Theworks.co.uk Share Discussion Threads

[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?

[s34icknote] 25/1/2024 14:24

Think this touched 17p in covid lock down !Next support ?

[s34icknote] 18/1/2024 12:11

Card much better than works Works seams a lot quieter last year than year before

[darrin1471] 18/1/2024 10:36

NLW up 9.6% means the government receives more in tax receipts and has less to pay out in working tax credits.
Those on the lowest incomes were hardest hit by price inflation. NLW and pensions give an income boost after April.
Higher service inflation will keep inflation higher for longer. UK rates will be slower to fall than US. Sterling will be stronger making imports cheaper which will counter balance higher wage inflation in services.

[glavey] 18/1/2024 09:04

"The two best bargains on the market, Works and Card."

...wrote the two best investors in the market, Harry and David.
;-)

[castleford tiger] 18/1/2024 09:01

ITS very tough at the end where they are. I dont fancy this one bit

tiger

[crumppot] 18/1/2024 08:39

The results weren't great. No dividend or share buyback.

[harry_david] 18/1/2024 08:25

One more instance where a better than expected report sees the share price tumble. The two best bargains on the market, Works and Card.

[kaos3] 18/1/2024 08:06

as feared. wrks is good times operation.

they should partially reinvent them self to offer a ..non discretionally needed line ..... to draw customers into the shop. then they will buy present stuff items on the offer - which can be bought every where around.

otherwise excellent management and report. i wish this management would not ride a donkey but a horse.

harsh but that is my opinion

the best jockey can not win riding the donkey /selling stuff in wrks case/

i will stick as the management is excellent as far as i can tell

[harry_david] 13/1/2024 09:48

Trading update this week. It has been a tough Christmas for most so not anticipating much. However, am sure the longer term is much better.

[harry_david] 26/12/2023 16:52

Good point darrin and in what is generally described as a slow Christmas they have some steep hurdles. Even so the Works are still making progress in controlling costs after the excesses pre-covid and with their financial freedom have another cost saving advantage over most competitors.

[darrin1471] 26/12/2023 11:14

From last annual report: FY ending 30/04/23
"Store payroll costs increased by £3.3m. The annual rise in the National Living Wage (NLW) accounted for £2.1m or 64% of the year-on-year increase, including the additional cost of maintaining sensible differentials between pay grades for colleagues paid more than the NLW, in light of the increased base wage level."

So in March 2023 NLW was 25+ £9.50, 21-24 £9.18, 18-20 £6.83. A 7% rise on the previous year. Only one month (April 23) was included in YE 04/23


NLW for 2023/24 is 25+ £10.42, 21-24 £10.18, 18-20 £7.49. About a 10% rise.
7% = £2.1m in FY23, so 10% = £3m for current year.


NLW starting April 2024 is £11.44 FOR 21+ and 18-20 £8.60. Please note a 21-24 year old receives a 12.4% pay rise. So the bill for NLW in the year starting May 2024 is £3.5m+

The cost to the works for NLW in fy24 and fy25 is about £6.5m

PBT FY23 £5m

That is quite a headwind for the next year

Those figures are for "store payroll". How much for central payroll?

I hold no position long or short in the works

[chinahere] 24/12/2023 21:02

On a more macro-scale, they still have a big turnover of £270m+ and that is what I am hoping will bear fruit.

I know retail is very difficult to make money in, but even a 3% profit would be half their current market cap. They also have no long term debt.

[harry_david] 24/12/2023 20:24

darrin, the Works has a major advantage over many others with its liquidity. There are stories everywhere of retailers struggling financially which will severely restrict their operations next year and some may not even survive. Works have the flexibility to take on new products and cut back in others. Even if they have a poor trading period they will still be able to take advantage of the upturn that will come next year.

[kaos3] 19/12/2023 19:32

the Q for me is ... do i need to go to wrks shop to get my needs sated ... or is more convinient to me to do shoping on the go elswhere / supermarket, internet etc/ while doing some other buyinglooking at their offer i can not see why should i bother to go extra mile.

[darrin1471] 19/12/2023 18:51

When my kids were young I often shopped at the works for educational, craft and small gifts for parties and stocking fillers.
My youngest is doing A levels next summer and we are buying him educational online video courses recommended by his teachers. Five years ago when my daughter was doing A levels we were buying her books and study aids.
It started me thinking that the large educational section in the works may be a significantly shrinking market.

[eigthwonder] 19/12/2023 11:39

If they’re not busy in the week before Xmas they’re for the corporate knacker’s yard.

[crumppot] 19/12/2023 11:34

Shame the share price is doing so poorly!

[gripfit] 19/12/2023 11:08

My local Works is very busy ,, these shops are allways very well stocked with quirky products … and great value too …

[s34icknote] 12/12/2023 10:54

B and m just moved into camberley .How much business will this take from works ?Now wilko have gone will there be more b and m stores in the town centres ?