Wickes: Profit At Upper End Of Expectations; D&I Sales Decline

• Strong market outperformance in FY24 with Adjusted PBT at upper end of market expectations
• Good start to 2025 and £20m share buyback announced

Wickes Group plc has published full year results for its 2024 financial year, covering the 52 weeks ended 28 December 2024.

Financial Summary

• Continued growth in Retail1 with revenue +1.9%; Challenging market conditions led to 10.5% decline in Design & Installation2 revenue; Total revenue of £1,538.8m (2023: £1,553.8m) down 1.0% year-on-year
  
  
• Productivity initiatives largely mitigated impact of operating cost headwinds
  
  
• Adjusted profit before tax of £43.6m (2023: £52.0m), due to weaker consumer demand for larger ticket items and operating cost inflation
  
  
• Statutory profit before tax of £23.2m (2023: £41.1m), reflecting a non-cash impairment charge booked against IFRS 16 lease assets and property, plant and equipment
  
  
• Net cash position of £86.3m (2023 £97.5m) and average cash across the year of £144.3m
  
  
• Final dividend declared of 7.3p, giving a total of 10.9p for the full year. Total returns to shareholders of £41.1m in the year from dividends and completion of £25m share buyback
  
  
• New £20m share buyback announced today

Strategic Highlights

• Sustained growth in volumes and LFL3 sales in Retail driven by strong TradePro sales growth of +14%, with growth in active members4 to 581,000 (2023: 478,000)

• Accelerated increase in Retail market share5 with particular gains in decorative and garden
  
  
• Actions taken in Design & Installation led to Q4 growth in ordered sales6 for the first time since Q2 2023 and improvement in LFL delivered sales7 from -18.3% in H1 to -8.4% in H2
  
  
• Digital investments driving improved customer journey, higher customer satisfaction ratings and productivity
  
  
• 7 refits completed and 4 new stores opened, creating c. 120 new jobs. Store opening programme for 2025 includes four former Homebase stores
  
  
• Recognition of our Responsible Business Strategy: FTSE4Good index, CDP Climate 'B', MSCI 'AAA'

Current Trading & Outlook 

Trading in the first 11 weeks of 2025 has been in line with our expectations. Positive LFL sales growth continues in Retail. In Design & Installation, while delivered revenue growth remains negative, ordered sales are in positive growth for the second quarter in a row. 

The actions we have taken across the business to invest in our growth levers and productivity position us well for 2025, notwithstanding the uncertain market outlook for larger ticket purchases and the continued cost headwinds. We remain comfortable with current consensus expectations for adjusted PBT for 2025. 

Our spring trading update is expected to be released in mid-May. 

David Wood, Chief Executive of Wickes, commented:

"2024 was a year of strong progress for Wickes as our balanced business model and brand strength saw us continue to deliver for customers and take further market share.

"We grew volumes and share throughout the year in Retail as customers bought more of our products for their home improvement projects, however big or small. In Design and Installation, we have been encouraged by a return to growth in ordered sales in Q4 following the actions we took to enhance our customer offer and experience. 

"Given the strong progress over the last twelve months and the good start to Q1, we are well on track for the coming year. I would like to thank my colleagues for their continued hard work and support and, together, we remain focused on helping the nation feel house proud."

Summary of full year financial results

A presentation for investors and analysts will be held today at 8.30am (UK time), followed by a Q&A with the Wickes management team. A live webcast can be accessed here: https://brrmedia.news/WIX_FY_2024 

A recording will be available on the Wickes Group plc website after the event: https://wickesplc.co.uk

Source : Wickes

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