Full Year Results 2024
Wickes Group plc - Full Year Results 2024
for the 52 weeks to 28 December 2024
Strong market outperformance in FY24 with Adjusted PBT at upper end of market expectations
Good start to 2025 and £20m share buyback announced
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.
David Wood Chief Executive of Wickes
“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
£m | 52 weeks to 28 Dec 2024 | 52 weeks to 28 Dec 2023 | Change |
Statutory revenue Retail Design & Installation | 1,538.8 1,212.3 326.5 | 1,553.8 1,189.1 364.7 | (1.0)% 1.9% (10.5)% |
Statutory gross profit Gross profit margin | 566.6 36.8% | 565.0 36.4% | (0.3)% +0.5ppts |
Statutory operating profit Operating profit margin | 47.3 3.1% | 62.9 4.0% | (24.8)% -0.1ppts |
Statutory profit before tax | 23.2 | 41.1 | 43.6% |
Adjusted8 gross profit Gross profit margin | 565.1 36.7% | 568.1 36.6% | (0.5)% +0.2ppts |
Adjusted8 operating profit Adjusted operating profit | 67.4 4.4% | 73.8 4.7% | 8.7% -0.4ppts |
Adjusted8 profit before tax | 43.6 | 52.0 | (16.2)% |
Adjusted8 basic earnings per share | 14.1p | 15.1p | (6.6)% |
Basic earnings per share | 7.7p | 11.8p | (34.7)% |
Full year dividend | 10.9p | 10.9p | N/A |
Investor & Analyst meeting
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 at: https://brrmedia.news/WIX_FY24
A recording of the webcast will be available on the Wickes Group plc website later today: https://wickesplc.co.uk
This announcement should be read in conjunction with the announcement regarding the acquisition of a majority stake in leading solar installations business Solar Fast, which has also been released today.
Enquiries
Investors and Analysts Holly Grainger Director of Investor Relations +44 (0)7341 680426 | Media Lucy Legh, Will Smith, Eleanor Evans PR Advisers to Wickes +44 (0)203 805 4822 |
About Wickes
Wickes is a digitally-led, service-enabled home improvement retailer, delivering choice, convenience, value and best-in-class service to customers across the United Kingdom, making it well placed to outperform its growing markets. In response to gradual structural shifts in its markets over recent years, Wickes has a balanced business focusing on three key customer journeys - TradePro, DIY (together reported as Retail) and our project-based Design & Installation division.
Wickes operates from its network of 228 right-sized stores, which support nationwide fulfilment from convenient locations throughout the United Kingdom, and through its digital channels including its website, TradePro mobile app for trade members, and Wickes DIY app. These digital channels allow customers to research and order an extended range of Wickes products and services, arrange virtual and in-person design consultations, and organise convenient Home Delivery or Click-and-Collect.
Forward looking statements
This announcement has been prepared by Wickes Group Plc. To the extent it includes forward-looking statements, these statements are based on current plans, estimates, targets and projections, and are subject to inherent risks, uncertainties and other factors which could cause actual results to differ materially from the future results expressed or implied by such forward-looking statements. Neither Wickes Group Plc, nor any of its officers, Directors or employees, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur. Wickes Group Plc does not undertake any obligation, other than in accordance with our legal and regulatory obligations, to update or revise any forward-looking or other statement, whether as a result of new information, future developments or otherwise.
Footnotes
1) Retail refers to the revenue stream formerly described as Core. Retail revenue relates to products sold directly to customers (both DIY and local trade), in stores or online.
2) Design & Installation refers to the revenue stream formerly described as DIFM or Do-it-for-me. Design & Installation revenue relates to projects such as kitchens, bathrooms and solar, sold by our showroom Design Consultants. Revenue is recognised when delivery and installation (where applicable) is complete
3) For a definition of like-for-like (‘LFL’) sales, see note 3.
4) Active members of the TradePro scheme are defined as those who have shopped with us in the last 12 months
5) Source: GfK GB point of sale data, sourced from GfK DIY Category Reporting December 2024.
6) Ordered sales refers to the value of orders at the point when the order has been agreed.
7) Delivered sales refers to the revenue which is recognised when the Group has satisfied its performance obligation to the customer and the customer has obtained control of the goods or services being transferred.
8) Adjusted measures represent results on an IFRS basis and exclude adjusting items including, but not limited to, significant restructurings, incremental costs relating to corporate transactions, significant write downs or impairments (or impairment reversals) of current and non-current assets, the associated costs of separating the business from the former parent company’s IT systems, net unrealised gains and losses on remeasurement of foreign exchange derivatives held at fair value and the effect of changes in corporation tax rates on deferred tax balances. See note 2 of the financial statements and both the Reconciliation of Alternative Performance Measures note and the Alternative Performance Measures note for a detailed explanation of these items.