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TheWorks.co.uk PLC has released a trading update for the 52 weeks ended May 4, 2025, reporting significant financial and strategic progress despite a challenging consumer market. The company, which retails affordable, screen-free activities, has seen a total like-for-like (LFL) sales growth of 0.8%, driven by a 2.3% increase in store sales. Online sales declined by 12.1% due to fulfilment issues and a focus on profitability.
The companys total revenue decreased by 2.0% to £277 million due to an additional trading week in the previous year and store estate optimization. However, this was offset by sustained product margin growth and cost-saving measures, resulting in a pre-IFRS 16 Adjusted EBITDA of approximately £9.5 million, ahead of market expectations.
The Works has appointed a new third-party provider to address the online fulfilment issues and expects to complete the transition by autumn, resulting in cost savings. The companys new strategy, Elevating The Works, has shown initial progress, and the Board expects positive momentum to continue, offsetting cost headwinds and delivering profit growth in the year ahead.
With strong cash generation and an improved financial position, TheWorks.co.uk PLC is well-positioned for future growth and expects to announce its FY25 Preliminary results on July 22, 2025.
This update provides a positive outlook for the companys performance and strategy execution, highlighting its ability to navigate challenging market conditions.