21st Oct 2022 12:18
(Alliance News) - Wickes Group PLC on Friday said it expected annual adjusted pretax profit to fall on cost inflation and uncertainties, but still posted year-on-year growth in third quarter sales.
Sales in the third quarter to October 1 were up 2.6% year-on-year, the Watford-based building supplies retailer said.
Core sales were flat on the year before, but they were 27 ahead on a three-year basis. For the DIFM division, whose acronym stands for "do it for me", sales were up 12% from last year and down 1.7% from three years ago.
The DIFM order book was lower year-on-year, in line with its July update. Wickes explained: "customers are taking longer to commit to big ticket projects".
Wickes added that adjusted pretax profit expectations for 2022 remains in line with guidance between GBP72 million and GBP82 million, down at least 3.5% from GBP85.0 million a year ago. The expected fall is due to "uncertainties remain regarding consumer confidence and operating cost inflation. In particular, our costs will be impacted by rising energy prices once our energy contract ends in March 2023".
The company explained that if energy costs stayed at the current price cap for businesses, its energy costs bill for 2023 would be around GBP7.5 million higher than in 2022.
Chief Executive Officer David Wood said: "This has been a period of further progress across all parts of the business, with customers and tradespeople continuing to come to Wickes on the strength of our value, availability and service. While we are watchful of external headwinds, we are continuing to focus on our growth levers and on maintaining rigorous control of our costs. Our uniquely balanced business model leaves us well placed to continue to outperform the market."
Wickes shares fell 6.5% to 116.40 pence each in London on Friday morning.
By Tom Budszus; [email protected]
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