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

• Market Cap: £23.00M
• Dividend Yield: N/A
• Average Volume (3M): 151.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• 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): 0.06
• Revenue Forecast (FY): £287.43M

• Rating: 61 Neutral
• Price Target: 39.00 p ▲(14.04% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

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.

Positive Factors

Cash generation

Strong free cash flow growth and healthy operating cash relative to earnings provide ongoing liquidity to fund inventory purchases, capex for e-commerce, and working capital. Durable cash generation helps service debt and smooth seasonal cycles, reducing refinancing pressure over the next several quarters.

Value retail omnichannel model

TheWorks operates a diversified value-retail model (national store estate plus e-commerce) across books, stationery, arts & crafts, toys and seasonal lines. That broad, low-price assortment and omnichannel reach supports resilient demand in softer consumer environments and steady basket add-ons over months.

Improving gross margin

A modest improvement in gross profit margin suggests better procurement, pricing or markdown management. Sustained gross margin gains would strengthen long-term operating leverage, improve free cash conversion, and create more scope to invest in stores and digital capabilities despite lumpy top-line trends.

Negative Factors

High leverage

Significant leverage and a low equity ratio constrain financial flexibility and increase exposure to interest and refinancing risks. Elevated debt burdens limit the company's ability to invest in growth, absorb seasonal or demand shocks, and may force prioritisation of servicing liabilities over strategic initiatives in the medium term.

Weak top-line and profitability

Negative revenue growth and persistently low net margins indicate weak sales momentum and poor profit conversion. Structural top-line volatility and low margins reduce retained earnings, impair the firm's ability to deleverage organically, and limit investment room for improving omnichannel capabilities over the coming quarters.

Thin equity base

Reported ROE gains driven largely by a reduced equity base rather than operational strength signal thin capital buffers. This accounting-driven improvement masks underlying performance issues and leaves the company more vulnerable to shocks, constraining strategic optionality and raising long-term solvency concerns.

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

The company makes money primarily by retailing branded and own-label/value products to consumers via (1) its physical store estate and (2) its online store. Revenue is generated from product sales across core categories such as books, stationery, arts & crafts, toys and games, with earnings driven by sales volumes and the gross margin achieved on merchandise sourced from publishers, brand suppliers, and other wholesalers/manufacturers. Profitability depends on buying inventory at attractive costs (often enabled by scale purchasing, promotions, clearance/close-out buying, and seasonal ranging), then selling at value price points while managing markdowns and inventory turns. Additional contributors to earnings include delivery charges and/or order-related fees for e-commerce where applicable, and ancillary in-store add-on purchases (e.g., impulse and seasonal lines) that increase basket size. Specific details on material partnerships or other non-retail revenue streams are null.

TheWorks.co.uk plc Financial Statement Overview

Summary

Mixed fundamentals: cash flow is relatively strong (free cash flow growth and healthy operating cash generation), but profitability is weak (low net margins, inconsistent revenue) and the balance sheet is pressured by high leverage and a low equity ratio.

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	Apr 2025	Apr 2024	Apr 2023	Apr 2022	Apr 2021
Income Statement
Total Revenue	276.68M	277.04M	282.58M	280.10M	264.63M	180.68M
Gross Profit	51.00M	53.75M	51.82M	43.90M	55.03M	19.95M
EBITDA	39.41M	36.59M	33.96M	38.21M	39.13M	32.13M
Net Income	8.97M	8.18M	6.38M	5.27M	13.96M	-2.30M
Balance Sheet
Total Assets	149.51M	126.95M	118.81M	137.26M	149.33M	180.44M
Cash, Cash Equivalents and Short-Term Investments	3.71M	4.12M	1.62M	10.20M	16.28M	8.31M
Total Debt	146.49M	74.93M	77.76M	98.22M	111.14M	143.01M
Total Liabilities	136.99M	111.11M	108.73M	135.60M	148.95M	171.62M
Stockholders Equity	12.52M	15.84M	10.09M	1.65M	378.00K	8.83M
Cash Flow
Free Cash Flow	28.64M	27.60M	17.87M	20.61M	45.33M	27.73M
Operating Cash Flow	34.70M	33.48M	25.16M	29.22M	49.16M	30.13M
Investing Cash Flow	-6.43M	-5.00M	-5.83M	-6.45M	-2.94M	-2.38M
Financing Cash Flow	-24.43M	-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: Positive
• 100DMA: Positive
• 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 below the 20-day moving average (MA) of 39.17, below the 50-day MA of 35.64, and below the 200-day MA of 44.18, indicating a neutral trend. The MACD of 0.47 indicates Positive momentum. The RSI at 45.55 is Neutral, neither overbought nor oversold. The STOCH value of 13.42 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
CARD	67 Neutral	£228.24M	16.03	12.51%	7.08%	6.18%	4.22%
PROC	66 Neutral	£31.71M	-3.95	15.03%	―	16.66%	147.92%
DNLM	65 Neutral	£1.73B	6.72	121.78%	3.99%	3.78%	3.29%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WRKS	61 Neutral	£23.00M	-1.20	63.25%	―	-1.96%	28.69%
MOON	56 Neutral	£694.14M	8.84	-113.93%	1.40%	3.94%	―
SMWH	46 Neutral	£703.76M	-6.05	-11.61%	4.48%	-19.03%	-318.35%

TheWorks.co.uk plc Corporate Events

TheWorks.co.uk strengthens board with appointment of Angela Rushforth as independent non-executive director

TheWorks.co.uk plc has appointed Angela Rushforth as an Independent Non-Executive Director, effective 25 February 2026, strengthening its board with extensive retail and building materials sector experience. Rushforth, who has held senior roles at Travis Perkins, including as Managing Director of BSS Group and Toolstation, and currently serves as a Non-Executive Director at Eurocell, is expected to bring significant expertise in brand-building, multi-channel retail and business transformation.

Alongside joining the board, Rushforth will chair the Remuneration Committee and sit on the Audit and Nomination Committees, reinforcing The Works’ governance and oversight as it pursues its ‘Elevating the Works’ growth strategy. The company’s chair highlighted her commercial and strategic background as vital to advancing the group’s ambition to be a leading destination for affordable, screen-free family activities in an increasingly digital market environment.

The most recent analyst rating on (GB:WRKS) stock is a Hold with a £42.00 price target. To see the full list of analyst forecasts on TheWorks.co.uk plc stock, see the GB:WRKS Stock Forecast page.

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.