Why The Works Shares Surged to Their Highest Level Since 2019

Shares in The Works.co.uk plc (LON: WRKS) surged on Wednesday, hitting their highest level since 2019 after activist investor Kelso Group Holdings disclosed it had increased its stake in the discount retailer to 10% of voting rights.

The stock jumped as much as 19% intraday, rising from an opening price of 84.4p to a high of 92.8p — a fresh 52-week high — before closing up 8.4% on the day at 92.8p. Trading volumes were elevated at nearly 355,000 shares.

The move was triggered by a TR-1 regulatory filing published on the London Stock Exchange at 13:06 BST, confirming that Kelso had lifted its holding from 8% to 10%, a threshold crossing that requires formal disclosure under UK takeover and transparency rules.

Kelso has been a vocal presence on The Works’ shareholder register since 2023, repeatedly arguing that the company is “one of the most undervalued” names on the UK stock market. The activist secured board representation in February 2024 and has topped up its position on several occasions since, including earlier this year, each time coinciding with share price gains.

Wednesday’s rally extended a rise already under way over the preceding sessions, with the stock climbing from around 80p at the start of the week to 85.6p on Tuesday, suggesting some investors had anticipated the announcement.

The Works has not issued any separate trading update or financial guidance alongside the filing. Analysts said the latest stake build reinforces expectations that Kelso will continue pushing for measures to unlock shareholder value at the high street retailer.