Wickes Share Discussion Threads

[creditcrunchies] 20/1/2023 12:12

Q4 trading update is on 31st January that's what it says on the calendar

[mjneish] 18/1/2023 08:57

There should be a trading update coming up soon. WIX release one every three months. Last year it was on the 20th of January.

[spawny100] 16/1/2023 08:59

Same old pattern. A few buys at 159 first thing then drops to 150 or so. Weird. But there is a much larger volume today than lately for some reason.

[spawny100] 09/1/2023 10:34

Fairly predictable trading pattern here. Starts the day high with a few trades at premium prices then sinks into lunchtime to rise in afternoon again.

[spawny100] 05/1/2023 09:55

I'm liking this share. Good solid rise from when I bought in around £1.20 so locked in a very decent dividend yield. I know there are big investors like Baron who were saying this was cheap at £2.

[creditcrunchies] 05/1/2023 08:58

My SIPP only gained 10% in 2022 but I did have to dump an absolute dog of a stock with a 50% loss which affected the overall performance. My target is 20% compounded annual growth but over 4 years I'm only getting 15% per annum on average at the moment.

[wad collector] 03/1/2023 16:48

Yes and let's keep the bid rumours coming. My portfolio did not enjoy 2022.

[philanderer] 03/1/2023 14:10

Good start to 2023 :-)

[philanderer] 23/12/2022 00:11

‘Tip of the iceberg’: How Wickes used AI to drive £7m in incremental revenue

[creditcrunchies] 13/12/2022 23:16

A surprise 250p bid on Wickes could actually happen this is a perfect market for those that want quality DIY product, competitive pricing, UK wide retail coverage, good customer service, rising dividends for investors, meeting expectations in very tough economic climate.

[elongate] 13/12/2022 11:22

Renovation and Maintenance market.
hxxps://starkgroup.dk/newsroom/latest-news/stark-group-enters-uk-market-through-acquisition-more-600-branches

STARK GROUP ENTERS THE UK MARKET THROUGH ACQUISITION OF MORE THAN 600 BRANCHES
12 December 2022
STARK Group A/S achieves a milestone in its growth strategy. The Group has signed an agreement to acquire Saint-Gobain Building Distribution Ltd, which operates more than 600 branches and distribution centres in the UK.



The transaction comprises some of the UK’s leading brands in retail and distribution of building materials to professional craftsmen. These include the builders’ merchant Jewson, strong local brands such as Gibbs & Dandy and JP Corry in Northern Ireland, specialist brands Jewson Civils Frazer and Minster, as well as International Timber.

The acquired business is expected to generate net sales of around GBP 2.3 billion (EUR 2.7 billion) in 2022, taking STARK Group’s total pro forma annual net sales to around EUR 9 billion.

STARK Group has doubled net sales through organic growth and acquisitions since 2019 when the Group acquired Saint-Gobain’s German distribution business. At that time, the company almost doubled in size as well, from EUR 2.3 billion to EUR 4.1 billion.

The acquisition of Saint-Gobain Building Distribution Ltd is based on an enterprise value of GBP 740 million (EUR 850 million) and is STARK Group’s largest acquisition to date.

Group CEO Søren P. Olesen says:

“We have a strategy that successfully focuses on professional craftsmen and the renovation and maintenance market, which this acquisition fits very well into. In 2019, we bought Saint-Gobain’s German distribution business, and there are many similarities in this acquisition. We will do our utmost to develop, grow and invest in the company making it the professional craftsmen’s preferred choice.”

“Despite the current tough macro-economic environment, the fundamental drivers for the renovation and maintenance market in the UK are attractive. We are facing a challenging transition year, but it is a solid company that we can make thrive and grow. The more than 600 branches and distribution centres are in good locations across the entire UK. We will invest in the business, the people, and the distribution. We have acquired a company with whom we can continue our growth journey,” says Søren P. Olesen.

Attractive market fundamentals in the UK housing market

While the market for new construction is cyclically sensitive, most of STARK Group’s net sales are concentrated in the renovation and maintenance market, which has more resilience.

The UK housing stock is amongst the oldest in Northern Europe. A third of all houses were built before 1945, and the average house is 65 years old. At the same time, half of all British households are facing significant renovations as the UK has the target of upgrading as many houses to Energy Performance Certificate (EPC) C-level by 2030 at the latest.

The UK population is projected to grow by 1.1 million (1.6%) to 68.7 million from 2022 to 2027, and more and more people live alone, which is increasing the need for newbuild and renovations of the existing housing stock.


The acquisition is expected to complete in the spring of 2023

The seller, Compagnie de Saint-Gobain SA, is among the world’s leading manufacturers of materials and services for renovation, light construction and the decarbonization of construction and industry. It only has distribution in select markets. Retail and distribution of heavy building materials is STARK Group’s core business.

The acquisition of Saint-Gobain Building Distribution Ltd is STARK Group’s 18th acquisition since CVC Capital Partners Fund VII took ownership of the company in May 2021.

The transaction is expected to close in the spring of 2023.

About STARK Group

STARK Group is a leading business-to-business distributor of heavy building materials for the construction industry in Northern Europe, with a strategic focus on serving professional craftsmen. STARK Group has net sales of approx. EUR 6 billion and serves c. 10,000 suppliers and 275,000 customers from its 550 locations. Headquartered in Denmark, STARK Group has approx. 12,500 employees in Germany, Austria, Denmark, Sweden, Finland, and Norway. The Group has doubled in size over the last couple of years through acquisitions and organic growth, and today, it holds a leading national or regional position in all markets.

Share:



STARK Group invests in new 65,000 sq.m. distribution centre in Sweden STARK Group expands in Sweden
Kaspar Bach Habersaat
Kaspar Bach Habersaat
Group Chief Communications Officer
[phone]

[creditcrunchies] 07/12/2022 14:00

Funny I noticed a board outside the entrance of our local Wickes last weekend it said urgently require kitchen fitters please enquire within. Not something you'd expect to see in a recession that's for sure

[philanderer] 06/12/2022 00:06

'How Wincanton delivered at pace to provide Wickes with a robust platform for growth'

[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.