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Wickes revenues grew 0.7% to £827.7m in the 26-week period to 1 July, following a sales uplift of 5.8% in ‘Do It For Me’ (DIFM) activity.
The group’s adjusted profit before tax and SaaS IT investment costs hit £34.8m compared with £41.3m in H1 2022, as cost inflation exceeded revenue growth.
Adjusted PBT made up £31.1m after £3.7m of SaaS IT investment, with the group reporting profit before tax of £21.1m compared with £33.5m in H1 2022.
However, the group ended the period on a more positive cash position than last year, having hit £190m compared with £166.5m in H1 2022. This has been improved from the year end position of £99.5m, which reflects “the seasonal working capital cycle” in the business.
During the period, Wickes opened three new stores, which include Chelmsford in July. The group’s opening programme hoped to open approximately 20 new stores over five years.
The DIY retailer also improved its click and collect capacity and service levels and reduced distribution costs.
According to the group, it also made good progress on productivity gains in H1, offsetting cost inflation with the exception of energy costs.
So far, trading in July and August has been in line with Wickes’ expectations, as it expects a full-year adjusted profit before tax of between £45m to £48m after the impact of its SaaS IT investment.
David Wood, chief executive of Wickes, said: “This was another positive period for the business, underpinned by the strength of our balanced business model and outstanding customer service delivered by our colleagues.
“As we head into autumn, we are well-stocked with our extensive range of energy-saving products, as we look to support our customers in insulating their homes. While we remain mindful of the external environment, we are seeing customers turn to Wickes for our great value proposition.”
He added: “We are well on track for the remainder of the year and we have the right strategy in place to make further market share gains within the large home improvement sector.”
