The Works profits surge by 44% in ‘pivotal’ year
The Works has been boosted by a 44% surge in profitability in what it described as a pivotal year.
In the 52 weeks to 3 May, total revenue increased by 3.1% to £260 million with like-for-like sales growing by 3.3%. Pre-IFRS 16 adjusted EBITDA climbed by 47% to £14 million supported by sales growth, an increase in product margin, and £2 million in cost savings.
Subscribe to TRBMeanwhile, adjusted pre-tax profit (from continuing operations) increased by 44% year-on-year to £7.2 million.
The Works said the positive momentum has continued into the new financial year with like-for-like sales up 8.8% in the 11 weeks to 19 July.
During the year, the retailer sharpened its brand campaigns and introduced more targeted customer communications to increase brand awareness. It also worked to strengthen its product proposition by increasing product newness and driving year-round relevance.
In March, the retailer announced that it had ceased trading on its online channel as it moved it to a non-transactional website. It had been operating as a multichannel retailer since 2012, although over 90% of sales had been driven by its 500 stores.
Commenting on the full year results, Gavin Peck, chief executive of The Works, said: “FY26 was a pivotal year for The Works with continued execution against our growth strategy and a step change in underlying profitability supported by increasing demand from families for affordable screen-free activities.
“We have made a strong start to the new financial year, with like-for-like sales up 8.8% in the first 11 weeks underpinning our confidence in delivering further sales and profit growth in the current year.
“We are excited by the group’s long-term potential and remain confident in achieving our target of pre-IFRS 16 adjusted EBITDA of at least £22.5 million in FY30.”
