TheWorks.co.uk (WRKS) Trading Update summary

Financial and operational highlights

• Achieved total like-for-like sales growth of 0.8% in FY25, outperforming the wider non-food retail market.

• Store LFL sales rose 2.3%, driven by customer-focused events, new products, and improved store standards.

• Online sales declined 12.1% due to festive period fulfilment issues, but Q4 online sales recovered to flat.

• Product margin grew by 200bps and cost-saving actions led to significant profit improvement.

• Pre-IFRS 16 Adjusted EBITDA expected at £9.5m for FY25, ahead of market expectations.

Strategic and operational developments

• New third-party online fulfilment provider appointed, transition to complete by autumn, expected to deliver cost savings and improved service.

• Store estate optimized with 7 openings, 15 closures, and 4 relocations, ending FY25 with 503 stores.

• Initial progress on 'Elevating The Works' strategy, focusing on brand growth, customer convenience, and operational efficiency.

Financial position and board changes

• Year-end cash position improved to £4m, up from £1.6m in FY24.

• Maintains a £20m revolving credit facility for stock build ahead of peak trading.

• Senior Independent Non-Executive Director Harry Morley to step down; recruitment for successor underway.