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Wickes Group PLC on Thursday reported a lower annual profit that was in line with market consensus, as costs increased while revenue was marginally higher.
The Watford, Hertfordshire-based home improvement retailer said pretax profit fell 38% to £40.3 million in 2022 from £65.4 million in 2021. Adjusted pretax profit declined 11% to £75.4 from £85.0 million, and this was in line with the £72 million to £76 million market consensus that the company at the end of January had said it expected to achieve.
Revenue grew 1.8% to £1.56 billion from £1.53 billion. Cost of sales outpaced revenue growth, increasing by 2.6% to £991.9 million from £966.4 million. Administrative expenses increased 14% to £155.5 million from £136.8 million.
Wickes declared a final dividend of 7.3 pence per share, down 17% from 8.8p a year prior. The total year dividend of 10.9p per share was unchanged, however.
The company said trading in the first 11 weeks of 2023 has been in line with its own expectations, while core sales are ‘moderately behind’ the same period a year ago. It added that trade sales in growth and DIY continue to normalise.
Looking ahead, Chief Executive Officer David Wood said: ‘Like all businesses we remain watchful of the external consumer environment. However, we have the right strategy and a compelling offer for customers, and look to the future with confidence. We will continue to invest across our distinctive growth levers, and are well-placed to achieve further market share gains.’
Wickes shares were 2.3% lower at 141.70 pence each in London on Thursday at midday.
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