Home improvement retailer Wickes Group plc has reported a declined business in 2024. Weaker consumer demand for larger ticket items and operating cost inflation caused a decrease in adjusted profit before tax.
The company’s adjusted profit before tax in 2024 was only £43.6 million, down from £52 million in the previous year and representing a 16.2% decrease.
Revenue in 2024 reached £1538.8 million, dropping from £1553.8 million in 2023, equivalent to a 1% decrease. Retail revenue, which included sales from products sold to DIY customers and local trade professionals, grew by 1.9% from £1189.1 million in 2023 to £1212.3 million in 2024. Retail LFL revenue increased by 1.5%, driven by positive volume growth, with selling prices in mild deflation.
Within Retail, Wickes Group’s TradePro business continued to perform strongly, with sales increasing by 14%. This was driven by the number of active members increasing to 581,000 in 2024.
The company added that its retail market share had grown to record levels, with increases across numerous categories, particularly in interior paint, decorative accessories, and garden projects.
However, revenue in the Design and Installation segment dropped significantly, from £364.7 million in 2023 to £326.5 million in 2024, representing a 10.5% decline or 13.9% on an LFL basis.
According to the company, the decline reflected challenging market conditions, with a softer market environment for large consumer purchases. Ordered sales in 2024 saw a single-digit LFL decline but returned to year-on-year growth in Q4 2024 for the first time since Q2 2023.
“We faced considerable cost headwinds this year with another significant rise in the National Minimum Wage as well as more general inflationary pressures across the business,” said Mark George, Chief Financial Officer of Wickes Group.
Looking ahead, Wickes Group said trading in the first 11 weeks of 2025 has been in line with the company’s expectations, with positive LFL sales growth continuing in the Retail segment. In Design & Installation, while delivered revenue growth remains negative, ordered sales are experiencing positive growth for the second quarter in a row.
“The unforeseen changes to National Insurance Contributions rates and thresholds announced in the Autumn Budget 2024 are expected to add c. £6 million to our direct costs annually or c. £4.5 million pro forma for 2025. We will seek further productivity gains to help offset this additional cost headwind, as well as another significant increase in National Minimum Wage, planned for April 2025,” said George.
