Wickes Group PLC (LSE:WIX) has reported a solid start to the year, with performance in line with expectations despite adverse weather impacting core sales.
For the first 16 weeks of the year, the DIY group’s like-for-like (LFL) revenues were down 0.6%, while delivered do-it-for-me (DIFM) sales increased by 9.3%.
Trade sales continued to perform well, with a healthy order book and a growing TradePro customer base.
Chief executive David Wood said: "This has been an encouraging start to the year where we have again seen the benefits of our uniquely balanced business model delivering well in a challenging economic environment."
Broker Liberum called the update from Wickes a “solid” one. It also reckons the shares are cheap given the business’ strong free cash flow, the £95mln it has in the bank and the 8% dividend yield.
“Strategically the group is doing all the right things and an update on capital allocation later this year could provide a further catalyst,” Liberum added as it repeated its ‘buy’ advice and 360p a share price target.
Wickes stock was changing hands for 139p in early trade, up 1.3p. Of the seven banks and brokerages logged as following the company, five are positive on its shares. The consensus price target is 199p.