The Works upgraded its guidance for the year to March 2027 for the second time this year on Thursday, telling investors that pre-IFRS 16 adjusted EBITDA is now expected to be at least £17m, up from the £16m guidance it set in September.
The UK specialist retailer of screen-free family activities, products spanning arts and crafts, stationery, toys and games, and books, said the latest upgrade means FY27 pre-IFRS 16 adjusted EBITDA guidance has risen by more than 13% since the start of the financial year.
The update covers the 26 weeks ended 1 November, the first half of FY27, during which total sales from continuing operations rose 10.1% to £128.8m, up from £117m in the same period last year, with like-for-like sales up 9.8% against 4.0% growth a year earlier.
That outpaced the wider UK non-food retail market, which the British Retail Consortium reported fell 1.0% on a store-only basis over the same six months.
Product margin came in at 62.7%, against 62.5% in the prior-year period, while the group ended the half with net cash of £3.5m, a reversal from net debt of £5.3m a year earlier, which it attributed to higher profit and improved stock management.
"We are delighted to report a strong H1 performance with like-for-like sales growth of 9.8%, driven by strong customer demand across all our key categories," said chief executive Gavin Peck, adding that the group also delivered strong performances during the Back to School and Halloween trading periods.
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The upgrade follows a trading update on 7 September, when the group lifted FY27 guidance to at least £16m from £15m after like-for-like sales rose 10.4% in the 18 weeks to 6 September, and a results announcement on 23 July that reported FY26 continuing-operations revenue of £260m and pre-IFRS16 adjusted EBITDA up 47% to £14m.
The board said the first-half momentum positions the company well for the Christmas trading period, which remains the key test ahead.