The Works lifts margins and profits as it pivots to store-first growth

TheWorks.co.uk plc ( (GB:WRKS) ) just unveiled an announcement.

The Works reported a 3.2% rise in revenue to about £260m for the year to 3 May 2026, with like-for-like sales up 3.3% and gains across all four core product categories. The retailer lifted product margins by 240 basis points, delivered a £2m cost reduction programme and expects pre-IFRS 16 adjusted EBITDA of around £14m, a 47% increase that beats market forecasts, while ending the year with £3.6m in net cash.

Management highlighted strong progress in the first full year of its Elevating The Works strategy and the shift to a store-focused trading model following the closure of its online channel. The group plans to open ten net new stores in FY27, target further margin and efficiency gains, and is working towards a medium-term EBITDA goal of at least £22.5m by FY30, reinforcing confidence in continued outperformance versus the broader non-food retail market.

Spark’s Take on WRKS Stock

According to Spark, TipRanks’ AI Analyst, WRKS is a Neutral.

Overall score reflects mixed financial quality (notably high leverage and weak profitability) offset by strong cash generation, with supportive technical uptrend but overbought signals, and a very low P/E providing valuation upside potential.

To see Spark’s full report on WRKS stock, click here.

More about TheWorks.co.uk plc

TheWorks.co.uk is a UK-based specialist retailer focused on affordable, screen-free activities for families, spanning arts and crafts, stationery, toys and games, and books. The group operates more than 500 bricks-and-mortar stores across the UK and Ireland, positioning itself as a value-driven high-street chain in the non-food retail segment.

Average Trading Volume: 117,074

Technical Sentiment Signal: Strong Buy

Current Market Cap: £33.75M

For a thorough assessment of WRKS stock, go to TipRanks’ Stock Analysis page.