REG - Wickes Group PLC - Full Year Results 2024
20/03/2025 07:15
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RNS Number : 4053B Wickes Group PLC 20 March 2025
20 March 2025
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 Retail(1) with revenue +1.9%; Challenging market
conditions led to 10.5% decline in Design & Installation(2) 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 LFL(3) sales in Retail driven by strong
TradePro sales growth of +14%, with growth in active members(4) to 581,000
(2023: 478,000)
• Accelerated increase in Retail market share(5) with particular gains in
decorative and garden
• Actions taken in Design & Installation led to Q4 growth in ordered
sales(6) for the first time since Q2 2023 and improvement in LFL delivered
sales(7) 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.
"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 Change
30 Dec 2023
Statutory revenue 1,538.8 1,553.8 (1.0)%
Retail 1,212.3 1,189.1 1.9%
Design & Installation 326.5 364.7 (10.5)%
Statutory gross profit 566.6 565.0 0.3%
Gross profit margin 36.8% 36.4% +0.5ppts
Statutory operating profit 47.3 62.9 (24.8)%
Operating profit margin 3.1% 4.0% -1.0ppt
Statutory profit before tax 23.2 41.1 (43.6)%
Adjusted(8) gross profit 565.1 568.1 (0.5)%
Gross profit margin 36.7% 36.6% +0.2ppts
Adjusted(8) operating profit 67.4 73.8 (8.7)%
Adjusted operating profit margin 4.4% 4.7% -0.4ppts
Adjusted(8) profit before tax 43.6 52.0 (16.2)%
Adjusted(8) 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 here: https://brrmedia.news/WIX_FY_2024
(https://brrmedia.news/WIX_FY_2024)
A recording will be available on the Wickes Group plc website after the event:
https://wickesplc.co.uk (https://wickesplc.co.uk)
Enquiries
Investors and Analysts Media
Holly Grainger Lucy Legh, Will Smith, Eleanor Evans
Director of Investor Relations PR Advisers to Wickes
+44 (0)7341 680426 +44 (0)203 805 4822
holly.grainger@wickes.co.uk (mailto:holly.grainger@wickes.co.uk) wickes@headlandconsultancy.com (mailto:wickes@headlandconsultancy.com)
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.
Business review
Market
The UK home improvement sector represents a large and attractive market of c.
£27bn(9). Within this market we have a significant opportunity for long-term
growth, given our relatively small market share of around 6%. The challenging
trading conditions of the last two years have resulted in the exit of
retailers such as Homebase, Carpetright, CTD Tiles and Wilko, presenting an
opportunity for strong businesses of scale, such as Wickes. The market has
grown at c. 2.5% per annum on average over the past ten years, driven by the
high average age of the UK's housing stock, the rising number of UK households
and increasing home ownership. Specialist DIY sales are forecast to grow by
16% between 2024 and 2029, according to Mintel(10) driven by improved
confidence and expected improvement in the housing market.
There are a number of macroeconomic trends which affect our market. Whilst the
Wickes home improver customer base has not been immune from cost of living
pressures (such as increased mortgage rates or rents), they tend to be
slightly older and more affluent than the UK average. Moving house is often a
trigger to undertake major home improvement projects over time and the rate of
UK housing transactions has improved over 2024(11). Wickes has virtually no
exposure to civil engineering or the new build housing market, given that our
customers are mostly home improvers and independent tradespeople.
Britain's 29.8m(12) homes are among the least energy efficient in Europe,
losing heat up to three times faster than in continental Europe(13). The
average household energy efficiency rating for England and Wales is band D(14)
and the UK government estimates that 33% of homes with a loft do not have loft
insulation(12). At Wickes we are committed to helping our customers improve
the energy efficiency of their homes and save money on their energy bills. The
January 2025 report from our proprietary Mood of the Nation survey showed that
around 15% of home improvers have considered installing solar panels over the
last year.
Our December 2024 Mood of the Nation survey showed that planned spend by UK
consumers on a new kitchen or bathroom remains below historical norms, but
stable over recent months. Demand has been stronger in the <£4k segment of
the kitchens market. Consumers remain interested in DIY but have been spending
a bit less, with Mintel reporting that smaller projects have been the most
popular type of DIY completed(10). The December 2024 Mood of the Nation survey
also shows that local trade professionals remain busy, with 1 in 4 having a
pipeline of work of more than 12 months.
Progress against strategic growth levers
The company's strategy, as outlined at the time of demerger, has delivered
strong operational progress centred around developing and extending the
Group's growth levers. These contribute to an improvement in our products and
services, saving our customers time and money. Continued investment in the
following growth levers will drive further market share growth in the coming
years:
1. Winning for trade
2. Accelerating Design & Installation
3. DIY category wins
4. Store investment
5. Digital capability
6. Enhanced store service model
7. A winning culture
1. Winning for trade
Our TradePro membership scheme continues to attract local traders, who choose
Wickes for its strong value credentials and simple discount scheme, high
quality products, availability on the lines that matter most, as well as the
convenience of our 30-minute Click-and-Collect service.
Sales from TradePro members increased steadily, by 14% over the year. The
strong growth in the number of active customers to 581,000 was partially
offset by a slight decline in average basket size as tradespeople have been
managing their material quantities more carefully. Total membership of the
TradePro scheme surpassed the one million mark in September, achieving the
target set at the time of demerger.
TradePro members benefit from our rewards programme, with access to special
deals on services such as skip hire, insurance and media subscriptions. In
2024, we added further services, including TradePro membership for trade
accredited members of trade federations such as Checkatrade and
SafeContractor, as well as discounted fuel and vehicle maintenance with Fuel
Card Services. We have also continued to invest in improving TradePro members'
digital experience, making it easier to shop via the app, adding VAT/Non-VAT
pricing and the ability to use the TradePro card in a digital wallet.
Partnerships with trade federations give us access to new sources of
accredited tradespeople. In order to build loyalty with tradespeople at the
start of their careers and to foster long-term engagement and spending, we
have partnered with several apprenticeship organisations. Access Training
provides essential training programs that help individuals upskill and gain
qualifications in the construction sector, ensuring they are equipped for
long-term success. Additionally, Building Heroes supports ex-servicemen and
women by offering training and opportunities to transition into careers in
construction. Through these partnerships, we are not only supporting
individuals to get started in their careers but also contributing to the
growth of a skilled and diverse workforce in the construction industry.
We continue to use behavioural analytics to understand the drivers of average
spending by decile. Our proprietary and market-leading machine learning model,
the Mission Motivation Engine (MME), drives deeper customer relationships and
extracts greater lifetime value.
2. Accelerating Design & Installation
Design & Installation delivered sales(7) reflected the challenging market
environment for larger ticket purchases in the UK. LFL sales declined by
13.9%, whereas ordered sales(6) showed a single digit year-on-year decline.
Momentum later in the year improved significantly, with LFL delivered sales
improving from -13.3% in Q3 to -3.1% in Q4 and ordered sales moving into
year-on-year growth in the fourth quarter for the first time since Q2 2023.
This improvement has been driven by the enhancements we have made to the
business. In response to customer feedback, we have simplified the customer
journey and now present a unified Wickes Kitchens and Wickes Bathrooms
offering, rather than separate Bespoke and Lifestyle paths. This new approach
encompasses brochures, website, advertising and promotions. We have
streamlined the customer journey in store by ensuring that new customers are
able to interact directly with a Design Consultant as soon as they begin the
design process, by adding around 160 Design Consultants and removing the
Kitchen & Bathroom Adviser role. In addition to improving the customer
experience, this has reduced the associated operating costs. Customers are now
able to book an appointment instantly with a Design Consultant, through our
website, in the store of their choice, replacing a more cumbersome telephone
booking system. We also use a technical solution for scheduling installers,
with our Customer Experience Centre overseeing the multi-stage installation
process. Product development continues to drive growth, with new kitchen
ranges proving successful with customers.
The acquisition of a 51% controlling interest in Solar Fast was completed on
21 May and is fully consolidated from that date. We have now installed Wickes
Solar point-of-sale displays in all of our store estate in order to support
the digital journey on the Wickes website. We are seeing an encouraging
response, with around 1 in 4 Solar Fast leads coming through the Wickes
channels and with these leads resulting in above average conversion. The
market for domestic solar installations in the UK is in long-term growth with
the market estimated to be worth £1.5bn pa by 2028(15). It is a highly
fragmented market with no clear brand leader; with a trusted brand and
significant experience in design and installation services at scale, Wickes is
well-placed to be a market leader in home energy solutions. We have an option
to purchase the remaining 49% of the issued share capital of Solar Fast during
the five years following completion, in tranches of not less than 10% of the
issued share capital, based on a valuation of 6x last twelve months EBITDA at
the time.
3. DIY category wins
Our market share in Retail has continued to grow, with strength across
numerous categories, particularly in the DIY categories of interior paint,
decorative accessories and garden projects.
These compounding market share gains have been driven by our ongoing
development of new and existing categories, as we broaden the reach of the
Wickes brand. We have grown our decor proposition by selectively introducing
third party brands such as Crown, Zinsser and extended ranges of Dulux as well
as refreshes to some of our own label ranges and one third of baskets now
include at least one decorative product. The two own brand paint colours which
we have launched with Kimberly Walsh have been a huge success and have helped
to broaden our appeal, such that now over 1 in 3 Wickes customers are
female(16) compared to less than 1 in 6 in 2019. The relaunch in recent years
of ranges such as our storage & shelving ranges continues to boost sales
and market share in these categories. We have driven incremental revenue
through launching new categories and expanding existing categories such as
acoustic wall panelling, motor accessories and decorative accessories. The
continuous range development within gardening and landscaping has grown our
market share and attracted gardeners of all ages.
We continue to strive for the best possible range, price and availability for
our customers. Our right-sized stores sell a carefully curated range of
9,000-10,000 SKUs and we are constantly reviewing the range to ensure that
each product category is meeting expectations. During 2024 we carried out 19
comprehensive range reviews.
All of these actions have contributed to our all-time high customer
satisfaction metrics. 84% of our customers responded that our Click &
Collect service was 'excellent' or 'good' in 2024, an improvement of two
percentage points. Our customer satisfaction scores for Home Delivery remain
at very high levels, with 89% rating the service as 'excellent' or 'good'.
4. Store investment
Investment in our store network continues, to modernise the stores, improve
our showrooms and create additional fulfilment space.
Our refit programme continues to deliver good returns with strong sales
uplifts, particularly from the Design & Installation areas, where we are
able to showcase our full offer of kitchens and bathrooms. The refits enable
us to upgrade the efficiency of multi-channel order pick and despatch, which
drives sales densities and underpins our 30-minute Click & Collect promise
and increases customer satisfaction metrics. 182 stores, or 80% of the
network, are now in our new format. Seven store refits were successfully
completed during 2024, in Ashford, Burgess Hill, Slough, Bedford, Worcester,
Edmonton and Lowestoft.
Our new store opening programme is performing well and we expect our new
stores to deliver good economic returns, once mature. Four new energy
efficient stores opened during 2024 in Long Eaton, Durham, Aberdeen and
Leamington Spa, creating around 120 new jobs. During 2024 we closed five
stores (Ashton Gate, Inverness, Sheffield Central, Warwick Kitchen &
Bathroom, Battersea Kitchen & Bathroom). We therefore ended the year with
228 stores. Total square footage remained broadly flat year-on-year.
Our property plans for 2025 are on track. Early in 2025 we acquired three
former Homebase stores, in Leeds Moor Allerton, Bury St Edmunds and
Dunfermline. Having already acquired the former Homebase store in Northampton
in late 2024, we now have four former Homebase stores in our new store opening
programme for 2025. We are planning a total of 10-15 refits in the year and
5-7 new stores. We have an exciting pipeline of new stores planned for the
coming years, as we target an overall estate of around 250 stores over the
medium term.
5. Digital capability
We continue to invest in our digital capabilities to deliver an integrated
multi-channel shopping experience for our customers.
We use our proprietary and market-leading machine learning model, the Mission
Motivation Engine (MME), to deliver tailored content to customers to help them
complete their home improvement missions and this is driving significant
revenues. Our MME collects data to help us understand who our customers are,
what they browse, what they buy, how and when, in order for us to produce
personalised communications. We have a comprehensive suite of MME-led
programmes of marketing emails and app notifications, all of which are
optimised for timing, audience and content for our different customer
profiles, with incrementality measured against control groups. These
communications predict which products a customer may need and encourage them
to go deeper into their project or mission. Our lifetime value calculator
assesses behavioural data to determine whether each customer is likely to be a
high value customer, to determine their shopper type algorithm and gauge our
marketing efforts accordingly. The MME is a highly effective method of using
first party data to inform personalised communications to thousands of
individual customers.
We continue to improve our offering of digital payment options. In order to
complement our existing Apple Pay functionality, in January we rolled out
Google Pay functionality for digital payments, offering ease of checkout and
increased conversion rate. Following a successful launch of Klarna in 2023, we
launched Clearpay in August 2024, as a second Buy Now Pay Later option. We
will subsequently be trialling both Klarna and Clearpay in some of our stores.
We have invested in a AI-driven predictive stock forecasting platform, which
is delivering materially enhanced productivity whilst driving an improved
customer experience and lower costs. The platform has led to a significant
improvement in stock forecast accuracy with material financial benefits. We
have delivered a reduction in total stock units held and a c. 70% reduction in
third party storage usage over two years. Store availability has improved
alongside the reduction in stock levels. We expect further network efficiency
opportunities for 2025.
6. Enhanced store service model
Our '4C' model aims to meet our customers' needs through all four of our store
network journeys: Self Serve, Assisted Selling, Order Fulfilment and the
Design & Installation showrooms. Our approach offers a seamless shopping
experience for customers and ensures that our store estate works hard for us.
Recent changes to the store estate have increased back of house capacity for
Click & Collect and Home Delivery Order Fulfilment, while reducing the
impact on customers in the store.
7. Winning culture
We are proud of the Wickes culture which over the past fifty years has evolved
to become a modern, inclusive workplace where all colleagues can feel at home
and have the opportunity to grow their skills and develop their career. We
continue to engage with colleagues so that they are informed, inspired and
motivated to play their part in delivering our strategy through exceptional
levels of customer service.
As part of our new Colleague Promise, we have rolled out flexible working to
all roles in the Support Centre and to all store management teams.
Responsible Business Strategy update
During 2024 we have continued to focus on integrating our Responsible Business
Strategy 'Built to Last' across our business and supply chain, with continued
progress made across all three pillars of the strategy - People, Environment
and Homes. As a responsible business we ensure we continue to also focus on
our three fundamental topics - Health & Safety, Ethical Business Conduct
and Responsible Sourcing.
The health and safety of our colleagues and customers remains our number one
priority. In 2024, we had an 8% reduction of injury numbers across the
business and a 36% reduction in colleague injuries leading to lost time or
work days, compared to 2024.
In 2024, our progress with delivering our 'Built to Last' strategy and
increasing the transparency of our ESG(17) disclosures was recognised by our
entry into the FTSE4Good index and achieving a 'AAA' ESG rating from MSCI. For
our 2024 CDP (Carbon Disclosure Project) submission, we successfully
maintained a 'B' rating for Climate Change and a 'C' for Forests.
1. People
Inclusion and diversity is central to our new employee value proposition,
launched in 2024. In our management population we increased female
representation from 35.1% to 37.0% in 2024, and representation of people from
an underrepresented ethnic background from 11.3% to 11.9%. Fair pay remains at
the core of our reward offering and we recently reported favourable median
gender and ethnicity pay gaps.
We employed on average 7,774 people in 2024 (2023: 7,919). As part of the work
we have undertaken to improve the customer experience in Design &
Installation (D&I), we restructured the team to ensure that our customers'
first point of contact is with the person who will take them through the whole
sales journey. This resulted in the difficult decision to remove the Kitchen
& Bathroom Adviser (KBA) role in stores and reinvest in additional Design
Consultant (DC) roles, with many people in KBA roles being offered the
opportunity to move into a DC role or other roles within the business. As
described above we opened four new stores in 2024 and closed five and, as
always when we make the difficult decision to close a store, we took all
reasonable steps to support colleagues who are affected in securing
alternative employment with Wickes.
In 2024, we provided 178 people with Early Careers opportunities including
apprenticeships, work experience placements, traineeships, internship and
graduate roles, in order to help develop the skills our business needs for the
future. We introduced a School Outreach Programme and Wickes School Challenge
for year nine students from across the UK, which promoted key skills like
communication, teamwork, problem solving, creativity, numeracy and digital
skills.
Through our Wickes Community Programme, we supported 47% more local community
projects in 2024 compared to 2023, by donating over 28,000 products. We raised
£926,000 for The Brain Tumour Charity in 2024, with thanks to the generosity
of our customers, suppliers, and colleagues. In total we have now raised £1.6
million towards our £2 million target for the two-year partnership.
2. Environment
We completed a comprehensive exercise in 2024 to re-baseline our near term
science-based targets (SBTs) in response to business changes in contracting
out some of our distribution activities. We subsequently announced an update
to our corresponding 2023 and 2024 LTIP targets. All three of our SBTs have
been re-submitted to SBTi for validation following the re-baselining.
We have made significant progress towards our target to reduce Scope 1 and 2
emissions by 42% by 2030. Through sourcing 100% renewable electricity and
delivering other energy efficiency improvements we have reduced our Scope 1
and 2 GHG market-based emissions by 61.3% compared to rebaselined 2021. We are
continuing to collaborate closely with our strategic suppliers and 52
suppliers, representing 27.3% of our Scope 3 emissions, now have their own
SBTi-validated targets.
From February 2025, 100% of our own brand primary packaging on new stock is
now PVC and polystyrene free and therefore easier to recycle. We are making
progress towards our target to increase the recycled content of the primary
plastic and paper packaging for our own brand products. By delivering on these
targets we will be able to reduce costs associated with the introduction of
the Extended Producer Responsibility (EPR) packaging regime and other
packaging legislation in the UK, as well as reducing the environmental impact
of our packaging.
We have furthered our understanding of the Company's nature-related
dependencies, impacts, risks and opportunities and in 2024 we stopped selling
compost containing peat. Timber remains a significant part of our business and
in 2024 we once again achieved a level of 99.8% of the timber sold having
either an FSC or PEFC Chain of Custody certificate, confirming that it had
been responsibly sourced.
3. Homes
In line with our purpose to make the nation feel house proud, and supporting
our customers with the increased cost of living, we want to help our customers
save energy and reduce the carbon footprint of their homes. We continued to
expand our online range of solar PV products, air source heat pumps and
charging products for electric vehicles. Following the completion of the Solar
Fast acquisition, we have also been able to support our customers with the
installation of solar.
Financial review
Our financial results have demonstrated the strength of our business model,
delivering a good performance in challenging market conditions.
Revenue of £1,538.8m, including £10.0m contribution by Solar Fast since
completion, reflects a contraction in sales of 1.0% year-on-year. Continued
volume-driven growth in Retail was offset by LFL declines in Design &
Installation. Gross margin increased by 16 basis points, reflecting careful
management of range, price and promotions.
We faced considerable cost headwinds this year with another significant rise
in the National Minimum Wage as well as more general inflationary pressures
across the business. Our planned productivity initiatives have helped to
mitigate these headwinds, with savings made across a number of areas including
simplifying the customer journey, distribution, customer services and store
shrinkage. Looking ahead, the unforeseen changes to National Insurance
Contributions rates and thresholds announced in the Autumn Budget 2024 are
expected to add c. £6m to our direct costs on an annualised basis or c.
£4.5m pro forma for 2025. We will be seeking further productivity gains in
order to help offset this additional cost headwind, as well as another
significant increase in National Minimum Wage planned for April 2025.
Adjusted profit before tax declined to £43.6m (2023: £52.0m) reflecting the
factors noted above. Statutory profit before tax decreased by 43.6% to £23.2m
(2023: £41.1m) reflecting an increased adjusting items charge, primarily due
to non-cash impairment charges relating to IFRS 16 lease assets and to
property, plant and equipment.
There was £86.3m of cash on balance sheet at the end of the period (2023:
£97.5m), after the net initial payment for the acquisition of a 51%
controlling stake in Solar Fast(18), the completion of the £25.0m share
buyback programme(19) and the sale and leaseback of our Braintree store, which
raised £6.2m. Average cash across the year was £144.3m, reflecting our
normal cycle of working capital.
Revenue
Revenue for the 52 weeks to 28 December 2024 was £1,538.8m (2023:
£1,553.8m), a decrease of 1.0% on the prior year. Net selling area was
broadly flat year on year as new store openings in Long Eaton, Durham,
Aberdeen and Leamington Spa were offset with closures of some older stores.
LFL sales for the period were -2.0%.
Retail revenue - sales from products sold to DIY customers and local trade
professionals - increased by 1.9% to £1,212.3m (2023: £1,189.1m). Retail LFL
revenue increased by 1.5%, driven by positive volume growth, with selling
prices in mild deflation.
Within Retail, our TradePro business continues to perform strongly, with sales
+14%. This is driven by the number of active members increasing to 581,000 in
2024, as local traders continue to choose Wickes to save them time and money.
Our market share in Retail has grown to record levels with increases across
numerous categories, particularly in the strategic categories of interior
paint, decorative accessories and garden projects.
Wickes remains highly competitive on price, with weekly benchmarking of
hundreds of thousands of items to ensure we are competitive on the lines that
matter most. Our strategy is to offer everyday low pricing with limited use of
targeted promotions so that our customers can rely on consistent and
transparent pricing.
Design & Installation delivered revenue(7) - sales from projects sold by
our showroom design consultants - was £326.5m (2023: £364.7m), a decrease of
10.5% or 13.9% on a LFL basis. This reflected challenging market conditions,
with a softer market environment for large consumer purchases. Ordered
sales(6) in 2024 saw a single digit LFL decline but, encouragingly, returned
to year-on-year growth in Q4.
From 2025 onwards, all kitchen and bathroom revenue will be reported within
the Design & Installation Ranges revenue stream. This presentational
change to segmental reporting groups all kitchen and bathroom ranges together,
whether they are Lifestyle or Bespoke. This presentation aligns with our
commercial operations and customer approach to buying kitchen and bathroom
projects. Previously, any sales of Wickes Lifestyle Kitchens that included a
design element were classified in the Design & Installation revenue
stream, whereas self-serve purchases of the Wickes Lifestyle Kitchens range
were classified in the Retail revenue stream. From 2025 onwards, Design &
Installation Ranges will include all product categories which could be sold as
part of a design and/or installation and where the majority of sales of those
products are designed and/or installed. Solar sales will continue to be
included in Design & Installation Ranges.
Had the new presentational approach been adopted for 2024, Retail revenue
would have been £1,129.8m with revenue growth of 1.9% and LFL revenue growth
of 1.5%. Design & Installation revenue would have been £409.0m with a
revenue decline of 8.0% and LFL revenue decline of 10.9%.
FY 2024 Current methodology FY 2024 New methodology
Retail Revenue £1,212.3m £1,129.8m
Revenue growth 1.9% 1.9%
LFL revenue growth 1.5% 1.5%
Design & Installation Revenue £326.5m £409.0m
Revenue growth (10.5%) (8.0%)
LFL revenue growth (13.9%) (10.9%)
Group Revenue £1,538.8m £1,538.8m
Revenue growth (1.0%) (1.0%)
LFL revenue growth (2.0%) (2.0%)
Gross profit
Adjusted gross profit for 2024 was £565.1m, a slight decrease compared to the
prior year (2023: £568.1m). Adjusted gross profit margin increased by 16
basis points, reflecting careful management of range, price and promotions.
Statutory gross profit of £566.6m increased slightly from the prior year
(2023: £565.0m). Statutory gross profit margin increased by 46 basis points,
for the reasons described above for adjusted gross profit, in addition to a
positive derivative fair value movement in the year.
Operating profit
Adjusted operating profit of £67.4m decreased by 8.7% year on year (2023:
£73.8m) and the adjusted operating profit margin decreased to 4.4% (2023:
4.7%). The decline in operating margin reflects an environment of weaker
consumer demand for larger ticket items combined with the impact of pressure
on operating costs due to wage inflation and other general inflationary
factors as described above. These increases were partly mitigated by strong
Retail performance and planned productivity initiatives.
Statutory operating profit decreased by 24.8% to £47.3m (2023: £62.9m),
reflecting the decline in operating margin described above and the impact of
increased store impairment and restructuring charges in the year, partially
offset by reductions in other charges such as business separation costs and a
positive derivative fair value movement in the year.
Net finance costs
Adjusted net finance costs were £23.8m (2023: £21.8m). These costs are a
combination of the IFRS 16 interest charges associated with our property and
equipment leases, partially offset by interest income earned on cash held in
the business.
Statutory net finance costs were £24.1m (2023: £21.8m), comprising the
elements noted above in addition to fees incurred in extending the Group's
revolving credit facility (RCF).
Adjusted profit before tax
Adjusted profit before tax was £43.6m (2023: £52.0m), a decline of 16.2%
year-on-year, reflecting the factors noted above. Adjusted PBT in the second
half of the year was only 3.3% down year on year, representing a significant
improvement compared to the first half.
Adjusting items
Pre-tax adjusting item charges were £20.4m (2023: £10.9m). These comprise a
right-of-use asset impairment charge of £12.3m (2023: £2.7m), a property,
plant and equipment impairment charge of £5.8m (2023: nil), costs related to
restructuring activities (primarily in Design & Installation) of £4.0m
(2023: £8.8m of IT separation costs), costs related to the Solar Fast
acquisition of £0.8m (2023: nil) and costs related to the extension of the
Revolving Credit Facility of £0.3m (2023: nil), partially offset by
derivative fair value gains on foreign exchange contracts of £1.5m (2023:
losses of £3.1m) and a reversal of impairment of right-of-use asset
recognised in prior periods of £1.3m (2023: £3.7m).
Profit before tax
Profit before tax decreased to £23.2m (2023: £41.1m) reflecting the factors
noted above and includes £0.4m from Solar Fast.
Tax
The tax charge for the period was £4.8m (2023: £11.3m). The effective tax
rate for the period was 20.3% (2023: 27.5%). The decrease primarily reflects
capital allowance claims made in the period in respect of historical
expenditure.
Tax credit on adjusting items was £4.9m (2023: £2.6m).
Investment and capital expenditure
Capital expenditure for the year was £26.1m (2023: £38.2m).
The largest component of capex was £13.3m investment in the store estate
(2023: £20.4m), of which refits were £5.3m, new stores £7.1m and other
store capex across the estate £0.9m. There was £4.8m capex investment in our
digital capabilities (2023: £6.1m), as we continue to develop our
multi-channel offer.
There was a net cash outflow of £5.1m for the acquisition of our 51% stake in
Solar Fast. This comprises the initial aggregate consideration of £7.6m,
representing £5.1m for the equity shares, less a £0.2m negative working
capital adjustment, plus £2.7m for acquired cash, of which £2.5m cash was
repaid to Wickes by dividend post completion.
We expect capital expenditure for 2025 to be c. £30-35m, driven by continued
investment in the store estate and further IT capital expenditure, as we
continue to enhance our operating systems and customer experience. In addition
we expect to continue to invest in SaaS IT projects, which will be expensed
through the income statement.
Cash / net debt
Cash at the end of the period was £86.3m (2023: £97.5m), in line with our
expectations. This cash balance is stated after the net payment for the
acquisition of a 51% controlling stake in Solar Fast, the completion of the
£25.0m share buyback programme(19) and the sale and leaseback of our
Braintree store, which raised £6.2m.
Operating profit decreased year-on-year, resulting in cash flows from
operations of £172.0m (2023: £177.0m). Cash outflows related to working
capital movements were £1.4m (2023: inflow of £2.6m), reflecting a lower
Design & Installation order book, partially offset with improved inventory
management. Cash outflows from financing activities of £158.5m (2023:
£150.4m) include £114.4m (2023: £111.7m) related to lease liabilities,
£26.1m dividend payments (2023: £27.4m) and £15.1m of share buybacks(19)
(2023: £10.1m).
Inventories decreased slightly to £192.9m (2023: £195.5m).
Dividend
The Board has recommended a final dividend of 7.3p per share, in line with
prior guidance, which will be paid on 6 June 2025 to shareholders on the
register at the close of business on 25 April 2025. This will bring the full
year dividend for the 2024 financial year to 10.9p. The proposed final
dividend is subject to the approval of Shareholders at this year's Annual
General Meeting.
The shares will be quoted ex-dividend on 24 April 2025. Shareholders in the UK
may elect to reinvest their dividend in the Dividend Reinvestment Plan (DRIP).
The last date for receipt of DRIP elections and revocations will be 15 May
2025.
Share buy back
The £25m share buyback programme commenced in 2023 was completed in September
2024. A new share buyback programme of £20m has been announced today and will
commence in April 2025.
Technical guidance
The following represents guidance for the full year 2025:
• Net interest costs of c. £25m
• Capex of £30-35m(20)
• 7.1m shares being purchased for Wickes Employee Benefit Trust
• New £20m share buyback programme
• Based on current expectations FY dividend expected to be maintained at 10.9p
Appendix
LFL sales growth Q1 Q2 Q3 Q4 FY
13 weeks to 13 weeks to 13 weeks to 13 weeks to 52 weeks to
30 March 29 June 28 September 28 December 28 December
Retail 1.7% (0.2%) 4.2% 0.7% 1.5%
Design & Installation (17.6%) (18.9%) (13.3%) (3.1%) (13.9%)
Group (3.3%) (4.4%) 0.4% (0.2%) (2.0%)
Risks and Uncertainties
Wickes has a formal risk management process to help the Group reinforce its
short, medium and long term success, safeguard value and enable it to meet and
exceed the expectations of stakeholders.
A detailed explanation of the risks and uncertainties which were identified
for 2024 can be found on pages 69 to 75 of the Annual Report and Accounts
2024. The principal risks and uncertainties comprise:
• Cyber and data security • Climate change
• Business change • People and safety
• Brand integrity and reputation • Commercial and supply chain
• Regulatory and legal compliance • Financial management
• IT operations • Customer experience
• Growth strategy • Stores, distribution and installations
The Board continues to review changes to risks and uncertainties that may
arise, remaining mindful of the external environment.
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.
9) Source: GfK, Mintel and Wickes estimates.
10) Source: Mintel UK DIY Retailing report, June 2024.
11) HM Revenue & Customs monthly property transactions completed in the UK
with a value of £40,000 or above, 31 January 2025.
12) Department for Energy Security & Net Zero, Household Energy
Efficiency, 28 March 2024.
13) Decarbonising Buildings: Insights from Across Europe, published by the
Grantham Institute - Climate Change and the Environment at Imperial College
London, December 2022.
14) ONS Energy efficiency of housing in England and Wales 2024.
15) Source: Wood Mackenzie UK PV Capacity Forecast.
16) Proportion of Wickes DIY customers identified as female in 2024.
17) Environmental, Social, Governance
18) The enterprise value of the 51% stake in Solar Fast was £5.1m. A further
payment was made of £2.7m, representing Wickes' 51% of the cash acquired on
completion, of which £2.5m was subsequently repaid by way of dividend.
19) £10.0m (plus £0.1m stamp duty and commission) of the £25.0m share
buyback programme was executed in 2023, with the remaining £15.0m (plus
£0.1m stamp duty and commission) completed in 2024.
20) Excludes impact of expensed SaaS IT investment costs. These are the costs
incurred which relate to 'software as a service' solutions that are
immediately expensed under the Group's accounting policies and do not result
in an intangible asset.
Consolidated income statement and other comprehensive income
(£m) Notes 52 weeks ended 28 December 2024 52 weeks ended 30 December
2023
Revenue 3 1,538.8 1,553.8
Cost of sales (972.2) (988.8)
Gross profit 566.6 565.0
Selling costs (364.9) (341.6)
Administrative expenses (154.4) (160.5)
Operating profit 47.3 62.9
Net finance costs 4 (24.1) (21.8)
Profit before tax 23.2 41.1
Tax 6 (4.8) (11.3)
Profit for the period and total comprehensive income 18.4 29.8
Attributable to:
Owners of the parent 18.1 29.8
Non-controlling interest 0.3 -
Profit for the period and total comprehensive income 18.4 29.8
Earnings per share
Basic 7 7.7p 11.8p
Diluted 7 7.5p 11.7p
Adjusted results(1)
Adjusted gross profit 565.1 568.1
Adjusted operating profit 67.4 73.8
Adjusted profit before tax 43.6 52.0
Adjusted profit after tax 33.9 38.1
Adjusted basic earnings per share 7 14.1p 15.1p
Adjusted diluted earnings per share 7 13.9p 14.9p
1 Defined in note 5 unless stated otherwise
Consolidated balance sheet
(£m) As at As at
28 December
30 December
2024
2023
Assets
Non-current assets
Goodwill 12.6 8.4
Other intangible assets 10.0 14.3
Property, plant and equipment 113.3 123.2
Right-of-use assets 562.5 537.1
Derivative financial 0.2 -
instruments
Deferred tax asset 29.8 23.0
Total non-current assets 728.4 706.0
Current assets
Inventories 192.9 195.5
Trade and other receivables 70.6 74.1
Derivative financial instruments 0.7 -
Cash and cash equivalents 86.3 97.5
Total current assets 350.5 367.1
Total assets 1,078.9 1,073.1
Equity and Liabilities
Capital and reserves
Issued share capital 24.2 25.2
Capital redemption reserve 1.8 0.8
EBT share reserve (0.5) (0.7)
Other reserves (785.7) (785.7)
Retained earnings 905.5 923.7
Equity attributable to owners of the parent 145.3 163.3
Non-controlling interest 1.1 -
Total equity 146.4 163.3
Non-current liabilities
Lease liabilities 624.9 596.0
Long-term provisions 1.4 2.3
Total non-current liabilities 626.3 598.3
Current liabilities
Lease liabilities 80.4 79.8
Trade and other payables 212.6 219.1
Corporation tax 3.5 1.6
Derivative financial instruments - 0.7
Short-term provisions 9.7 10.3
Total current liabilities 306.2 311.5
Total liabilities 932.5 909.8
Total equity and liabilities 1,078.9 1,073.1
The consolidated financial statements of Wickes Group Plc, registered number
12189061, were approved by the Board of Directors on 19 March 2025 and signed
on its behalf by:
David Wood Mark George
Chief Executive Officer Chief Financial Officer
Consolidated statement of changes in equity
(£m) Notes Issued Capital redemption reserve EBT Other Retained Total
share
Share
reserves
earnings
equity
capital
reserve
At 31 December 2022 26.0 - (0.7) (785.7) 924.8 164.4
Profit for the period and other comprehensive income - - - - 29.8 29.8
Dividends paid 9 - - - - (27.4) (27.4)
Share buyback and cancellation (0.8) 0.8 - - (10.1) (10.1)
Purchase of own shares - - (0.2) - - (0.2)
Equity-settled share-based payments - - 0.2 - 5.4 5.6
Tax on equity-settled share-based payments - - - - 1.2 1.2
Owners of the parent 25.2 0.8 (0.7) (785.7) 923.7 163.3
Retained Earnings attributable to non-controlling interest - - - - - -
At 30 December 2023 25.2 0.8 (0.7) (785.7) 923.7 163.3
Profit for the period and other comprehensive income - - - - 18.1 18.1
Dividends paid 9 - - - - (26.1) (26.1)
Share buyback and cancellation (1.0) 1.0 - - (15.1) (15.1)
Equity-settled share-based payments - - 0.2 - 3.4 3.6
Tax on equity-settled share-based payments - - - - 1.5 1.5
Owners of the parent 24.2 1.8 (0.5) (785.7) 905.5 145.3
Retained Earnings attributable to non-controlling interest - - - - 1.1 1.1
At 28 December 2024 24.2 1.8 (0.5) (785.7) 906.6 146.4
Consolidated cash flow statement
(£m) Notes 52 weeks
ended
52 weeks
28 December
ended
2024
30 December
2023
Cash flows from operating activities
Operating profit 47.3 62.9
Adjustments for:
Amortisation of other intangible assets 6.6 6.6
Depreciation of property, plant and equipment 22.3 21.1
Depreciation of right-of-use assets 76.7 74.2
Impairment of property, plant and equipment 5.8 -
Impairment of right-of-use assets 12.3 2.7
Reversal of impairment of right-of-use assets (1.3) (3.7)
Losses on terminations of leases - 0.1
Write-off of intangible assets - 1.5
Losses on disposal of other intangible assets - 0.3
Losses on disposal of property, plant and equipment 0.3 2.6
Derivative fair value (gains)/losses (1.5) 3.1
Share-based payments 3.5 5.6
Operating cash flows 172.0 177.0
Movements in working capital:
Decrease in inventories 3.2 6.1
Decrease in trade and other receivables 4.0 13.4
Decrease in trade and other payables (7.1) (18.6)
(Decrease)/increase in provisions (1.5) 1.7
Cash generated from operations 170.6 179.6
Income taxes paid (8.6) (0.3)
Net cash inflow from operating activities 162.0 179.3
Cash flows from investing activities
Purchases of property, plant and equipment (24.6) (32.1)
Development costs of computer software (1.5) (6.1)
Proceeds on disposal of property, plant and equipment 6.3 0.1
Acquisition of business net of cash acquired (2.3) -
Interest received 7.4 7.2
Net cash outflow from investing activities (14.7) (30.9)
Cash flows from financing activities
Interest paid (1.4) (1.0)
Interest on lease liabilities (30.1) (28.2)
Payment of principal of lease liabilities (84.3) (84.3)
Lease incentives received 0.9 0.8
Own shares purchased for share schemes - (0.2)
Share buyback (15.1) (10.1)
Dividends paid to equity holders of the parent 9 (26.1) (27.4)
Dividends paid to non-controlling interest 9 (2.4) -
Net cash outflow from financing activities (158.5) (150.4)
Net decrease in cash and cash equivalents (11.2) (2.0)
Cash and cash equivalents at the beginning of the period 97.5 99.5
Cash and cash equivalents at the end of the period 86.3 97.5
Adjusting items
Adjusting items paid included in the cash flow 4.9 10.4
Total pre-tax Adjusting items 5 20.4 10.9
Notes to the financial statements
1 General information and accounting policies
The Group's principal accounting policies are set out in the Annual Report and
Accounts, which is available from 20 March 2025 on the Company's website
www.wickes.co.uk
2 Statutory accounts
The financial information set out above does not constitute the company's
statutory accounts for the financial years ended 28 December 2024 or 30
December 2023 but is derived from those accounts. Statutory accounts for 30
December 2023 have been delivered to the registrar of companies, and those for
28 December 2024 will be delivered in due course.
The auditor has reported on those accounts; their reports were (i)
unqualified, (ii) did not include a reference to any matters to which the
auditor drew attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006.
3 Revenue
The Group has one operating segment in accordance with IFRS 8 'Operating
Segments', which is the retail of home improvement products and services, both
in stores and online.
The Chief Operating Decision Maker is the Executive Board of Directors.
Internal management reports are reviewed by them on a regular basis.
Performance of the segment is assessed based on a number of financial and
non-financial KPIs as well as on profit before taxation.
The Group identifies two distinct revenue streams within its operating segment
which are analysed below.
Both revenue streams operate entirely in the United Kingdom. The Group's
revenue is driven by a large number of individual small value transactions and
as a result, Group revenue is not reliant on a major customer or group of
customers.
Revenue 52 weeks 52 weeks
ended
ended
(£m)
28 December
30 December
2024
2023
Retail (product revenue) 1,212.3 1,189.1
Design & Installation (project revenue) 326.5 364.7
1,538.8 1,553.8
Revenue reconciliation and like-for-like adjusted revenue 52 weeks 52 weeks
ended
ended
(£m)
28 December
30 December
2024
2023
Revenue 1,538.8 1,553.8
Network change (21.4) (7.8)
Revenue generated by business acquired in the period (10.0) -
Revenue (like-for-like basis) 1,507.4 1,546.0
Prior period revenue 1,553.8 1,559.0
Prior period network change (15.1) (8.0)
Prior period revenue (like-for-like basis) 1,538.7 1,551.0
Decrease arising on a like-for-like basis (31.3) (5.0)
Like-for-like revenue (%) (2.0)% (0.3)%
Calculating like-for-like revenue enables management to monitor the
performance trend of the business period-on-period. It also gives management a
good indication of the health of the business compared to competitors.
Like-for-like revenue is a measure of underlying sales performance for two
successive periods. Branches and stores contribute to like-for-like revenue
once they have been trading for more than twelve months, or for acquisitions
once the results have been fully consolidated for 12 months. Revenue included
in like-for-like revenue is for the equivalent times in both periods being
compared. When stores close, revenue is excluded from the prior period figures
for the months equivalent to the post closure period in the current period.
These movements are explained by the Network change amounts. The Network
change number varies year on year as it represents a different number of
stores.
From the start of FY2025, the Group's management will assess the performance
of all kitchen and bathroom sales in one reported revenue category, Design
& Installation Ranges. The existing presentation of revenue between Retail
and Design & Installation will therefore change, but there will be no
change to total revenue reported.
4 Net finance costs
52 weeks 52 weeks
ended
ended
28 December
30 December
2024
2023
Finance income
Interest receivable 7.3 7.5
7.3 7.5
Finance costs
Interest on lease liabilities (30.1) (28.2)
Amortisation of loan arrangement fees (0.3) (0.3)
Commitment fee on revolving credit facilities (0.7) (0.7)
Revolving credit facility amendment costs (0.3) -
Other interest - (0.1)
(31.4) (29.3)
Net finance costs (24.1) (21.8)
5 Reconciliation of alternative profit measures
Adjusted profit measures are an alternative performance measure used by the
Board to monitor the operating performance of the Group. Adjusting items are
those items of income and expenditure that, by reference to the Group, are
material in size or unusual in nature or incidence and that in the judgement
of the Directors should be disclosed separately to ensure both that the reader
has a proper understanding of the Group's financial performance and that there
is comparability of financial performance between periods.
Items of income or expense that are considered by the Directors for
designation as adjusting items include, but are not limited to, significant
restructurings, incremental costs relating to corporate transactions,
significant write downs or impairments (and reversals) of current and
non-current assets, the effect of changes in corporation tax rates on deferred
tax balances, net unrealised gains and losses on remeasurement of foreign
exchange derivatives held at fair value, and in the previous period costs of
separating the business from the former parent company Travis Perkins Plc's IT
systems.
(£m) 52 weeks ended 28 December 2024
Gross profit Operating profit Profit before tax Profit after tax
Statutory performance measures 566.6 47.3 23.2 18.4
Derivative fair value gains (1.5) (1.5) (1.5) (1.5)
Property, plant and equipment impairment charge - 5.8 5.8 5.8
Right-of-use asset impairment charge - 12.3 12.3 12.3
Reversal of impairment of right-of-use asset recognised in prior periods - (1.3) (1.3) (1.3)
Restructuring costs - 4.0 4.0 4.0
Solar Fast acquisition costs - 0.8 0.8 0.8
Revolving credit facility (RCF) extension costs - - 0.3 0.3
Tax on adjusting items - - - (4.9)
Total adjustments to statutory performance measures (1.5) 20.1 20.4 15.5
Adjusted performance measures 565.1 67.4 43.6 33.9
(£m) 52 weeks ended 30 December 2023
Gross profit Operating profit Profit before tax Profit after tax
Statutory performance measures 565.0 62.9 41.1 29.8
Derivative fair value losses 3.1 3.1 3.1 3.1
Right-of-use asset impairment charge - 2.7 2.7 2.7
Reversal of impairment of right-of-use asset recognised in prior periods - (3.7) (3.7) (3.7)
IT separation project costs - 8.8 8.8 8.8
Tax on adjusting items - - - (2.6)
Total adjustments to statutory performance measures 3.1 10.9 10.9 8.3
Adjusted performance measures 568.1 73.8 52.0 38.1
Derivative fair value movements
The Group recognises the potential for high levels of foreign exchange rate
volatility and looks to mitigate its economic impact on financial performance
by hedging planned future foreign currency purchases using foreign currency
derivatives. The Group does not take advantage of the hedge accounting rules
provided for in IFRS 9 since that standard requires certain stringent criteria
to be met to hedge account, which, in the circumstances of the Group, are
considered by the Board to not bring any significant economic benefit. As a
result, IFRS requires that fair value gains or losses on these derivatives be
recognised in the Income Statement.
In order to reflect the economic outcome of the forward contracts
(derivatives), the impact of fair value movements on the derivatives has been
removed in the underlying results. During the 52 weeks ended 28 December 2024
this adjustment was a net gain of £1.5m (52 weeks ended 30 December 2023:
loss of £3.1m).
Right-of-use asset and property, plant and equipment impairment charges and reversals
In the period ended 28 December 2024, 27 stores were identified as impaired
with a resulting impairment charge of £18.1m, £12.3m to right of use assets
and £5.8m to property plant and equipment. Furthermore, 1 store was
identified as having an impairment reversal of £1.3m all to right of use
assets.
In the period ended 30 December 2023, 5 stores were identified as impaired with a resulting impairment charge of £2.7m, and 5 were identified as having an impairment reversal of £3.7m, both to right of use assets.
Restructuring costs
In the period ended 28 December 2024, the Group undertook various
restructuring programmes across the business to improve both operational
efficiency and also its customer proposition. The incremental costs associated
with the restructuring programme totalled £4.0m. Given the size and
infrequent occurrences of such restructuring programmes by the Group, these
have been recognised within adjusting items.
Solar Fast acquisition costs
In the period ended 28 December 2024, the Group acquired a 51% holding in
Gasfast Limited, trading as Solar Fast. As part of the acquisition,
incremental fees directly associated with the acquisition were incurred by the
Group. These were predominantly related to professional services and
considered to be one-off in nature.
Revolving credit facility (RCF) extension costs
In the period ended 28 December 2024, the Group incurred fees related to the
completion of the "Amend and Extend" of its Revolving Credit Facility during
the period, lengthening the term by a further two years to March 2028, with an
option of an additional one year extension. The Group does not consider
corporate transactions such as this to be required on a regular basis and thus
have classified the fees as adjusting.
6 Taxation
(£m) 52 weeks 52 weeks
ended
ended
28 December
30 December
2024
2023
Current tax
UK corporation tax expense 12.3 10.4
UK corporation tax adjustment in respect of prior periods (2.2) 0.1
Total current tax charge 10.1 10.5
Deferred tax
Deferred tax movement in period (5.7) (0.4)
Effect of change in tax rate (0.1) -
Adjustments in respect of prior periods 0.5 1.2
Total deferred tax charge (5.3) 0.8
Total tax charge 4.8 11.3
The differences between the total tax charge and the amount calculated by
applying the standard rate of UK corporation tax of 25.0% (52 weeks ended 30
December 2023: 23.5%) to the profit before tax for the Group are as follows:
(£m) 52 weeks 52 weeks
ended
ended
28 December
30 December
2024
2023
Profit before taxation 23.2 41.1
Tax at the standard corporation tax rate 5.9 9.7
Effects of:
Depreciation of non-qualifying property 0.4 0.9
Tax effect of non-taxable income and non-deductible expenses - (1.2)
Adjustment to prior period (1.7) 1.3
Effect of share based payments 0.2 1.1
Other - (0.4)
Impact of super deduction - (0.1)
Total tax charge 4.8 11.3
The effective tax rate for the period is 20.3% (52 weeks ended 30 December
2023: 27.5%). The effective tax rate was lower than the standard rate
primarily due to capital allowance claims made in the period in respect of
historical expenditure.
7 Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the Company by the weighted average number of ordinary
shares outstanding during the 52 week period ended 28 December 2024.
(£m) 52 weeks 52 weeks
ended
ended
28 December
30 December
2024
2023
Profit attributable to the owners of the Parent 18.1 29.8
(No.)
Weighted average number of ordinary shares 245,621,601 258,667,102
Adjustment for weighted average number of ordinary shares held in EBT (4,861,137) (6,163,934)
Weighted average number of ordinary shares in issue 240,760,464 252,503,168
Basic earnings per share (in pence per share) 7.7 11.8
For diluted earnings per share, the weighted average number of ordinary shares
in issue is adjusted to include all dilutive potential ordinary shares arising
from share options.
(£m) 52 weeks 52 weeks
ended
ended
28 December
30 December
2024
2023
Profit attributable to the owners of the Parent 18.1 29.8
(No.)
Weighted average number of ordinary shares in issue 240,760,464 252,503,168
Diluted effect of share options on potential ordinary shares 3,714,321 2,804,387
Diluted weighted average number of ordinary shares in issue 244,474,785 255,307,555
Diluted earnings per share (in pence per share) 7.5 11.7
The Directors believe that EPS excluding Adjusting items ('Adjusted EPS')
reflects the underlying performance of the business before the impact of
unusual or one off events and assists in providing the reader with a
consistent view of the trading performance of the Group.
Reconciliation of profit after taxation to profit after taxation excluding Adjusting items ('Adjusted profit'):
(£m) 52 weeks 52 weeks
ended
ended
28 December
30 December
2024
2023
Profit attributable to the owners of the parent from continuing operations 18.1 29.8
Adjusting items before tax 20.4 10.9
Tax on adjusting items (4.9) (2.6)
Adjusting items after tax (note 5) 15.5 8.3
Adjusted profit attributable to the owners of the parent 33.6 38.1
Weighted average number of ordinary shares in issue 240,760,464 252,503,168
Weighted average number of dilutive ordinary shares in issue 244,474,785 255,307,555
Adjusted basic earnings per share (in pence per share) 14.1 15.1
Adjusted diluted earnings per share (in pence per share) 13.9 14.9
8 Movement in lease liability net debt
(£m) Cash and cash equivalents Lease Total
liability
At 31 December 2022 99.5 (691.3) (591.8)
Decrease in cash and cash equivalents (2.0) - (2.0)
Repayment of lease liabilities - 112.5 112.5
Discount unwind on lease liability - (28.2) (28.2)
Lease additions - (22.2) (22.2)
Lease modifications - (46.0) (46.0)
Lease incentives received - (0.8) (0.8)
Lease terminations - 0.2 0.2
At 30 December 2023 97.5 (675.8) (578.3)
Decrease in cash and cash equivalents (11.2) - (11.2)
Repayment of lease liabilities - 114.4 114.4
Discount unwind on lease liability - (30.1) (30.1)
Lease additions - (60.7) (60.7)
Lease modifications - (53.0) (53.0)
Lease incentives received - (0.9) (0.9)
Lease terminations - 0.8 0.8
At 28 December 2024 86.3 (705.3) (619.0)
Balances As at As at
28 December
30 December
(£m)
2024
2023
Cash and cash equivalents 86.3 97.5
Current lease liabilities (80.4) (79.8)
Non-current lease liabilities (624.9) (596.0)
Net debt (619.0) (578.3)
9 Dividends
(£m) As at As at
28 December
30 December
2024
2023
Amounts recognised in the financial statements as distributions to equity
shareholders are shown below:
· final dividend for the 52 weeks ended 30 December 2023 of 7.3 pence (52 17.6 18.3
weeks ended 31 December 2022: 7.3 pence)
· interim dividend for the 52 weeks ended 28 December 2024 of 3.6 pence 8.5 9.1
(52 weeks ended 30 December 2023: 3.6 pence)
Total dividend 26.1 27.4
A final dividend of 7.3p is proposed in respect of the 52 weeks ending 28
December 2024. It will be paid on 6 June 2025 to shareholders on the register
at the close of business on 25 April 2025 (the Record Date). The shares will
be quoted ex-dividend on 24 April 2025.
Shareholders may elect to reinvest their dividend in the Dividend Reinvestment
Plan (DRIP). The last date for receipt of DRIP elections and revocations will
be 15 May 2025.
In the post-acquisition period, a dividend of £2.4m was paid by Gasfast
Limited to its non-controlling interest.
10 Events after the reporting period
Revolving credit facility
After the year end the Group completed an extension of its Revolving Credit
Facility, lengthening the term by a further year to March 2029. Total
commitments on the facility remain £80m, as well as retaining the £20m
accordion.
EBT share purchase programme
After the year end the Group recommended Equiniti Trust (Jersey) Limited, in
its capacity as trustee of the Wickes Employee Benefit Trust, purchases 7.1m
ordinary shares of the Company in the market.
The shares will be held on an unallocated basis for use in satisfying both
current and future awards under the Company's various share schemes from time
to time.
Share buyback programme
The Group has approved a new £20m share buyback programme, following the
successful completion of the £25m buy back in September 2024. The Group is
planning to start the share buyback in April 2025.
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