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Culpepper the volume of bu backs are so low to make it neither use nor ornament against any relative comparison you could name. Big or small
I didn’t expect it to push the price up necessarily. It’s in the EPS, and going to divi.
On divi. You have one.
Plan to maintain FY2023 dividend at 10.9p - based on a strong balance sheet and confidence in the business performance we plan to maintain the FY2023 dividend at 10.9p per share. Together with the impact of IAS38 on our adjusted PBT, dividend cover will initially be outside our new target range. The Board intends to maintain the dividend at 10.9p until cover moves back into the target range as profits recover.
First few days have been derisory.
About 12k in value a day.
At this rate the £25m will last 5 years !!
I'm in Harbour they have double WIX shares and everyday spend £1m on buybacks.
Why are WIX values so low ?
At this rate I would prefer a dividend
After bathrooms, little bit sales talk around kitchens.
https://www.insightdiy.co.uk/news/wickes-study-shows-renewed-interest-in-pantry--larder-cupboards/12717.htm
And they’re away. Improving the EPS little by little.
Marshall’s trading report today.
https://www.lse.co.uk/rns/MSLH/trading-statement-8bdgulft9ddtrkx.html
Not as confident as debt-free Wickes.
Https://www.insightdiy.co.uk/news/study-reveals-wickes-as-most-prominent-uk-bathroom-brand/12709.htm
Https://www.insightdiy.co.uk/news/wickes-opens-new-chelmsford-store/12707.htm
Notification of Share Buyback Programme
28 July 2023
Following the trading update released on 25 July 2023, Wickes Group plc (the "Company") is pleased to announce a share buyback programme.
The first tranche of the share buyback programme (the "Initial Programme") will be for a maximum aggregate market value equivalent to £12,500,000 (excluding any associated costs and stamp duty) which will be bought back in the form of the Company's ordinary shares. The Initial Programme will commence on 31 July 2023 and will end on or before 1 February 2024. The sole purpose of the Initial Programme is to reduce the Company's share capital. The Company intends to cancel any shares purchased.
The Company has entered into non-discretionary instructions with Investec Bank plc to conduct the Initial Programme on its behalf and to make trading decisions under the Initial Programme independently of the Company.
The Initial Programme will take place within the limitations of the authority granted to the Board of the Company by its annual general meeting, held on 23 May 2023, pursuant to which the maximum number of shares to be bought back by the Company is 25,963,799. The Initial Programme will take place in accordance with the Market Abuse Regulation (596/2014) as it forms part of domestic law by virtue of section 3 of the European Union (Withdrawal) Act 2018 (as amended) and Chapter 12 of the Financial Conduct Authority's Listing Rules.
Any further tranches of the buyback programme, which may be conducted after completion of the Initial Programme, will be announced in due course.
“ We believe that when different backgrounds, different cultures, different nationalities, and different perspectives come together, we’ll be more creative, more inclusive and more productive.”
I will say this he was trained well !
https://www.dailymail.co.uk/news/article-12331465/Wickes-cashier-corrupt-Nigerian-state-governor-raked-157million-countrys-public-funds-buy-private-jet-boarding-school-fees-children-fleet-armoured-Range-Rovers-ordered-pay-101million.html
Ahh the race card...ho hum...
Maybe got the capacity to set off a few biased posters, on what companies should or should not be doing, even in-house. I think it speaks well for Wickes ESG credentials.
https://www.theretailbulletin.com/home-and-diy/wickes-partners-with-flair-impact-to-undertake-company-wide-anti-racism-survey-26-07-2023/
Liberum: Expect more buybacks from strengthening Wickes
Trading has improved at Wickes (WIX) and Liberum says share buybacks are now going to be a ‘recurring theme’.
Analyst Wayne Brown reiterated his ‘buy’ recommendation and target price of 360p on the Citywire Elite Companies + rated stock, which jumped 6.6%, or 8.4p, to 135.4p yesterday.
He said trading in the second quarter has ‘improved in the core business, inflation is lower and do-it-for-me remains steady’ although DIY is negative but improving.
‘That’s a pretty good outturn having delivered marginally positive like-for-like sales after a tougher first quarter,’ said Brown.
‘But all focus should be on cashflow and the updated capital allocation policy. Share buybacks are now going to be a recurring theme – over and above a £50m year-end net cash position. Dividend per share is being held at 10.9p for now, but a target range of 1.5-2.5x cover provides clarity.’
Brown said that if ‘one wanted a sign of confidence, there it is’.
‘Overall, a good update and the valuation looks very compelling,’ he concluded.
It looks to me as though Liberum has commented, reiterating buy and 360p, always a high end outlier. I can’t access it.
It sells DIY and building stuff. Most will never have heard of Fraser Longden, what he says or not, and neither know about or seek to understand ideological crap. They go in, buy what they want, and leave.
You’re banging a dead duck.
Rose has left NatWest for imprinting her political views upon others...Our CEO needs to go as well.
So......No....... to political endorsement by ALL companies !
And in theory, £25m share buyback done at this price ( unlikely) should add 7% to EPS. I think.
Liberum will pick up on that, if/when they review. I expect them to do so.
One more thing, which may alter perspective in overall consideration.
IT separation is now complete. Last financial year that spend was £24.4m.
Mick. On your comment
That’s obviously going to result in broker forecasts dropping, or they might have already factored this in? I can’t find any broker research unfortunately, so am in the dark on this point.
—————
I don’t know, did you maybe miss this bit.
● Our reported adjusted PBT going forward will be after the impact of IAS38 accounting. In FY2023 only, we will also reference adjusted PBT before the impact of IAS38 (ie the profit that would have been delivered if all of the IT investment had been capitalised), in order to align with analysts' original forecasts for the year.
My understanding is that LFL is a reflection of revenue change using as far as is possible similar circumstances as last year. eg excludes new stores.
The inflation figure, varying across categories, relates to input cost to Wickes on goods/services.
As always, very willing to be corrected on anything.
Thanks Mick. I thought like for like was a volume not a value measure. So inflation factored out.
CONTINUED.........
Paul’s opinion - I think this is really encouraging, and the big yield + meaningful buybacks, reinforces that this is a decent business, well financed, and whose shares seem cheap.
It’s one of my favourite value shares, and that remains the case, so a thumbs up.
Let’s hope the diversity & inclusion manager keeps his trap shut in future! Most people don’t want companies to broadcast their virtue-signalling. Just treat everyone fairly, and then there aren’t any problems either way. And never, ever, insult your customers! (even if it is taken out of context). So I hope WIX has learned from its recent communications debacle.
Good fundamentals, a cheap valuation, generous divis/buybacks, and a chart that's looking nice too - lots to like here!
https://app.stockopedia.com/content/small-cap-value-report-tue-25-july-2023-quiz-tstl-rch-wix-stem-pier-fa-yu-ecel-tymn-972494?order=createdAt&sort=desc&mode=threaded
SUBSCRIPTION ONLY
Q2 LfL sales improved to +3.0% (was -1.8% in Q1), still well below inflation though.
H1 LfL sales were +0.7%
I can’t see any benefit from the company splitting out “core” and “DIFM” (do it for me) sales figures.
Inflation - it’s not entirely clear if this is talking about input cost inflation, or selling price inflation? Probably selling prices I would guess -
Inflation continues to slow, in line with our expectations, falling from 9% in the first quarter to 4% in the second. Wickes continues to retain its strong price position relative to the sector.
Cost inflation - sounds reassuring -
Costs remain well controlled, with savings flowing through as expected in distribution, logistics and store operations.
It doesn’t say anything about gross margin, which is surprising. I would imagine that importing a large quantity of bulky items would have seen big benefits on margin through reduced sea container freight.
IT spending - big upgrades are planned, and it says this will mostly be expensed through the P&L, rather than capitalised -
IT project investment is anticipated to be c.£17m in FY2023 and grow to c.£25m per year from FY2025…
The impact of this switch from capex to opex for some investment costs will have no effect on future cash flow. For four years PBT will be reduced until the higher IT opex is fully offset by lower IT amortisation costs. We estimate the impact on PBT to be £8-10m in FY2023, £6-11m in FY2024, £4-7m in FY2025 and £1-3m in FY2026;
That’s obviously going to result in broker forecasts dropping, or they might have already factored this in? I can’t find any broker research unfortunately, so am in the dark on this point.
Capital allocation - various points made, including saying that it won’t need to use its RCF, expects to be in net cash throughout the year. More scope for paying divis, by adopting a broader range of dividend cover from 1.5x to 2.5x adj EPS (previously 2.5x cover).
Dividends - maintaining 10.9p total divis for FY 12/2023, giving a sparkling 8.1% yield.
Intention to hold the payout at 10.9p until cover returns to normal. There’s obviously some risk there, that a downturn in trading could scupper future divis, but they say they’re confident.
Share buyback of £25m announced today - that’s a lot, coming on top of a generous yield, and for a £350m market cap that implies buying back about 7% of the existing shares.
Paul’s opinion - I think this is really encouraging, and the big yield + meaningful buybacks, reinforces that this is a decent business, well financed, and whose shares seem cheap.
It’s one of my favourite value shares, and that remains the case, so a thumbs up.
Let’s hope the diversity & inclusion manager keeps his trap shut in future! Most people don’t want companies to broadcast their virtue-signalling. Just treat everyone fairly, and then there aren’t any problems either way. And never, ever, insult your customers