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TheWorks.co.uk PLC shares rose on Tuesday as it reported increased profit despite lower revenue and said it is comfortable with recently upgraded guidance. The Birmingham, England-based arts, crafts and stationery company said pretax profit jumped 20% to £8.3 million in the 12 months to May 4 from £6.9 million a year ago. Basic earnings per share increased 28% to 13.1 pence from 10.2p in the prior year. Shares in TheWorks.co.uk closed up 6.8% at 62.50p in London on Tuesday. Revenue fell 2.0% to £277.0 million from £282.6 million, while total like-for-like sales were ahead of the wider non-food retail market and increased by 0.8%. Administrative expenses were up 4.9% to £29.0 million from £27.7 million. TheWorks.co.uk said store sales ‘continued to be the primary driver of growth’ and contributed 2.3% on a like-for-like basis, driven by customer-focused events, new products across all categories, improved store standards and product availability. It said it is not proposing a final dividend for the year, unchanged from a year ago, with a focus on investing for future growth. ‘Further shareholder distributions will be kept under consideration as profitability improves further and net cash allows,’ the company said. TheWorks.co.uk said its positive trading momentum since Christmas has continued, with total like-for-like sales up 5.0% in the first 11 weeks of financial 2026, with ‘good margin growth’. It said this is in line with its expectations, and ahead of the wider non-food retail market. TheWorks.co.uk said it ‘continues to be mindful of significant cost headwinds’ in the new financial year, particularly related to minimum wage inflation and national insurance increases. ‘However, with a clear strategy in place, the group is well positioned to navigate these challenges and deliver further strategic and financial progress in the year ahead,’ it said. TheWorks.co.uk said it expects to deliver adjusted earnings before interest, tax, depreciation and amortisation in line with recently upgraded external forecasts of £11.0 million for financial 2026. It said it remains on track for sales in excess of £375 million with an Ebitda margin of at least 6% within five years. ‘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,’ said Chief Executive Officer Gavin Peck. ‘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.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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