Wickes Publishes Half Year Results

Earlier today Wickes Group plc published their Interim Results 2024 for the 26 weeks to 29 June 2024.

Financial Highlights

• Total revenue of £799.9m (H1 2023: £827.7m) down -3.4% year-on-year

• Adjusted gross margin +24bps

• Operational costs flat year-on-year following planned management action taken to mitigate impact of inflation

• Statutory profit before tax of £22.9m (H1 2023: £21.1m)

• Adjusted profit before tax of £23.4m (H1 2023: £31.1m)

• Net cash position of £152.4m (H1 2023 £190.0m), after net initial payment for Solar Fast acquisition and £28.9m returned to shareholders
• Interim dividend declared of 3.6p

Strategic Highlights

• Record Retail market share with particular gains in the strategic categories of decor, garden, tiles & flooring; Positive volume performance and LFL4 sales growth in Retail

• Strong TradePro sales growth +14%, with growth in active members of 18% to 541,000 (H1 2023: 459,000). In September the total number of TradePro members hit the 1 million mark for the first time

• Successful focus on our lower-priced Wickes Lifestyle Kitchens range driving sales +19%

• Challenging market environment for large purchases led to 17% decline in Design & Installation delivered sales and high single-digit decline in ordered sales

• Investment in new stores and refits driving returns, with 3 refits completed and 2 new stores opened

• Initial roll-out of Wickes Solar, with point-of-sale assets in 50 trial stores and digital journey live on Wickes website

• Entry into the FTSE4Good index, recognising our Responsible Business Strategy

Current Trading & Outlook

Trading in Q3 so far has seen an improved trend; in Retail, LFL sales growth has strengthened and Design & Installation is stabilising. Whilst the market outlook remains uncertain, current trading along with the planned action taken to mitigate the impact of inflation underpins management’s outlook for adjusted PBT for FY 20249. Wickes’ proven growth strategy and balanced business model leaves us well positioned for growth as market conditions improve. Our Q3 trading update is expected to be released in late October.

David Wood, Chief Executive of Wickes, commented:

“This first half performance is testament to the hard work of all our colleagues and demonstrates the strength of our balanced business model. We achieved further volume growth and record market share gains in Retail, with TradePro remaining a key differentiator. The market for Design and Installation remained tough during the half and Wickes was not immune; nonetheless, we have seen a positive response to our value-led Wickes Lifestyle Kitchen range, which is growing strongly.

“We are on track for the remainder of the year and have been encouraged by trading at the start of the second half. Looking further ahead, our outstanding customer offer, proven growth levers and focus on cost control leave us well-placed within a home improvement market which continues to offer significant opportunities.”

Source: Wickes & Insight Team

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