Full Year Results 2022
Wickes Group plc - Full Year Results 2022
for the 52 week period to 31 December 2022
Record sales and further market share gains; well-placed to continue to outperform the market
- Like for Like (‘LFL’)1 sales up 3.5% in FY2022, and 22.8% on a three-year basis
- Total year-on-year revenue growth of 1.8% to a record £1,562.4m
- Further market share gains in Core2, and a strong recovery in delivered DIFM sales
- Adjusted profit before tax £75.4m, in line with guidance, following a record £85.0m in 2021
- Statutory profit before tax of £40.3m after absorbing non-recurring costs of £35.1m
- Net cash position of £99.5m (2021 £123.4m), reflecting the impact of £24.4m IT separation costs
- IFRS 16 net debt of £591.8m (2021 £618.7m); leverage of 2.9x3
- Final dividend of 7.3p, giving a total of 10.9p for the full financial year in line with guidance
- Digital TradePro membership growth rate accelerated to 18% with 112,000 new customers (2021: 81,000), taking the total to 746,000; TradePro sales in 2022 increased by 19%
- Successfully broadened our DIY customer appeal through the introduction of 30 minute click & collect, Klarna payment options, and the launch of the Wickes eBay store
- Further market share gains in Core, following a record year in 2021, with Core LFL down 2.0%; three-year LFL of 33.0%
- Strong recovery in DIFM delivered sales, up 26.1% LFL, as we worked successfully through the order book, which remains ahead of pre Covid levels
- Delivered over £20m of cost savings from productivity gains and efficiencies in 2022
- 12 refits completed in 2022; ROCE and sales uplifts remain strong and in line with expectations
- First new store opened in Q4 in Bolton, with a strong performance in its first Winter season
- Outlined Science-Based Targets for carbon emissions with approval received in December 2022, and launched our Sustainable Home Guide to help customers reduce energy bills and emissions
Capital Allocation Policy
- The Company is reviewing its capital allocation policy and will provide an update along with its Q2 trading update in July
Current Trading & Outlook
In the first 11 weeks of 2023 trading has been in line with our expectations. Core sales are moderately behind the same period last year, with Trade sales in growth and DIY continues to normalise. In DIFM, delivered sales are slightly ahead year on year due to the elevated order book; ordered sales are in line with the same period in 2022.
Whilst we are mindful of the macroeconomic backdrop, we remain confident in our ability to drive further market share gains given the strength of our proposition and improvements we have made to our offer. We have efficiency plans in place which will offset inflationary pressures in 2023, with the exception of energy costs which as previously indicated will be £10m higher than in 2022. We will issue our next trading update after Easter.
David Wood, Chief Executive, commented:
"This was a period in which we achieved record sales and made further market share gains. While profit declined, the outcome is still significantly ahead of the pre-Covid period. Our performance was underpinned by our balanced business model, digital leadership and ability to offer the best value and service across Trade, DIFM and DIY. This has been achieved due to the expertise and dedication of our 8,100 colleagues, and I would like to thank each of them for their support over the last 12 months.David Wood Chief Executive
Like all businesses we remain watchful of the external consumer environment. However, we have the right strategy and a compelling offer for customers, and look to the future with confidence. We will continue to invest across our distinctive growth levers, and are well-placed to achieve further market share gains."
Summary of full year financial results
52 weeks to
31 Dec 2022
53 weeks to
1 Jan 2022
Adjusted* gross profit
Gross profit %
Adjusted* operating profit
Adj operating profit %
Adjusted* profit before tax
Adjusted* basic earnings per share
Statutory gross profit
Gross profit %
Statutory operating profit
Operating profit %
Statutory profit before tax
Basic earnings per share
Full Year Dividend
*Adjusted measures represent results on an IFRS basis and exclude adjusting items which comprise significant restructurings, significant write downs or impairments of current and non-current assets, the costs of demerging and listing the business, the associated costs of separating the business from the Travis Perkins Group’s IT systems, the impact of unrealised fair value movements on derivatives through the profit and loss statement, VAT reclaim and the effect of changes in corporation tax rates on deferred tax balances. These measures have been explained, reconciled and calculated in note 5. Adjusted revenue excludes the £3.4m VAT reclaim.
Investor & Analyst meeting
A webcast for investors and analysts will be available today at 8.30am (UK time), followed by a live Q&A with the Wickes management team. The webcast can be accessed at: : Wickes - Prelim Results
Wickes Headland +44 (0) 0203 805 4822
Investor Relations PR Adviser to Wickes
Andy Hughes +44 (0) 776 736 5360 Lucy Legh, Will Smith
Wickes is a digitally-led, service-enabled home improvement retailer, delivering choice, convenience, value and best-in-class service to customers across the United Kingdom making it well placed to outperform its growing markets. In response to gradual structural shifts in its markets over recent years, Wickes has a balanced business focusing on three key customer journeys - Local Trade, DIY (together "Core") and Do-it-for-me ("DIFM").
Wickes operates from its network of 230 right-sized stores, which support nationwide fulfilment from convenient locations throughout the United Kingdom, and through its digital channels including its website, TradePro mobile app for trade members, and Wickes DIY app. These digital channels allow customers to research and order an extended range of Wickes products and services, arrange virtual and in-person design consultations, and organise convenient home delivery or click-and-collect.
Forward looking statements
This announcement may include statements that are, or may be deemed to be, forward-looking statements. By their nature forward-looking statements involve opportunity, risk and uncertainty since they relate to future events and circumstances, and actual results may differ materially. Any forward-looking statements in this announcement reflect management's view with respect to future events as at the date of this announcement.
Wickes achieved record sales in 2022, benefitting from its market-leading value proposition and underpinned by its uniquely balanced business model. Despite lower market volumes we maintained our long track record of achieving market share gains in our Core business, with the acceleration in the growth rate of our TradePro customer base a particular feature. DIFM ordered sales recovered as the year progressed; delivered sales benefited from the unwind of the order book and came close to matching the level in 2019 on a like-for-like basis.