TheWorks.co.uk (AIM:WRKS) now expects pre-IFRS 16 adjusted EBITDA for the year to March 2027 to be at least £16 million, up from previous guidance of £15 million.
The UK specialist retailer of affordable, screen-free family activities issued the update ahead of its annual general meeting.
Like-for-like sales rose 10.4% in the 18 weeks to 6 September, accelerating from 5.9% growth in the same period last year.
Growth was spread across all four of the group's key product categories, which the company attributed to its "Elevating The Works" growth strategy.
The new guidance also sits ahead of current market expectations, which had been aligned with the previous £15 million target.
"This performance has supported a further upgrade to the Board's FY27 pre-IFRS 16 Adjusted EBITDA expectations and reflects the successful execution of our long-term growth strategy", said chief executive Gavin Peck.
The board flagged continuing macroeconomic uncertainty and noted the key Christmas trading period is still to come.
News Intelligence what this means for the company
The Works raised FY27 EBITDA guidance to at least £16m from £15m after like-for-like sales accelerated to 10.4% in the first 18 weeks, nearly doubling the prior-year 5.9% rate and beating market expectations. The upgrade signals momentum in its store-focused turnaround strategy, though management flagged ongoing macro uncertainty and the critical Christmas period ahead.
The acceleration in like-for-like sales growth and upward guidance revision suggest the retailer's strategic shift is gaining traction. However, the £1m guidance lift (6.7% above prior guidance) is modest against FY26's £14.0m adjusted EBITDA base, and the board's caution on macro headwinds and Christmas performance leaves execution risk unresolved.
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