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Kelso Group Holdings PLC on Monday said it has increased its stake in TheWorks.co.uk PLC to 7.0% from 6.6% and believes it is one of the most undervalued firms in the UK. The investor in London-listed companies said it believes the Birmingham, England-based seller of arts and crafts, stationery, toys, and books is ‘one of the most undervalued companies on the UK stock market’. Kelso noted that The Works’ earnings before interest, tax, depreciation and amortisation is expected to grow by 15% to £11.0 million in the year to April 2026. Despite a ‘continued improvement in performance, driven by strong operational management’ Kelso noted that The Works is currently trading on an enterprise value to Ebitda multiple of 1.65 times and a revenue multiple of 0.05 times. ‘Kelso has written to the board of The Works this morning outlining several constructive proposals aimed at closing this clear valuation gap,’ it said. Shares in Kelso were down 2.0% at 2.89 pence on Monday morning in London, while TheWorks.co.uk shares jumped 9.6% to 39.58p. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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