Wickes reveals £25m share buyback as DIY sales improve

Wickes shares rallied on Tuesday after the group revealed a £25million share buyback plan on the back of improved DIY sales.

The home improvement retailer posted a 3 per cent rise in like-for-like sales in the three months to the end of June, after suffering a 1.8 per cent fall in the first quarter, as comparable sales edged 0.7 per cent higher overall.

The group announced its intention on a share buyback plan of £25 million after an improvement in second quarter trading

Wickes also cited improved confidence in its balance sheet in its assessment that ‘surplus cash currently exists’ for shareholder payouts.

The group said: ‘We plan therefore to start returning excess cash to shareholders and today announce an share buyback programme of £25m, which will commence as soon as practically possible.’

Core like-for-like sales were at 2.3 per cent over the reporting period with categories such as decorative and construction performing well.

Watford-based Wickes’ click and collect sales were up by 5.6 per cent, ‘reflecting the service improvement’, the group said.

The group’s Do It For Me (DIFM) business saw a like-for-like sales growth of 5.3 per cent, marking a slight decline quarter-on-quarter.

David Wood, chief executive of Wickes, said: ‘This has been an encouraging first half where we have again seen the benefits of our uniquely balanced business model delivering well for customers. 

‘Our performance has been underpinned by further momentum in Trade, as local traders continue to turn to Wickes to save them time and money, an improving trend in DIY, and a good performance in Do-It-For-Me. 

‘As we continue to make progress across our strategic growth drivers, we are confident in the Group’s prospects for both the remainder of this year and the longer term.’

Wickes achieved record turnover last year as soaring energy bills drove orders of energy-saving products.