Wickes Share Discussion Threads

[philanderer] 30/11/2022 10:15

Retail hit across the board this morning.

[creditcrunchies] 29/11/2022 08:17

The important part to remember is people do DIY to save money that's the reason I did in the first place when I bought a home because at that age starting a family we struggled all of sudden more people on one income. Maintenance on your house is not discretionary neither is insulating or heating it. Most of what Wickes sells is stuff you need if you own a house.

[essentialinvestor] 27/11/2022 14:18

The huge amount of shares KGF buys back and cancels helps support the SP,
to an extent at least. Last week's statement stronger than I expected.

[essentialinvestor] 25/11/2022 13:48

Given the size of some the B&Q sheds they could have a solar farm on the top
to help curtail energy costs.

[nice_bloke] 25/11/2022 13:23

B&Q-owner Kingfisher achieved higher sales in the past three months as customers sought to improve the energy efficiency of their homes. Total sales grew by 0.6pc to £3.26bn in the three months to the end of October compared with the same period last year. Like-for-like sales were 0.2pc higher.

[elongate] 25/11/2022 08:41

Yes. Wix comment was for next year when contracts expire. Perhaps Kgf are in a more fortunate position across their estate. And things may improve.
Kgf has ample cash. Buybacks continue.

[essentialinvestor] 25/11/2022 08:10

Elon

"The owner of B&Q, Castorama, Screwfix and Tradepoint said the guidance included additional P&L investments to strengthen its Screwfix France store opening plan, additional wage support for colleagues, and slightly higher energy costs.."


One of yesterday's reports on Kingfisher.

[elongate] 24/11/2022 17:48

Sure they will be in the current mix,as usual.
Wix however, made a specific comment at Q3update re. energy looking further ahead in FY2023, when their contract ends March, “ If energy costs were to remain at the current price cap for businesses.”
No reason Kgf are required to do similar, if it indeed applies.

[essentialinvestor] 24/11/2022 15:07

KGF updated guidance today so energy costs would be in the mix.

They've knocked £10 million from the top end but that looks to be on
the France Screwfix roll out.

[elongate] 24/11/2022 10:27

As a comment, Kgf has not as far as I know seen fit to mention it’s own energy bills in the way that Wix did in it’s own Quarter 3 update. It is possible I have missed it somewhere, but I would think their bills are substantial.

[creditcrunchies] 24/11/2022 10:17

Core DIY will do very well in this environment as people have a lot of maintenance jobs and energy saving requirements.

[elongate] 24/11/2022 10:12

Kgf reports.

Strong energy efficiency product demand supporting DIY sales
DIY sales continue to be supported by new industry trends such as more working from home and a clear step-up in customer investment in energy saving and efficiency.

Current trading and outlook
The fourth quarter has started well, with good trading momentum. For the three weeks to 19 November 2022(6) LFL sales were +2.8% and +16.2% on a 3-year basis. Sales remain resilient across our customer segments (DIY and DIFM/trade) and banners, with ongoing strength in energy efficiency product sales and demand from the trade segment.

[philanderer] 18/11/2022 16:43

Good volume today 2million+

[creditcrunchies] 04/11/2022 08:45

Dividends today should see some of that reinvested

[creditcrunchies] 04/11/2022 08:42

That's useful to look out for Nick thanks. It's a good point it doesn't factor people doing their own kitchens and bathrooms. I did our kitchen but had to get a specialist company to supply and cut the work tops to my custom measurements. The bathroom I fitted everything, did all of the plumbing but the tiling was all done by a pro.

[nickrl] 02/11/2022 19:14

@credit WIX don't split out profit between core and DIFM although do show revenue split which was 75 core / 25 FIFM at H2. Its pretty obvious that DIFM is going to fall away as its high value investment for homeowners but given installation side is outsourced they aren't exposed to a fixed cost base. The upside may well result in more kitchens being sold direct to DIYers although what the margin is there over DIFM isn't revealed.

[creditcrunchies] 02/11/2022 10:48

Our local Wickes was busy as usual still at the weekend a lot of shoppers buying DIY essentials - paint, wood, plasterboard, plumbing parts, aggregate. I did notice the kitchen section for new kitchen enquiries was dead no activity. I'd say core sales are strong but large ticket purchases like kitchens/ bathrooms will be delayed purchases now. Not sure what impact that has overall

[philanderer] 27/10/2022 09:49

Couple of good days. Investor interest seems to be swinging away from large to small caps recently.

[philanderer] 25/10/2022 08:03

In the doldrums at the moment.

[elongate] 23/10/2022 07:50

I had rather expected some response to that, one way or another, but none forthcoming yet.

[elongate] 22/10/2022 08:15

The transitional services agreement including IT between Wix and TP ends 2 years after demerger, but can be subject to a one off 6 month extension. Wickes pays TP for services, whilst getting it’s own new IT up and running.
A compelling reason to complete the transition to full independence.

[elongate] 21/10/2022 18:41

nickrl

We were actually speaking of the Wix dividend, and high yield against a low share price.

But forward looking, as you mention, there is a very important consideration everyone has failed to mention.

When looking forward, one should not stop at the well documented economic gloom, but look also at the company within it. Wix estimated at year end an additional about £30m investment was required to migrate IT away from Travis Perkins.
£12.1m was paid in the first half of this year, when at the same time as giving their years guidance, repeated today, the company advised it remained on track to complete separation of the IT infrastructure within two years of the demerger - ie before end April 2023. FY Capex within guidance this year was expected to be £40-£45m.
I cannot say that the balance of separation costs will necessarily fall within that sum, but IT separation cost is weighted to the second half and I would expect the company to get it’s IT squared away as a priority, and accordingly and optimistically there will be I shall say for argument up to £30m ‘extra’ in the kitty next year they don’t have to work for.

But I don’t want to argue over sums - shall we just say a lot more cash going spare?