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Wickes (WIX) shares soar 9% on profits upgrade

By Adrian Holliday

09:34, 3 December 2021

Photo of Wickes UK store
Core sales were down its sales were still ahead compared to 2019 – Photo: Shutterstock

Wickes shares shot almost 10% higher this morning as the home improvement retailer revealed new pre-tax full-year profits guidance of £83m ($110m). Shares for the DIY chain closed at 215p yesterday but were selling for 236p this morning. 

Although core sales were down its sales were still ahead compared to 2019 – pre-pandemic. Wickes says supplier relationships helped a better-than-expected margin performance.  “We have been able to mitigate the pressures resulting from rising inflation and freight costs, while continuing to deliver excellent value for customers.”

"Very strong" – City analyst

Analyst Wayne Brown from Liberum described the Wickes update as “very strong”. He went on: “Encouragingly sales remain in line with expectations. This means we will have upgraded full-year profit before tax by c.50% since our initiation in April.” 

Brown added: “We continue to see the shares as far too cheap (CY21 price/earnings ratio 10 times), for the high quality growth, profit momentum and strong cash generation on offer, with y/e net cash (pre-IFRS 16) likely to exceed £160m.”

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2,004.85 Price
-1.180% 1D Chg, %
Long position overnight fee -0.0198%
Short position overnight fee 0.0116%
Overnight fee time 22:00 (UTC)
Spread 0.50


0.68 Price
+4.710% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

Oil - Crude

71.41 Price
+2.320% 1D Chg, %
Long position overnight fee -0.0204%
Short position overnight fee -0.0015%
Overnight fee time 22:00 (UTC)
Spread 0.030


16,080.90 Price
+0.500% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 7.0

Trading uncertainty still hangs about

Whilst the recent changes to UK Government COVID-related guidance are unlikely to have a material impact on performance over the balance of the year “the trading environment continues to remain uncertain and we will monitor the situation closely” Wickes said. 

Wickes demerged from Travis Perkins with its own listing in April though the IPO came as a type of Travis Perkins dividend to investors – an unusual listing route.

Read more: Can listing reforms shake up the UK's sclerotic stock market?

Markets in this article

Travis Perkins
7.92 USD
-0.02 -0.260%
Wickes Group plc
1.4150 USD
0.001 +0.070%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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