**Summary of TheWorks.co.uk PLC Interim Results and Christmas Trading Update (22 January 2026):**
**Financial Performance (H1 FY26)**
**Total like-for-like (LFL) sales** increased by **0.3%**, driven by a **4% growth in stores** (90% of total sales), outperforming the non-food retail market (0.6% growth). Online sales declined by **36%** due to operational challenges with a new third-party fulfillment partner.
**Total sales** were **£123.8 million**, slightly down from £124.2 million in H1 FY25.
**Pre-IFRS 16 Adjusted EBITDA** loss improved to **£1.0 million** (from £2.8 million in H1 FY25), and **adjusted loss before tax** was **£5.1 million** (from £6.5 million).
**Net debt** improved to **£5.3 million** (from £8.5 million in H1 FY25).
**Current Trading (11 weeks to 18 January 2026):**
**Store LFL sales** grew by **1.2%**, while **online sales** declined by **51.8%** due to ongoing fulfillment issues.
**Total LFL sales** declined by **4.2%**.
**Product margin growth** remained strong, up **200bps year-on-year**, despite challenges.
**Strategic Progress**
**Brand Fame** Strengthened marketing campaigns focusing on family time away from screens, with new products enhancing all-year-round appeal.
**Customer Convenience** Improved store standards and optimization, with a net addition of **2 stores** (7 openings, 5 closures, 1 relocation). On track for **5 net new stores in FY26**.
**Operational Efficiency** Sustained product margin growth and cost savings, including £2 million in FY26.
**Outlook**
On track to meet **FY26 market expectations** with **pre-IFRS 16 Adjusted EBITDA of £11.0 million**.
Expect **sales and profit growth in FY27**, driven by strategic initiatives and improved operational efficiency.
Working to resolve online fulfillment challenges with the third-party provider.
**CEO Commentary (Gavin Peck)**
Emphasized the relevance of the company’s mission to provide affordable, screen-free activities for families in the digital age.
Highlighted strong in-store performance and improved profitability despite a challenging consumer environment.
Confident in delivering growth and shareholder value in the remainder of FY26 and beyond.
**Key Metrics (H1 FY26 vs H1 FY25)**
**Revenue** £123.8 million (vs £124.2 million, -0.3%)
**LFL Sales Growth** 0.3% (vs -0.8%)
**Pre-IFRS 16 Adjusted EBITDA** -£1.0 million (vs -£2.8 million)
**Adjusted Loss Before Tax** -£5.1 million (vs -£6.5 million)
**Net Debt** £5.3 million (vs £8.5 million)
**Conclusion**
TheWorks.co.uk PLC demonstrated resilience in H1 FY26 with improved in-store performance and profitability, despite online challenges. Strategic initiatives are driving growth, and the company remains on track to meet full-year expectations, with a focus on sustainable long-term value creation.