Half-year trading update

​​​​​13 November 2025

TheWorks.co.uk plc

("The Works", the "Company" or the "Group")

Half-year trading update for the 26 weeks ended 2 November 2025

On track to meet full year profit guidance

The Works, the UK's leading specialist retailer of affordable, screen-free activities for the whole family, announces an update on trading for the 26 weeks ended 2 November 2025 (the "Period" or "H1 FY26").

Trading update

In H1 FY26 The Works delivered total sales of £123.8m, 0.3% lower year on year (H1 FY25: £124.2m)⁽¹⁾, and a total like for like sales ("LFLs") increase of 0.3%.

Store LFLs increased by 4%, continuing to outperform the wider market⁽²⁾, reflecting the ongoing delivery of our 'Elevating The Works' strategy. Although the consumer environment has remained challenging, more customer-focussed marketing campaigns and new ranges resonated well with our customers. The store performance was also supported by improved operational standards and early successes from our space optimisation initiative. We opened a net two new stores in H1 and are on track for a net five new store openings in FY26.

Online sales, which represent less than 10% of sales, declined by 36% in the Period. This reflects the impact of operational challenges experienced following the transition to a new third-party fulfilment partner. Action has been taken to help mitigate the impact, however reduced outbound capacity and increased costs are expected to continue through the peak trading period while we work with our partner to provide a long-term solution.

Sustained product margin growth (+300bps vs H1 FY25) and ongoing cost savings have helped to more than offset cost headwinds in H1 FY26. Notable progress against our £2m cost reduction programme for FY26 includes savings in central people costs and efficiencies in our store distribution centre (DC), supported by the investment in our new mezzanine level within this DC.

The Company ended the Period with an improved net debt⁽³⁾ position of £5.3m (H1 FY25: £8.5m). The Company's half year coincides with our traditional peak borrowing requirement to support the build of stock prior to peak trading.

Outlook

Mindful of subdued consumer confidence, our focus remains on delivering the factors within our control. We are well positioned to optimise store sales in our peak trading period which, together with sustained product margin growth and ongoing cost saving action, means we are on track to deliver FY26 profit in line with market expectations of pre-IFRS 16 Adjusted EBITDA of £11.0m.

Gavin Peck, Chief Executive Officer of The Works, commented:

"We are pleased with the progress made in the first half of FY26, having delivered a number of important strategic initiatives, a strong performance in-store and ongoing margin growth. Our focus on delivering screen-free activities for the whole family is resonating with customers and, notwithstanding the challenging retail backdrop and ongoing online capacity constraints, we are on track to deliver further strategic and financial progress in the remainder of the financial year and beyond."

Publication of interim results

The results for H1 FY26 and an update on Christmas trading will be announced on 22 January 2026.

Footnotes

(1)  The 0.3% total sales decline was a result of the timing of new store openings and closures in the first half.

(2)  Data from the British Retail Consortium (BRC) showed non-food sales increased by 0.6% year on year during the six months to the end of October 2025.

(3)  Net debt is stated on a pre-IFRS 16 basis.