Wickes Group PLC repeats profit guidance; says COVID-19 hit ‘Do It

On Jan 20, 2022

Core sales grew by 14.2% last year, but fell by 6.8% in the fourth quarter, against tough comparatives in 2020

Wickes Group (LSE:WIX) PLC reaffirmed its profit guidance for 2021, with sales growing strongly last year against the pre-pandemic levels of two years ago, but said its ‘Do It For Me’ (DIFM) business had taken a hit from COVID-19 in December.

The building materials group is forecasting full-year pre-tax profits of no less £83mln.

It also announced that it has appointed Mark George as its new chief financial officer with effect from 20 July.

Full-year total sales rose by 13.3% compared with 2020, but declined by 5% in the final quarter following an expected slowdown in core sales. On a two-year basis, total sales increased by 18.9%.

Core sales grew by 14.2% last year, but fell by 6.8% in the fourth quarter, against tough comparatives in 2020. They were 35.7% higher than two years ago.

Wickes said home renovations continue to drive “robust” order books for its trade customers.

The group’s DIFM offering delivered sales growth of 1.6% in the fourth quarter, after strong sales in October and November, driven by high orders.

However, DIFM sales weakened in December as COVID-19 infections rose and people self-isolated ahead of the Christmas holiday.

The DIFM year-end order book has more than doubled on a two-year basis. Coupled with an encouraging lead and order profile from the winter sale, this will support DIFM sales in the current year, Wickes said.

As previously announced, the group’s the year-end cash position declined from the half year, impacted by the second-half weighting of capex and IT separation costs, and dividend payments.

In addition, inventory levels have increased as a result of cost price inflation and the group said it has taken steps to protect the business against the risk of any future supply chain disruption.

In a separate statement, Wickes announced that it has appointed Mark George as its chief financial officer, replacing Julie Wirth, who is retiring.

George, who will join the company with a start date no later than 20 July 2022, has been the CFO at The Gym Group PLC (LSE:GYM) since 2018 and before that he was the deputy CFO at Auto Trader PLC.

Shares were trading 1.51% lower at 215.70p midmorning.