TheWorks.co.uk, a U.K. retailer, announced a reduction in its dividend payout following a decline in pretax profit for fiscal 2023. The company attributed this decrease to rising sales costs amidst a challenging backdrop. Additionally, the retailer confirmed that its chief financial officer, Steve Alldridge, will be stepping down by the end of 2023, with Rosie Fordham set to take over as the new head of finance.
Fiscal 2023 Performance
For the fiscal year ending April 30, TheWorks.co.uk reported a pretax profit of £5.0 million, a decline compared to the £14.2 million reported in fiscal 2022. While revenue saw a 5.8% increase, totaling £280.1 million, the cost of sales also rose to £236.2 million from £211.9 million.
Dividend Adjustment
In light of these circumstances, the company’s board has decided to declare a final dividend of 1.6 pence per share, a decrease from the 2.4 pence per share declared in the previous year. The aim is to strike a balance between providing a reasonable level of dividend and maintaining sufficient cash reserves as the group focuses on rebuilding its profitability.
Outlook for Fiscal 2024
Despite the challenges faced in fiscal 2023, TheWorks.co.uk remains optimistic about the future. The company stated that its performance for the first 17 weeks of fiscal 2024 has been in line with expectations, with overall like-for-like sales growth of 3.1%.
CFO Transition
Regarding the change in leadership, CFO Steve Alldridge will be stepping down from his position by the end of 2023. Rosie Fordham, currently serving as head of finance, will take on the role of CFO in his place.