Wickes Group (WIX) H2 2024 earnings summary

Executive summary

• Delivered strong performance in 2024, outperforming the market despite challenging conditions, with growth in retail volumes and market share gains; Design & Installation (D&I) performance improved in Q4.

• Adjusted profit before tax reached GBP 43.6 million, at the upper end of expectations.

• Continued investment in growth levers, technology, and store expansion supported results and future momentum.

• Maintained final dividend at 10.9p and announced a new GBP 20 million share buyback.

• 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 up 1.9%, D&I/Design and Installation down 10.5%.

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

• Adjusted profit before tax was GBP 43.6 million, down 16.2% year-over-year; full-year dividend 10.9p.

• GBP 41 million returned to shareholders via dividends and buybacks; year-end cash GBP 86 million, average cash GBP 144 million.

• Completed GBP 25 million share buyback; announced new GBP 20 million buyback.

Outlook and guidance

• 2025 started with encouraging trading; retail and D&I ordered sales both in year-on-year growth.

• Remain comfortable with consensus for 2025 adjusted PBT of GBP 47.7 million; net interest costs cGBP 25 million, capex GBP 30-35 million.

• Delivered sales in D&I expected to remain negative in Q1 due to lag but should turn positive if order momentum continues.

• Gross margin expected to remain flat in 2025; focus remains on price leadership and volume growth.

• Productivity initiatives planned to offset wage inflation and other cost headwinds.