THEWORKS.CO.UK PLC - Preliminary Results

TheWorks.co.uk plc delivered a pivotal FY26 performance, demonstrating strong progress against its five-year “Elevating The Works” growth strategy. Revenue from continuing operations increased 3.1% to £260 million, supported by like-for-like sales growth of 3.3%, significantly outperforming the wider UK non-food retail market. Improved buying, supplier negotiations, product mix and lower freight costs drove a 240-basis-point increase in product margin to 62%, while a £2 million cost-reduction programme helped pre-IFRS 16 adjusted EBITDA rise 47% to £14 million. Adjusted profit before tax increased 44% to £7.2 million, and continuing operations generated £4.3 million of cash, funding investment in new stores, refits, distribution and technology. Following the closure of its loss-making transactional website, The Works is now focused exclusively on its profitable portfolio of more than 500 UK and Ireland stores, 98% of which generate a contribution. The retailer plans 10 net new store openings in FY27 and 60 by FY30, supported by new product ranges, stronger brand marketing and growing demand for affordable screen-free activities. Trading momentum has continued into FY27, with like-for-like sales up 8.8% during the first 11 weeks, prompting upgraded guidance for pre-IFRS 16 adjusted EBITDA of £15 million. Management remains confident in achieving at least £22.5 million of EBITDA by FY30 through store expansion, disciplined cost control, improved space optimisation and a major systems transformation programme, strengthening future cash generation and shareholder returns.