LONDON: TheWorks.co.uk plc, a U.K. retailer specializing in affordable, screen-free activities, posted stronger earnings and rising profit margins for the fiscal year ended May 4, 2025, aided by the successful rollout of its new strategic plan.
Total revenue declined 2% to £277 million, impacted by the prior year’s additional trading week, but the company’s store-led strategy drove a 0.8% like-for-like sales increase—outpacing broader non-food retail market trends. Store sales rose 2.3% on a LFL basis, while online sales fell 12.1% due to third-party capacity issues and a focus on profitability.
Pre-IFRS 16 adjusted EBITDA jumped 58% to £9.5 million, aligning with upgraded market forecasts, while profit before tax rose 20.3% to £8.3 million. Adjusted profit before tax reached £4.6 million, supported by margin expansion and cost-saving initiatives.
The Group ended FY25 with £4.1 million in net cash and announced it would prioritize reinvestment over shareholder dividends. CEO Gavin Peck credited the early success of its ‘Elevating The Works’ strategy for the improved performance and outlined goals for further growth in FY26.
The company reported strong current trading with LFL sales up 5% in the first 11 weeks of FY26. Management reaffirmed confidence in meeting adjusted EBITDA targets of £11 million for the year and reaching £375 million in revenue within five years.
Gavin Peck, Chief Executive Officer of The Works, commented: “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.
“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.
“The strong trading delivered post-Christmas has continued into the start of our new financial year, with customers clearly loving our new Spring and Summer product ranges. This positive momentum, guided by our transformative strategy and energised team, leaves us well placed for further strategic and financial progress in FY26.”