The Works hails “encouraging” performance
The Works has posted an increase in annual profit as it benefited from the early success of its Elevating The Works’ strategy launched back in January,
In the year to 4 May, adjusted EBITDA climbed by 58% to £9.5 million while pre-tax profit increased by 20.3% to £8.3 million.
However, total revenue declined by 2% to £277 million, although like-for-like sales edged up 0.8%.
The Works said store sales continued to be the primary driver of growth, which increased by 2.3% on a like-for-like basis and accounted for 90% of sales. The retailer attributed the uplift to more customer-focussed events, new products across all categories, improved store standards and product availability.
Subscribe to TRBHowever, online sales fell by 12.1% after The Works was impacted by temporary capacity constraints at a third-party provider during its peak period
Commenting on the performance, Gavin Peck, chief executive of The Works, said: “We are delighted to have ended FY25 in line with recently upgraded market expectations in a year defined by ongoing uncertainty and fragile consumer confidence.
“This encouraging performance is a huge credit to the early success of our new strategy launched in January 2025, ‘Elevating the Works’, which is already delivering tangible results.
“It is also thanks to the continued hard work of our dedicated and passionate colleagues, who have worked hard to drive improvements across the business.”
Giving an update on current trading, The Works said total like-for-like sales rose by 5% in the first 11 weeks of the new financial year as the retailer also benefited from good margin growth. .
Looking ahead, Peck added: “Guided by our new strategy, we are focusing our efforts on becoming the favourite destination for affordable, screen-free activities for the whole family.
“This has significant relevance, particularly in a digital age when customers are looking for ways to connect and spend their time away from screens.
“We are pleased that the ongoing evolution of our proposition and newness throughout our ranges, has already resonated so well with customers.”
