Wickes Group H1 2026 Earnings Report

Wickes Group EPS Results

• Actual EPS: GBX 9.60
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Wickes Group Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Wickes Group Announcement Details

• Quarter: H1 2026
• Date: 9/15/2026
• Time: Before Market Opens
• Conference Call Date: Tuesday, September 15, 2026
• Conference Call Time: 3:30AM ET

Wickes is one of the UK’s best known home improvement retailers. Having opened our first store in 1972 we now have 228 stores across the UK, employing 7,400 colleagues and offering products ranging from kitchens and bathrooms, to paint, tools and timber. Wickes is a successful, growing, cash generative and profitable business, operating in the large and growing £27 billion UK Home Improvement market. Over the past few years Wickes has consistently outperformed the market, growing share and delivering a CAGR growth rate double that of the market. At Wickes, we have a clear purpose, which is to ‘help the nation feel house proud’, and we do this by focusing on our three customer segments - Local Trade, Do-it-for-me and DIY retail. Our highly distinctive proposition, balanced across these three customer segments, means that we can capture the full breadth of the market growth opportunity as Wickes is much more than just a DIY business. Our business is digitally led and service enabled, fulfilled by a low cost, efficient and totally integrated operating model. With over 5 million online customers, almost two thirds of all sales emanate in the digital space. However, as 98% of sales are fulfilled directly from our physical estate this ensures that we benefit from digital growth without digital dilution. We have proven levers for growth across our three customer segments of Local Trade, Do-it-for-me and DIY Retail and are committed to ensuring that our growth is delivered responsibly, minimising our impact on the environment, supporting the communities we serve and creating a winning culture where our colleagues can gain new skills and build their careers. Wickes CEO, David Wood: “Wickes' unique proposition, digital capability and efficient operating model has enabled us to respond rapidly to the changing demands of our customers. We are able to provide customers with everything they need to achieve their home improvement plans and we are well placed to capitalise on the exciting growth opportunities we see in our markets while creating long-term value for all our stakeholders.”

Wickes Group H1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: First-half sales and profit increased: Group revenue rose 2.1% and adjusted profit before tax grew 1.1% to £27.6 million, despite 2%–3% retail deflation and cost inflation. Growth was volume-led, with retail up 0.8% and design and installation up 5.7%.
• Positive Sentiment: Trading momentum strengthened in Q3: Retail like-for-like revenue growth reached the mid-single digits, driven by customer growth across trade and DIY rather than inflation. Management remains on track to deliver roughly 10% adjusted PBT growth for 2026.
• Positive Sentiment: Expansion and shareholder returns are progressing: Wickes refreshed eight stores in the first half, plans four to five new stores this year, and expects to open seven to nine in 2027 before accelerating to more than 10 annually from 2028. The company also raised its interim dividend 2.8%, completed a £10 million buyback and funded a further £9 million for its employee benefit trust.
• Neutral Sentiment: Design and installation growth may moderate: New project volumes improved, but a shift toward lower-average-order-value lifestyle kitchens and bespoke bathrooms has slightly reduced ordered sales, creating a flatter delivered-sales profile in the second half. Management expects future recovery in higher-end demand as economic conditions improve.
• Negative Sentiment: Investment and cost pressures remain: Productivity savings have not fully offset operating-cost inflation, while technology and property investment increased by about £5 million year over year. Technology project development costs are expected to rise modestly again in 2027 to approximately £20 million through the P&L.

Presentation

[David Wood, CEO at Wickes Group]

Good morning, everyone. It's great to have you here with us today, whether in the room or joining us online. Welcome. Over the next 20 minutes or so, myself and our CFO, Mark, will walk you through our first half results for 2026, breaking down our business performance, exploring broader market trends, and sharing how our proven growth levers continue to drive market outperformance. Overall, this has been a strong period for the business. I'm pleased to report that in retail, we have continued a strong volume-led sales growth trajectory despite a deflationary pricing environment as more customers turn to Wickes more often.

[David Wood, CEO at Wickes Group]

Within design and installation, customers continue to react positively to the enhancements made to our kitchen and bathroom proposition, resulting in our fifth consecutive quarter of positive like-for-like growth. Together, group revenue increased 2.1%. The benefits of delivering sustained volume growth alongside our productivity plan resulted in a 1.1% increase in adjusted profit before tax to GBP 27.6 million. All delivered in the absence of any market tailwinds, a clear demonstration of the strength of our self-help growth levers.

[David Wood, CEO at Wickes Group]

Looking ahead, continued sales growth and our productivity program will further support profitability in the second half. Our proven growth investment in our store estate continues. In the first half, we refitted and refreshed eight stores with a further four planned in the second half. We also remain on track for four to five new stores within the year to go, whilst building a strong pipeline to support our accelerated ambition of 300 stores. We are delivering attractive returns to shareholders and have announced today an increased interim dividend of 2.8% to GBP 0.037, signaling our intention to grow dividend and dividend cover as profits increase.

[David Wood, CEO at Wickes Group]

We have completed the GBP 10 million share buyback and also funded a further GBP 9 million worth of share purchases for the employee benefit trust. As anticipated, trading so far in Q3 has shown a significant step-up with mid-single-digit like-for-like revenue growth in retail as we remain on track to meet market expectations for adjusted PBT this year. Before I hand over to Mark, I'd like to take this opportunity to thank all of my brilliant colleagues for their incredible work in delivering these results. Thank you.

[Mark George, CFO at Wickes Group]

Thank you, David, and good morning, everyone. As David mentioned, we had a good first half with growth in both sales and profits. This slide has a summary of the highlights, but as we cover all of these points in other slides, I'm going to skip over this one. On the next slide, we have a summary of the P&L. We grew sales in the first half by 2.1%. In retail, this was 0.8% growth, and design and installation 5.7% as we work through the healthy order book built up during 2025. Gross margin rate was broadly flat with just 0.1 percentage point movement. Operating costs grew by 1.9%, with productivity helping to offset some of the cost inflation we've experienced.

[Mark George, CFO at Wickes Group]

A couple of examples of productivity initiatives that we've delivered in the first half. In design and installation, a new online journey for booking appointments has improved the customer experience and lowered our customer call center costs. Also in design and installation, a big focus on right first time from design to delivery is reducing costs and improving customer satisfaction. Also within operating costs is a step-up in investment in tech and in property, and a bit more detail on this in a moment. Overall, the PBT margin in the first half is flat year-on-year.

[Mark George, CFO at Wickes Group]

With an uplift in both sales growth and productivity in the second half, we expect H2 to show a good step-up in profit year-on-year and, as a result, deliver an increase in PBT margin for the full year. Let's look at the P&L drivers in a bit more detail, starting with sales. In retail, we've seen an improving trend across the year so far. In Q1, adverse weather meant sales were in slight decline, but this improved in Q2, and as David has mentioned, we've seen this step up significantly in Q3 so far. In all quarters, we've seen good volume growth with deflation in the business of between 2% and 3% in the first half, as you can see on the table there.

[Mark George, CFO at Wickes Group]

Now, we expect to see inflation turn positive in Q4. It's also worth reflecting on the two-year like-for-likes because we were lapping a good H1 last year. As you can see in the table, even with very tough trading conditions in Q1, the two-year like-for-like for the half was still 6%. In design and installation, we've now had five consecutive quarters of delivered sales growth following a strong performance in ordered sales last year. In the first half of this year, we've seen an increase in the number of new projects sold. However, with a shift in mix towards lower AOV projects, bespoke bathrooms, and lifestyle kitchens in particular, overall ordered sales have been slightly down.

[Mark George, CFO at Wickes Group]

This will result in a flatter profile for delivered sales growth in H2. Now turning to the profit bridge, which helps highlight the key drivers of our H1 performance. The 2.1% sales growth gave us GBP 10 million of margin upside, offset by GBP 5 million of volume-related costs. In terms of other operating costs, you can see here that inflation remains a headwind, and whilst we've continued to deliver some good productivity savings, they have not fully offset the cost inflation.

[Mark George, CFO at Wickes Group]

A further cost saving shown separately here is that we've saved about GBP 1 million in business rates in the first half, and this will be about GBP 2 million in the second half. We continue to invest in the business to drive future growth and productivity, and as you can see here, in aggregate, this has stepped up by around GBP 5 million year-on-year. This is mainly investment in technology and the OpEx cost of our property development plan. A good performance on profit, given the challenging trading conditions and the inflationary headwinds.

[Mark George, CFO at Wickes Group]

Turning to cash, we are a cash-generative business, and even in a challenging economic environment, we can generate cash to reinvest in the business and deliver good returns to shareholders. We ended the period with GBP 152 million of cash. Now, as you know, the half year is a high point for our annual cycle, and the significant improvement in working capital in the first half will unwind in the second half. A couple of other things to note on this bridge. CapEx this year will be H2 weighted, with much of our property program happening in the second half.

[Mark George, CFO at Wickes Group]

In H1, we had GBP 11 million of cash out for CapEx, and we expect around GBP 40 million for the year as a whole. Also in the first half, we have returned GBP 26 million to shareholders, GBP 16 million in dividends and GBP 10 million in share buybacks. We have also funded the EBT by a further GBP 9 million. Overall, a very healthy cash position, enabling us to fund our growth strategy whilst also delivering good returns to shareholders. I will end with some comments on outlook and guidance. So far in Q3, as anticipated, we have seen a significant step-up in performance with retail sales in mid-single digit like-for-like growth.

[Mark George, CFO at Wickes Group]

This strong sales growth, plus the additional cost savings expected in H2, mean we are on track to meet market expectations of around 10% growth in PBT for the year. We have also provided here the usual guidance on tax and CapEx, etc. Just as a reminder on dividend, we plan to grow the dividend and the cover as profits increase. As David said, we have started today that process by announcing a 2.8% increase in our interim dividend from GBP 0.036-GBP 0.037. In summary, the business has had a good first half, and as we move into the second half with improving sales in Q3, we are well-placed to deliver another good year of profit growth in 2026. With that, I will hand back to David.

[David Wood, CEO at Wickes Group]

Thank you, Mark. This slide simply illustrates the clarity and consistency of our strategy that is working so successfully, enabling us to drive growth and market outperformance while supporting our purpose to simply help the nation feel house proud. Over the next few slides, I will share how we are investing in these growth levers to continue to win in the market. But before I do that, let me share some headline insight into current consumer trends that we are seeing through our monthly Mood of the Nation survey. Encouragingly, we see a high degree of stability of where the customer is right now.

[David Wood, CEO at Wickes Group]

Local trades still tell us they are busy, with around 30% having a healthy 12-month-plus pipeline of work. One in five customers in the market plan to take on a new kitchen or bathroom project, and spending plans have remained stable over the last few months. We can see in our own performance data that customers are looking for more affordable solutions for bigger projects. In DIY, people remain keen to improve their homes, with one in two consumers planning to decorate a room over the course of the next 12 months.

[David Wood, CEO at Wickes Group]

Speed and convenience continues to be important to them, as seen in the growth of our 15-minute Click & Collect, Home Delivery and Wickes Rapid propositions. We are particularly pleased that sales growth in retail is purely volume driven, and this is all down to more customers shopping with us in store or online. Our TradePro membership scheme goes from strength to strength, with sales up 5%, driven by a record level of 671,000 active members. Our market share in retail has increased again year-on-year, with a number of key range reviews driving outperformance, in particular in decorative, which is an all-time market share high, and gardening and timber, all supporting growth in our DIY customer base.

[David Wood, CEO at Wickes Group]

We continue to focus on what matters most to our customers, certainty of value, clarity of choice, speed, and convenience. Our digitally led service-enabled model delivers that promise seamlessly, driving 7% growth across Click & Collect and Home Delivery. We know that customers value the products and services we offer, and we see this very clearly in our customer satisfaction metrics. For example, 86% of customers rate our 15-minute Click & Collect service as excellent or good, and that rises to 90% for our Home Delivery service, which we uniquely operate from all stores.

[David Wood, CEO at Wickes Group]

As we turn to design and installation, delivered sales in this part of the business have been strong for the last five consecutive quarters as customers react positively to our breadth of offering across good, better, and best ranges. We have achieved volume growth across the total number of projects served, a result not just of great innovation in the more affordable segment of the market, where we now offer 23 ranges of lifestyle kitchens, but also encouraging customer engagement in our top-end hand-painted paint-to-order range. In Bespoke bathrooms, we have seen success with the new Bayswater collection, which you can see on the right, and a host of new fitted and modular furniture.

[David Wood, CEO at Wickes Group]

Crucially, our customers are telling us that we are hitting the mark. 96% rate us excellent or good from lead to order. We have successfully rebased the Wickes Solar business and are now backing growth through high-quality lead generation and customer journey with strong conversion. In addition, we will install solar on a further five Wickes stores this year and have some interesting B2B opportunities in the pipeline. Turning now to investment in our store estate. The strong performance of our existing and new stores, alongside our proven ability to operate successfully in smaller footprint stores, led us to announce earlier this year our scaled-up ambition to reach a network of 300.

[David Wood, CEO at Wickes Group]

Our plans are on track, and in the first half we have refitted or refreshed eight stores with 84% of the estate now in the new format, with a further four to come in the year. We also plan to open four to five new stores in the second half, with Saffron Walden opening this week. We continue to strengthen our future property pipeline, focusing on white space opportunities and underserved larger towns and cities. For 2027, we plan to open between seven to nine new stores, and we will accelerate to 10+ per year from 2028.

[David Wood, CEO at Wickes Group]

Moving on to our responsible business strategy, which is embedded deeply within our business. When some of you join us on store tours, you can often meet leaders who started at Wickes straight out of school and now run GBP 10 million stores. We are incredibly proud to be a destination for early talent, with around 30% of our store colleagues aged 16-24. Through our dedicated training programs, we are actively equipping the next generation of retail leaders. Tool theft affects over 1/3 of U.K. tradespeople, costing them GBP 2,500 on average, impacting their ability to work, and in some cases, really affecting their mental wellbeing.

[David Wood, CEO at Wickes Group]

In the first half, we stepped up for our trade community, pledging to protect well over 250,000 power tools across the U.K. this year by providing free tool marking kits in stores. We are well on our way to hitting our GBP 2 million fundraising target for our charity partner, CALM, having already raised an incredible GBP 1.3 million to date. It is fantastic to be recognized for all of the work we do as part of our responsible business strategy with highly positive ESG ratings.

[David Wood, CEO at Wickes Group]

We maintained our AAA rating in MSCI, and we continue to be included in the FTSE4Good index, having improved our latest score from 4.2-4.4 out of 5. To conclude, we have made great progress in the first half, growing volume sales and profits through the strength of our own self-help levers, really demonstrating our value-led and highly differentiated business model. Our growth momentum through the first half has continued to build in Q3.

[David Wood, CEO at Wickes Group]

Whilst we are winning market share and growing volume, there is still so much more to go for. Today, we hold just 5% of the GBP 35 billion addressable U.K. home improvement market. The headroom for growth is tremendous. That is why we are accelerating our property ambition, going further and faster to expand our store footprint by 30%. This is all underpinned by our strong cash flow generation, enabling us to invest in our proven growth levers and deliver attractive shareholder returns. Thank you for listening. Mark and I will now be happy to take any questions.

[Ben Hunt, Analyst at Panmure Liberum]

Morning. Ben Hunt from Panmure Liberum. Do you think you could just flesh out a little bit more about those cost savings you were expecting in the second half and maybe that inflation headwind? Do you see it easing with the wage inflation coming down or any color really on the H2 bridge, as it were?

[David Wood, CEO at Wickes Group]

Mark?

[Mark George, CFO at Wickes Group]

Yeah. Firstly on the cost savings, we have a continuation of initiatives that have started earlier in the year, so we have a good line of sight as to how that is going to evolve, in some cases, getting more of a six-month benefit rather than a partial benefit in the first half. We are now really starting to focus on the initiatives that are going to be our productivity plan for 2027. I think we are very confident in what is coming in the second half of 2026. In terms of the inflationary headwinds, the wages and general employment costs headwinds have slowed down a bit.

[Mark George, CFO at Wickes Group]

The big increase that came in national insurance, and the higher levels of increase in National Living Wage are behind us. Hopefully now we will see more normal levels of wage inflation, which will be good. We do not yet know what the government will agree on the November increase in National Living Wage, but we are expecting that to be a lot lower than in recent years. The one to watch out for, of course, is energy costs. As you know, we have about 50% of our energy costs hedged into 2027, so fairly well protected there, but that is a moving thing in the market at the moment.

[Ben Hunt, Analyst at Panmure Liberum]

Okay. Second, I was delighted to hear you were opening a Wickes in Saffron Walden.

[David Wood, CEO at Wickes Group]

There Friday, Ben, if you would like to join me.

[Ben Hunt, Analyst at Panmure Liberum]

Oh. I may well be around.

[David Wood, CEO at Wickes Group]

Opening day.

[Ben Hunt, Analyst at Panmure Liberum]

I was just wondering if you could just tell us a little bit how the smaller format stores are performing, whether they are in line with the usual new opening maturity, how the maturity is, when they start to break even, and any sort of details around there?

[David Wood, CEO at Wickes Group]

Yeah, if we step back from it, we have had a number of small stores in our network for a while. So probably somewhere between 20 and 25 of our store counts fit that smaller 15,000 sq ft-20,000 sq ft. As we illustrated at the full year when we were talking about our ambition, what you can see is although the revenue on average is slightly lower, as is the cost of running those stores, so the EBITDA net is actually equivalized across the estate.

[David Wood, CEO at Wickes Group]

So we know we can still deliver great value creation from a smaller store footprint. Saffron Walden, interestingly, will be the first of those new ones. So, as I say, Friday, if you are around, by all means, come and join me. We are quite excited. Then Harrogate, as we look forward between now and Christmas, will be even smaller as a store with a mezzanine as well.

[David Wood, CEO at Wickes Group]

We will learn more about the new stores as we move into next year, but our confidence in finding the ability to get greater depth and reach of the network through a smaller store footprint is predicated on the fact that 10% of our estate was already like this. We can see how that performs which, on balance, creates a similar value to the estate at large. Matthew. Where should we go? The mic is over there, Matthew. Matthew, we are going to lead with the mic.

[Lewis Roxburgh, Analyst at Goodbody]

Thanks very much. Morning. Lewis Roxburgh from Goodbody. Just one, please. Just how generally should we think about pricing? We have seen some deflation over the period. Costs are increasing. How do we interpret that? Is there a lag effect happening? Are you struggling to pass through inflation, or are you happy remaining cost leader and gaining market share, really?

[David Wood, CEO at Wickes Group]

Mark, do you want to?

[Mark George, CFO at Wickes Group]

Yeah. Through the year so far, as we said, we have seen deflation, but we are now, as we come towards the end of Q3, starting to move into inflation. We expect positive inflation in Q4. Our priority really is that we are a price leader in the business, in the market. We aim to be 2%-3% cheaper on a basket than our key competitors, and we monitor that every week. We want to deliver great value to customers and drive profit in the business, not by increasing gross margin, but actually getting the flywheel of volume going and getting operating leverage through the business.

[Mark George, CFO at Wickes Group]

You have seen that the margin is flat. However, all of the pressures coming through our sector are starting to come through, and we are going to see some inflation in Q4. That will just make it a little bit easier, obviously. When you have got 2%-3% deflation in the products that you are selling, but you have got cost inflation of 3% or more in your operating cost, that is clearly very challenging. That is going to be more balanced as we go forward.

[David Wood, CEO at Wickes Group]

I see that Matthew and I had a question. The mic is on its way, sir.

[Matthew McEachran, Analyst at Singer Capital Markets]

Great. Thanks. Yes, Matthew McEachran from Singer Capital Markets. Could we just ask for a little bit more information on the D&I side? It is clear that you have got a load of initiatives working through. You showed us the design tools improvement on that site visit. The product range has improved, and the service element is also improving. Could you just remind us as to what you have done so far in the first half and how much is still pending as you go through to the next peak? Related to that question, will there be a step-up in marketing once you have embedded the suite of changes, if you like?

[David Wood, CEO at Wickes Group]

Yeah. Oh, gosh, there is a lot of questions in there. I am going to do my best to-

[Matthew McEachran, Analyst at Singer Capital Markets]

Yes.

[David Wood, CEO at Wickes Group]

No, it's fine. Fine, Matthew. I'm going to do my best to take all of them on board in one go. Look, in the first instance, there's been some really good broad-based innovation in our design and installation business. It's interesting because when you look through the kitchen business, that innovation has been much more predicated at the more affordable end. We spied that coming a couple of years ago. We started to develop the lifestyle range, integrate it into the showrooms, make it a more prominent and equal part of the overall customer journey, and then subsequently expanded that business to 23 ranges, which we market through all of our communications channels.

[David Wood, CEO at Wickes Group]

We're seeing great volume growth there. So what we're seeing in the kitchens business is overall great volume growth in our lifestyle business, a more muted performance in the higher end at the moment. But interestingly, we are innovating right now for the return to growth in the better and the best part of the portfolio. So we're extending our paint-to-order hand-painted ranges. In the same way we anticipated the more affordable requirement in the market, we're also anticipating as the economy recovers that we'll be well-placed to capitalize on that as well.

[David Wood, CEO at Wickes Group]

So we're very happy with that performance. But the AOV is down because of that. It's interesting on the bathroom side of the business because the innovation focus actually has been about adding greater value, adding more premium brands. So on the bathroom side of the business, we are growing volume very strongly, and we are actually growing AOV. But in the round, that mix gets washed out a little bit when you look at design and installation in the first instance.

[David Wood, CEO at Wickes Group]

But I guess the really important point here is, as a business, we are taking more orders, we are serving more customers. The blended AOV is down on traditional numbers where we can feel hence a more muted performance in terms of the ordered sales line. But we're winning where we can, which I think is a great outturn, and we're well-placed to win again as the market recovers for the more high-end stuff in the first instance. Yeah.

[Matthew McEachran, Analyst at Singer Capital Markets]

In relation to marketing?

[Mark George, CFO at Wickes Group]

Yeah, no particular step-up. It is just a continuous process throughout the year of our campaigns.

[Matthew McEachran, Analyst at Singer Capital Markets]

Great. Thank you.

[David Wood, CEO at Wickes Group]

Okay.

[Ben Yokyong-Zoega, Analyst at Deutsche Bank]

Hi. Morning. Ben from Deutsche Bank. Just one question on that Q3 acceleration in retail like-for-like. Are you able to talk a bit more on the drivers of that? Obviously, you have mentioned inflation, which is helpful, but any indication on which kind of categories have been performing well would be really helpful.

[David Wood, CEO at Wickes Group]

Yeah, probably just a point of correction. We are not seeing actual inflation in Q3. We are just about to exit Q3. That is a more modest to slightly declining inflationary period. We expect it to come through as we move through Q4, and again, at a more modest level, I think it is fair to say, in the first instance. So there is not an inflationary benefit in Q3. Look, Q3's performance is much as we had anticipated, and we are keen to point that out. We could see where we were going from Q1 into Q2 and expected that to start to flow through as we got into Q3 because we were always pretty confident that the projects needed to get done.

[David Wood, CEO at Wickes Group]

The growth of that, so we are mid-single digit like-for-like performance so far, Q3. We are 11 weeks in, so that is a really solid performance, and it is simply doing what we always do, which is growing our customer base. This is a volume-led performance. There is no inflation in there, and it is growth of customers across both trade and DIY. It is continuing to execute the strategy we have and just do it brilliantly. There is no seismic change in there, Ben. We had fully anticipated this profile as we were coming through the year.

[Mark George, CFO at Wickes Group]

Some of the drivers we could call out, particularly on the digital side of the business, has been going very well. David mentioned the popularity of Click & Collect, our Home Delivery service, Wickes Rapid, which is the same-day delivery service. All of those areas are in good growth, and that desire for convenience from the customer is really strong, and we are delivering on that really well. That has been a good standout as part of that retail step up.

[David Wood, CEO at Wickes Group]

Importantly, as you will have seen in the Mood of the Nation survey, our trade customers in particular, our most strategically valuable customers, are busy. 30% of them have only got a pipeline for the next year plus. That is slightly up versus the average, to be fair.

[Ben Yokyong-Zoega, Analyst at Deutsche Bank]

Perfect. Thank you.

[Sam Cullen, Analyst at Peel Hunt]

Thanks. Morning. Sam Cullen from Peel Hunt. I have got one and a half, I guess. Firstly,

[David Wood, CEO at Wickes Group]

Sam, you can call it two amongst friends. It is fine.

[Sam Cullen, Analyst at Peel Hunt]

No, well, it is kind of interrelated. Any comments on, I know seasonal is not a huge category for you guys, but the trends you have seen in that category in the first half and indeed in Q3, and then related to that, obviously extremely hot summer, the trends you have seen in the solar business.

[David Wood, CEO at Wickes Group]

Shall I do the first bit, and you do the second? Yes. Firstly, Sam, you are right. We are not massively exposed in terms of any seasonal play. What we have seen as we have come through the year, and particularly just relating to the weather patterns, is really you just oscillate. When it is very wet, you see a lot more internal projects being done. As the weather starts to dry up a little bit, you see the benefit of internal and external. As it gets a bit hotter, you might see that emphasis move out to more external in terms of the balance.

[David Wood, CEO at Wickes Group]

Broadly, nothing dramatic or unanticipated in terms of the shape of that, in terms of the weather play and how that might have affected the seasons. But it is not a big exposure for us as a business. We do not really play in big seasonal categories. Of course, garden, and growing media and compost and fencing and that good stuff's in there, but on balance, the business is performing well. As we've come through Q3, we're seeing all categories performing really well.

[Mark George, CFO at Wickes Group]

Yeah, then on solar, since March actually, we've seen a good pickup in solar volumes, a combination of some very good weather, of course, which gets people thinking about sunshine, but also the news flow around cost of energy and people trying to find ways to save money, and solar is a fantastic way of doing that. So that in combination with our innovation and how we're going to market, I think is, in combination, driving a better performance in solar since around March time. But still, obviously, quite small in comparison to the rest of the business, so it's yet to make its mark on the numbers.

[David Wood, CEO at Wickes Group]

Got Kate at the front there.

[Kate Calvert, Analyst at Investec]

Morning, Kate Calvert, from Investec. Just two questions. The first one is on tech investment. Could you comment on the outlook for tech investment going into next year from a P&L perspective? Is it likely to be similar year-on-year? Could you flesh out some of the details about the benefits you're going to get from the new till system as that rolls out next year? The second question is just on TradePro, because obviously it's a very valuable database. Could you just talk about any potential development opportunities there, and potential to start monetizing the data? I suppose you can tie that in with retail media developments as well. Thank you.

[David Wood, CEO at Wickes Group]

Oh, do you want to do-

[Mark George, CFO at Wickes Group]

Shall I do the first one and you take the-

[David Wood, CEO at Wickes Group]

I'll do the next two. Yeah.

[Mark George, CFO at Wickes Group]

other? Yeah. We have been stepping up our tech investment, and as you know now, most of our investment in tech is going through the P&L. Small amounts of CapEx on things like till hardware and that sort of thing, but most of the development work is through the P&L. We are reaching the stage where we're close to what we think would be a steady state level of investment per year, but next year there will be a small increase versus 2026. It's been a bigger step up this year, but there will be another small increase next year with around GBP 20 million of project development costs in tech that are going through the P&L.

[David Wood, CEO at Wickes Group]

Super. In terms of the new till system, we are currently still testing in a handful of stores. We will build that test out further, then by the end of the year, we hope to have covered the estate at large. There will be inherent efficiency, just the speed and the ability and capability of the new system. We are running on a system currently that is probably three decades old or something, so you can just understand that. Also the experience for both the colleague and the customer, not just the ease of use, but how we are serving up opportunities.

[David Wood, CEO at Wickes Group]

These are sort of iPad-based tills. The iPad also faces the customer. If somebody buys a tin of paint, the AI will automatically serve up and recommend that you might need a few other things in the basket. You will be able to project build at till point and really help the customer get all that they need to do that project in a way that we have not been to today. Then generally, just the data we have on the customer and the ability to recognize a customer and actually just build that sort of empathy and engagement. There will be a host of benefits, and I am sure we will learn more as we do roll out.

[David Wood, CEO at Wickes Group]

For sure. But efficiency, engagement, the ability to upsell will be the key things on my mind right now. Oh, and TradePro. I think there are always two things to think about on Trade, or probably three. One, there still remains a lot of headroom for penetration growth. If we look at our active member base, it is heading towards 700,000 in a population of an addressable market of 2.3 million. The first thing to say is there is still a penetration opportunity. One of the ways we will get after that, Kate, is as we build the network. Because location does matter, and although we have a brilliant service like Rapid and we are a great fulfillment business, there is only so far you can fulfill.

[David Wood, CEO at Wickes Group]

As we build out and we appear in new towns, we will access that ability to get brand new penetration in terms of trade. The next thing that we continue to work on, and it is through data, but monetizing it for our benefits, is building out the relationship, building out greater share of wallet with our existing trade customers as well, because there is still a huge opportunity there when you pair it back, where arguably, whilst it is one of our fastest growth drivers through penetration, we are still used at quite a convenient level, and we can build a bigger relationship and get more share of wallet with that customer.

[David Wood, CEO at Wickes Group]

Then probably the third thing on my mind is how we continue our efforts in the B2B side of things. So moving beyond one man and a van working in his local communities, perhaps to more organized businesses and providing that value and service as well. They would be some key thoughts for me as we look forward into next year and the remainder of this.

[Arthur Peel, Analyst at Berenberg]

Hi, Arthur, Berenberg. Just two from me. Just on product costs, is there anything to call out yet at all? I know timber's been one in the past that sort of caused a couple of issues. I did not know whether there is anything to call out there. Then just on Wickes Solar and the B2B opportunity, I know you just sort of mentioned it, but is that a sizable opportunity going forward?

[David Wood, CEO at Wickes Group]

Shall I do the first and you do the second? I think the product inflationary environment, yes, there is inflation in the product. It is not at a high level. It is at a more moderate and expected level in terms of the inflation that we are seeing coming in across the business. But of course, we negotiate well, we buy well. One of the strengths of having a tight, curated range is you are buying a lot of volume over a few SKUs. So we buy very well in that environment, mitigate as best as we can, and pass value on where we can to the customer to generate more volume and get the leverage effect of doing that. But nothing to report at the moment, Arthur, that is stratospheric in terms of cost inflation.

[Mark George, CFO at Wickes Group]

Yeah, B2B Solar, we think there is a really good opportunity here. Obviously, we are a customer of Wickes Solar as Wickes, and we will be putting solar on a number of our stores over the next few years. But also there is an opportunity to do that with companies that we already have relationships with. We have suppliers that have manufacturing plants and warehouses. We deal a lot with landlords who have lots of properties around the country.

[Mark George, CFO at Wickes Group]

As you can imagine, therefore, we have got a really good entry point to talk to people about what Wickes Solar can offer. We are scaling the team there, so we are in a better position to deliver bigger projects because obviously it is a different type of project to domestic premises. But yeah, we are building the pipeline nicely, and we think we can do well in that part of the market.

[Mark Photiades, Analyst at Canaccord]

Hi, it's Mark Photiades from Canaccord. Just a quick one on the pipeline for 2027. Any additional color on phasing of opening between H1, H2, the seven to nine, and then the split between the smaller format and the larger format, your expectations at this stage?

[David Wood, CEO at Wickes Group]

Yeah, I'd start to expect over time a more balanced laydown in terms of the new store opening program. We want the right site, so we'll be patient for those. This is not a space race for us. These are 70 locations that are broadly identified, so we'll be patient for those. It's been very back weighted this year just because these are the sites we want, and as I say, you have to be patient. In time, I expect a more balanced profile, Mark, I think it's fair to say. It may have, as we look into next year, it could still be slightly second half weighted as we push through.

[Mark George, CFO at Wickes Group]

In terms of the size of the store, I would encourage you not to think of it as a small format versus a larger format.

[David Wood, CEO at Wickes Group]

Yes.

[Mark George, CFO at Wickes Group]

We have one format. It's just that on average, we're now going to open smaller stores. Across the estate at the moment, 27,000 sq ft is the average. Going forward, we'll probably open more like 20,000 sq ft as the average. There'll be some below, one or two above, but they will be the same format. When you walk into a Wickes, Saffron Walden, for example, on Friday, it will feel very similar. It's not like it's a convenience version or a local version of a Wickes. It's just ever so slightly smaller.

[David Wood, CEO at Wickes Group]

Do I need a bus for Friday? Are there any more people that want to come on Friday? All are welcome.

[Matthew McEachran, Analyst at Singer Capital Markets]

Just one more from me. Just come back to TradePro, if that is okay. In that first half, the differential between your average customer growth and the revenue growth is probably the biggest we have seen for quite a long time. Do you want to just go into the detail? Is that driven by the deflation and the earlier weather conditions and such like? To that point, in more recent current trading, has that gap now closed back, or would you expect that to close back up again?

[David Wood, CEO at Wickes Group]

Yeah, I think the relationship with the two is probably two things. One, the ability to get after the work, as you say, the volume of projects, combined with the deflation. There is deflation in there, and we see that. They would be the two drivers. We would expect things to improve as we move through the year.

[Matthew McEachran, Analyst at Singer Capital Markets]

Okay. Thank you.

[David Wood, CEO at Wickes Group]

Is that everything, team? Anything on? No? All quiet on the Western Front. Super. Well, look, just a few final thoughts from me. Look, this has been a great first half. Sales are up, volumes are up, profit is up, share is up, dividend is increasing. As anticipated, performance has really strengthened in Q3, particularly through the lens of retail. That leads me to only conclude one thing, that the strategy is working. We will continue to execute it brilliantly and deliver attractive returns. So thank you very much for turning up this morning. Thank you very much for watching online, and all have a super day.

Participants

Executives

• David Wood, CEO
• Mark George, CFO

Analysts

• Ben Hunt, Analyst at Panmure Liberum
• Lewis Roxburgh, Analyst at Goodbody
• Matthew McEachran, Analyst at Singer Capital Markets
• Ben Yokyong-Zoega, Analyst at Deutsche Bank
• Sam Cullen, Analyst at Peel Hunt
• Kate Calvert, Analyst at Investec
• Arthur Peel, Analyst at Berenberg
• Mark Photiades, Analyst at Canaccord