Wickes Group P. Regulatory News (WIX)

27 October 2021

Wickes Group plc - Q3 Trading Update

Strong performance on a two-year basis, profit guidance confirmed

Wickes Group plc ("Wickes" or "the Group") today provides a third quarter trading update and confirms profit guidance for the full year.

Wickes continued to perform well in the third quarter, with a resilient sales performance. As expected, Core sales moderated as we annualised tough 2020 comparatives, and remained strongly ahead on a two-year basis, underpinned by our digital leadership and operational strengths.

Core sales were supported by strong performance in local trade, where home renovations continue to drive robust order books for our trade customers. Wickes operational strengths meant supply shortages had no material impact on sales in the period. As reported across the industry, we have seen price inflation accelerate, and we continue to manage this responsibly by focusing on cash margin recovery while maintaining our leading price position.

DIFM reported sales were ahead year-on-year, with an improving trend on a two year basis. As outlined at the interim results, Q3 DIFM ordered sales* were broadly in line with 2019. The total DIFM order book remains considerably higher year-on-year impacted by extended project completion lead times, and this will result in a higher carry over of orders into 2022.

The full year outlook for adjusted PBT** remains in line with our expectations and guidance given with the interim results.

David Wood, CEO of Wickes commented: "This resilient performance has been underpinned by our digitally-led and service-enabled customer proposition, while our agile business model has enabled us to continue to navigate inflationary pressures and raw material constraints well. We are well-placed within a large and growing home improvement market, and look to the future with confidence. I would like to thank all of my colleagues for their hard work and support as we continue to help the nation feel house proud."

*Ordered Sales are sales at point of order rather than delivery/project completion which triggers sales recognition in the accounts

**Adjusted PBT represents profit before tax on an IFRS basis and excludes adjusting items which will comprise demerger costs and IT separation costs for 2021