Wickes PLC shares rose on Friday after the company reported a substantial increase in yearly revenue and profit due to higher demand driven by the Covid-19 pandemic.
Shares were up 5.9% at 182.70 pence each midday on Friday in London.
In the financial year that ended January 1, the Watford, England-based home improvement retailer reported a pretax profit surge to £65.4 million from £28.9 million.
This was on a revenue jump of 14% to £1.53 billion from £1.35 billion.
Wickes credited this performance to increased demand, stemming from the Covid-19 pandemic.
‘The appetite to invest in home improvement played out strongly in 2021 as customers sought to complete projects either through DIY, employing a local tradesman or seeking concept to completion services on projects such as a kitchen or bathroom installation,’ the company stated.
‘Despite the easing of Covid restrictions, hybrid working patterns are likely to result in more time spent in the home for the foreseeable future, fuelling further desire to renovate and refurbish.’
Wickes, separated from Travis Perkins PLC back in April of last year, paid a final dividend of 8.8 pence, bringing its annual payout to 10.9 per share.
Looking ahead, Wickes said that it expects to make further progress this year.
In relation to the invasion of Ukraine, Wickes noted that it has no operations in Ukraine or Russia, and ‘minimal’ supply chain exposure to the region.
‘Looking ahead, we expect to continue outperforming the market and are well-placed to capitalise on the ongoing requirement for home improvement - namely an ageing housing stock, favourable consumer trends, and the increased focus on insulating and retrofitting homes,’ Chief Executive David Wood commented.
‘While we recognise the pressure that consumers will be facing in 2022, we have the right model, a strong pipeline and order book, and remain confident of making further progress in the current year driven by a material increase in do it for me revenue.’
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