In the first half of the year, home-improvement retailer, Wickes Group, experienced a decline in pretax profit primarily due to higher IT costs. However, the company remains optimistic about its future prospects, as it continues to witness growth in its kitchen and bathroom showroom business.
Wickes Group reported a pretax profit of £21.1 million ($26.4 million), down from £33.5 million in the same period last year. This decline can largely be attributed to increased IT expenses. Furthermore, adjusted pretax profit, which excludes exceptional and one-off items, also decreased from £41.3 million to £31.1 million.
Despite these challenges, the company managed to achieve a slight increase in revenue, rising from £822.3 million to £827.7 million during the period. This growth can be attributed to the strong performance of its kitchen and bathroom showroom business.
Wickes Group CEO, David Wood, expressed his satisfaction with the company’s overall performance, highlighting the strength of their balanced business model and exceptional customer service provided by their colleagues. He also emphasized their commitment to gaining further market share within the competitive home improvement sector.
The board of directors declared an interim dividend of 3.6 pence per share, maintaining stability for shareholders amidst the challenging financial landscape.
Despite the challenges faced in the first half of the year, Wickes Group remains confident in achieving its annual guidance. The company reaffirmed its forecasted adjusted pretax profit range of £45 million to £48 million for the full year, taking into account the impact of software-as-a-service IT investment costs.
For more information, please contact Christian Moess Laursen.