The Works Shares Jump as Retailer Upgrades Profit Guidance on Screen-Free Sales Surge

TheWorks.co.uk plc (LON: WRKS) shares have surged 8.8% on Monday morning after the discount retailer used its Annual General Meeting to unveil a second upgrade to full-year profit expectations, underpinned by accelerating like-for-like sales growth.

The Birmingham-based specialist in affordable, screen-free family activities said like-for-like sales rose 10.4% in the first 18 weeks of its 2027 financial year to 6 September, comfortably outpacing the 5.9% growth recorded in the same period last year.

Management said the gains were broad-based, with all four of its key product categories — including books, arts & crafts, toys and stationery — contributing to the momentum, and singled out the Back-to-School trading period as a particular highlight.

On the back of that performance, the Board now expects pre-IFRS 16 Adjusted EBITDA for FY27 to come in at “at least” £16.0 million, ahead of both its previous guidance and current market expectations of £15.0 million — an upgrade of roughly 7%.

Chief Executive Gavin Peck said the company was “delighted” with the trading momentum, crediting the results to the successful execution of its “Elevating The Works” growth strategy and a differentiated, screen-free customer proposition that continues to resonate with families amid a still-uncertain macroeconomic backdrop.

The stock, which has climbed from around 75p in early August to the high-80s in recent weeks, extended those gains on the news. The Board struck a note of caution, however, flagging that the crucial Christmas trading period still lies ahead.