The Works goes into bricks-and-mortar mode with profits up

Like-for-like sales were up by 3.3%, with revenue landing at £260m. The company, which operates 508 stores, also saw a 44% jump in adjusted profits before tax from continuing operations, which hit £7.2m. 

The Works’ decision to close its website in March came after operational challenges faced by two fulfilment providers as well as reflecting the fact that 90% of its sales till then came through its store estate. 

This contributed to a £500,000 decrease in its net cash position this year, with a small amount of costs falling into the early part of its next trading year. The Works net cash at bank at the end of the trading year was £3.6m. 

The company made £13.9m from its online channel during the financial year, a decrease from the £24.9m it received during the 2025 financial year. 

Trading has been strong since the start of May, The Works said, with 8.8% growth in like-for-like store sales during the first 11 weeks of its new financial year. This is not included in the £260m total revenue figure published above.

“FY26 was a pivotal year for The Works with continued execution against our growth strategy and a step change in underlying profitability supported by increasing demand from families for affordable screen-free activities,” said chief executive Gavin Peck.

With its focus on bricks-and-mortar trading, the company added five new stores to its total during the year and reported better use of its space-in-store by drawing on demographic data. 

Its underlying profitability was improved through a £2m per year cost reduction programme, the company said, which includes benefits from a new mezzanine floor at its distribution centre. 

The Works said it was maintaining its guidance for the 2027 financial year of pre-IFRS 16 adjusted EBITDA of £15m.