Wickes Group’s Share Price Rose 7.97% on Solid FY 2023 Results

The Wickes Group PLC (LON: WIX) share price rose 7.97% after releasing a trading update for the 52 weeks ended 30 December 2023. The company reported that its full-year like-for-like (LFL) sales demonstrated a marginal decline of 0.3%, aligning with the previous year's figures. 

The leading home improvement retail sector company reported that the year concluded with a cash balance of £97.5 million, even after executing share buybacks worth £10.1 million, which is consistent with its forecasts. This reflects its effective management of costs and inventory. Notably, the average cash throughout the year was £155 million.

For the fiscal year 2023, the adjusted profit before tax (PBT) is projected to be at the higher spectrum of the anticipated market range between £44.9m and £48.3m, calculated after implementing IAS38 standards.

In 2023, the firm’s core segment witnessed a solid performance, with LFL sales mirroring those of the previous year. The fourth quarter marked a positive trend with a 1.2% increase in LFL sales, marking this segment's third consecutive quarter of revenue growth. The outcome was attributed to a rise in volume, offset slightly by a decrease in selling prices during the quarter.

The company’s TradePro sales saw a double-digit increase in the fourth quarter, backed by significant growth in its TradePro customer base, which saw an 18% increase year-on-year, reaching 881k. DIY sales moderately declined over the year, but the firm observed strong volume growth in key categories such as timber, joinery, decorating, and flooring.

Wickes Group’s market share grew in 2023, significantly more over three years, despite a reduction in the number of stores. This underscores the strength of its business model and the effectiveness of its growth strategies.

For 2023, our Do-It-For-Me (DIFM) segment experienced a slight decline in LFL sales. The 13.7% decrease in the fourth quarter's LFL sales reflects a subdued market for larger projects and delivery delays due to new software implementation. The software issue has been resolved and is not expected to affect sales in 2024.

The company continuously invests in its established growth drivers, which include expanding and refurbishing stores, enhancing digital capabilities, and providing exceptional customer service. 

Wickes Group share price. 

The Wickes Group share price rose 7.97% to trade at 157.2p from Thursday’s closing price of 145.6p.