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

• Market Cap: £30.44M
• Dividend Yield: N/A
• Average Volume (3M): 267.80K
• Price to Earnings (P/E): 3.5
• Beta (1Y): 0.13
• Revenue Growth: -1.96%
• EPS Growth: 28.69%
• Country: UK
• Employees: 4,000
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Specialty Retail
• EPS (TTM): 0.24
• Shares Outstanding: 62,500,000
• 10 Day Avg. Volume: 352,200
• 30 Day Avg. Volume: 267,804
• 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: £51.00
• Price Target Upside: 4.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: 51.00p ▲(4.72% Upside)

The overall stock score of 57 reflects a combination of mixed financial performance and technical analysis, with a strong valuation component. The company's high leverage and inconsistent revenue growth are significant risks, but the low P/E ratio suggests potential undervaluation. Investors should weigh these factors carefully.

Positive Factors

Cash Generation

Strong free cash flow growth indicates effective cash management, providing financial stability and the ability to invest in growth opportunities.

Operational Efficiency

Improved gross profit margins suggest enhanced cost management, which can lead to better profitability and competitive pricing strategies.

Online Presence

Expanding e-commerce capabilities align with consumer trends, potentially increasing market reach and revenue through digital channels.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase vulnerability to economic downturns, necessitating careful debt management.

Inconsistent Revenue Growth

Fluctuating revenue growth can signal market challenges or operational issues, impacting long-term business stability and investor confidence.

Low Net Profit Margin

Persistently low net profit margins suggest difficulties in achieving profitability, which can affect reinvestment and shareholder returns.

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 array of products, including arts and crafts supplies, educational materials, and toys. The company operates a dual revenue model, with income derived from both brick-and-mortar retail locations and its e-commerce platform. Key revenue streams include direct product sales, seasonal promotions, and loyalty programs that encourage repeat business. Additionally, TheWorks often partners with suppliers and publishers for exclusive product offerings, enhancing its product range and driving foot traffic to its stores and online platform. Factors contributing to its earnings include effective inventory management, strategic marketing campaigns, and a growing online presence that taps into the increasing trend of online shopping.

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: Negative
• Last Price: 48.70
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Negative. The current price of 48.7 is below the 20-day moving average (MA) of 49.38, below the 50-day MA of 54.04, and above the 200-day MA of 33.67, indicating a neutral trend. The MACD of -0.78 indicates Negative momentum. The RSI at 45.07 is Neutral, neither overbought nor oversold. The STOCH value of 37.31 is Neutral, 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
ANG	66 Neutral	£38.70M	28.80	3.66%	―	11.86%	16.46%
G4M	63 Neutral	£62.72M	75.31	2.14%	―	1.62%	28.06%
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
MRK	58 Neutral	£63.49M	―	-11.56%	1.59%	2.55%	-445.00%
WRKS	57 Neutral	£30.44M	3.54	63.08%	―	-1.96%	28.69%
PROC	56 Neutral	£38.13M	38.04	11.06%	―	11.04%	64.29%
SOS	42 Neutral	£13.65M	72.73	-3.01%	―	-19.76%	4.35%

TheWorks.co.uk plc Corporate Events

TheWorks.co.uk plc Reports Strong FY26 Trading Performance

TheWorks.co.uk plc has reported positive trading results for FY26, outperforming the wider market despite challenging consumer conditions. The company has made significant strategic progress, including expanding its retail Distribution Centre and transitioning to a new online fulfillment provider, positioning it well to meet market expectations for profit and offset cost headwinds.

The most recent analyst rating on (GB:WRKS) stock is a Hold with a £52.00 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 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.