TheWorks.co.uk (WRKS) investor relations material

Executive summary

• Significant operational, financial, and strategic progress achieved, with a new strategy to become the favorite destination for affordable, screen-free family activities and clear five-year goals, including sales over £375m and EBITDA margin of at least 6%.

• Like-for-like sales growth outperformed the wider sector, especially in stores, despite a fragile consumer environment.

• EBITDA rose to £9.5m, up from £6m last year and ahead of market expectations.

• Well positioned for further profit growth in FY26, with upgraded guidance and a strong start to the year.

Financial highlights

• Revenue reached £277m, slightly down year-over-year due to an extra trading week in the prior year and store estate optimization.

• Like-for-like sales grew 0.8% overall, with store sales up 2.3% and online sales down 12.1%.

• Product margin improved from 57.3% to 59.4%, driven by supplier negotiations, product mix control, and reduced promotions.

• EBITDA increased by £3.5m to £9.5m, in line with upgraded expectations.

• Net cash at year-end was £4.1m, up from £1.6m last year.

Outlook and guidance

• FY26 EBITDA expected to reach £11m, a year-on-year increase of over 15%.

• Like-for-like sales growth of 5% achieved in the first 11 weeks of FY26.

• CapEx to increase to £8m in FY26 (from £5m in FY25), focused on new stores, estate investment, and systems transformation.

• Year-end cash expected to be approximately £5.5m.

• Strategic initiatives in place to offset cost headwinds, including wage and NI increases.