1st Jun 2021 11:33
(Alliance News) - Wickes Group PLC on Tuesday said its 2021 profit will be at the higher end of market expectations, as the home improvement boom drives sales.
Shares were up 5.1% to 268.93 pence in London.
Adjusted pretax profit in the first half of 2021 will be around GBP45 million following stronger-than-expected core sales growth in the year to date, the Watford-based building supplies retailer said.
For the full year, adjusted pretax profit will be in the top half of the GBP55 million to GBP74 million range of analyst expectations.
That's after like-for-like sales grew 46% in the year to May 22, compared to the same period in 2020, Wickes said. Trading was "notably strong" in April driven by sales in the local trade and DIY divisions, while trading in May settled back in line with expectations.
The company said it has a strong order pipeline for its kitchen and bathroom fittings business after showrooms reopened on April 12. Wickes expects the unit to deliver strong like-for-like sales growth in the second half.
This is Wickes's first year as an independent company, having been spun off from Travis Perkins PLC in April.
Chief Executive David Wood said: "I am delighted with how the entire business has responded to the continued strong demand for our products and services.
"Availability constraints and inflationary pressures across some raw materials have been well-flagged, but we have strong supplier relationships and are working closely with them to ensure we continue to provide customers with the products they need."
By Ivan Edwards; [email protected]
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