Wilko Reports Annual Losses; Notes 30% Decline In Footfall

In recent filings at Companies House, wilko has revealed that for the year ended January 29th 2022, group sales declined by £43.2 million to £1.31 billion. Like-for-like sales declined by 3.1%.

EBITDA nearly halved compared with 2021, at £24.2 million and £48.3 million respectively.  Profit before tax decreased by £41.2 million from £4.4 million in 2021, to a loss of £36.8 million (reconciled to EBITDA at £35.9 million). 

The directors stated that they were satisfied with the results given that the COVID-19 pandemic and subsequent lockdowns had a significant effect on footfall, despite the fact that stores were able to open as an essential retailer. Furthermore, the second quarter saw severe and widespread disruption to global supply chains, combined with resource shortages at wilko distribution centres. 

The retailer ended the year with 413 stores having closed one during the period, and noted that even after the lockdowns ended, footfall through its high street stores was around 30% less than pre-pandemic times, and 19% less at its retail park branches. Wilko.com showed 'moderate growth' year on year, with sales of £81.3 million.

Wilko is looking to drive sales by selling via Amazon, eBay and OnBuy, and is to increase the numbers of stores from which online orders can be collected.

The group invested £16 million into working capital during the year through increased stockholding as a result of the global supply chain challenges, and also made a £3 million investment in autonomous delivery vehicle developer, StreetDrone (Preston EV Limited). 

Cashflow forecasts by the directors demonstrate that the Group has sufficient funds to meet its liabilities as they fall due until January 28th 2024, and they have confidence in the resilience of the Group's business model. 

Less than a month ago, it was revealed that wilko had entered into a strategic partnership with DHL, with a £48 million deal for the sale and leaseback of its Worksop distribution centre.

More recently, it was recently announced that managing director Alison Hands is to leave the business to join Lincolnshire Co-op, and will leave wilko in January.

Source : Insight DIY Team

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.