TheWorks.co.uk plc (WRKS) AI Stock Analysis

• Market Cap: £18.94M
• Dividend Yield: N/A
• Average Volume (3M): 151.51K
• Price to Earnings (P/E): 2.1
• Beta (1Y): -0.05
• Revenue Growth: -1.96%
• EPS Growth: 28.69%
• Country: UK
• Employees: 4,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.08
• Shares Outstanding: 62,500,000
• 10 Day Avg. Volume: 269,764
• 30 Day Avg. Volume: 151,506
• PEG Ratio: 0.06
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 0.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: 32.00p ▼(-6.43% Downside)

The score is held back primarily by balance sheet leverage and weak profitability, alongside a bearish technical setup (trading below major moving averages with negative MACD). A very low P/E provides valuation support, and cash flow trends offer some stability, but they do not fully offset the financial risk and weak price trend.

Positive Factors

Multi-channel model & private label

A combined store and e‑commerce model plus private‑label sourcing provides durable revenue diversification and margin control. Physical reach to families and schools complements online sales, reducing single-channel risk and supporting steady footfall and repeat purchases over months.

Strong free cash flow trends

Consistent positive free cash flow gives the company durable financial flexibility to fund working capital, invest in omnichannel initiatives, and service debt. Reliable cash generation cushions against earnings volatility and supports strategic initiatives without immediate equity raises.

Improving gross profit margin

An improving gross margin signals better cost control or more favorable sourcing, which is a sustainable way to lift underlying profitability. If maintained, higher gross margins enhance operating leverage potential and give room to invest in marketing and store/online experience.

Negative Factors

High leverage / weak balance sheet

Material reliance on debt and a low equity base raise refinancing and solvency risk, reducing strategic flexibility. High leverage limits ability to absorb sales shocks, constrains capital expenditure, and increases interest burden, making medium‑term execution and growth harder.

Low and inconsistent net profitability

Persistent weak net margins constrain internal funding for growth and debt reduction. Inconsistent profitability complicates planning, reduces capacity for reinvestment in stores and digital, and leaves the business exposed to margin pressure from suppliers or promotional cycles.

Declining revenue and EPS trends

Negative top‑line and EPS trends point to structural demand, competitive or execution issues. Continued declines reduce scale benefits, weaken negotiating power with suppliers, and make it harder to improve margins or service leverage, increasing medium‑term business risk.

TheWorks.co.uk plc Business Overview & Revenue Model

Company Description

TheWorks.co.uk plc operates as a retailer of gifts, arts, crafts, toys, books, and stationery products. The company sells its products through a network of stores, as well as through its online platform. As of May 2, 2021, it operated 527 stores in the United Kingdom and Ireland. The company was founded in 1981 and is based in Birmingham, the United Kingdom.

How the Company Makes Money

TheWorks.co.uk plc generates revenue primarily through the sale of its wide-ranging products, including arts and crafts supplies, books, gifts, and educational materials. The company utilizes a multi-channel retail strategy, combining physical stores and e-commerce to maximize reach and accessibility. Key revenue streams include direct sales from retail locations, online orders, and seasonal promotions. Additionally, TheWorks.co.uk benefits from cost-effective sourcing and private label products, which enhance profit margins. The company also occasionally engages in partnership initiatives, such as collaborations with educational institutions and community organizations, which can lead to bulk sales and increased brand exposure.

TheWorks.co.uk plc Financial Statement Overview

Summary

Overall fundamentals are mixed: cash flow is comparatively solid (strong free cash flow trends), but profitability remains weak and inconsistent, and the balance sheet is a key concern due to high leverage and a low equity base.

Income Statement

TheWorks.co.uk plc shows a mixed performance in its income statement. The gross profit margin has improved slightly over the years, indicating better cost management. However, the net profit margin remains low, reflecting challenges in converting revenue into profit. Revenue growth has been inconsistent, with a decline in the most recent year. The EBIT and EBITDA margins are moderate, suggesting some operational efficiency but room for improvement.

Balance Sheet

The balance sheet reveals significant leverage, with a high debt-to-equity ratio indicating potential financial risk. Although the return on equity has improved, it is primarily due to a low equity base rather than strong profitability. The equity ratio is low, highlighting a reliance on debt financing. These factors suggest financial vulnerability and the need for careful debt management.

Cash Flow

Cash flow analysis shows positive trends, with strong free cash flow growth in recent years. The operating cash flow to net income ratio indicates healthy cash generation relative to earnings. However, the free cash flow to net income ratio suggests that while cash flow is robust, profitability remains a concern. Overall, cash flow management appears solid, providing some financial stability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	277.04M	282.58M	280.10M	264.63M	180.68M
Gross Profit	53.75M	51.82M	43.90M	55.03M	19.95M
EBITDA	36.59M	33.96M	38.21M	39.13M	32.13M
Net Income	8.18M	6.38M	5.27M	13.96M	-2.30M
Balance Sheet
Total Assets	126.95M	118.81M	137.26M	149.33M	180.44M
Cash, Cash Equivalents and Short-Term Investments	4.12M	1.62M	10.20M	16.28M	8.31M
Total Debt	74.93M	77.76M	98.22M	111.14M	143.01M
Total Liabilities	111.11M	108.73M	135.60M	148.95M	171.62M
Stockholders Equity	15.84M	10.09M	1.65M	378.00K	8.83M
Cash Flow
Free Cash Flow	27.60M	17.87M	20.61M	45.33M	27.73M
Operating Cash Flow	33.48M	25.16M	29.22M	49.16M	30.13M
Investing Cash Flow	-5.00M	-5.83M	-6.45M	-2.94M	-2.38M
Financing Cash Flow	-25.53M	-27.21M	-29.42M	-38.13M	-22.59M

TheWorks.co.uk plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WRKS, the sentiment is Negative. The current price of 34.2 is above the 20-day moving average (MA) of 33.49, below the 50-day MA of 34.62, and below the 200-day MA of 43.32, indicating a bearish trend. The MACD of -1.00 indicates Positive momentum. The RSI at 42.14 is Neutral, neither overbought nor oversold. The STOCH value of 19.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:WRKS.

TheWorks.co.uk plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DNLM	75 Outperform	£1.86B	11.96	121.78%	3.99%	3.78%	3.29%
CARD	67 Neutral	£234.12M	5.48	13.18%	7.08%	6.18%	4.22%
PROC	66 Neutral	£36.06M	27.14	18.64%	―	16.66%	147.92%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MOON	56 Neutral	£668.74M	15.02	―	1.40%	3.94%	―
WRKS	52 Neutral	£18.94M	2.13	63.08%	―	-1.96%	28.69%
SMWH	46 Neutral	£840.78M	-6.09	-11.61%	4.48%	-19.03%	-318.35%

TheWorks.co.uk plc Corporate Events

The Works lifts margins and narrows losses as stores outperform despite online disruption

The Works reported interim results for the 26 weeks to 2 November 2025 showing resilient in-store performance but disrupted online trading. Total like-for-like sales rose 0.3% as store LFLs climbed 4%, significantly outperforming the wider non-food retail market, while online sales fell 36% due to operational issues at a new third-party fulfilment partner. Revenue edged down 0.3% to £123.8m, but losses narrowed, with pre-IFRS 16 adjusted EBITDA improving to a £1.0m loss and adjusted loss before tax reduced to £5.1m, helped by a 330bps product margin gain, ongoing cost savings and tighter cost control. Net debt improved to £5.3m and no interim dividend was declared as the Board prioritises strengthening the balance sheet. In the first 11 weeks of the second half, store LFLs rose 1.2% against a weakening market, but online sales remained heavily constrained, dragging total LFLs down 4.2%; margin expansion and cost savings continued despite heavier Black Friday discounting and higher post-Christmas clearance. Strategic initiatives under the ‘Elevating The Works’ programme—including stronger brand marketing around screen-free family time, improved store standards, selective net store openings and efficiency gains in distribution—are underpinning profitability and reinforcing the retailer’s positioning as a value-led, screen-free alternative in a tough consumer environment. The company’s cash position improved after Christmas and management remains confident of delivering FY26 profit in line with market expectations, with further sales, profit growth and shareholder value targeted in subsequent years, while it works with its fulfilment partner to resolve online capacity challenges.

The most recent analyst rating on (GB:WRKS) stock is a Hold with a £38.00 price target. To see the full list of analyst forecasts on TheWorks.co.uk plc stock, see the GB:WRKS Stock Forecast page.

TheWorks.co.uk Sets Date for H1 FY26 Results and Investor Presentation

TheWorks.co.uk plc will publish its interim results for the 26 weeks ended 2 November 2025, along with a trading update for the 11 weeks to 18 January 2026, on 22 January 2026. On the same day, CEO Gavin Peck and CFO Rosie Fordham will host a live online investor presentation via the Investor Meet Company platform, open to existing and prospective shareholders, underlining the retailer’s efforts to maintain transparent engagement with the investment community during the current trading period.

The most recent analyst rating on (GB:WRKS) stock is a Hold with a £38.00 price target. To see the full list of analyst forecasts on TheWorks.co.uk plc stock, see the GB:WRKS Stock Forecast page.

TheWorks.co.uk Announces Directorate Change as Simon Hathway Steps Down

TheWorks.co.uk plc announced that Simon Hathway will step down as Independent Non-Executive Director in early January 2026 to assume a full-time Executive Director role at B&M European Value Retail S.A. Hathway’s departure comes after a year of significant contributions to The Works, including his role as Chair of the Remuneration Committee and member of the Audit and Nomination Committees. The company is actively searching for his successor and will update stakeholders in due course. The Works’ Chair, Steve Bellamy, praised Hathway’s impact on the company’s strategy and growth, while Hathway expressed confidence in the company’s future, citing its strong customer base and value proposition.

The most recent analyst rating on (GB:WRKS) stock is a Hold with a £53.00 price target. To see the full list of analyst forecasts on TheWorks.co.uk plc stock, see the GB:WRKS Stock Forecast page.

TheWorks.co.uk plc Reports Resilient In-Store Growth Amid Online Sales Challenges

TheWorks.co.uk plc reported a slight decrease in total sales for the first half of FY26, with a 0.3% drop compared to the previous year. Despite challenges in the consumer environment and a significant decline in online sales due to operational issues, the company saw a 4% increase in store sales, driven by effective marketing and strategic initiatives. The company is on track to meet its full-year profit guidance, supported by product margin growth and cost-saving measures. The Works is focused on optimizing store sales during peak trading periods and addressing online sales challenges to ensure continued strategic and financial progress.

The most recent analyst rating on (GB:WRKS) stock is a Hold with a £53.00 price target. To see the full list of analyst forecasts on TheWorks.co.uk plc stock, see the GB:WRKS Stock Forecast page.