Half Year 2026 Works co uk PLC Earnings Call Transcript
Key Points
- TheWorks.Co.uk PLC (FRA:6EU) reported strong store-like-for-like sales growth of 4%, outperforming the wider non-food market.
- The company achieved significant product margin growth of 330 basis points, driven by better buying and improved stock management.
- TheWorks.Co.uk PLC (FRA:6EU) is on track to meet FY26 market expectations for GBP11 million EBITDA, up from GBP9.5 million last year.
- The company has made progress in its cost reduction program, achieving savings across central and administrative costs.
- TheWorks.Co.uk PLC (FRA:6EU) plans to expand its store estate with a net increase of 10 new stores in FY27, indicating growth potential.
- Online sales declined by 36.1% due to significant fulfillment challenges with the new third-party provider.
- The company expects online operations to be loss-making in FY26, impacting overall profitability.
- Fulfillment issues have led to increased operational costs and customer refunds, affecting financial performance.
- TheWorks.Co.uk PLC (FRA:6EU) faces significant cost headwinds from national living wage rises and increased national insurance contributions.
- Visitor numbers to the website have fallen due to reduced marketing spend, impacting online sales potential.
Good afternoon and welcome to the TheWorks.co.uk PLC investor presentation. (Operator Instructions) The company may not be in a position to answer every question it receives in the meeting itself. However, the company can review the questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you up to CEO, Gavin Peck. Good morning to you, sir.
Good afternoon. Good afternoon, everyone, and thanks for joining us today. Rosie and I look forward to updating you on the significant financial and strategic progress we've made in the first half of FY26 and the robust store performance we've delivered through peak trading. We'll have plenty of time to answer questions at the end. So in summary, we've had a significant strategic progress in the first half with strong store performance and improved profitability.
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