Theworks.co.uk Share Discussion Threads

[harry_david] 19/3/2024 23:43

darrin, that makes sense, AIM is much less bureaucratic and lower cost, The Works is so small the main board is a real hindrance.

[darrin1471] 19/3/2024 22:24

Works plans to exit the main market of the London Stock Exchange and move to AIM

RNS today

[kaos3] 09/3/2024 12:06

Good - accountants at work.

Waiting for the killer application in their offering.

Present offer is good but clearly not good enough for troubled waters.

One can optimise - which is good - into extintion.

[strikehot] 03/3/2024 12:44

Loyalty scheme YE2023, points redeemed equated to £1.4m,

[darrin1471] 01/3/2024 19:41

I agree that a loyalty card is an old concept.
An app where you can mine useful data and target promotions is the modern route.
To expensive for WRKS to build but specialist companies are already offering the service to smaller retail chains.

[harry_david] 01/3/2024 15:32

Loyalty scheme cancellation is a good move. There is little to be gained from it and it in practice means the best customers are being sold to at a loss. The supermarkets have been pulling back also so it won't be a major talking point.

[crumppot] 01/3/2024 15:24

That doesnt sound great

[darrin1471] 01/3/2024 15:10

The Works axes loyalty scheme in a bid to cut costs

[farrugia] 20/2/2024 11:42

so what's the difference between this one and Card Factory? Why is Card Factory outperforming WRKS so much? And what about Moonpig?

[darrin1471] 14/2/2024 15:02

No debt but they have been using up their cash.
No point in £300m sales if you are not making profits and paying dividends.
A 5% real increase in sales (ex inflation) makes a big difference to profits.
WRKS wage bill is £60m, so a 10% rise in NLW is a big headwind.

[harry_david] 14/2/2024 14:50

I get the feeling the market thinks the company needs a shake, I disagree that the business is marginal, £300 mil of sales and no debt would be the envy of many retailers, they just have to get the profit margins up. They say this is the objective, success will double our money.

[darrin1471] 14/2/2024 14:44

sooty, I have lost faith in the business model. WRKS failed to make the most of the trading conditions in December 2022 when other high street retailers did well. When a retailer makes such small profits it does not take much of a change in turnover to boost profits by a multiple. Equally a small drop in turnover can result in losses.
WRKS have the head wind of a near 10% rise in NLW from April. The more I think about it the educational world is moving away from WRKS. So much of the educational stuff I used to buy for the kids from WRKS is now done online. When buying the educational stuff we used to pick up other stuff for birthdays etc. I only go in now to get a feel for the shop as an investment. Its neat tidy with a wide range of product. I struggle to see any tweaks that would significantly improve the offer.
The Works, Ryman and WH Smith. There is probably only space for one of them.
The appointment of the Kelso directors is a surprise. Kelso have only been around for a couple of years but have ruffled a few feathers beyond their size. Kelso mkt cap is less than WRKS
For me WRKS is an even more interesting watch but I'm not investing.

[napoleon 14th] 14/2/2024 14:25

From Stockopedia, which fills in the details:
"Works co uk (LON:WRKS) - up 9% to 24.25p (£15m) - appoints 2 new NEDs.
Unusually these are non-independent, being the CEO & CFO of active,
but tiny investment company Kelso group (LON:KLSO) (mkt cap £11m),
which owns 5.1% of WRKS (paid 33p).

Speculation of some kind of corporate deal maybe? KLSO is pushing WRKS to do buybacks. WRKS looks a very marginal business to me, with little (if any) equity value, but might benefit from higher consumer spending as 2024 progresses? Although April 2024 sees big wage cost hike."

[sooty snipes] 14/2/2024 09:03

Are you still on the sidelines darrin?

[darrin1471] 14/2/2024 07:59

"Kelso will identify, engage and unlock trapped value in UK listed companies. Through active engagement and alignment with other stakeholders, taking stakes directly, Kelso aims to effect change where existing shareholders are often unable or unwilling to do so themselves."

[kaos3] 14/2/2024 07:48

Hard to explain but - from the rns

Biographies:



John Goold is Chief Executive Officer at Kelso Group Holdings plc. He qualified as a chartered accountant in London with Touche Ross in 1996 before a 25 year career in the City raising growth capital and advising small and mid cap companies. John initially started in corporate finance before moving into equity sales and corporate broking where he spent most of his career advising smaller listed companies on stock market issues. During his career, John has helped raise over £5.0 billion for his clients much of which was while he was Chief Executive of Zeus from 2012 to 2021. He is currently a non-executive director of Oncimmune Holdings plc and Boohoo Group plc.



Mark Kirkland is Chief Financial Officer at Kelso Group Holdings plc. He qualified as a chartered accountant with Price Waterhouse Coopers in London and has gained extensive corporate experience gained over 30 years having held numerous senior roles in public and private companies. Mark's initial career was in corporate finance predominantly with UBS. Mark has been CFO of numerous public and private companies and latterly was CEO of Delin Property, a pan European Logistics developer, investor and manager. He is currently a Non-Executive Director at Strix Group plc and AEW UK REIT plc and previously an adviser to DP World.

[crumppot] 14/2/2024 07:35

Kaos3 please explain

[crumppot] 14/2/2024 07:35

Kaos3 please explain

[kaos3] 14/2/2024 07:09

2 from Kelso. Is that normal?

[chinahere] 04/2/2024 11:58

The Theo Wikipedia is a good read:

[omron] 04/2/2024 09:25

I don't see Theo Paphitis buying this and am sure that £25m would not fly. I also doubt a £40m bid would succeed. Almost half the shares are held by a handful of investors.

[harry_david] 03/2/2024 21:40

I heard Rymans had liquidity problems. Any retailer with nearly £300 million of turnover and no borrowings is dirt cheap at £14 million. I would not sell for less than a capital valuation of £40 million.

[darrin1471] 03/2/2024 17:51

The Works would be a good fit with Rymans and Rymans has a history of acquiring competitors. Partners with 86 stores and 61 stores of Stationery Box.
Ryman’s turnover £100m vs The Works £280m

[strikehot] 03/2/2024 15:42

Rymans to take it private, 25m being touted

[crumppot] 26/1/2024 10:45

I cant believe that WRKS are doing that badly, that they are valued so lowly. They have over 500 shops and although Xmas trading was down, I am surprised at such a drop in the share price. I wonder what the fund that bought in recently must think?