TheWorks.co.uk (WRKS) investor relations material

Executive summary

• FY 2026 was a pivotal year of transformation, delivering strong financial and operational progress as part of a five-year strategy focused on affordable, screen-free activities for families.

• Store estate grew with a net addition of 5 new stores, now over 500 locations, and operational execution improved.

• Closed the unprofitable transactional website to concentrate on stores, resulting in improved like-for-like sales and profitability.

• Launched impactful brand campaigns and strategic initiatives, driving double-digit growth in key categories like kids' books.

• Momentum continued into FY 2027, with like-for-like sales up 8.8% for the first 11 weeks.

Financial highlights

• Revenue grew 3.1% year-over-year to £260 million, with like-for-like sales up 3.3%, outperforming the non-food retail market.

• Pre-IFRS 16 adjusted EBITDA increased 47% to £14 million; adjusted profit before tax rose 44% to £7.2 million.

• Statutory profit before tax was £6.8 million, impacted by prior year impairment reversals and £0.5 million of exceptional costs.

• Net cash at year-end was £3.6 million, with strong cash generation funding £5.9 million in capital investment.

• Product margin expanded by 240 basis points to 62%.

Outlook and guidance

• FY 2027 pre-IFRS 16 adjusted EBITDA expected to reach £15 million, with a five-year plan targeting £22.5 million EBITDA by FY 2030.

• Like-for-like sales in the first 11 weeks of FY 2027 up 8.8% on a strong prior year comp.

• CapEx for FY 2027 projected at £8 million, including new stores, refits, and IT transformation.

• Expecting £1.3 million in exceptional costs for systems transformation in FY 2027.

• Macroeconomic uncertainty remains, but strong trading momentum underpins confidence.