Shares in Wickes Group PLC (LSE:WIX) rose 3.3% to 222p after the group reported profits that beat expectations and said it continued margin resilience despite cost pressures.
Pre-tax profit for 2025 increased 14.4% to £49.9 million, ahead of a company-compiled consensus of £48.5 million, on revenue of £1.6 billion, up 5.9%, which had been published earlier.
Growth was stronger in the first half, with second-half profit rising 12% as elevated labour costs weighed on margins.
Broker Panmure Liberum noted that second-half EBIT margins were broadly flat, while operating costs rose 6.4%, reflecting wage pressures. Gross margin improved modestly, supported by the trading mix.
Cash generation remained strong, with net cash rising to £92.0 million following completion of a £20 million share buyback. Operating cash inflow reached £194.0 million, helped by working capital inflows linked to a strong Design & Installation order book.
The board proposed a final dividend of 7.3p per share and announced a further £10 million buyback, alongside additional share purchases for employee schemes in 2026.
Trading in the first weeks of FY26 reflects “the strength of our balanced business model.” Demand for outdoor projects has been affected by wet weather, though indoor and installation activity remains resilient.