The Works plans to exit the main market of the London Stock Exchange and move to AIM in a bid to reduce costs.
The retailer, which first listed on the stock exchanve in July 2018, said it had “concluded that AIM is a more appropriate market” due to its size and lower losts. The move is “expected to deliver a significant cost saving” to the business.
The Works chair Carolyn Bradley said: “Our proposed move to AIM follows months of careful consideration. We believe AIM to be a more appropriate market for The Works, partly due to our current size but also because of the efficiencies to be gained when compared to the Main Market’s increasing cost and regulatory requirements.
“Many of our major shareholders are supportive of the move and we are optimistic that the expected cost savings and access to alternative groups of investors should help to increase shareholder value.”
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The news comes after The Works recorded widening pre-tax losses in January, as it warned of the potential impact of ongoing supply chain disruptions on its outlook.
The value retailer reported an adjusted pre-tax loss of £7.8m for the 26 weeks ending October 29.
It confirmed today that HSBC had agreed to reset its fixed charge covenant for The Works’ banking facilities when it is admitted on to AIM, which is expected to take place on 3 May.
Earlier this month, the books and crafts retailer said it would scrap its loyalty scheme at the end of March to cut costs.
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