Wickes plots expansion in home energy market after slight profit boost in 2023

Profit remained steady at Wickes in 2023 as the DIY firm announced the acquisition of solar installations company Solar Fast.

Revenue in 2023 was unchanged on the year before, coming in at £1.6bn. Sales performance was strongest in interior paint, decorative accessories and flooring, it said.

Pretax profit in 2023 was slightly higher than 2022, rising to £41.1m from £40.3m.

The company reported that it had managed to offset the impact of inflation through productivity gains worth around £22m.

Wickes noted that cost of living pressures have impacted sales last year, even though its customers tend to be slightly more affluent than average. Looking forward, it suggested that customers are more likely to put money into savings, rather than larger projects like a new kitchen or bathroom.

Retail sales in the first 11 weeks of 2024 are in line with last year, although the firm noted that demand for larger purchases continues to be “challenging”.

Although the company said it had “good cost control” and productivity plans in place, it warned that these will not fully offset cost headwinds from business rates and April’s increase in the Minimum Wage.

The firm announced a final dividend of 7.3p, meaning its dividend for the year came to 10.9p – in line with guidance.

“This has been another year of strong progress for Wickes. Our robust trading performance, targeted investment programme and disciplined cost control have delivered profits ahead of expectations,” chief executive David Wood said.

The company also announced the acquisition of Solar Fast, a solar installations company. It said the deal will help it expand into the “fast-growing market” for home energy.

“This acquisition enables us to accelerate our Design & Installation growth lever, capitalising on our expertise in installing major home improvement projects,” Wood said.