The Works profits jump as cost saving measures kick in

For the 52 weeks to May 4, 2025, the retailer reported a 58% jump in adjusted EBITDA to £9.5m, a 20.3% increase in profit before tax to £8.3m and adjusted profit before tax of £4.6m – all in line with its recently upgraded market expectations.

The retailer said that rising cost headwinds were “offset through ongoing cost-saving action” and sustained product margin growth of 210 basis points versus the previous year.

Total revenues for the period dropped 2% to £277m, while total like-for-like sales were ahead of the wider non-food retail market, inching up 0.8%.

The Works said that store sales, which account for over 90% of the retailer’s total sales, increased 2.3% on a like-for-like basis, while online sales declined 12.1% impacted predominantly by capacity constraints over the peak trading period.

The retailer ended its 2025 financial year with net cash of £4.1m and said that trading in the first 11 weeks of the 2026 financial year “has been strong” with like-for-like sales up 5% alongside continued margin growth.

The Works said it expected further profit growth in the year ahead, and the group is “comfortable” with the recently upgraded market forecasts of £11m adjusted EBITDA for the period.

Chief executive Gavin Peck said: “We are delighted to have ended FY25 in line with recently upgraded market expectations in a year defined by ongoing uncertainty and fragile consumer confidence. This encouraging performance is a huge credit to the early success of our new strategy launched in January 2025, ‘Elevating the Works’, which is already delivering tangible results. It is also thanks to the continued hard work of our dedicated and passionate colleagues, who have worked hard to drive improvements across the business.

“Guided by our new strategy, we are focusing our efforts on becoming the favourite destination for affordable, screen-free activities for the whole family. This has significant relevance, particularly in a digital age when customers are looking for ways to connect and spend their time away from screens. We are pleased that the ongoing evolution of our proposition and newness throughout our ranges, has already resonated so well with customers.

“The strong trading delivered post-Christmas has continued into the start of our new financial year, with customers clearly loving our new Spring and Summer product ranges. This positive momentum, guided by our transformative strategy and energised team, leaves us well placed for further strategic and financial progress in FY26.”