Wickes Share Discussion Threads

[this_is_me] 31/1/2023 12:18

So far I am sitting on a 25% profit and expect the dividend yield still to be around 7.5%, getting close to 10% of my buying price.

The share price would need to double before I would even think of selling.

[philanderer] 31/1/2023 10:48

Wickes Group PLC, down 4.7% at 150.60p, 12-month range 111.10p-213.60p.

The home improvement retailer says that sales in the 13 weeks to December 31 were up 12% year-on-year, over the whole of 2022 sales were up 3.5%.

Looking ahead, Wickes expects pretax profit to be in line with current market expectations of between GBP72 million and GBP76 million. In 2021, Wickes recorded a pretax profit of GBP65.4 million.

Alliance News

[edmondj] 31/1/2023 10:44

Yes it looks so but I was equally surprised at lack of trading volume to start.

Meanwhile it appeared everyone was chasing their PETS.

[philanderer] 31/1/2023 10:33

Good update.

[creditcrunchies] 31/1/2023 10:12

I'll certainly be looking to pick up some bargains on a February dip as we go into the end of year earnings period. Wix pays 8% yield so looking to add more on weakness. I'm mainly in cash but held onto Wix

[creditcrunchies] 31/1/2023 09:26

I think a general market correction is on the cards now Nov to Jan is typically bullish then you get earnings season with the dividends from March

[careful] 31/1/2023 09:08

Not wise to look at share prices on day of results.
Too many casino fiddles going on.

I thought the trading update was solid, but not spectacular.
Happy to hold.

[creditcrunchies] 31/1/2023 07:34

* STRONG Q4 TRADING WITH GROUP SALES UP 11.5%

* FOLLOWING Q4 PERFORMANCE WE EXPECT FULL YEAR ADJUSTED PBT
TO BE IN LINE WITH CURRENT MARKET EXPECTATIONS

* WITH RECENT DECLINE IN WHOLESALE PRICES, WE CURRENTLY
EXPECT OUR
ENERGY COSTS IN FY2023 TO BE AROUND £10M HIGHER THAN FY2022

Just waiting on analysts and media reaction they always look for negatives

[creditcrunchies] 31/1/2023 07:12

This'll survive recession and still pay decent dividends I'd agree with the summary given in the trading update it's what I've seen people buying at our local Wickes stores. Core DIY and energy saving products with decent footfall above 2019 levels.

[spawny100] 30/1/2023 10:13

Nice chart from 120 - higher highs and higher lows. 120 was clearly too cheap but a great entry price though!

[philanderer] 27/1/2023 12:01

Buying today before next weeks update.

[creditcrunchies] 24/1/2023 08:35

I think the figures will be pretty good they'd have issued a warning by now. I've noticed that people are buying a lot of insulation products, oil filled heaters, coal, large bags of hardwood, kindling, hotties logs, paints, and just other general DIY products. The car parks are busy at weekends even busier than the run up to Xmas which were always higher than pre COVID days. The area I'm not so sure is kitchens and bathrooms

[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'