,619 | 10,196 |
| Cash and cash equivalents at end of period | 16 | 4,118 | 1,619 |
| Description | Note |
| Going concern | 1(b)(i) |
| Impairment of intangible assets, property, plant and equipment and right-of-use assets | 9, 10, 11 |
| Inventory provisions | 13 |
| Accounting policy In the reporting of financial information, the Group has adopted various alternative performance measures (APMs) of financial performance, position or cash flows other than those defined or specified under International Accounting Standards (IFRS). APMs should be considered in addition to IFRS measurements and are not intended to be a substitute for IFRS measurements. These measures are not defined by IFRS and may not be comparable with similarly titled performance measures and disclosures by other entities. The Group believes that these APMs provide stakeholders with additional helpful information on the performance of the business. They are consistent with how business performance is planned and reported internally and are also consistent with how these measures have been reported historically. Some of the APMs are also used for the purpose of setting remuneration targets, which are set out below. The table below sets out the APMs used in this report, with further information regarding the APM, and a reconciliation to the closest IFRS equivalent measure, below.
|
| FY25 | Stores £000 £000 | Online £000 | Total £000 |
| Revenue | 252,166 | 24,873 | 277,039 |
| VAT | 33,924 | 2,541 | 36,465 |
| Loyalty points | (216) | - | (216) |
| Total gross sales | 285,874 | 27,414 | 313,288 |
| Non-LFL store sales | (16,192) | - | (16,192) |
| LFL sales | 269,682 | 27,414 | 297,096 |
| FY24 | Stores £000 £000 | Online £000 | Total £000 |
| Revenue | 254,228 | 28,357 | 282,585 |
| VAT | 33,501 | 3,098 | 36,599 |
| Loyalty points | 1,228 | 86 | 1,314 |
| Total gross sales | 288,957 | 31,541 | 320,498 |
| Non-LFL store sales | (25,209) | (342) | (26,551) |
| LFL sales | 263,748 | 31,199 | 293,947 |
| LFL sales growth | 2.3% | (12.1)% | 0.8% |
| FY25 £000 | FY24 £000 | |
| Operating profit1 | 13,098 | 11,419 |
| Add back: | ||
| Depreciation of property, plant and equipment | 3,854 | 3,663 |
| Depreciation of right-of-use assets | 18,385 | 18,224 |
| Amortisation | 1,213 | 632 |
| Loss on disposal of fixed assets | 282 | 202 |
| Gain on modification of right-of-use assets | (193) | - |
| Adjusting items | (3,768) | (3,741) |
| Adjusted EBITDA | 32,871 | 30,399 |
| Less: | ||
| Income statement rental charges not recognised under IFRS 16 | (23,328) | (24,426) |
| Foreign exchange difference on euro leases | (36) | 69 |
| Pre-IFRS 16 Adjusted EBITDA | 9,507 | 6,042 |
| FY25 £000 | FY24 £000 | |
| Adjusted profit after tax | 4,410 | 2,636 |
| Adjusting items (including impairment charges and reversals) | 3,768 | 3,741 |
| Profit after tax | 8,178 | 6,377 |
| Calculation of net debt | FY25 £000 | FY24 £000 |
| Current borrowings | (18,646) | (19,943) |
| Non-current borrowings | (56,284) | (57,817) |
| Gross borrowings | (74,930) | (77,760) |
| Add cash | 4,118 | 1,619 |
| Net debt (inc. leases) | (70,812) | (76,141) |
| Lease liabilities | 74,930 | 77,760 |
| Net cash (exc. leases) | 4,118 | 1,619 |
| FY25 £000 | FY24 £000 | |
| Cost of sales | ||
| Impairment charges | (2,784) | (5,333) |
| Impairment reversals | 9,253 | 6,742 |
| (Loss)/profit on disposal of right-of-use assets and lease liabilities | (845) | 3,537 |
| Exceptional fulfilment costs | (1,216) | - |
| Other exceptional costs | - | (1,205) |
| Administration costs | ||
| Other exceptional costs - restructuring | (640) | - |
| Total Adjusting items | 3,768 | 3,741 |
| FY25 £000 | FY24 £000 | |
| Loss on disposal of property, plant and equipment | 282 | 168 |
| Loss on disposal of intangible assets | - | 34 |
| Depreciation | 22,239 | 21,887 |
| Amortisation | 1,213 | 632 |
| Net foreign exchange loss | 276 | 170 |
| Cost of inventories recognised as an expense | 111,385 | 120,530 |
| Staff costs | 68,590 | 67,855 |
| FY25 £000 | FY24 £000 | |
| Fees payable to the Group's auditor for the audit of the Group's annual accounts | 307 | 300 |
| Amounts payable in respect of other services to the Company and its subsidiaries | ||
| Audit of the accounts of subsidiaries | 43 | 42 |
| Total | 350 | 342 |
| Number of employees | ||
| FY25 | FY24 | |
| Store support centre colleagues | 284 | 280 |
| Store colleagues | 3,259 | 3,590 |
| Warehouse and distribution colleagues | 154 | 156 |
| 3,697 | 4,026 | |
| FY25 £000 | FY24 £000 | |
| Wages and salaries | 62,765 | 62,367 |
| Social security costs | 4,700 | 4,422 |
| Contributions to defined contribution pension schemes | 1,125 | 1,066 |
| Total employee costs | 68,590 | 67,855 |
| Agency labour costs | 1,804 | 2,977 |
| Total staff costs | 70,394 | 70,832 |
| FY25 £000 | FY24 £000 | |
| Directors' remuneration | 1,012 | 791 |
| Contributions to defined contribution plans | 42 | 16 |
| 1,054 | 807 |
| FY25 | FY24 | |
| Company defined contribution scheme | 2 | 2 |
| 2 | 2 |
| FY25 £000 | FY24 £000 | |
| Directors' remuneration | 478 | 337 |
| Contributions to defined contribution plans | 9 | 10 |
| 487 | 347 |
| Accounting policy The tax expense represents the sum of the tax currently payable and deferred tax. Current tax The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. |
| Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or the asset is realised based on tax laws and rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited in other comprehensive income, in which case the deferred tax is also dealt with in other comprehensive income. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. Current tax and deferred tax for the year Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case the current and deferred tax are also recognised in other comprehensive income or directly in equity, respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination. |
| FY25 £000 | FY24 £000 | |
| Current tax expense | ||
| Current year | 73 | 22 |
| Adjustments for prior years | (21) | 33 |
| Current tax expense | 52 | 55 |
| Deferred tax expense | ||
| Origination and reversal of temporary differences | (111) | 1,286 |
| Adjustments for prior years | 224 | (800) |
| Deferred tax expense | 113 | 486 |
| Total tax expense | 165 | 541 |
| FY25 £000 | FY24 £000 | |
| Profit for the year | 8,343 | 6,918 |
| Tax using the UK corporation tax rate of 25.0% (FY24: 25.0%) | 2,086 | 1,730 |
| Non-deductible (income)/ expenses | (1,027) | 195 |
| Effect of tax rates in foreign jurisdictions | (86) | 14 |
| Tax overprovided in prior periods | 202 | (767) |
| Utilisation of unrecognised tax losses brought forward | (1,010) | (751) |
| Losses carried forwards | - | 120 |
| Total tax expense | 165 | 541 |
| Effective tax rate | 2.0% | 7.8% |
| Accounting policy At the balance sheet date, dividends are only recognised as a liability if they are appropriately authorised and are no longer at the discretion of the Company. Unpaid dividends that do not meet these criteria are disclosed in the notes to the financial statements. |
| FY25 Number | FY24 Number | |
| Number of shares in issue | 62,500,000 | 62,500,000 |
| Number of dilutive share options | - | - |
| Number of shares for diluted earnings per share | 62,500,000 | 62,500,000 |
| £000 | £000 | |
| Total profit for the financial period | 8,178 | 6,377 |
| Adjusting items | (3,768) | (3,741) |
| Adjusted profit for Adjusted earnings per share | 4,410 | 2,636 |
| Pence | Pence | |
| Basic earnings per share | 13.1 | 10.2 |
| Diluted earnings per share | 13.1 | 10.2 |
| Adjusted basic earnings per share | 7.1 | 4.2 |
| Adjusted diluted earnings per share | 7.1 | 4.2 |
| Accounting policy Goodwill Goodwill arising on consolidation represents any excess of the consideration paid and the amount of any non-controlling interest in the acquiree over the fair value of the identifiable assets and liabilities (including intangible assets) of the acquired entity at the date of the acquisition. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is recognised as an asset and assessed for impairment annually or as triggering events occur. Any impairment in value is recognised within the income statement. Goodwill was fully impaired in FY20. Software Where computer software is not an integral part of a related item of computer hardware, the software is treated as an intangible asset. Capitalised software costs include external direct costs of goods and services (such as consultancy), as well as internal payroll related costs for employees who are directly working on the project. Internal payroll related costs are capitalised if the recognition criteria of IAS 38 Intangible Assets are met or are expensed as incurred otherwise. Capitalised software development costs are amortised on a straight-line basis over their expected economic lives, normally between three and seven years. Computer software under development is held at cost less any recognised impairment loss. Any impairment in value is recognised within the income statement and treated as an Adjusting item. |
| Goodwill £000 | Software £000 | Total £000 | |
| Cost | |||
| At 5 May 2024 | 16,180 | 10,299 | 26,479 |
| Additions | - | 1,185 | 1,185 |
| Disposals | - | (550) | (550) |
| At 4 May 2025 | 16,180 | 10,934 | 27,114 |
| Amortisation and impairment | |||
| At 5 May 2024 | 16,180 | 8,433 | 24,613 |
| Amortisation charge | - | 1,213 | 1,213 |
| Impairment charge | - | 141 | 141 |
| Impairment reversals | - | (471) | (471) |
| Disposals1 | - | (550) | (550) |
| At 4 May 2025 | 16,180 | 8,766 | 24,946 |
| Net book value | |||
| At 5 May 2024 | - | 1,866 | 1,866 |
| At 4 May 2025 | - | 2,168 | 2,168 |
| Goodwill £000 | Software £000 | Total £000 | |
| Cost | |||
| At 30 April 2023 | 16,180 | 9,310 | 25,490 |
| Additions | - | 1,208 | 1,208 |
| Disposals | - | (219) | (219) |
| At 5 May 2024 | 16,180 | 10,299 | 26,479 |
| Amortisation and impairment | |||
| At 30 April 2023 | 16,180 | 8,394 | 24,574 |
| Amortisation charge | - | 632 | 632 |
| Impairment charge | - | 442 | 442 |
| Impairment reversals | - | (850) | (850) |
| Disposals2 | - | (185) | (185) |
| At 5 May 2024 | 16,180 | 8,433 | 24,613 |
| Net book value | |||
| At 30 April 2023 | - | 916 | 916 |
| At 5 May 2024 | - | 1,866 | 1,866 |
| 10. Property, plant and equipment Accounting policy Items of property, plant and equipment are stated at their cost of acquisition or production, less accumulated depreciation and accumulated impairment losses. Depreciation is charged on a straight-line basis over the estimated useful lives as follows: · Leasehold improvements: over the life of the lease. · Fixtures and fittings: 15% per annum straight line or depreciated on a straight-line basis over the remaining life of the lease, whichever is shorter. · Plant and equipment: 25% to 50% per annum straight line. The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date, with the effect of any changes in estimate accounted for on a prospective basis. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. The gain or loss arising on the disposal or scrappage of an asset is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognised in profit or loss. Impairment of tangible and intangible assets The carrying amounts of the Group's tangible and intangible assets with a measurable useful life are reviewed at each balance sheet date to determine whether there is any indication of impairment to their value. If such an indication exists, the asset's recoverable amount is estimated and compared to its carrying value. Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash generating unit (CGU) to which the asset belongs. The Directors consider an individual retail store to be a CGU, as well as the Company's trading website. The recoverable amount of an asset is the greater of its fair value less disposal cost and its value in use (the present value of the future cash flows that the asset is expected to generate). In determining value in use, the present value of future cash flows is discounted using a discount rate that reflects current market assessments of the time value of money in relation to the period of the investment and the risks specific to the asset concerned. The carrying value represents each CGU's specific assets, as well as the right-of-use assets, plus an allocation of corporate assets where these assets can be allocated on a reasonable and consistent basis. Where the carrying value exceeds the recoverable amount an impairment loss is established with a charge being made to the income statement. When the reasons for a write down no longer exist, the write down is reversed in the income statement up to the net book value that the relevant asset would have had if it had not been written down and if it had been depreciated. Measuring recoverable amounts The Group estimates the recoverable amount of each CGU based on the greater of its fair value less disposal cost and its value in use (VIU), derived from a discounted cash flow model which excludes IFRS 16 lease payments. In assessing the fair value less disposal cost the ability to sublease each store has been considered and it is concluded that this is not applicable for the majority of the store estate. Where it is deemed reasonable to assume the ability to sublet, the potential cash inflows generated are insignificant; therefore, the VIU calculation is used for all stores. A proportion of click & collect sales are included in store cash flows to reflect the contribution stores make to fulfilling such orders. The key assumptions applied by management in the VIU calculations are those regarding the growth rates of sales and gross margins, medium-term growth rates, central overhead allocation and the discount rate used to discount the assumed cash flows to present value. Projected cash flows for each store are limited to the useful life of each store as determined by its current lease term unless a lease has already expired or is due to expire within 19 months of 4 May 2025 where the intention is to remain in the store and renew the lease. For these leases, the average portfolio lease term is used for cash flow projections. Projected cash flows for the trading website are limited to 60 months as this is in line with the average useful economic life of the assets assigned to the web CGU. Impairment triggers Due to the challenging macroeconomic environment and the existence of a material brought forward impairment charge, all CGUs other than stores which have been open for less than 12 months have been assessed for impairment. Change in accounting policy: During the period, due to the maturity curve of new stores, the directors made an amendment to the accounting policy so that stores that were open between 12 and 24 months before the period end date, are reviewed for indicators of impairment and an assessment made should such indicators be present. |
| FY25 | FY24 | |
| Post-tax discount rate | 10.80% | 10.50% |
| Medium-term growth rate | 2.0% | 2.0% |
| Leasehold improvements £000 | Plant and equipment £000 | Fixtures and fittings £000 | Total £000 | |
| Cost | ||||
| At 5 May 2024 | 5,818 | 3,763 | 19,072 | 28,653 |
| Additions | 721 | 510 | 2,618 | 3,849 |
| Disposals1 | (2,376) | (327) | (4,352) | (7,055) |
| At4 May 2025 | 4,163 | 3,946 | 17,338 | 25,447 |
| Depreciation and impairment | ||||
| At 5 May 2024 | 4,149 | 3,138 | 9,008 | 16,295 |
| Depreciation charge | 746 | 650 | 2,458 | 3,854 |
| Impairment charge | 193 | 119 | 151 | 463 |
| Impairment reversals | - | - | (975) | (975) |
| Disposals | (2,270) | (323) | (4,180) | (6,773) |
| At4 May 2025 | 2,818 | 3,584 | 6,462 | 12,864 |
| Net book value | ||||
| At 5 May 2024 | 1,669 | 625 | 10,064 | 12,358 |
| At 4 May 2025 | 1,345 | 362 | 10,876 | 12,583 |
| Leasehold improvements £000 | Plant and equipment £000 | Fixtures and fittings £000 | Total £000 | |
| Cost | ||||
| At 30 April 2023 | 7,408 | 3,656 | 19,195 | 30,259 |
| Additions | 409 | 353 | 3,971 | 4,733 |
| Disposals2 | (1,999) | (246) | (4,094) | (6,339) |
| At 5 May 2024 | 5,818 | 3,763 | 19,072 | 28,653 |
| Depreciation and impairment | ||||
| At 30 April 2023 | 5,682 | 3,245 | 9,559 | 18,486 |
| Depreciation charge | 412 | 370 | 2,881 | 3,663 |
| Impairment charge | 209 | 282 | 1,098 | 1,589 |
| Impairment reversals | (174) | (618) | (480) | (1,272) |
| Disposals | (1,980) | (141) | (4,050) | (6,171) |
| At 5 May 2024 | 4,149 | 3,138 | 9,008 | 16,295 |
| Net book value | ||||
| At 30 April 2023 | 1,726 | 411 | 9,636 | 11,773 |
| At 5 May 2024 | 1,669 | 625 | 10,064 | 12,358 |
| 11. Leases Accounting policy The Group leases many assets, including properties, IT equipment and warehouse equipment. Identification At the inception of a contract, the Group assesses whether it is, or contains, a lease. A contract is, or contains, a lease if it conveys the right to control the use of an asset for a period of time, in exchange for consideration. Control is conveyed where the Group has both the right to direct the asset's use and to obtain substantially all the economic benefits from that use. For each lease or lease component, the Group follows the lease accounting model as per IFRS 16, unless the permitted recognition exceptions can be used. Recognition exceptions The Group has elected to account for lease payments as an expense on a straight-line basis over the lease term or another systematic basis for the following types of leases: · Leases with a term of 12 months or less. · Leases where the underlying asset has a low value. · Concession leases where the landlord has substantial substitution rights. For leases where the Group has taken the short-term lease recognition exemption and there are any changes to the lease term or the lease is modified, the Group accounts for the lease as a new lease. For leases where the Group has taken a recognition exemption as detailed above, rentals payable under these leases are charged to the income statement on a straight-line basis over the term of the relevant lease, except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed. As lessee Upon lease commencement, the Group recognises a right-of-use asset and a lease liability. Initial measurement The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset, or to restore the underlying asset or the site on which it is located at the end of the lease, less any lease incentives received. The lease liability is initially measured at the present value of the lease payments payable over the lease term, discounted at the incremental borrowing rate as the rate implicit in the lease cannot be readily determined. Variable lease payments that depend on an index or a rate are included in the initial measurement of the lease liability and are initially measured using the index or rate as at the commencement date. Amounts expected to be payable by the Group under residual value guarantees are also included. Variable lease payments that are not included in the measurement of the lease liability are recognised in profit or loss in the period in which the event or condition that triggers payment occurs unless the costs are included in the carrying amount of another asset under another accounting standard. The Group has applied judgement to determine the lease term for some lease contracts that include renewal options. The assessment of whether the Group is reasonably certain to exercise such options impacts the lease term, which significantly affects the value of lease liabilities and right-of-use assets recognised. The payments related to leases are presented under cash flows from financing activities and cash flows from operating activities in the cash flow statement. Subsequent measurement After lease commencement, the Group values right-of-use assets using a cost model. Under the cost model, a right-of-use asset is measured at cost less accumulated depreciation and accumulated impairment. The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is re-measured to reflect changes in the lease term (using a revised discount rate); the assessment of a purchase option (using a revised discount rate); the amounts expected to be payable under residual value guarantees (using an unchanged discount rate); and future lease payments resulting from a change in an index or a rate used to determine those payments (using an unchanged discount rate). The re-measurements are matched by adjustments to the right-of-use asset. Lease modifications may also prompt re-measurement of the lease liability unless they are determined to be separate leases. Depreciation of right-of-use assets The right-of-use asset is subsequently depreciated using the straight-line method, from the commencement date to the earlier of either the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability. |
| Determining the lease term Termination options are included in a number of property leases across the Group. These terms are used to maximise operational flexibility. At the commencement date of property leases, the Group determines the lease term to be the full term of the lease, assuming that any option to break or extend the lease is unlikely to be exercised. Leases will be revalued if it becomes likely that a break clause is to be exercised. In determining the likelihood of the exercise of a break option, management considers all facts and circumstances that create an economic incentive to exercise the termination option. For property leases, the following factors are the most relevant: · The profitability of the leased store and future plans for the business. · If there are any significant penalties to terminate (or not extend), the Group is typically reasonably certain to extend. |
| Land and buildings £000 | Plant and equipment £000 | Total £000 | |
| 2025 | |||
| At 5 May 2024 | 57,309 | 394 | 57,703 |
| Depreciation charge for the year | (18,180) | (205) | (18,385) |
| Additions to right-of-use assets | 6,217 | 192 | 6,409 |
| Effect of modifications to right-of-use assets | 12,639 | - | 12,639 |
| Derecognition of right-of-use assets | (2,163) | - | (2,163) |
| Impairment charge | (2,180) | - | (2,180) |
| Impairment reversals | 7,807 | - | 7,807 |
| At 4 May 2025 | 61,449 | 381 | 61,830 |
| Land and buildings £000 | Plant and equipment £000 | Total £000 | |
| 2024 | |||
| At 30 April 2023 | 64,703 | 669 | 65,372 |
| Depreciation charge for the year | (17,949) | (275) | (18,224) |
| Additions to right-of-use assets | 10,931 | - | 10,931 |
| Effect of modifications to right-of-use assets | (1,059) | - | (1,059) |
| Derecognition of right-of-use assets | (543) | - | (543) |
| Impairment charge | (3,394) | - | (3,394) |
| Impairment reversals | 4,620 | - | 4,620 |
| At 5 May 2024 | 57,309 | 394 | 57,703 |
| Land and buildings £000 | Plant and equipment £000 | Total £000 | |
| 2025 | |||
| At 5 May 2024 | 77,336 | 424 | 77,760 |
| Additions to lease liabilities | 17,663 | 177 | 17,840 |
| Interest expense | 4,082 | 19 | 4,101 |
| Effect of modifications to lease liabilities | 1,014 | - | 1,014 |
| Lease payments | (24,196) | (235) | (24,431) |
| Disposals of lease liabilities | (1,318) | - | (1,318) |
| Foreign exchange movements | (36) | - | (36) |
| At 4 May 2025 | 74,545 | 385 | 74,930 |
| Land and buildings £000 | Plant and equipment £000 | Total £000 | |
| 2024 | |||
| At 30 April 2023 | 93,686 | 706 | 94,392 |
| Additions to lease liabilities | 8,929 | - | 8,929 |
| Interest expense | 3,962 | 22 | 3,984 |
| Effect of modifications to lease liabilities | 1,059 | - | 1,059 |
| Lease payments | (26,151) | (304) | (26,455) |
| Disposals of lease liabilities | (4,080) | - | (4,080) |
| Foreign exchange movements | (69) | - | (69) |
| At 5 May 2024 | 77,336 | 424 | 77,760 |
| FY25 £000 | FY24 £000 | |
| Current | 18,646 | 19,943 |
| Non-current | 56,284 | 57,817 |
| Total carrying value of leases | 74,930 | 77,760 |
| FY25 £000 | FY24 £000 | |
| Less than one year | 22,375 | 23,446 |
| One to two years | 17,416 | 18,787 |
| Two to three years | 13,820 | 13,738 |
| Three to four years | 10,352 | 9,968 |
| Four to five years | 6,655 | 6,574 |
| More than five years | 17,325 | 17,632 |
| Total undiscounted lease liabilities | 87,943 | 90,145 |
| FY25 £000 | FY24 £000 | |
| Depreciation charge on right-of-use assets (RoUA) | 18,385 | 18,224 |
| Interest cost on lease liability | 4,101 | 3,984 |
| Loss on disposal of RoUA/lease liability | 845 | (3,537) |
| Foreign exchange difference on euro leases | 36 | 69 |
| Additional impairment credit under IAS 36 | (5,627) | (1,226) |
| Operating lease rentals - hire of plant, equipment and motor vehicles | ||
| - Low-value leases | 423 | 362 |
| Total plant, equipment and motor vehicle operating lease rentals | 423 | 362 |
| Operating lease rentals - store leases | ||
| - Stores with variable lease rentals | 1,182 | (434) |
| - Concession leases (the landlord has substantial substitution rights) | 909 | 848 |
| - Low-value leases | 9 | (11) |
| - Lease is expiring within 12 months or has rolling break clauses | 30 | 63 |
| - Lease has expired | 929 | 766 |
| Total store operating lease rentals | 3,059 | 1,232 |
| FY25 £000 | FY24 £000 | |
| Land and buildings | 18,180 | 17,949 |
| Plant and equipment | 205 | 275 |
| Total right-of-use asset depreciation | 18,385 | 18,224 |
| Assets | Liabilities | ||||
| FY25 £000 | FY24 £000 | FY25 £000 | FY24 £000 | ||
| Property, plant and equipment | 2,811 | 2,785 | - | - | |
| Leases | 751 | 980 | - | - | |
| Temporary timing differences | 422 | 332 | - | - | |
| Financial liabilities | - | - | (470) | (61) | |
| Tax assets/(liabilities) | 3,984 | 4,097 | (470) | (61) | |
| Fixed assets £000 | Leases £000 | Temporary timing differences £000 | Financial liabilities £000 | Total £000 | |
| At 5 May 2024 | 2,785 | 980 | 332 | (61) | 4,036 |
| Adjustment in respect of prior years | (436) | 213 | - | - | (223) |
| Deferred tax charge to profit and loss | 462 | (442) | 90 | - | 110 |
| Deferred tax credit in equity profit and loss | - | - | - | (409) | (409) |
| At4 May 2025 | 2,811 | 751 | 422 | (470) | 3,514 |
| Fixed assets £000 | Leases £000 | Temporary timing differences £000 | Financial assets/ (liabilities) £000 | Total £000 | |
| At 30 April 2023 | 2,866 | 1,362 | 354 | 262 | 4,844 |
| Adjustment in respect of prior years | 785 | 16 | - | - | 801 |
| Deferred tax charge to profit and loss | (866) | (398) | (22) | - | (1,286) |
| Deferred tax credit in equity profit and loss | - | - | - | (323) | (323) |
| At 5 May 2024 | 2,785 | 980 | 332 | (61) | 4,036 |
| Accounting policy Inventories comprise stocks of finished goods for resale and are valued on a weighted average cost basis and carried at the lower of cost and net realisable value. Cost includes all direct expenditure and other attributable costs incurred in bringing inventories to their present location and condition. The process of purchasing inventories may include the use of cash flow hedges to manage foreign exchange risk. Where hedge accounting applies, an adjustment is applied such that the cost of stock reflects the hedged exchange rate. |
| FY25 £000 | FY24 £000 | |
| Gross stock value | 30,121 | 28,401 |
| Less: stock provisions for shrinkage and obsolescence | (1,061) | (1,932) |
| Goods for resale net of provisions | 29,060 | 26,469 |
| Stock in transit | 5,925 | 4,885 |
| Inventory | 34,985 | 31,354 |
| FY25 £000 | FY24 £000 | |
| Current | ||
| Trade receivables | 2,026 | 2,626 |
| Other receivables | 135 | 506 |
| Prepayments | 3,988 | 5,252 |
| Trade and other receivables | 6,149 | 8,384 |
| FY25 £000 | FY24 £000 | |
| Cash and cash equivalents | 4,118 | 1,619 |
| Total | 4,118 | 1,619 |
| FY25 £000 | FY24 £000 | |
| Sterling | (5,575) | 1,142 |
| Euro | 610 | 397 |
| US dollar | 9,083 | 80 |
| Cash and cash equivalents | 4,118 | 1,619 |
| Accounting policy Interest-bearing bank loans and overdrafts, loan notes and other loans are recognised in the balance sheet at amortised cost. Finance charges associated with arranging non-equity funding are recognised in the income statement over the life of the facility. All other borrowing costs are recognised in the income statement in accordance with the effective interest rate method. A summary of the Group's objectives, policies, procedures and strategies with regard to financial instruments and capital management can be found in Note 24 in the Annual Report and Accounts |
| FY25 £000 | FY24 £000 | |
| Non-current liabilities | ||
| Lease liabilities | 56,284 | 57,817 |
| Non-current liabilities | 56,284 | 57,817 |
| Current liabilities | ||
| Lease liabilities | 18,646 | 19,943 |
| Current liabilities | 18,646 | 19,943 |
| FY25 £000 | FY24 £000 | |
| Borrowings at start of the period | 77,760 | 94,392 |
| Changes from financing cash flows | ||
| Payment of lease liabilities (capital) | (20,330) | (22,471) |
| Payment of lease liabilities (interest) | (4,101) | (3,984) |
| Proceeds from loans and borrowings1 | 9,000 | 6,000 |
| Repayment of bank borrowings1 | (9,000) | (6,000) |
| Total changes from financing cash flows | (24,431) | (26,455) |
| Other changes | ||
| Addition of lease liabilities | 18,854 | 9,988 |
| Disposal of lease liabilities | (1,318) | (4,080) |
| The effect of changes in foreign exchange rates | (36) | (69) |
| Interest expense | 4,101 | 3,984 |
| Total other changes | 21,601 | 9,823 |
| Borrowings at end of the period (excluding overdrafts) | 74,930 | 77,760 |
| FY25 £000 | FY24 £000 | |
| Net debt (excluding unamortised debt costs) | ||
| Cash and cash equivalents | (4,118) | (1,619) |
| Net bank cash | (4,118) | (1,619) |
| Non-IFRS 16 lease liabilities | - | 89 |
| Non-IFRS 16 net cash | (4,118) | (1,530) |
| IFRS 16 lease liabilities | 74,930 | 77,760 |
| Net debt including IFRS 16 lease liabilities | 70,812 | 76,230 |
| FY25 £000 | FY24 £000 | |
| Current | ||
| Trade payables | 20,003 | 18,081 |
| Other tax and social security | 4,262 | 3,525 |
| Accrued expenses | 8,586 | 8,280 |
| Trade and other payables | 32,851 | 29,886 |
| Accounting policy Provisions are recognised when the Group has a present obligation as a result of a past event, and it is probable that the Group will be required to settle that obligation. Provisions are the best estimate of the expenditure required to settle the obligation at the end of the reporting period and are discounted to present value where the effect is material. |
| HMRC VAT £000 | Property £000 | Total £000 | |
| At 5 May 2024 | 147 | 872 | 1,019 |
| Provisions made | 20 | 1,097 | 1,117 |
| Provisions released | - | (339) | (339) |
| Provisions utilised | - | (182) | (182) |
| Reclassified to accruals | (167) | - | (167) |
| At4 May 2025 | - | 1,448 | 1,448 |
| HMRC VAT £000 | Property £000 | Total £000 | |
| Due in less than one year | - | 798 | 798 |
| Due between one and five years | - | 309 | 309 |
| Due in more than five years | - | 341 | 341 |
| Total | - | 1,448 | 1,448 |
| FY25 £000 | FY24 £000 | |
| Key management remuneration - including social security costs | 1,837 | 2,982 |
| Pension contributions | 153 | 116 |
| LTIP - including social security costs | 256 | (351) |
| Total | 2,246 | 2,747 |
| Company | Active/ dormant | Direct/ indirect control | Registered number | Class of shares held | Ownership |
| The Works Investments Limited | Holding | Direct | 09073458 | Ordinary | 100% |
| The Works Stores Limited | Active | Indirect | 06557400 | Ordinary | 100% |
| The Works Online Limited | Active | Indirect | 08040244 | Ordinary | 100% |