Wickes Group PLC (LSE:WIX) has forecast full-year adjusted pre-tax profits in line with market expectations after reporting strong quarter-four trading with sales up 11.5%,
In a trading update, the building materials supplier reported particularly strong growth in its Do It For Me business where sales in the 13 weeks to 31 December 2022 soared 34.5% on last year, although the prior year was hit by the omicron outbreak.
Core like-for-like sales rose 5.2% in the fourth quarter, continuing the improving trend since the summer.
Local Trade sales again performed strongly, with the digital TradePro customer base ending the year at 746,000 (+18% year-on-year), although DIY sales remained below last year but stabilised towards the end of the quarter supported by sales of energy saving products.
The company also reported an easing in pricing pressures aided by reductions in the cost of timber, and inflation, which was 9% in quarter four, “continues to trend lower”.
Wickes said the order book at the end of December was lower than 2021 but still above pre-pandemic 2019 levels with orders in the fourth quarter down “moderately” versus last year but on an improving trend from the third quarter.
The company said this trend has continued and orders in quarter one to date are in line with the prior year.
As a result, the company predicted pre-tax profits in line with City forecasts which it put between £72mln to £76mln.