Wickes FY profits fall despite growing sales

Wickes has revealed that pre-tax profits dropped to £40.3m after absorbing non-recurring costs of £35.1m, despite reporting a like-for-like increase of 3.5% in sales for the year ending 31 December 2022. 

During this period, the DIY retailer’s net cash position also stood at £99.5m compared with £123.4m in the same period of 2021, which reflects the impact of £24.4m IT separation costs. 

However, the group maintains that its adjusted profit before tax of £75.4m is still in line with guidance, following a record £85m in 2021.

In 2022, the group saw its digital TradePro membership grow by 18% with 112,000 new customers taking the total to 746,000, while TradePro sales increased by 19%. 

The group also introduced 30 minute click and collect, Klarna payment options and launched the Wicked eBay store. 

According to Wickes, during the first 11 weeks of 2023 “trading has been in line with expectations”, as core sales are only “moderately” behind the same period last year, with trade sales in growth and DIY continuing to normalise.

David Wood, chief executive of Wickes, said: “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.

“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.”