The impact of UK economic uncertainty was evident in Wickes’s full-year results as the DIY and home improvement specialist announced falling revenues and lower profits.
However, performance over the past year was marginally better than expected, and strength in Q4 provided investors with a reason to be optimistic.
Wickes reported its full-year results for 2024 on Thursday, with total revenue declining 1.0% year-on-year to £1,538.8m.
While the company achieved 1.9% growth in Retail revenue, this was offset by a 10.5% decline in Design & Installation revenue amid challenging market conditions.
Adjusted profit before tax fell £43.6m, down from £52.0m in 2023, though this figure was at the upper end of market expectations.
Statutory profit before tax fell to £23.2m, compared to £41.1m the previous year, reflecting a non-cash impairment charge.
The 6% rise in shares can, in part, be attributed to the company’s decision to maintain the dividend and even boost share buybacks. Wickes has declared a final dividend of 7.3p, bringing the total dividend to 10.9p for the full year, and announced a new £20m share buyback programme.
“We grew volumes and share throughout the year in Retail as customers bought more of our products for their home improvement projects, however big or small. In Design and Installation, we have been encouraged by a return to growth in ordered sales in Q4 following the actions we took to enhance our customer offer and experience,” said David Wood, Chief Executive of Wickes.