20th Mar 2026 11:25
(Alliance News) - TheWorks.co.uk PLC on Friday saw its shares soar after it maintained this year's guidance despite closing its online shop, and upgraded its medium-term expectations.
TheWorks shares were up 14% to 42.16 pence each on Friday morning in London.
The Birmingham, England-based seller of books, stationery and toys said it is closing its online sales activities with immediate effect, with its website already reflecting its decision to become a digital shop window.
It said it came to that decision as operational challenges with two fulfilment partners impacted performance, outweighing the company's progress.
With over 90% of sales driven by more than 500 stores, the company determined the online shop was no longer sustainable.
TheWorks also believes its store estate offers growth potential and has scope to expand its footprint by a further 100 locations. A net five new stores are set to open during the current financial year ending in May, while 10 are planned for the next.
The screen-free activities retailer noted that like-for-like sales were up 3.3% year-to-date and, as such, maintained its guidance for the current financial year.
It last reported like-for-like sales increasing by 0.3% to GBP123.8 million from GBP124.2 million a year prior in its half-year results released in November
The company said that, despite exceptional closure costs of around GBP2 million, it is on track to deliver an adjusted earnings before interest, tax, depreciation, and amortisation of GBP11.0 million in this financial year, in line with expectations.
The impact of the transition will be broadly neutral by around mid-2027, as costs will be offset by reduced working capital from lower inventories, and then will have a positive cash flow effect.
TheWorks also upgraded its guidance for the next financial year to an Ebitda of GBP15.0 million from an expectation of GBP12.7 million, and added that it is on track to deliver on its medium-term Ebitda goal of at least GBP22.5 million by the end of the 2030 financial year.
Lower sales than the original GBP375 million target will be offset by a higher profit margin, the company believes.
Chief Executive Officer Gavin Peck said: "We have reached this decision after a thorough assessment of the options available and are confident that focusing on our successful bricks-and-mortar business is the right step to reduce risk, improve operational clarity and support long-term profitable growth".
By Martin Miraglia, Alliance News reporter
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