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Wickes Group PLC (LSE:WIX) reported a decline in sales and profits for the first half of the year but noted an “improved trend” in recent weeks. The DIY and building products retailer announced a dividend of 3.6p per share and maintained its full-year guidance, including a total payout of 10.9p per share.
For the initial 26 weeks of the year, Wickes recorded total revenue of £799.9 million, a decrease of 3.4% compared to the previous year. Despite this, the company achieved a record market share in the retail segment and saw 14% growth in its TradePro division. However, its design and installation business experienced a 17% decline.
Adjusted profit before tax fell by 25% to £23.4 million, impacted by margin compression due to rising wages and general inflationary pressures. These effects were somewhat offset by productivity initiatives. Statutory profit before tax increased by 8.5% to £22.9 million, while net cash levels decreased to £152.4 million from £190 million the previous year. The reduction in net cash was attributed to the initial payment for the acquisition of Solar Fast and £28.9 million distributed to shareholders.
The newly rebranded Wickes Solar initiative has commenced, with point-of-sale assets introduced in 50 trial stores and a “digital journey” now available on the Wickes website.
Trading in the third quarter has shown improvement, with like-for-like sales in retail increasing and stabilization observed in the design and installation segment. Chief Executive David Wood highlighted that the company remains on track for the rest of the year and has been encouraged by recent trading trends. Wood also emphasized that the performance in the first half of the year underscores the resilience of Wickes’s balanced business model, particularly in response to challenging market conditions and strong consumer reception of the new Wickes Lifestyle Kitchen range.
