REG-WICKES GROUP PLC WICKES GROUP PLC: Q4 Trading Update

WickesAnnouncement

20/01/2022 07:05

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   WICKES GROUP PLC (WIX)
   WICKES GROUP PLC: Q4 Trading Update

   20-Jan-2022 / 07:00 GMT/BST
   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   20 January 2022

                      Wickes Group plc - Q4 Trading Update

       Continued strong performance on a two-year basis, profit guidance
                                   maintained

   Wickes Group plc ("Wickes" or "the Group") today provides a fourth quarter
   trading update for the 13 weeks to 25 December 2021, and reaffirms profit
   guidance for FY2021.

   Wickes continued to perform well in the fourth quarter, with a resilient
   sales performance. As expected, Core sales moderated as we annualised the
   toughest comparatives from 2020, while remaining strongly ahead on a
   two-year basis. We continue to expect to report adjusted PBT* of no less
   than £83m.

    

                        1 Year Like for Like Sales 2 Year Like for Like Sales
                                          Growth %          Growth %
                          Core        DIFM  Total    Core        DIFM  Total
   Quarter 1
                           38.5%   (25.0)%   19.7%    51.5%   (28.3)%  25.6%
   (13 weeks to 27 Mar)
   Quarter 2
                           34.2%    185.7%   47.6%    38.4%   (27.5)%  19.7%
   (13 weeks to 26 Jun)
   Quarter 3
                          (2.3)%      0.7%  (1.6)%    27.4%   (12.4)%  16.3%
   (13  weeks to 25
   Sep)
   Quarter 4
                          (6.8)%      1.6%  (5.0)%    25.9%   (13.5)%  14.0%
   (13  weeks to 25
   Dec)
   Full year
                           14.2%      9.7%   13.3%    35.7%   (20.9)%  18.9%
   (52 weeks to 25 Dec)

   Notes: FY21 total sales growth will comprise the 53 weeks to 1 January
   2022. LFL figures are based on the comparative 52 weeks to 25 December
   (FY20 was 52 weeks to 26 December). DIFM represents delivered sales.

    

   Core sales in Q4 were supported by continued strong performance in local
   trade, where home renovations continue to drive robust order books for our
   trade customers. TradePro membership and associated revenue continue to
   grow strongly, driven by our digital capability. We launched our DIY app
   successfully in November, with strong conversion rates.

    

   DIFM delivered sales** were strong in October and November, as we
   progressed through the elevated order book, but weakened in December from
   a higher incidence of Covid disruption and self-isolation ahead of the
   holiday period. As a result, the DIFM year-end order book has more than
   doubled on a two year basis. This, plus an encouraging lead and order
   profile from the winter sale, will support DIFM sales in the current year.

    

   As previously guided, the year end cash position has moderated from the
   half year, impacted by the second half weighting of capex and IT
   separation costs, and dividend payments. As expected, inventory levels
   have also increased as a result of cost price inflation, and the recovery
   of stock levels from the prior year. Given our strong balance sheet, we
   have moved further on inventory rebuild in order to protect the business
   against the risk of any future supply chain disruption.

    

   Refitted stores continue to perform very well, with a strong returns
   profile as we work through the estate and we therefore plan to accelerate
   the pace of major store refits from 2022 onwards. We will provide further
   detail on our investment and broader capital structure as part of full
   year reporting.

   David Wood, CEO of Wickes commented: "Wickes has performed very well
   during 2021, testament to the appeal of our customer offer and our ongoing
   focus on price leadership. While we are mindful of the external
   environment, we look to the future with confidence. We believe that our
   service-led and digitally-enabled proposition leaves us well placed within
   a highly attractive home improvement market. I would like to thank all of
   my colleagues for their hard work and support as we continue to help the
   nation feel house proud."
    

   Wickes                            Headland
   Investor Relations                PR Adviser to Wickes
   Andy Hughes                       Lucy Legh, Will Smith, Charlie Twigg
   +44 (0) 776 736 5360              +44 (0) 203 805 4822
    1 investorrelations@wickes.co.uk  2 wickes@headlandconsultancy.com

    * Adjusted PBT represents profit before tax on an IFRS basis and excludes
   adjusting items which will comprise demerger costs and IT separation costs
   for 2021. ** Delivered sales are based on project completion, which
   triggers revenue recognition in the accounts. Ordered sales are sales at
   point of order rather than completion.

    

   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 - Local Trade, DIY (together "Core") and Do It
   For Me ("DIFM").

    

   Wickes operates from its network of 232 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, and arrange virtual and in-person design consultations.

    

    

    

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   ISIN:          GB00BL6C2002
   Category Code: TST
   TIDM:          WIX
   LEI Code:      213800IEX9ZXJRAOL133
   Sequence No.:  137669
   EQS News ID:   1270577


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:investorrelations@wickes.co.uk
   2. mailto:wickes@headlandconsultancy.com


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