Discount retailer The Works has reinstated its dividend after telling investors that sales are now significantly higher than pre-pandemic levels, following a record Christmas and booming demand for the books.
The company said it had capitalized on the “BookTok” trend on social media platform TikTok to boost sales of its discount books and generate customer interest.
The Coleshill-based company also said it increased sales of branded toys and games by bolstering its Peppa Pig, Paw Patrol and Cocomelon ranges.
The combination of higher toy and book sales saw The Works revenue rise 10.4% year-on-year to levels 12.7% above pre-pandemic levels.
In response to the record performance, the company also reinstated its dividend, as the company said it planned to pay out 2.4p for each share.
The Works also said it had another “record Christmas” as the company argued its strong financial performance showed its “better, not just bigger” strategy was working.
The company, however, warned that its sales had been hurt by slowing consumer spending in recent months.
The company also said it plans to strengthen its cybersecurity defenses after being hit by a cybersecurity incident in April 2022.
Works chief executive Gavin Peck said: “As we enter our new fiscal year, general business 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 products. great value for inspiring reading, learning, creativity and play.”