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Wickes says profits to come at top of range thanks to strong revenue

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Wickes Group PLC (LON:WIX) said full-year adjusted profit before tax will be within the top half of the range of analyst expectations of £55-74mln thanks to strong revenue performance.

Half-year adjusted profit before tax is expected to be £45mln.

READ: Wickes awaits a ‘wall of money’, say analysts

The DIY retailer, which was recently spun back out of Travis Perkins, said sales in the 21 weeks to 22 May climbed 46% and 23% compared to the same period in 2020 and 2019 respectively.

Trading was notably strong through April, driven by sales volumes in both local trade and DIY and helped by digital activity. Figures then settled back in line with expectations during May.

The firm said it is encouraged by the kitchen and bathroom leads and order pipeline, which is expected to deliver strong like-for-like sales growth in the second half of the year.

It still suffers from availability constraints and inflationary pressures across some raw materials, however it is working with suppliers to ensure delivery to customers.

Analysts at Peel Hunt increased the target price to 320p from 310p and nudged up their adjusted profit before tax estimate to £67mln from £65mln previously.

The broker said the second half of the year clearly continues to carry an element of uncertainty, but the shares “look cheap” having lagged the wider distribution sector in recent weeks, falling 2% compared the sector rising 2%.

Shares advanced 4% to 267p on Tuesday morning.

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