Theworks.co.uk. Share Price (WRKS)

Pleased to see kelso has increased its holding on the back of the very positive trading update.

.wealthoracle.co.uk/company-results

The Works closed FY26 with a confirmation of in-line full-year delivery and the strategic pivot announced in March now bedded in, with the loss-making online channel exited and the business reset around a pure-play store estate. FY26 pre-IFRS 16 adjusted EBITDA is on track for c.£11m (FY25: £9.5m), supported by store LFL outperformance against a non-food retail market down c.0.4%, product margin gains of c.330bps to over 62% from buying improvements, reduced markdowns and selective price increases, and ongoing cost discipline. Net cash is expected to end broadly in line with the prior year £4.1m position despite c.£2m of one-off online closure costs, helped by the working capital release from running down online inventory. Critically, FY27 EBITDA guidance was upgraded in March to £15m from £12.7m on the back of removing online losses plus core business improvements. The strategic five-year framework targeting >£375m revenue and >6% EBITDA margin remains the medium-term anchor. FY26 EBITDA c.£11m in line with prior market expectations (in-line); FY27 already upgraded materially. BEAT.

.wealthoracle.co.uk/company-results

Https://www.proactiveinvestors.co.uk/companies/news/1089223/the-works-shares-jump-17-as-online-closure-boosts-profit-outlook-1089223.html

Well this is an interesting development.

A company which seemed more focussed on pursuing a greater online presence (Look at the name!) will now remove the ability for its customers to order goods there.

Personally, I think it is a step in the wrong direction and a rather 'short-termistic' way of looking at things. Just becsuse fulfilment hasn't been where it needs to be, should be an excuse to cease altogether.

TheWorks.co.uk had an opportunity here to at least implement a Click and Collect service, combined with continued Digital Marketing in order to drive demonstratable footfall into its highstreet stores!

A website that provides a shop window just seems an unecessary expense to me. But... that could be due to the costs of changing the name and all the costs that would come alongside that particular rebrand!

All sweetened with a more positive outlook on 2027 performance (who cares? That's ages away...)

I'm not so sure. They have a significant upswing for exchange rate in the comparatives and the container costs won't impact the results update due in a few weeks. Forward guidance will be challenging but if they can deliver what they said they would even for one year it makes their current £21m valuation interesting.