TheWorks.co.uk plc (LSE:WRKS) reported interim results for the 26 weeks to 2 November 2025, highlighting resilient in-store trading despite significant disruption to online sales. Total like-for-like sales edged up 0.3%, with store LFLs rising a strong 4% and materially outperforming the wider non-food retail market. This was offset by a 36% decline in online sales, reflecting operational challenges following the transition to a new third-party fulfilment partner.
Group revenue slipped marginally by 0.3% to £123.8m, but profitability improved. Pre-IFRS 16 adjusted EBITDA narrowed to a £1.0m loss, while the adjusted loss before tax reduced to £5.1m. The improvement was driven by a 330 basis point uplift in product margins, continued cost-saving initiatives and tighter cost control. Net debt also reduced to £5.3m. No interim dividend was declared, as the Board remains focused on further strengthening the balance sheet.
Trading in the first 11 weeks of the second half showed continued resilience in stores, with store LFLs up 1.2% against a weakening consumer backdrop. However, ongoing online capacity constraints meant total LFLs fell 4.2%. Despite heavier Black Friday discounting and increased post-Christmas clearance activity, the group continued to deliver margin expansion and cost efficiencies.
Strategic actions under the “Elevating The Works” programme remain central to the turnaround. These include enhanced brand marketing centred on screen-free family activities, improved store standards, selective net store openings and distribution efficiencies. Management said the business entered the post-Christmas period with an improved cash position and remains confident of delivering FY26 profit in line with market expectations, while longer-term plans target further sales growth, profitability and shareholder value as online fulfilment issues are resolved.
Overall, the outlook for The Works is mixed. Strong store-led trading and apparent valuation support are positives, but these are balanced by weaker technical indicators and ongoing financial vulnerabilities, including relatively high leverage and uneven profitability.
More about TheWorks.co.uk plc
TheWorks.co.uk plc is the UK’s leading specialist retailer of affordable, screen-free activities for the whole family, offering products across reading, learning, creativity and play. With more than 90% of sales generated through its store network, the group focuses on value-driven consumers seeking low-cost, non-digital leisure activities, while online acts as a complementary channel alongside an optimised nationwide estate.
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