Wickes Group PLC (LSE:WIX) “continues to demonstrate an ability to take market share in its Local Trade and DIY verticals”, but persistent cost pressures have forced analysts at Panmure Gordon to downwardly revise the home improvement retailer’s profit guidance for the year ahead.
Panmure now expects Wickes to finish with £43.6 million in profit before tax, down from prior guidance of £47 million.
It follows Wickes’ annual results call on Tuesday when the group posted flat revenues and a marginal increase in PBT.
Panmure’s forecasts, however, do not capture the proposed acquisition of Solar Fast announced today.
“Wickes now trades more in line with the non-food retail sector and offers a 7.3% dividend yield. We believe its operational gearing presents an opportunity to play consumer demand recovery over the course of the year,” said Panmure analysts.