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(Alliance News) - Shares in Wickes Group PLC surged early Friday after the DIY retailer said its earnings for the year would beat market expectations due to a strong period of trading.
The Watford, Hertfordshire-based company lifted its full-year adjusted pretax profit guidance to no less than GBP83 million. The building supplies retailer noted that market consensus lies around GBP74 million to GBP75 million. The company booked half-year adjusted pretax profit of 46.5 million.
Shares in Wickes, which demerged from Travis Perkins PLC earlier this year, were up 10% to 236.80 pence in London on Friday morning.
Friday's upgrade came after a strong performance in the fourth quarter to date. Core sales were lower year-on-year against tough comparatives, but remain materially ahead on a two-year basis, the company noted.
Wickes boasted that its business model and strong supplier relationships have led to a better-than-expected margin performance, as it has been able to mitigate inflationary pressures.
"Our forward planning and early strategic decisions have resulted in an improved profit performance, and we continue to navigate inflationary pressures and raw material constraints well. Clearly, this remains a time of uncertainty, however our differentiated business model leaves us well-placed to continue to outperform within a large and growing home improvement market," said Chief Executive David Wood.
By Will Paige; willpaige@alliancenews.com
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