Theworks.co.uk Plc · LSE:WRKS
Theworks.co.uk — H1 FY26 Earnings Presentation
35 slides from Theworks.co.uk's earnings presentation, Jan 22, 2026
Slide 1: FY26 Interim Results & Christmas Trading Update
FY26 Interim Results & Christmas Trading Update The Works Stores - Contents intended for Internal use.
Slide 2: Agenda
Agenda Overview Gavin Peck, CEO Financial Review & Outlook Rosie Fordham, CFO Strategy Update Gavin Peck, CEO Summary Gavin Peck, CEO Q&A 2
Slide 3: Overview
Overview Gavin Peck, CEO >, Time weu see™
Slide 4: Significant strategic progress, strong store performance and improved profitability
Significant strategic progress, strong store performance and improved profitability • Fulfilling our mission to become the favourite destination for affordable, screen-free activities for the whole family Continued execution of our ‘Elevating The Works’ strategy • Significant improvement in H1 profi
Slide 5: Financial Review
Financial Review Rosie Fordham, CFO The Works Stores - Contents intended for Internal use.
Slide 6: HY26 Financial highlights
HY26 Financial highlights Stores Total Revenue £123.8m LFL sales +4.0% LFL Sales +0.3% (HY25: £124.2m) (HY25: +0.9%) (HY25: -0.8%) Pre-IFRS 16 Adjusted EBITDA -£1.0m Loss before tax -£5.6m Net Debt -£5.3m (HY25: -£6.9m) (HY25: -£8.5m) (HY25: -£2.8m) Delivering against our Strong product margin FY26
Slide 7: Strong store LFL sales in a tough environment
Strong store LFL sales in a tough environment Weak consumer Store LFL growth Non-food retail confidence & well ahead of sector LFL spend non-food retail growth (1) sector +4.0% +0.6% H1 Stores Online(2) Total LFL Sales 4.0% (36.1%) 0.3% Stores represent over 90% of total sales (1) Data from the Brit
Slide 8: Continued strong product margin growth
Continued strong product margin growth HY26 Product gross margin rate growth of 330bps to 62.6% (HY25 : 59.3%) £80.0 Product Margin - £m and rate £77.5 £73.7 HY25 Margin rate 59.3% 62.6% Price & Promotion Refinement 1.4% £70.1 59.3% COGs & Product mix 1.3% £66.9 56.3% 57.2% FX 0.4% Freight 0.2% HY26
Slide 9: Stronger product margins and cost savings drove improvement in profitability
Stronger product margins and cost savings drove improvement in profitability £m HY25 EBITDA (2.8) Year-on-year sales decline impact (0.2) Higher product gross margin percentage 4.0 Variable web running costs 1.2 Store Payroll (2.4) Distribution costs 0.4 Increased property costs (0.4) Brand marketin
Slide 10: Continued optimisation of our store estate
Continued optimisation of our store estate HY26 FY25 Stores at beginning of period 503 511 Opened 7 7 Closed (5) (15) Relocated* 1 4 Stores at period end 505 503 • Growth of the store estate • Higher quality more profitable portfolio • More than 98% of the estate is profitable • Average payback for
Slide 11: Increased capital investment and improved net debt position
Increased capital investment and improved net debt position Summary Cashflow HY26 HY25 Variance £m £m £m Operating profit (2.8) (4.4) 1.7 Other operating cashflows(1) 1.3 (0.2) 1.5 • HY26 stock £52.1m Net movement in working (3.1) (2.3) (0.8) (HY25: £51.7m) capital Investing Activities (3.5) (2.2) (
Slide 12: Online fulfilment challenges being addressed
Online fulfilment challenges being addressed • Online fulfilment issues in Christmas 2024 – decision to move to a new fulfilment provider • New fulfilment provider selected in Q1 2025 after comprehensive RFP process • Transition to new provider (Sep-25), met with issues from day one • New provider r
Slide 13: Current Trading and Outlook
Current Trading and Outlook 13
Slide 14: Strong store performance and product margin growth driving profitability during peak
Strong store performance and product margin growth driving profitability during peak (11 weeks ended 18 January 2026) Store LFL sales +1.2% Online sales ahead of non-food -51.8% retail sector(1) Product margin Total LFL sales growth -4.2% +200bps YOY (1) Data from the British Retail Consortium (BRC)
Slide 15: On track to meet expectations of EBITDA growth in FY26
On track to meet expectations of EBITDA growth in FY26 £11m EBITDA c.£4m cash FY25 £9.5m FY25 £4.1m c.£7m capex FY25 £5m 15 The Works Stores - Contents intended for Internal use.
Slide 16: Well positioned to deliver further operational progress and profit growth in FY27
Well positioned to deliver further operational progress and profit growth in FY27 Actions being taken Headwinds/tailwinds Expect to deliver • Initiatives to drive sales growth • £2.9m NLMW • Significant EBITDA increases growth • Resolution of online • Net c.£1.0m business challenges rates reduction
Slide 17: Strategy Update
Strategy Update Gavin Peck, CEO 17
Slide 18: Continuing to develop our clear brand positioning
Continuing to develop … supporting growing our clear brand movement to reduce positioning … screen-time 18
Slide 19: Our mission and strategy
Our mission and strategy “The favourite destination for affordable, Our Mission screen-free activities for the whole family” • Sales in excess of £375m Our 5 Year Financial Goals • EBITDA margins of at least 6% Our Strategic Drivers 19
Slide 20: Significant strategic progress delivered YTD
Significant strategic progress delivered YTD Improve Customer Be a Lean & Efficient Grow Our Brand Fame Operator Convenience • Embedded Time Well • Improved product • Significant improvement in Spent and “screen-free” availability and stock product margin rate brand positioning through allocations t
Slide 21: Strategy in Action: Boredom Board Campaign
Strategy in Action: Boredom Board Campaign Campaign Overview Campaign Highlights • Summer campaign • Two press releases: supporting a Summer Well • First focussed on survey Spent results & quotes from Dr Amanda • Highlighted screen-free • Second focussed on ‘Fed up activities for parents and Friday’
Slide 22: Strategy in Action: Big Little Christmas Campaign
Strategy in Action: Big Little Christmas Campaign Campaign Overview Campaign Highlights • Christmas campaign • Two press releases, supporting a Christmas Well supported by our research Spent • Key research stats included: • Tackled unrealistic • 60% of parents say festive perfectionism with a family
Slide 23: Strategy in Action: New Store Openings
Strategy in Action: New Store Openings • Opened 7 new stores in H1; expect 14 in full-year (plus 5 relocations) • Overall performance in line with expectations • Good engagement with landlords on evolved brand and proposition • Up to 60 net new stores in next 5 years, with payback of <2 years • Stro
Slide 24: Key Strategic Plans Underway
Key Strategic Plans Underway Improve Customer Be a Lean & Efficient Grow Our Brand Fame Operator Convenience • Continuing to promote • Further stock • Further product margin Time Well Spent and improvement plan growth screen-free messaging initiatives • Additional cost savings • Customer insight to
Slide 25: Summary
Summary • Fulfilling our ambition to become the favourite destination for affordable, screen-free activities for the whole family • Continued execution of our ‘Elevating The Works’ strategy • Significant improvement in H1 profitability • H2 trading in line with expectations – robust store LFLs and c
Slide 26: Questions
Questions >, Time weu see™
Slide 27: Appendix
Appendix 27
Slide 28: Basis of Financial Information
The prior period comparatives have been restated to reflect adjustments wholly Basis of Financial related to IFRS 16 Lease accounting. Information Adjusted profit figures exclude adjusting items which comprise non-underlying costs and adjustments with respect to the IFRS 16 accounting standard. 28
Slide 29: Statutory Income Statement
Statutory Income Statement 26 Weeks to 02 November 2025 26 Weeks to 03 November 2024 Result before Adjusting Result before Adjusting adjusting items Items Total adjusting items Items Total £000 £000 £000 £000 £000 £000 Revenue 123,843 - 123,843 124,200 - 124,200 Cost of sales (106,348) (488) (106,83
Slide 30: Rec to pre-IFRS16 EBITDA
Rec to pre-IFRS16 EBITDA HY26 HY25 Variance Variance £m % of revenue £m % of revenue £m % Revenue 123.8 124.2 (0.4) (0.3) Less: Cost of goods sold (46.3) (50.5) 4.2 8.3 Product gross margin 77.5 62.6 73.7 59.3 3.8 5.2 Store payroll (27.1) (21.9) (24.7) (19.9) (2.4) (9.7) Store property and establish
Slide 31: Statutory Balance Sheet
Statutory Balance Sheet 02-Nov-25 03-Nov-24 £000 £000 Non-current assets Intangible assets 2,254 2,177 Property, plant and equipment 13,550 11,936 Right of use assets 64,139 60,106 Deferred tax assets 4,279 4,860 84,222 79,079 Current assets Inventories 52,113 51,721 Trade and other receivables 7,21
Slide 32: Multiple levers in place to drive growth in sales to £375m+
Multiple levers in place to drive growth in sales to £375m+ Existing channel growth: £75m+ £375m+ Online and multi- Store space channel CX optimisation Improved in-store All year- execution round proposition +£25m Increased spend from FY30 New existing Sales customers customers c.60 net new stores F
Slide 33: Action to drive EBITDA margin improvement
Action to drive EBITDA margin improvement c.200bps product margin improvement Ongoing optimisation of store portfolio EBITDA margin of at least 6% supported by… Reduced cost to serve ratio £5m+ reduction through growth in in operating cost Average Selling base Price 33
Slide 34: Our Investment Case
Our Investment Case A clear customer offering, with a refreshed strategy, building momentum and significant untapped growth potential in the value sector 1. Highly relevant purpose 2. Clear position in the value 3. Much loved by customers and meaningful ambition – retail sector, with all year- with
Slide 35: This presentation is being made only to and directed at:
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