Wickes reports a near 25% decline in adjusted pre-tax profit over six months ending June 2024.
- Adjusted pre-tax profits fell to £23.4m from £31.1m, with statutory profit rising slightly by 8.5% to £22.9m.
- First-half sales decreased by 3.4% to £799.9m, though retail revenue saw a marginal increase of 1%.
- Declines attributed to a challenging home improvement market, impacting design and installation sales significantly.
- Despite setbacks, Wickes achieved record market share and robust growth in its TradePro membership.
Wickes announced a significant decline in adjusted pre-tax profit for the first half of 2024, reporting a decrease of nearly 25% to £23.4 million compared to £31.1 million in the same period of the previous year. However, statutory profit before tax showed an 8.5% rise, reaching £22.9 million. This juxtaposition highlights the complex financial landscape facing the company.
Overall sales for the first half dropped by 3.4%, totalling £799.9 million. Despite the overall sales dip, Wickes noted a slight improvement in retail revenue, which rose by 1%. This is attributed to various gains in key product categories such as decor, garden, tiles, and flooring.
The downturn in profit has been primarily attributed to a slowdown in the wider home improvement market, significantly affecting the sales of design and installation services. CEO David Wood noted that the market for big-ticket items remains challenging, and acknowledged the broader market difficulties impacting the business.
Notably, Wickes celebrated record market share gains in its retail sector during this period. The company’s TradePro membership scheme, which caters to tradespeople, demonstrated remarkable sales growth, increasing by 14%. Furthermore, the number of TradePro members reached a milestone, surpassing one million for the first time.
Looking ahead, Wickes projects a steady profit outlook for the remainder of the year, supported by positive trading trends witnessed at the start of the second half of the year. Wood expressed optimism regarding the company’s potential to navigate through the market challenges, citing the success of their Wickes Lifestyle Kitchen range and the effective cost control strategies in place.
Wickes, amidst a demanding market, continues to demonstrate resilience through strategic market share gains and membership growth.
