Theworks.co.uk Share Discussion Threads

[crumppot] 23/5/2023 18:02

Agreed about dividend

[s34icknote] 23/5/2023 17:42

Hefty trades again Some one keeps buying 300 k !My previous note was meant to say I expect the 2.4 p div to be maintained !

[darrin1471] 23/5/2023 16:08

kaos3
3. There are normally more than two horses in a race so choose the best horse and rider combination you can.

Annual pay rises along with rises in benefits and pensions mainly take effect in April so consumers may feel a little better off this summer. In addition the energy cap is forecast to fall by £500 soon and the headline inflation figure should start to fall rapidly.
Markets in general may turn before then.

[harry_david] 23/5/2023 15:54

Interesting stuff going on in the market. I wonder if Retail World has stirred things up, or more likely the new company broker. Anyway they look cheap.

[s34icknote] 23/5/2023 15:46

Can't see them but paying the 2.4p div With the cash they have Limited downside huge potential upside

[s34icknote] 23/5/2023 15:45

More stake building !

[darrin1471] 23/5/2023 09:43

Second on the above growth list is Matalan.
Matalan who had to recently be refinanced with the founder loosing control


The Works mantra is now "better, not just bigger"

[harry_david] 23/5/2023 09:26

Mongrels4, thanks, interesting reading.

[mongrels4] 23/5/2023 07:45

hxxps://www.retail-week.com/value/ranking-the-fastest-growing-value-retailers-revealed/7043778.article?authent=1

[s34icknote] 23/5/2023 07:43

May be on a maintained 2.4 p div

[crumppot] 22/5/2023 22:10

When will the share price increase? It has not moved significantly for a long time

[s34icknote] 22/5/2023 21:42

Some history

[s34icknote] 22/5/2023 21:41

Discount gifts and stationery retailer The Works has announced a successful pricing of its IPO on the main market of the London Stock Exchange.The offer price has been set at 160p per share, which equates to a market capitalisation of £100 million on admission.The retailer – which also sells books, arts, crafts, and toys – said it expected dealings would commence from July 19.READ MORE:The Works hails record Christmas sales for 7th year runningThe Works to spend £5.3m in aggressive expansionIt comes after The Works saw unprecedented growth since it was purchased by private equity firm Endless in 2008, when its estate almost doubled to 400 stores in 2016.A £5.3 million investment drive announced last August has also seen The Works work towards an additional 50 stores, adding to the 63 stores it acquired throughour 2017.The Works also revealed record-breaking Christmas sales for the 17th consecutive year."Today represents a significant milestone for The Works and we're extremely pleased with the level of interest we've received from investors in our business," The Works chief executive Kevin Keaney said."They've seen what our customers see every day – a unique and exciting retail experience that combines value, quality and variety that's available online and in-store."With a highly experienced management team, energised staff and compelling offer, we are well-positioned for further growth."We're grateful to our exiting shareholders Endless, whose support has enabled us to get here today and look forward to welcoming new shareholders to join us in this exciting new chapter for the business."Click here to sign up to Retail Gazette's free daily email newsletter

[darrin1471] 22/5/2023 14:42

s34 £3m is coming from an analyst.
This free link predicts only £11.5 cash in 2025

[s34icknote] 22/5/2023 14:36

So they have averaged a 5.66 m increase in cash over last 6 years as well as coping with covid .Any one know how many stores have been added since ipo ?

[s34icknote] 22/5/2023 14:31

2018 24.5 m debt 2019 2.9 cash 2020 7.1 m debt 2021 0.8 m cash 2022 16 m cash (inflated as we know)2023 10 m cash They seem to be heading in the right direction . They were worth 66 m at ipo and had 24.5 m debt . That's 34.5 m difference on the bank balance and valued at a third !

[s34icknote] 22/5/2023 14:27

Thanks darrin .Yes quite right full year figure would be better to use .Where is your projected 3 million figure coming from ?It's been hard to predict with all the covid help and delayed payments going through .We should have clear visibility now.

[darrin1471] 22/5/2023 12:41

s23. As you are aware stock levels increase pre Christmas and cash is at its highest level post January sales. It is therefore best to compare cash year on year.
The most recent cash figure is £10.2m vs £16.3 a year earlier. This drop of £6.1m was due to "higher than normal creditor balances" in FY22. It was well flagged and nothing to worry about.
The net cash forecast for the next 2 years is +£3m taking WRKS to about £13 net cash at the end of FY25 (30/04/2025)
Dividend cover is poor for FY23 so a 2.4p dividend is not cast in stone. If the outlook remains stable I think WRKS will maintain 2.4p, as cover improves for FY24.
The WRKS share price is very low but its profit margins are also very tight. A small boost to revenue adds a big boost to profits but the reverse is also true.

Pay rises often start April 1st along with pension and benefit rises. The energy cap is also forecast to fall by £500. This may lead to a better than expected summer for retailers.

WRKS will need to fund the higher living wage which went up nearly 10% last month. Also Amazon are opening a massive distribution centre near to WRKS head office and warehouse. Amazon will be recruiting hard for all positions in the new DC which will add wage pressures locally to an already tight labour market.

[kaos3] 22/5/2023 07:16

we did not even close the gap from 19.1.2023



lots to come

[s34icknote] 21/5/2023 22:13

I was looking at these two updates . Net cash 7.0 m with 5 million adjustment taking it to 2 million .So they've gained 8 million on recent update to 10 million .It would be good to have a clearer picture without all the covid one offs .

[s34icknote] 21/5/2023 22:09

The trading update issued by the Group on 11 November 2022 stated that the Group's net cash balance at the end of H1 FY23 was GBP11.0m. The gross cash balance was GBP11.0m, however, taking into account a GBP4.0m drawing on the Group's RCF (revolving credit facility), the net cash balance at the Period end was GBP7.0m, which reflects the build of stock prior to the peak trading season.

[s34icknote] 21/5/2023 22:06

The Group's financial position remains strong with net cash of GBP11.0m(4) at the Period end. This cash position benefitted from the timing of the Period end, as approximately GBP5.0m of October payments were not due until 31 October, the first day of H2 FY23, albeit the cash position also fully reflects the build of stock prior to the peak trading season.

[s34icknote] 21/5/2023 21:58

Net cash increased from 2 million to net 10 million ? They had 7 million but I last results but that was inflicted with 5 million on payments that went out just after end of year accounts

[darrin1471] 21/5/2023 21:12

Where are you getting the £8m from s34?