Discount retailer The Works has reinstated its dividend after telling investors its sales are now significantly higher than at pre-pandemic levels, on the back of a record Christmas and booming demand for books.
The firm said it had capitalised on the “BookTok” trend on social media platform TikTok to boost sales of its discount books and drive customer interest.
The Coleshill headquartered firm also said it had increased sales of branded toys and games through reinforcing its Peppa Pig, Paw Patrol, and Cocomelon ranges.
The combination of higher toys and books sales saw The Works’ revenues like-for-like increase 10.4 per cent compared to pre-pandemic levels.
In response to the record performance, the company also reinstated its dividend, as the firm said it expects to pay out 2.4p for every share.
The Works also said it had had another “record Christmas” as the firm argued its strong financial performance had showed its “better, not just bigger” strategy is working.
The company however warned that its sales had suffered due to slower consumer spending in recent months.
The firm also said it plans to bolster its cybersecurity defences after it was impacted by a cybersecurity incident in April 2022.
The Works chief executive Gavin Peck said: “As we move into our new financial year, general trading conditions remain challenging.”
“We will continue to focus on the factors within our control and ensure that, as customers face increasing cost-of-living pressures, they can continue to rely on The Works as a destination for great value products to inspire reading, learning, creativity and play.”