Theworks.co.uk Plc · LSE:WRKS
Theworks.co.uk — FY2026 Earnings Presentation
29 slides from Theworks.co.uk's earnings presentation, Jul 23, 2026
Slide 1: FY26 Results Presentation
FY26 Results Presentation 52 weeks ended 3rd May 2026
Slide 2: Agenda
Agenda Overview Gavin Peck, CEO Financial Review Rosie Fordham, CFO Strategic Review Gavin Peck, CEO Summary & Outlook Gavin Peck, CEO Q&A 2
Slide 3: UK's leading specialist retailer of affordable, screen-free activities for the whole family
We are the UK’s leading specialist retailer of affordable, screen-free activities for the whole family Value retailer - we sell across Established high street Connecting people with four core product categories presence in 1981, initially as a feel-good ways to spend their Books, Arts & Crafts, disc
Slide 4: Profitable and Growing Store Portfolio
Profitable and Growing Store Portfolio • High quality portfolio of 508 stores – >98% profitable – LFL growth outperforming wider market – Short average lease length (c1.5 years) gives flexibility • Trade well in multiple location types and demographics • Opportunity for a further 100 new stores over
Slide 5: Supported by our Non-Transactional Website
Supported by our Non-Transactional Website • Online transactional business discontinued March 2026 – <10% of sales and unprofitable – Fulfilment challenges with two third-party providers • Has simplified the business and enables focus on high quality, profitable and growing store estate • Website wi
Slide 6: FY26: A Pivotal Year
FY26: A Pivotal Year • Strong progress in first full year delivering on transformational, Elevating The Works, strategy: – Sharpened proposition around affordable, screen-free activities for the whole family – Grew store estate, adding a net 5 new stores – Improved operational execution and efficien
Slide 7: Financial Review
Financial Review Time weu see™
Slide 8: FY26 Financial highlights
FY26 Financial highlights All financial figures are based on continuing operations Stores Pre- IFRS 16 Revenue £260.0m LFL sales +3.3% Adjusted EBITDA £14.0m (FY25: £252.2m) (FY25: +2.3%) (FY25: £9.5m) Adjusted PBT £7.2m PBT £6.8m Net Cash £3.6m (FY25: £9.5m) (FY25: £4.1m (FY25: £5m) net cash) Deliv
Slide 9: Strategic decision to focus on our profitable store-led model
Strategic decision to focus on our profitable store-led model Continued Discontinued Total FY26 Operations Operations Company Revenue 260.0 13.9 274.0 Product Margin 161.3 8.8 170.1 Pre IFRS16 Adjusted EBITDA 14.0 (2.5) 11.5 • Discontinued operations Adjusted EBITDA loss of Adjusted PBT 7.2 (2.5) 4.
Slide 10: FY26 performance consistently ahead of the wider market
FY26 performance consistently The Works LFL sales (stores) ahead of the wider market +3.3% 52 weeks to 03/05/2026 FY26 LFL sales – The Works v. BRC (non food instore) Q1 Q2 Q3 Q4 8.3% 5.3% 0.7% 1.0% (0.1%) (1.1%) 0.3% 0.5% The Works - Store LfL BRC Non Food - In Store LfL (3mth Averages) 10
Slide 11: Step change in product margin
Step change in product margin Product margin expanded 240bps year-on-year to 62.0%, two-year growth of 460bps (FY24: 57.4%) FY25 Margin rate 59.6% Price & Promotion Refinement 0.7% COGs & Product mix 0.4% FX 0.4% Freight 0.9% FY26 Margin rate 62.0% +240bps All financial figures are based on continui
Slide 12: Stronger product margins and cost savings drove improvement in profitability
Stronger product margins and cost savings drove improvement in profitability £m FY25 EBITDA 9.5 Increase in Margin - YoY sales growth 4.7 Increase in Margin - YoY margin % increase 6.3 NMLW and NI headwind (6.0) Cost saving programme 2.0 Strategic investments (1.5) Other cost headwinds (1.0) FY26 EB
Slide 13: Strong balance sheet and cash supports execution of our strategy
Strong balance sheet and cash supports execution of our strategy and future shareholder returns Financially strong with £3.6m net cash (FY25: £4.1m) and a newly refinanced £20m Revolving credit facility – matures November 2029 Cash Investing Generative for Growth +£4.3m continuing £5.9m capital ops
Slide 14: Transformational profit growth
Transformational profit growth Step change in Pre-IFRS16 Adjusted EBITDA FY30 £22.5m +137% growth FY27 £15m EBITDA over FY26 £14m 5YP FY25 £9.5m FY24 £6m 0 5 10 15 20 25 £m • +47% growth in pre-IFRS16 Adjusted EBITDA YoY • Significant profit growth to date +133% since FY24 • FY27 - the next phase of
Slide 15: Strategic Review
Strategic Review >, Time weu see™
Slide 16: Our Unique Brand Positioning
Our Unique Brand Positioning PURPOSE Our purpose is to inspire reading, learning, creativity and play MISSION To be the favourite destination for affordable, screen-free activities for the whole family POSITIONING Connecting people with feel good ways to spend their time FAMOUS FOR Great Value Fanta
Slide 17: Why Screen-Free?
Why Screen-Free? Government Policy/Agenda Growing Concern in Parents Our Campaigns Just under half of parents (40%) reveal they want to limit screen time but need practical alternatives 71% of parents admit they feel under pressure to keep their children entertained throughout the long summer holida
Slide 18: Our Five Year Transformational Growth Strategy
Our Five Year Transformational Growth Strategy Our Strategic Drivers Grow Our Brand Fame Improve Customer Convenience Be a Lean & Efficient Operator • Market our Brand, establishing • Tailor store space to better meet • Improve our product margins screen-free positioning and Time the needs of local
Slide 19: Grow our Brand Fame
Grow our Brand Fame FY26 Highlights FY27 Focuses • Sharper brand campaigns • Increase investment in Brand to grow brand awareness Marketing and Time Well Spent • Continue to drive product message newness and increased • Increased product newness relevance outside of and focus on calendar of Christma
Slide 20: Strategy in Action: Find Your Story Campaign
Strategy in Action Find Your Story Campaign Launched Spring 2026 Brought to life through: • In support of National Year of Reading • Partnership with National Literacy Trust • National Bus Tour • PR and social campaign Encourages children to follow their interests and discover books that excite and
Slide 21: Improve Customer Convenience
Improve Customer Convenience FY26 Highlights FY27 Focuses • Opened a net 5 new stores • Open a net 10 new stores • Improved stock distribution • Further store space trials, and product availability, alongside development of particularly in our “Platinum” systematic solution stores • Improve store op
Slide 22: Continued optimisation of our store estate
Strategy in Action Continued optimisation of our store estate FY26 FY25 • Opportunity for a further 100+ stores - target of 60 net new Stores at beginning of stores by 2030 as part of “Elevating The Works” strategy 503 511 period Opened 14 7 • Net 5 new stores opened in FY26, as planned Closed (9) (
Slide 23: Be a Lean & Efficient Operator
Be a Lean & Efficient Operator FY26 Highlights FY27 Focuses • Strategic decision to close • Continued execution against our transactional website and Systems Transformation roadmap focus on successful store estate • Further underlying product margin • Enhanced product margin by improvements to offse
Slide 24: System Transformation
Strategy in Action System Transformation Systems Investment Capability Shift Business Outcomes 1. Faster, more accurate Financial Planning planning & analysis Systemic, integrated ways 2. Stronger controls, of working governance & visibility Operations Data quality & 3. Right stock, right store vali
Slide 25: Summary & Outlook
Summary & Outlook >, Time weu see™
Slide 26: Summary & Outlook
Summary & Outlook FY26 a pivotal year • Strong progress in first full year delivering on transformational, Elevating The Works, strategy • Building a brand with a unique positioning around screen-free activities for the whole family • Refocussed store trading model Confident of achieving EBITDA • Si
Slide 27: Questions
Questions Time weu see™
Slide 28: This presentation is being made only to and directed at relevant persons
This presentation is being made only to and directed at: (a) persons who have professional experience in matters relating to investments falling within Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “FPO”); or (b) high net worth entities, and other pe
Slide 29: 29
29