TheWorks plc (WRKS), the UK's leading specialist retailer of affordable, screen-free activities, has issued a half-year trading update for the 26 weeks ended 1 November 2026, reporting total sales growth of 10.1% to £128.8m and like-for-like sales growth of 9.8%. The board has upgraded its FY27 pre-IFRS 16 Adjusted EBITDA guidance to at least £17.0m, ahead of prior market expectations of £16.0m. The company states this represents a cumulative increase of more than 13.0% in EBITDA expectations since the start of the financial year, following an earlier upgrade announced on 7 September 2026.

Key Points

  • TheWorks plc (WRKS) — UK specialist retailer of arts and crafts, stationery, toys, games and books, operating over 500 stores across the UK and Ireland
  • H1 FY27 like-for-like sales grew 9.8%, with total continuing operations sales rising 10.1% to £128.8m against H1 FY26's £117.0m
  • FY27 pre-IFRS 16 Adjusted EBITDA guidance upgraded to at least £17.0m; the group ended H1 with £3.5m net cash versus net debt of £5.3m in H1 FY26
  • Investors will be watching Christmas trading performance, given the board's comments on positive momentum entering the peak seasonal period

TheWorks Reports 10.1% Total Sales Growth and Significant Outperformance Against UK Non-Food Retail Market

TheWorks delivered total sales from continuing operations of £128.8m in H1 FY27, up 10.1% from £117.0m in the equivalent period last year. Like-for-like sales growth of 9.8% compared favourably to the 4.0% recorded in H1 FY26 and represented a marked outperformance against the broader UK non-food retail market. British Retail Consortium data cited in the announcement showed non-food retail like-for-like store sales declined by 1.0% over the equivalent six-month period. The company attributed its growth to strong customer demand across all core product categories — arts and crafts, stationery, toys and games, and books — reflecting what it describes as the growing year-round appeal of its screen-free proposition.

Product Margin Holds Steady at 62.7% as Net Cash Position Improves to £3.5m

TheWorks maintained a product margin of 62.7% during H1 FY27, broadly in line with the 62.5% delivered in H1 FY26, and consistent with management expectations. The group's balance sheet also strengthened materially, ending the period with £3.5m of net cash, compared to a net debt position of £5.3m at the same point in the prior year. The company states this improvement was driven by increased profit levels and better stock management. The group also highlighted a disciplined approach to cost control as a contributing factor, though specific cost figures were not broken out in the announcement.

Second EBITDA Upgrade of FY27 Brings Cumulative Guidance Increase to More Than 13%

The board has raised its FY27 pre-IFRS 16 Adjusted EBITDA guidance to at least £17.0m, up from prior market guidance of £16.0m. This follows an earlier upgrade announced on 7 September 2026, with the company stating the combined upgrades represent a cumulative increase of more than 13.0% in EBITDA expectations since the financial year began. Investors should note that the guidance figure excludes approximately £1.0m of costs relating to a broader systems transformation programme, expected to cost circa £6.0m over four years, with those costs to be treated as adjusting items as previously disclosed.

Christmas Trading Period Now the Key Watch Point for TheWorks' Simplified Store-Focused Model

Having ceased its online transactional channel following a board decision on 20 March 2026, TheWorks is now operating a fully store-focused model across its network of over 500 UK and Ireland locations. The board stated it is encouraged by trading momentum and that the company is well positioned entering the Christmas period, which represents a critical revenue window for a retailer focused on gifting, family activities, and seasonal products. Strong performances during the Back to School and Halloween trading periods were cited as evidence of continued execution against the group's multi-year "Elevating The Works" growth strategy.