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

• Market Cap: £29.38M
• Dividend Yield: N/A
• Average Volume (3M): 259.88K
• Price to Earnings (P/E): 3.4
• Beta (1Y): 0.07
• Revenue Growth: -1.96%
• EPS Growth: 28.69%
• Country: UK
• Employees: 4,000
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Specialty Retail
• EPS (TTM): 0.24
• Shares Outstanding: 62,500,000
• 10 Day Avg. Volume: 323,081
• 30 Day Avg. Volume: 259,878
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £52.00
• Price Target Upside: 10.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: 52.00p ▲(10.40% Upside)

The overall stock score of 58 reflects a mixed outlook. The most significant factor is the company's financial performance, which shows both strengths in cash flow and challenges in profitability and leverage. Technical analysis indicates bearish momentum, while valuation suggests the stock is undervalued. Positive corporate events provide some optimism for future growth.

TheWorks.co.uk plc Business Overview & Revenue Model

Company Description

TheWorks.co.uk plc (WRKS) is a prominent UK-based retailer specializing in value-focused products across various categories including arts, crafts, toys, books, and stationery. Catering to a diverse customer base, The Works operates both an extensive network of physical stores across the UK and a robust online platform, offering a wide selection of affordable items that appeal to families, hobbyists, and gift shoppers alike.

How the Company Makes Money

TheWorks.co.uk plc generates revenue primarily through the sale of its diverse range of products both in-store and online. The company leverages its wide geographical presence with physical retail outlets located in high-traffic areas, which drives significant footfall and sales volume. Additionally, its online platform extends its reach, catering to customers who prefer shopping from home. The Works benefits from economies of scale by sourcing products in bulk, allowing it to offer competitive pricing. Seasonal promotions and partnerships with popular brands enhance its product appeal, while its loyalty programs and marketing strategies aim to increase customer retention and repeat purchases. The combination of diversified product offerings and strategic pricing underpins its revenue model.

TheWorks.co.uk plc Financial Statement Overview

Summary

TheWorks.co.uk plc exhibits a mixed financial performance. Improvements in cash flow and some operational efficiencies are offset by challenges with profitability and high leverage. The balance sheet's high debt levels pose a risk, necessitating prudent financial management.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	277.04M	277.04M	282.58M	280.10M	264.63M	180.68M
Gross Profit	49.34M	53.75M	51.82M	43.90M	55.03M	19.95M
EBITDA	36.55M	36.59M	33.96M	38.21M	33.94M	32.13M
Net Income	8.18M	8.18M	6.38M	5.27M	13.96M	-2.30M
Balance Sheet
Total Assets	126.95M	126.95M	118.81M	137.26M	149.33M	180.44M
Cash, Cash Equivalents and Short-Term Investments	4.12M	4.12M	1.62M	10.20M	16.28M	8.31M
Total Debt	74.93M	74.93M	77.76M	98.22M	111.14M	143.01M
Total Liabilities	111.11M	111.11M	108.73M	135.60M	148.95M	171.62M
Stockholders Equity	15.84M	15.84M	10.09M	1.65M	378.00K	8.83M
Cash Flow
Free Cash Flow	28.24M	27.60M	17.87M	20.61M	45.33M	27.73M
Operating Cash Flow	32.93M	33.48M	25.16M	29.22M	49.16M	30.13M
Investing Cash Flow	-5.03M	-5.00M	-5.83M	-6.45M	-2.94M	-2.38M
Financing Cash Flow	-24.95M	-25.53M	-27.21M	-29.42M	-38.13M	-22.59M

TheWorks.co.uk plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 47.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WRKS, the sentiment is Neutral. The current price of 47.1 is below the 20-day moving average (MA) of 53.62, below the 50-day MA of 56.20, and above the 200-day MA of 31.81, indicating a neutral trend. The MACD of -2.26 indicates Positive momentum. The RSI at 36.26 is Neutral, neither overbought nor oversold. The STOCH value of 22.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
MRK	69 Neutral	£63.49M	―	-11.56%	1.59%	2.55%	-445.00%
PROC	69 Neutral	£46.42M	46.09	11.06%	―	11.04%	64.29%
ANG	66 Neutral	£32.86M	26.09	3.66%	―	11.86%	16.46%
Sector *	62 Neutral	£1.74B	9.21	4.55%	3.51%	0.65%	-43.22%
G4M	62 Neutral	£53.07M	63.73	2.14%	―	1.62%	28.06%
WRKS	58 Neutral	£29.38M	3.41	63.08%	―	-1.96%	28.69%
SOS	42 Neutral	£13.65M	72.73	-3.01%	―	-19.76%	4.35%

TheWorks.co.uk plc Corporate Events

TheWorks.co.uk plc Publishes FY25 Annual Report and AGM Notice

TheWorks.co.uk plc has released its Annual Financial Report for the fiscal year ending 4 May 2025, along with the notice for its upcoming Annual General Meeting (AGM) scheduled for 8 September 2025. These documents are available on the company’s website, and printed copies are being sent to shareholders who opted for them. This announcement is crucial for stakeholders as it provides insights into the company’s financial health and strategic direction, impacting investor confidence and market positioning.

TheWorks.co.uk plc Appoints Nick Wharton as Independent Non-Executive Director

TheWorks.co.uk plc has appointed Nick Wharton as an Independent Non-Executive Director and Chairman of the Audit Committee, effective August 1, 2025. Wharton’s extensive experience in finance and leadership roles in the UK and international consumer industry is expected to benefit the company as it seeks to capitalize on growth opportunities and enhance shareholder value.

The Works.co.uk plc Reports Strong FY25 Results Amid Strategic Shift

The Works.co.uk plc reported its preliminary results for FY25, showing a 2% decrease in total revenue to £277m, attributed to an additional trading week in the prior year. Despite this, the company achieved a 58% increase in pre-IFRS 16 Adjusted EBITDA to £9.5m, driven by improved store performance and strategic initiatives like ‘Elevating The Works’. The company has seen strong post-Christmas trading momentum, with a 5% increase in LFL sales in the first 11 weeks of FY26, positioning it well for further profit growth. The company is not proposing a final dividend for FY25, focusing instead on reinvestment for future growth.

TheWorks.co.uk to Announce FY25 Results and Host Investor Presentation

TheWorks.co.uk plc announced it will release its preliminary results for the fiscal year ending 4 May 2025, along with an update on current trading for the 11 weeks ending 20 July 2025, on 22 July 2025. The announcement includes a live investor presentation by CEO Gavin Peck and CFO Rosie Fordham, which is accessible to all shareholders and interested parties, highlighting the company’s commitment to transparency and stakeholder engagement.

TheWorks.co.uk plc Reports Strong FY25 Performance and Optimistic FY26 Outlook

TheWorks.co.uk plc reported significant financial and strategic progress for the fiscal year 2025, despite a challenging consumer environment. The company achieved a 0.8% increase in like-for-like sales, driven by a 2.3% rise in store sales, although online sales declined by 12.1% due to fulfillment issues. Total revenue decreased by 2% to £277 million, partly due to a shorter trading period compared to the previous year. The company improved its profit margins and reduced costs, resulting in an expected EBITDA of £9.5 million, surpassing market expectations. The Works is transitioning to a new third-party provider to enhance online fulfillment, which is expected to yield cost savings in the future. The company is optimistic about continued profit growth in fiscal year 2026, supported by its new strategy ‘Elevating The Works’ and a strong cash position.