Wickes Group PLC has reported a decline in full-year profit, citing weaker demand for large-scale home improvement projects. However, the company remains optimistic about its 2025 performance and has announced a £20 million share buyback.
The home improvement retailer, based in Watford, England, recorded a 44% drop in pretax profit for the 52 weeks ending 28 December 2024, falling to £23.2 million from £41.1 million the previous year. Revenue declined slightly by 1.0% to £1.54 billion, down from £1.55 billion.
The company attributed the decline to "challenging market conditions" and a slowdown in discretionary spending on big-ticket purchases. Its Design & Installation division, which focuses on fitted kitchens and bathrooms, saw a revenue drop of 10.5% to £326.5 million from £364.7 million. In contrast, the Retail division experienced a 1.9% increase in revenue, rising to £1.21 billion from £1.19 billion.
Despite the decline, Wickes noted an improvement in customer orders for its Design & Installation business in the fourth quarter, following enhancements to its customer experience.
The company has declared a total dividend of 10.9 pence per share, unchanged from the previous year, and expects to maintain this payout in 2025. In addition to the newly announced share buyback programme, Wickes completed a £25 million repurchase initiative during the year.
Chief Executive Officer David Wood commented on the results, stating: '2024 was a year of strong progress for Wickes as our balanced business model and brand strength saw us continue to deliver for customers and take further market share. Given the strong progress over the last twelve months and the good start to first-quarter, we are well on track for the coming year.'
Looking ahead, Wickes confirmed that trading in the first 11 weeks of 2025 has met expectations. The company plans to provide a spring trading update in mid-May.
Following the announcement, shares in Wickes Group PLC rose by 7.2% to 183.87 pence in London on Thursday morning.
More information:
Wickes
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www.wickes.co.uk