Listed investor Kelso has increased its stake in The Works.

It has increased its stake in the specialist retailer of books and crafting equipment from 6.6% to 7%.

Kelso now holds 4,375,900 shares in The Works purchased at an average price of 33.2p. As at 20 February 2026, The Works had a market capitalisation of c.£22.6m.

Kelso believes that The Works is one of the most undervalued companies on the UK stock market. Through its portfolio of 500 stores, the company generated revenue of £277m in the year to April 2025, with EBITDA pre-IFRS 16 of £9.5m, a 58% year-on-year increase.

For the year to April 2026, EBITDA is expected to grow by a further 15% to £11.0m, in line with company guidance. At the April 2025 year end, The Works reported net cash of £4.1m, and market expectations are that it will increase to at least £5.0m by the end of the current financial year, following significant investment in its store roll-out programme.

Despite this continued improvement in performance, driven by strong operational management, The Works is currently trading on an EV/EBITDA multiple of just 1.65x and a revenue multiple of 0.05x, based on the April 2026 forecast net cash position and current-year EBITDA guidance.

Kelso has written to the Board of The Works this morning outlining several constructive proposals aimed at closing this clear valuation gap.