Wickes Group PLC (LSE:WIX) expects a fall in full-year profits despite record first-half sales as it navigates a difficult macroeconomic environment.
The DIY retailer said recent trading softened from the levels experienced during the pandemic and that the current macro environment is uncertain.
As a result, despite reporting record first-half sales, the group expects full-year adjusted profit before tax to be in the region of £72mln-£82mln, down on £85mln last year.
Revenue in the first half rose 1.3% to £822.3mln, though like-for-like sales growth slowed to just 0.8% versus 23.4% on a three-year basis, and adjusted PBT fell 1.9% to £45.6mln.
“As previously stated, we have seen some softening in the DIY market from the very high levels of demand experienced during the pandemic,” said chief executive David Wood.
“However, we continue to outperform the wider home improvement market and our confidence in our long-term strategy is unchanged, reflected in our continued investment to drive further growth.”
“Looking ahead, we remain confident that our uniquely balanced business model, coupled with our market-leading value, leaves us well-positioned within a large and growing home improvement market.”
Wickes also declared an interim dividend of 3.6p, up from 2.1p, reflecting its previously started intention to maintain the same full-year cash dividend as the past full year's.
Net debt was also shaved slightly to £558.5mln from £564.8mln.