The Works profits underpinned by growing demand for screen-free activities

(Sharecast News) - Retailer The Works reported a rise in full-year profit and revenue on Thursday, underpinned by growing demand from families for "affordable screen-free activities".

In the 52 weeks to 3 May, adjusted pre-tax profit increased 44% to �7.2m on revenue of �260m, up 3.1% from a year earlier. Like-for-like sales rose 3.3%, outperforming the British Retail Consortium reported decline of 0.1% for the UK non-food retail market.

The Works - which sells books, arts & crafts, toys and games, and stationery - opened five new stores during the year, taking total stores to 508 at the period end.

The company hailed strong progress across all three pillars of its 'Elevating The Works' growth strategy in the first full year of execution. It pointed to sharper brand campaigns and more targeted customer communications to increase awareness of The Works as "the home of affordable screen-free activities for the whole family".

It also noted the group's strengthened product proposition, an increase in product newness and improved customer service in its stores.

Chief executive Gavin Peck said: "FY26 was a pivotal year for The Works with continued execution against our growth strategy and a step change in underlying profitability supported by increasing demand from families for affordable screen-free activities.

"We have made a strong start to the new financial year, with like-for-like sales up 8.8% in the first 11 weeks underpinning our confidence in delivering further sales and profit growth in the current year. We are excited by the group's long-term potential and remain confident in achieving our target of pre-IFRS 16 adjusted EBITDA of at least �22.5m in FY30."

At 1100 BST, the shares were down 3% at 76.60p.

See latest RNS on Investegate