TheWorks PLC Shines: EBITDA Soars 47% Amid Store Focus

TheWorks PLC has announced a significant financial uplift, with its pre-IFRS 16 adjusted EBITDA climbing by 47% to £14 million. This improvement was bolstered by a 3.3% like-for-like sales growth, indicating a strong performance against the broader non-food retail market. The company's strategic decision to close its transactional website has enabled a renewed focus on its profitable physical store locations.

Further strengthening its financial outlook, TheWorks PLC has secured a new £20 million revolving credit facility, extending through November 2029. This provides substantial liquidity and operational flexibility. Despite challenges such as increased payroll and potential freight costs, the company is poised for expansion, with plans to open a net of 10 new stores in FY27, each expected to achieve payback within two years.

While the closure of the website resulted in a £4.8 million loss from discontinued operations, the company is implementing strategies to mitigate ongoing costs. The slow pace of store refurbishments and a £6 million systems transformation program present areas for ongoing management attention. In response to shedding the transactional website, products available in at least 100 stores will now be listed online, with in-store stock checker functionality potentially available in 12 months.