Profit Declines At Wren's Parent Company

The West Retail Group, the ultimate parent company of Wren Kitchens, has seen a significant drop in profits for the year ended 31 December 2023.

Documents filed at Companies House showed turnover was £991.6m in 2023, compared with £1.25bn in 2022. Pre-tax profits were £35.1m, down from £75.9m. Group headcount was reduced by around 1,300 during the period.

Wren's UK turnover was £697.4m, down from £1.07bn. Pre-tax profits were £74.8, compared with £112.2m.

In the document, Wren attributed the decline to the cost of living crisis and the 'normalisation' of the kitchen market, stating: “As expected, following two years of exceptional growth, as demand surged post the global pandemic, the kitchen market experienced some normalisation in 2023.

“This situation was exacerbated by elevated interest rates and the cost of living pressures faced by all consumers.”

Despite similar economic headwinds, Wren's US business saw turnover increase to £42.9m, up from £28.5m. 

The directors added: “As part of the long-term business plan, the company has over recent years been investing significantly in its manufacturing facilities.

“In 2023 the company’s new state-of-the-art kitchen manufacturing plant in Barton-upon-Humber became fully operational and works have also been completed to the company’s bedroom manufacturing plant in Howden."

“These investments were necessary not only for the continued expansion into the UK retail market but also to give the business the necessary capacity to begin a push into new markets including the contract kitchen market."

During the year the group enacted an internal corporate restructure. The West Retail Group Limited (the previous direct parent of Wren kitchens Limited) has transferred its shareholding in the company to Wren Group Limited. Wren's immediate parent is now Wren Group Limited, with the ultimate parent entity remaining as The West Retail Group Limited.  

Source : Insight DIY

Image : Jason Batterham - shutterstock - 280401929

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.