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Finance

Posted By Global Banking and Finance Review

Posted on January 28, 2025

UK retailer Wickes soars 12% after upbeat profit forecast

(Reuters) -British home improvement retailer Wickes on Tuesday forecast 2024 profit would be at the higher end of market expectations on strong demand for garden project-related equipment and for interior paint, sending shares 12% higher.

Home improvement retailers have had a tough year on slowing demand for big projects, but Wickes said that sales at its design and installation business were declining at a slower pace.

"Looking to the year ahead we are well positioned to outperform the market as we continue to invest in our strategic growth levers," CEO David Wood said in a statement.

The company's group revenue rose 1.8% in the second half of the year, compared with a 3.4% fall in the first half.

Wickes said it estimated adjusted pretax profit would be at the upper end of a company-compiled analysts' forecast range of 39.7 million pounds to 44 million pounds ($49.3 million - $54.7 million).

Shares in Wickes, which made a market debut in April 2021, jumped nearly 12% to 172 pence and are on track for their best day ever.

($1 = 0.8046 pounds)

(Reporting by Simone Lobo and Yadarisa Shabong in Bengaluru; Editing by Savio D'Souza and Eileen Soreng)

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