Wickes Group PLC (LSE:WIX) said it was seeing an “improved trend” in recent weeks as it reported a decline in sales in the first half of the year and a fall in profits.
The DIY and building products retailer also declared a 3.6p dividend per share and kept its guidance unchanged for the full year, including maintaining a full-year payout of 10.9p.
For the first 26 weeks of the year, the FTSE 250-listed group reported total revenue of £799.9 million, down 3.4% compared to a year earlier but with lots of moving parts, including a record market share for the retail business, 14% growth for the TradePro wing but a 17% decline for the decline & installation business.
Adjusted profit before tax shrank 25% to £23.4 million as margins were squeezed due to the impact of pressure higher wage inflation and other general inflationary factors, partly mitigated by planned productivity initiatives.
Statutory PBT was up 8.5% to £22.9 million, while net cash levels fell to £152.4 million from £190 million a year ago.
This reflected the initial payment for the acquisition of Solar Fast and £28.9 million returned in shareholders distributions.
Rebranded Wickes Solar, the roll-out has begun with point-of-sale assets in 50 trial stores and a “digital journey” live on the Wickes website.
Trading in the third quarter has seen like-for-like sales improve in retail, while design & installation is “stabilising”.
Chief executive David Wood said: "We are on track for the remainder of the year and have been encouraged by trading at the start of the second half."
He said the first-half performance demonstrated the "strength of our balanced business model" as some markets remained tough and Wickes was not immune, though there had been a strong response to the new value-led Wickes Lifestyle Kitchen range.