RE: Just an observation .......................20 Nov 2022 10:45
Wickes Group - got to be over exposed to consumer sentiment and spending that occurs before and after house moves?
Increase in minimum wages by 10% will hurt, electricity costs are expected to go up by £7.5m, 2021 saw interest paid of around 5% on highly leveraged debt - this will increase significantly.
Nom's rating - AVOID as free cash flow will be impacted by wages and other inflationary figures; a significant hit from energy costs has been disclosed as coming down the road and higher interest rates will all drain cash. A credit downgrade might kick off even more interest rate rises on an already colossal debt. The dividend will also be under pressure.