Following approval, Wickes shares are set to be admitted to the premium listing segment of the FCA and admitted to trading on the main market of the London Stock Exchange.
Travis Perkins first announced its long-term plan to simplify its business and achieve a “more streamlined cost structure” in December 2018. Following this, it announced its intention to demerge Wickes in July 2019.
Having completed the “vast majority” of work on the Wickes demerger since then, on 20 March 2020 it announced that it had placed the process on hold in order to focus on managing through the pandemic and “maximise liquidity” across the group.
However, after both Travis Perkins and Wickes demonstrated the “resilience of their operating models in unprecedented market conditions” throughout last year, its board announced the decision to recommence the demerger process on 2 March 2021.
The demerger will enable the management teams of Travis Perkins and Wickes to “pursue their own independent strategies, each focusing on executing a distinct business plan to deliver the best service to their primary customer base and allocating capital in the optimum way to deliver sustainable returns into the future”.
Nick Roberts, CEO of Travis Perkins Group, said: “I am very pleased that we have reached a significant milestone in the process to demerge Wickes from the Travis Perkins Group. It is testament to the strength of both the Group and Wickes operating models that we are back on track to complete the demerger despite the pandemic.
“The demerger is an important step towards simplifying the Group and enabling Travis Perkins to focus on its trade customers. The separation will allow both businesses to allocate capital to drive growth and further enhance their market leading positions.”
David Wood, CEO of Wickes, said “This is a key milestone on our journey to listing on the London Stock Exchange as a standalone business in what will be a transformational moment for Wickes.
“The results we delivered during this period are evidence of the strength of our unique proposition, digital capability and efficient operating model, which has enabled us to respond rapidly to the changing demands of our customers.”
He added: “The past year has prompted many of us to think differently about how we use our homes, and as a result, we are seeing strong demand from customers who are looking to make changes to their living spaces.
“We are able to provide customers with everything they need to achieve their home improvement plans and we are well placed to capitalise on the exciting growth opportunities we see in our markets while creating long-term value for all our stakeholders. The current year has started well and we are confident in continuing to deliver sales growth ahead of the market for the full year.”