Wickes Group (WIX) H2 2024 earnings summary

Executive summary

• Achieved strong market outperformance in 2024, with resilient performance despite challenging conditions, driven by retail volume growth and market share gains, and improved D&I performance in Q4.

• Adjusted profit before tax reached GBP 43.6 million, at the upper end of expectations, with final dividend maintained at GBP 0.073.

• Announced a new GBP 20 million share buyback and continued investment in technology, store openings, and digital capability.

• Recognized for responsible business strategy with FTSE4Good, CDP Climate 'B', and MSCI 'AAA' ratings.

Financial highlights

• Revenue for 2024 was GBP 1.54 billion, down 1% year-over-year; retail sales grew 1.9%, while D&I sales declined 10.5%.

• Adjusted profit before tax was GBP 43.6 million, with a strong cash position of GBP 86 million at year-end and an average of GBP 144 million during the year.

• Gross margin increased by 16 basis points to 36.7%; operating profit margin declined to 4.4%.

• Full-year dividend maintained at GBP 0.109 per share; GBP 41 million returned to shareholders via dividends and share buybacks.

Outlook and guidance

• Early 2025 trading shows continued positive momentum in both retail and D&I ordered sales, with trading in the first 11 weeks of Q1 in line with expectations.

• Remain comfortable with consensus for 2025 adjusted PBT of GBP 47.7 million; capex guidance for 2025 is GBP 30-35 million.

• Cost management and productivity initiatives expected to offset wage inflation and support future profitability.

• Gross margin outlook is flat for 2025, maintaining a price leadership strategy.