Travis Perkins’ planned demerger of its Wickes business is said to have reached a ‘key milestone’, as it heads towards a listing on the London Stock Exchange.
The demerger, originally announced in 2019, was put on hold last year to concentrate on managing the impact of Covid-19 pandemic. It has now recommenced, with the company having received Financial Conduct Authority approval and published its demerger documentation (including its prospectus and circular).
Once the demerger completes, the separate companies will be able to fully focus on their primary customer base. For Travis Perkins that’s it trade customers. While the consumer-facing retailer Wickes, which operates 233 stores, will continue to strengthen its position in the growing home DIY market.
According to its latest accounts, Wickes recorded revenue of £1.3 billion in 2020, with 5 per cent like-for-like revenue growth, and adjusted operating profit of £82 million.
During the same period, digital customers almost doubled. Click-and- collect orders were up 450 per cent and home delivered sales increased by 120 per cent.
David Wood, CEO of Wickes, said: “This is a key milestone on our journey to listing on the London Stock Exchange as a standalone business in what will be a transformational moment for Wickes.
“I am very proud of our performance last year amid the challenges faced by our colleagues, our supply partners and, of course, our customers. The results we delivered during this period are evidence of the strength of our unique proposition, digital capability and efficient operating model, which has enabled us to respond rapidly to the changing demands of our customers.
“The past year has prompted many of us to think differently about our how we use our homes, and as a result, we are seeing strong demand from customers who are looking to make changes to their living spaces.
“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. The current year has started well and we are confident in continuing to deliver sales growth ahead of the market for the full year.”
Wickes is expected to be admitted to trading on the London Stock Exchange’s main market for listed securities no later than 8am on 28 April 2021.
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