Member Info for Culpepper

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.”

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/

Didn’t extol the virtues of listing in that one. More the work in getting there.

Guessing it’s sensible not to go too far down that road, and re-igniting the placing or not thing, he can’t anyway, whatever they have in mind to do or not.

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.

A few picked up on it today. Not a recommendation from me, but those getting in early more likely to get greater advantage from buy-back than me.

Reflected in that, the first comment I think on share price.

“Furthermore, the board notes the continued decline in share price and is considering whether or not to use its authorities to buy back shares on the market if it deems it to be the best use of capital and accretive to shareholders."

* Kobberminebugt Licence

* Samples of the main Josva vein returned up to 11.6 % Cu over 0.5 m. Minor gold and silver grades were also reported.

* The 2023 fieldwork plan revolves around a detailed airborne geophysical survey across the whole licence area aimed at signaturing the mineralisation at Josva and Lilian and using this as a proxy for further discoveries.

* Saqqaa Dyke

* Amaroq is planning on conducting a targeted surface core drilling programme into the potential strike extension of Saqqaa Dyke below the Nalunaq Valley floor and previously signatured from ground geophysical surveys.

* Saqqaa peridotite dyke is known to host semi-massive and disseminated magmatic sulphide mineralisation, with elevated concentrations of Nickel (up to >1%), Copper (up to 6% in float samples), and Platinum Group Elements (up to 10 g/t Pd in channel samples).

* Stendalen Licence

* A Detailed geophysical survey will be conducted across the Stendalen layered intrusion in order to assess its potential to host Ni sulphides at depth and on its flanks.

* The Titanium/Vanadium hosting intrusion will also undergo ground reconnaissance and initial stratigraphic drilling to signature this mineralisation as well as assess the Ni sulphide hosting potential.

* The Paatusoq syenite intrusion will be visited and sampled in 2023, with the main objectives being to follow up on historic radiometric anomalies and identify areas of mineralisation. Drone surveys may be carried out to improve geological maps of the intrusion.

* A virtually unexplored layered gabbro intrusion in contact with the Paatusoq syenites may also be visited and assessed for its similarities to the Stendalen gabbro intrusion.

2023 Exploration and Development Workplan:

Gold Projects

Nalunaq

In preparation for the 2023 field season and enabled by the debt financing, Amaroq is finalizing mine design and schedule for the up-dip portion of the Mountain Block, thus laying the groundwork for a trial mining area. In order to realise this the Nalunaq project team is working on:

Site Preparation - June to August, the site will undergo logistical planning, detailed engineering design, procurement and mobilization of equipment and project teams in preparation for underground development as well as construction of associated infrastructure.

Mine Preparation - August to January, following the mobilization of equipment and personnel, the existing developments in the Mountain Block will be re-opened and rehabilitated with all required mining services installed.

Trial Mine Operation - January 2024 onwards, Amaroq intends to commence a new operation within the Mountain Block with trial mining and ore production feeding an initial stage (gravity circuit) trial processing facility constructed on the valley floor.

In addition to this and to facilitate progressive resource growth in this trial mining area, the Company is conducting a programme of mountain drilling in the trial mining area and further up-dip

Nanoq

The 2022 season saw the completion of a 407.65 km2 high-resolution heli-borne geophysical survey across the Nanoq, Siku and Jokum's Shear gold projects with the aim of defining geological models to direct future drilling campaigns.

These results have highlight a number of additional targets which will be assessed during field investigations in 2023 as well as site preparation ahead of initial drilling in 2024.

Vagar Ridge

While Amaroq will focus its efforts on the development of the Nalunaq deposit during 2023, Amaroq will aim to construct a robust geological and mineralisation model to inform future exploration at Vagar. Ground preparation and drill readiness preparations will also occur ahead of the 2024 season.

Strategic Minerals Projects (Amaroq 51%)

Sava

The 2022 field season saw the completion of a two drillhole scout drilling programme across two target areas along with associated mapping and sampling across the licence.

Amaroq has proposed a 2023 season incorporating further scout drilling on at least two separate IOCG targets along with further ground exploration in the form of geological and alteration mapping guided by external IOCG specialists.

North Sava

An airborne geophysical survey of approximately 5,100 line-km was completed across the North Sava sub area targeting the continuation of the mineralisation and mineral potential already identified at interpreted by the Amaroq geology team and external consultants with conclusions are exannounced in H2-23.

Kobberminebugt Licence

Samples of the main Josva vein returned up to 11.6 % Cu over 0.5 m. Minor gold and silver grades were also reported.

The 2023 fieldwork plan

It’s very simple.

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.

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.

There’s several other bits of reporting, nothing downbeat, and getting repetitive. Would welcome any analyst comment.

Investors Chronicle short summary

Wickes' shares rise after new dividend policy

Shares in Wickes (WIX) climbed 6 per cent this morning after the home improvement retailer launched a £25mn buyback programme and overhauled its dividend policy.

Dividends will be based on “a cover range of 1.5 to 2.5 times adjusted EPS (earnings per share)”, compared with its historic post-tax payout ratio of 40 per cent.

In the same update, the company also reported a 3 per cent bump in like-for-like sales and announced a new focus on cash as a measure of balance sheet strength over lease-adjusted debt. Its full-year dividend will be maintained at 10.9p a share. ML

I wouldn’t say that. Share buybacks at what they take to be a low price, and investing for the future on selective store openings, and digital sales, whilst paying a divi.

I couldn’t ask any more from a progressive company.