London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Well there's no fool like an old fool eh? Also Wickes yield (not shown correctly on this site) is more than double what KGF has paid recently so my money will stay put.
There’s a Motley Fool article out, by a shareholder in KGF.
https://www.fool.co.uk/2023/02/10/can-i-afford-to-miss-a-wickes-shares-bargain/
This one says Wickes has about 5% of the UK market based on analyst estimates, and that Kingfisher is about 10 times larger in terms of revenues so it should have about half the market.
Last full year results revenues UK and Ireland for KGF £6505m
Last full year results revenues for Wickes £1534.9m
It’s always possible I’ve read it wrongly or missed the obvious. I shall be put right on here.
A little interesting when thinking of quality of installations, maybe.
https://www.theretailbulletin.com/home-and-diy/a-great-opportunity-says-wickes-apprentice-nathan-10-02-2023/
Strong bottom at 116p. Probably drift towards there over the next few months...
I stole this. Thankyou.
Note last para demerger costs, reiterated from Liberum previous comment. Liberum has always been a high end outlier on price.
Wickes valuation ‘out of kilter’, says Liberum
Wickes (WIX) is ‘too cheap’ considering the future prospects of the DIY and building supplies retailer, says Liberum.
Analyst Wayne Brown retained his ‘buy’ recommendation and target price of 360p on the stock, which fell 4.4%, or 7p, to 151p yesterday.
The group delivered ‘robust’ performance in the fourth quarter boosted by home insulation sales amid the energy crisis, enabling management to reiterate full-year guidance for 2022.
‘Into full-year 2023, management is cautiously optimistic, although higher energy costs and bringing forward pay awards mean we expect consensus full-year 2023 profit before tax to lower by £2m-3m from the current £59m,’ Brown said.
‘Despite this, Wickes is delivering good underlying momentum, reflecting its balanced model and continued market share gains.’
The shares are up 31% since their September lows but Brown said they ‘still trade on a current full-year 2023 price-to-earnings ratio of 0.5x’.
‘A strong net cash balance sheet, 13% free cashflow yield when demerger costs fall away, and a dividend yield of 6.9% all highlight a valuation that is significantly out of kilter with what the group is delivering and its future prospects,’ he said.
The RXUK range of research presents an independent and unbiased review of the performance of the continents’ best ecommerce and multichannel retailers. Seven reports are published every year with a comprehensive ranking and analysis against six key performance dimensions, providing an accurate benchmarking tool to help you stay ahead of competition.
Wickes, which sells online and through 230 shops offering multichannel services, is ranked Top50 in RXUK Top500 research.
Finally, ‘ Our new store in Bolton opened in October, and there are plans for further openings in 2023.’
So there’s no change to the ongoing plans to spend cash on going for growth
We know at least not to expect any surprises on last year when the results come out. Similarly I think on the dividend.
I personally think this will bounce, tempted to buy in although sitting on a loss ATM bought in at £2.60
Don't know about 'the market.' I didn't. Would prefer they had set the PBC between the 2 figures, rather than 'in line with.' Perhaps others think the same.
Glad they think profit will be in line with expectations. Imagine what they would have done to the sp if it wasn't! Down 6% was the market expecting a lot more?
Obviously dependent on how trading this quarter goes, it seems possible the outlook that’ll come with results will be relatively positive on figures for the current year, with raised energy costs offset against one-off de-merger costs not repeating this year.
https://www.lse.co.uk/rns/WIX/wickes-group-plc-trading-update-4y660cpfwrjmtuo.html
Taken as a whole, showing resilience, with 25.8% increase over the quarter, and 3.5% over the year. Appears that PBT will support dividend.
This looks cheap to me and no debt.
Attracted by kingfisher q3 updating for the period to 19th November - sales growth.
Hopefull Q4 will be good and some traction given to SP.
Dividend at 7 -8% also looks good and sustainable.
Well done. Thanks for that.
31st Jan, on their calendar now.
https://www.wickesplc.co.uk/investors/investors-overview/financial-calendar/
If anyone uses ii you may want to log in today to see all the changes to the format, before you get caught out trying to trade at short notice tomorrow as they have moved quite a few things around. Personally not impressed but still early to get used to it.
Can't wait to see it and may decided to buy another £5k worth:- According to Investopedia, this is one of the few kinds of businesses which do well in recession situations. The yield of around 8% we have seen this year is highly acceptable too.
Well, I just thought we were due something soon so popped up like some of the other greenery is starting to do. Wondered if anyone had seen anything to get me up relatively early.
And as you say, I thought that was worth a mention as I don’t think it will rate a comment from Wickes until we get the full results, and outlook for the current financial year.
Cheers.
Good to see you back Culpepper, hope all is well. I haven’t seen any TU date either.
Good reminder on the one-off costs dropping out, particularly the hefty IT programme due to finish by this spring.
I’d also expect the horrid cold spell in Nov/Dec will have focussed a lot more people towards insulation and draft excluding.
The warmer spell after played havoc with my hibernation plans though :/