Wickes hailed a “robust” full-year sales performance despite the pressure on consumer spending in the UK.
In the year to 30 December 2023, the group’s total revenue edged down 0.6% to £1.55bn, with a like-for-like decline of just 0.3%.
Adjusted pre-tax profit after SaaS impact declined by 31% to £52.0m, but statutory profit rose by 2% to £41.1m.
The group noted that overall profitability reflected a market with softer demand and high cost inflation. However, a productivity programme enabled it to offset all cost increases other than energy and as a result, it was able to deliver adjusted profits ahead of expectations.
Retail revenue increased by 0.1% to £1.19bn after three consecutive quarters of positive LFL performance from the second quarter onwards. This was driven by “positive volume growth” in the second half, with marginal selling price deflation towards the end of the year.
Meanwhile, its TradePro business continued to perform well, with sales growth of 11% after the number of members grew from 746,000 to 881,000.
During the year, Wickes opened three new stores and completed 11 refits.
Chief Executive David Wood said: “This has been another year of strong progress for Wickes. Our robust trading performance, targeted investment programme and disciplined cost control have delivered profits ahead of expectations.
“In the current economic environment, our unrivalled focus on providing great value and service has underpinned this performance.”
Wickes revealed that retail sales in the first 11 weeks of its new financial year had been in line with last year after demand for new kitchens and bathrooms remained subdued due to the current economic climate.
The company also announced today that it had agreed to acquire a 51% stake in Gas Fast, the parent company of leading solar installations company Solar Fast. Wickes said the purchase would enable it to expand its offering into the fast-growing market for home energy solutions, initially with solar and gas boilers and, in time, air source heat pumps and other services.
NAM Implications:
- Wickes’s results reflect the pressures felt by many non-food retailers in the four years of Lockdown fallout.
- Some encouraging moves forward…
- …but still a challenging market.
- Fingers crossed…
