REG - TheWorks.co.uk PLC - Half-year trading update

Works co ukAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251113:nRSM3252Ha&default-theme=true

RNS Number : 3252H  TheWorks.co.uk PLC  13 November 2025

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.

 Enquiries:

 TheWorks.co.uk plc            via Sanctuary Counsel

 Gavin Peck       CEO

 Rosie Fordham CFO

 Singer Capital Markets (Nomad and Broker)             020 7496 3000

 Peter Steel

 Sara Hale

 Oliver Platts

 Sanctuary Counsel                                     0207 340 0395

 Rachel Miller                                         theworks@sanctuarycounsel.com (mailto:theworks@sanctuarycounsel.com)

 Hannah Butler

 Yasmine Fowler

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTPKBBQCBDDODD



            Copyright 2019 Regulatory News Service, all rights reserved