- Adjusted full-year EBITDA expected to be “slightly” below market consensus
- 30 branches in its trade business to close with 600 jobs under threat
- Consumer like-for-likes up 6.3% in three months to September 30
Wickes owner Travis Perkins has warned group profits will be below market expectations, but third-quarter sales at its consumer business rose.
The business also said today that 30 branches in its trade business will close as sales in its plumbing and heating division have not been “satisfactory” as market conditions have “worsened”. About 600 jobs are at risk.
The group said it expects adjusted EBITA to come in “slightly below” market consensus of about £415m.
Despite this, sales at its consumer division – including Wickes and Toolstation – rose 9.1% in the third quarter. Like-for-likes climbed 6.3%.
“Investments in better value, improving range in the supply chain, in the convenience offered by the growing network of stores and in the delivery service helped by both Wickes and Toolstation to materially outperform the market,” the company said.
A new Wickes store format is bringing “significant” improvement in sales and returns, Travis Perkins said.
Fifty stores are currently operating under the new format.
A one-hour delivery option is also being trialled.
Travis Perkins chief executive John Carter said it was “still too early to predict customer demand in 2017 with certainty”.
But he concluded: “The strength of the group’s balance sheet and the competitive advantage we have created through the investments we have made position us well to continue outperforming the markets we compete in and drive shareholder value over the medium term.”