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21st.July.
“Whilst DIFM (Do-it-for-me) sales in the first half were impacted by the enforced closure of our in-store kitchen and bathroom showrooms through to the 12th April, our virtual sales journey continued to resonate well with customers. Since reopening, ordered sales* have grown by over 30% on a two year basis, which will support positive delivered sales growth in the second half of the year.”
Bathrooms ( and I expect kitchens are in homeowners minds also )
https://www.bmbi.co.uk/news-blogs/expert-comment/lakes-comment-q2-2021/
And I note the digital comments, with Wickes already heavily committed and the recently created role and appointment.
Merchant sales hit new heights
1 hour Latest analysis of builders’ merchant sales shows the second quarter of 2021 as the busiest on record.
Busier than ever...
Builders’ merchant sales in the second quarter of 2021 were 20.3% higher, by value, than in Q2 2019 and 96.0% higher than during the locked-down Q2 of 20202.
The point of sale data is gathered for the Builders Merchants Federation’s Builders Merchants Building Index (BMBI).
The latest BMBI report shows that all categories sold more in Q2 2021 compared with the same period in both of last two years.
Sales were also up compared to the previous quarter. Sales in Q2 2021 were 24.1% higher than in Q1, with two less trading days in Q2.
Builders Merchants Federation chief executive John Newcomb said: “This quarter’s results reflect both the strength of the current market and the vital role of builders merchants in the supply chain. With high global demand and UK workloads continuing at extremely high levels, merchants have done a fantastic job managing product demand and supply. The challenges faced in the first half of the year are likely to continue and the building materials supply chain will be working closely with customers to keep projects on track.”
Analysts seemingly backed up by directors buys at £2.50.
Up to date. Done for now.
Please ignore question marks. They came from nowhere.........
I have only seen this on analysts.??
Citi. Buy. 282p. Wickes joint broker??
Deutsche Bank. Hold 300p. Wickes joint broker??
Peel Hunt. Buy. 310p??
Liberum. Buy. 420p
This website apparently has another.
https://uk.investing.com/equities/wickes-group-consensus-estimates
Wickes' natural markets remain strong.
https://www.insightdiy.co.uk/news/uk-tradespeople-remain-optimistic-about-2021-workloads/10214.htm
Not following such every day, but £489k trade went through at 1750, so that's shifted a few more to start again. And there's the regular not insubstantial UTs.
Bit like Groundhog Day ongoing, til Travis sellers gone.
Filling in with a potted history/summary.
https://www.cityindex.co.uk/market-analysis/everything-you-need-to-know-about-the-wickes-ipo/
Whatever else, I expect some further comment on supply issues. Well reported, examples.
https://www.constructionnews.co.uk/government/builders-merchants-hit-by-hgv-driver-shortage-14-07-2021/
https://www.homebuilding.co.uk/news/construction-materials-shortage
On 1st. June Wickes said, "Availability constraints and inflationary pressures across some raw materials have been well-flagged, but we have strong supplier relationships and are working closely with them to ensure we continue to provide customers with the products they need at the best possible value."
Wickes H1 trading update now on 21st. July.
Still old Travis sellers in here. I continue to wait them out.
Liberum has 420p on it, as per post prior to my last on analysts. My error.
On analysts, I have seen nothing beyond this.
Citi. Buy. 282p. Wickes joint broker
Deutsche Bank Hold 300p. Wickes joint broker
Peel Hunt. Buy. 310p
Liberum. Buy. 360p
And, to repeat:-
There is a first half trading update scheduled for 22nd. July, and the results themselves on 16th. September.
On perhaps the other side, the chairman and a non exec have bought at £2.50.
Still many sellers, but buyers too. Has been trading pretty flat. I am in, small profit, in the hope/expectation that sellers will ( eventually ) be gone, and there will be something of a rerate. In my opinion only, it may take some time, and then only if you believe in Wix continuing as they have started.
Senior NED bought some.
https://www.lse.co.uk/rns/WIX/wickes-group-plc-director-pdmr-shareholding-ilb062pt9y0ulxi.html
So that's him and the chairman at 2.50 - despite the in my view Travis sellers who don't want Wickes. They can only sell once.
January and February were as expected but sales took off at the beginning of March and have continued in April and May. This high level of demand is partly due to projects being delayed during lockdown periods, but mainly due to growth in RMI and major infrastructure projects.
“Will the surge in RMI continue? Our merchant customers are not expecting a slowdown, and we don’t envisage any short or medium-term let up, because homeowners have come to appreciate their homes more and living habits have changed.
https://www.buildingtalk.com/bmbi-strong-april-as-builders-merchants-sales-continue-to-bounce-back/
Travis Perkins update may be pushing this on from about midday.
https://www.lse.co.uk/rns/TPK/travis-perkins-plc-trading-update-mckuoobp9fbdy5z.html
Wickes likely to have similar supply chain.
Have I misread that? They held Travis shares, hence got Wickes, like it or not.