Slides
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Agenda Key Highlights David Wood1 Page 4 Financial Review Mark George2 Page 5 Business Update David Wood3 Page 12 3 Summary, Q&A David Wood & Mark George4 Page 19
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ā¢ Revenue growth in both parts of the business ā Continued volume-led growth in Retail ā Fifth consecutive quarter of positive LFL in D&I ā¢ Increased proļ¬ts in spite of challenging market environment ā Adj. PBT of Ā£27.6m +1.1% ā Sales growth and productivity to support proļ¬tability in H2 ā¢ Accelerating investment in future growth ā 8 reļ¬ts/refreshes support further sales growth ā Ambition to increase estate to 300 stores ā¢ Delivering attractive returns to shareholders ā Interim dividend increased by 2.8% to 3.7p ā Ā£10m buyback completed +Ā£9.2m net funding for EBT share purchases1 ā¢ Trading in Q3 so far has shown a signiļ¬cantly improved trend ā Remain on track to meet consensus for 2026 adj.PBT2 Strong volume-led performance; remain on track for FY proļ¬ts 41) Before stamp duty, commission and after cash received from employees; 2) Consensus adjusted PBT for FY26 is Ā£54.6m as at 2 September 2026, with a range of Ā£52.8m to Ā£56.0m
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A good ļ¬rst half across sales, proļ¬t and cash Adj.gross margin broadly ļ¬at YoY HY cash Ā£152m (H1 2025: Ā£158m) Retail1 revenue +0.8% Design & Installation2 revenue +5.7% Adjusted PBT Ā£27.6m +1.1% Interim dividend 3.7p +2.8% Ā£10m share buyback completed Revenue Ā£865.3m +2.1% 6All ļ¬gures are on an adjusted basis; 1) Retail revenue refers to all products and related delivery income sold to customers (both DIY and local trade), in stores or online, excluding those reported as Design & Installation Ranges; 2) Design & Installation revenue includes all product categories which could be sold as part of a design and/or installation and where the majority of sales of those products are designed and/or installed. This relates principally to projects such as kitchens, bathrooms and solar, sold by our Design Consultants. Revenue is recognised when delivery and installation (where applicable) is complete.
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Strong volume-driven growth underpins good proļ¬t performance ā¢ Sales growth in both Retail and Design & Installation ā¢ Gross margin broadly ļ¬at whilst maintaining price leadership and volume growth ā¢ Operating costs impacted by continued inļ¬ationary pressures ā¢ Productivity plan and tight control helping to mitigate cost inļ¬ation, with further beneļ¬ts in H2 Ā£m1 HY 2025 HY 2026 Change % Revenue 847.9 865.3 2.1% Retail 634.4 639.8 0.8% Design & Installation Ranges 213.4 225.5 5.7% Gross proļ¬t 312.0 317.8 1.9% Gross proļ¬t margin 36.8% 36.7% -0.1ppts Operating costs (271.9) (277.0) 1.9% % of sales (32.1)% (32.0)% +0.1ppts Operating proļ¬t 40.1 40.8 1.7% Interest (12.8) (12.8) +0.2% Adjusted PBT 27.3 27.6 1.1% Adjusted PBT margin 3.2% 3.2% -0.0ppts 71) All ļ¬gures are on an adjusted basis.
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Volume-driven revenue growth across the business 8 Retail (Trade & DIY) ā¢ Strong volume growth, offsetting 2.4% deļ¬ation ā¢ TradePro sales +5% ā¢ DIY sales broadly ļ¬at ā¢ 2-year LFLs very strong Retail Q1 Q2 HY Volume/mix1 0.4% 3.4% 2.1% Inļ¬ation2 (2.1)% (2.7)% (2.4)% LFL sales (1.7)% 0.7% (0.3)% 2-year LFL 2.6% 8.7% 6.1% 1) Volume represents both the change in volume of products sold and the change in product mix; 2) Inļ¬ation represents the price change on products sold in both years. Design & Installation ā¢ 5th consecutive quarter of LFL growth ā¢ Strong growth in Wickes Lifestyle Kitchens and Bespoke Bathrooms ā¢ Overall number of projects increased ā¢ Ordered sales by value broadly ļ¬at D&I Q1 Q2 HY LFL sales 5.7% 1.8% 3.6% 2-year LFL (0.2)% 5.4% 2.6% 0.8% 5.7% 2.1% H1 2026 revenue growth
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Proļ¬t growth driven by sales volumes & productivity, enabling growth investment 9 ā¢ Trading margin growth ā Sales increase in Retail and D&I ā¢ Inļ¬ationary pressures continue, notably in people costs and fuel ā¢ Productivity initiatives helping to offset inļ¬ation and will strengthen in H2 ā Distribution, stores, customer services, IT ā¢ Increased investment in digital projects, customer services and the property reļ¬t/refresh plan ā¢ All 2026 new store openings planned for H2 All ļ¬gures shown in Ā£m; 1) The impact of YoY savings in distribution costs is displayed in productivity plans, whereas in the statutory income statement this is included in gross margin. Revenue & trading margin 1
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Cash generation supports signiļ¬cant investment programme & shareholder returns 10 ā¢ Ā£71m normal seasonal working capital beneļ¬t ā Will unwind in H2 ā¢ Capex to be H2 weighted ā 2026 guidance c.Ā£40m5 ā¢ Ā£9m net funding for employee share schemes3 ā¢ Ā£26m shareholder returns ā Ā£16m paid in dividends ā Ā£10m share buybacks4 1) āOtherā comprises share based payments, cash rent vs IFRS16 and other miscellaneous items; 2) Includes a net reduction of accruals of Ā£0.9m; 3) Before stamp duty, commission and after cash received from employees; 4) Before stamp duty & commission; 5) Excluding investment in technology projects expensed in the P&L. 2 3 4 1
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Outlook and guidance for 2026 Outlook ā¢ Trading in Q3 so far has shown a signiļ¬cantly improved trend ā Step-up in Retail to mid-single-digit LFL revenue growth ā¢ Productivity plan to deliver further in H2 ā¢ Beneļ¬t from lower business rates, as previously noted ā¢ On track to meet consensus expectations for 2026 adj.PBT1 Technical guidance for 2026 ā¢ Net interest costs Ā£25-27m ā¢ Effective tax rate 24-26% ā¢ Capex c.Ā£40m2 ā¢ FY25 working capital beneļ¬t to unwind by Ā£5-10m in FY26 ā¢ Completed in H1 ā Ā£10m share buyback ā Ā£9m share purchases for EBT ā¢ Dividend and cover increasing as proļ¬ts grow, within dividend cover range of 1.5x - 2.5x 111) Consensus adjusted PBT for FY26 is Ā£54.6m as at 2 September 2026, with a range of Ā£52.8m to Ā£56.0m; 2) Excludes investment in technology projects expensed in the P&L.
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Winning strategy based on balanced business model and proven growth levers 13
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Current market trends remain stable 1) Wickes Mood of the Nation survey August 2026; 2) Metapack Ecommerce Delivery Benchmark Report, Retail Economics in partnership with Auctane, February 2025. 14 Trade pipelines remain healthy Around 30% of tradespeople have work for >12 months1 1 in 5 planning new kitchen or bathroom projects Planned spend stable, whilst still below historical norms1 1 in 2 consumers plan to decorate a room this year1 c60% expect faster deliveries and will pay more for same-day service2 Design & Installation Local Trade DIY
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More customers choosing Wickes, driving volume growth in Retail 151) Active members of the TradePro scheme are deļ¬ned as those who have shopped with us in the last 12 months; 2) Source: GfK GB point of sale data, sourced from GfK DIY Category Reporting June 2026. 3) In Wickesā regular, proprietary Customer Satisfaction survey, the percentage of customers responding āexcellentā or āgoodā. ā¢ TradePro sales +5% on increased customer volumes ā Growth in active members to 671,0001 ā¢ Category development driving market share gains YoY ā Decor at all-time high, following category reset ā Range development driving garden share, especially in soil & compost, power tools, garden buildings ā Growth in timber, following 2025 range reviews in mouldings, cladding, stair parts & acoustic panels ā¢ Importance of certainty of value, clarity of choice & convenience ā 7% growth in digitally-led Click & Collect and Home Delivery in Q2 ā Very strong Customer Satisfaction metrics3, with 89% self serve, 86% C&C, 90% Home Delivery 1 2
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Growing volumes across all segments of our D&I markets 16 ā¢ Unique customer proposition ā Only national retailer with āGood, Better, Bestā offering and installation service, in both kitchens and bathrooms ā Range of styles, affordability, service and trust ā¢ Customers responding positively to unique Wickes offering ā Volume of kitchens & bathrooms sold +3%1 ā Lifestyle Kitchens offering innovation in more affordable segment of market, now with 23 ranges ā In Bespoke bathrooms, success of Bayswater collection, new ļ¬tted & modular furniture ā Customer satisfaction 96% āexcellentā or āgoodā2 ā¢ Wickes Solar building foundations for future growth ā Improving lead generation and conversion ā Installing solar on 5 Wickes stores this year 1) Number of kitchen projects >Ā£1500 and bathroom projects >Ā£500 ordered during H1 2026; 2) Percentage of customers responding āexcellentā or āgoodā regarding the full process from lead to order Sandford Cloudy Blue Bayswater collection
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Investment in new stores and reļ¬ts driving growth ā¢ Reļ¬tted/refreshed 8 stores ā c84% of estate now in current format ā 8 reļ¬ts / refreshes: Luton, Baguley, Doncaster, Hanger Lane, Hertford, Newbury, Dumfries, Loughton ā¢ Property plans for 2026 ā 4 - 5 new stores ā 12 reļ¬ts / refreshes 17 Current expectation 2026 2027 2028 onwards New stores, # 4 - 5 7 - 9 10 + Reļ¬ts & refreshes, # 12 15 - 20 20 + Store capex1 c.Ā£20m Ā£25 - 35m Ā£35 - 45m 1) Total capex comprises store capex shown in table above plus cĀ£15-20m other capex (digital, maintenance, range reviews, other). Dumfries - Before Dumfries - After
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āBuilt to Lastā Responsible Business strategy Charity partner CALM Raised Ā£1.3m towards Ā£2m target Campaign to tackle tool theft1 260k power tools protected with free marking Early careers opportunities 30% of store colleagues aged 16-24 Recognition in ESG ratings Strong results in ESG assessments 18 1) Image shows sculpture named āAnguishā, made of reclaimed power tools and spanners, commissioned by Wickes. The Wickes tool theft campaign highlights the impact of tool theft on tradespeople, affecting their income, mental wellbeing and ability to work
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Distinctive business model underpins proļ¬t growth and cash generation through the cycle 19 1. Highly differentiated business model ā Continuing to win market share ā Volume growth drives operational leverage 2. Scale of growth opportunity ā 30% growth ambition for store estate ā Ā£35bn total addressable market1 ā Only c5% market share 3. Strong cashļ¬ow generation ā Enables investment in proven growth levers ā Attractive shareholder returns 1) Addressable market size ļ¬gures are approximate. Sources include GfK data (excluding buildersā merchants), Mintel, KBB, Gower, Wickes internal forecasts, BCG, MCS & Wickes Solar internal forecasts for residential properties (excluding double glazing).
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Large UK markets with potential to grow share materially All ļ¬gures are approximate. 1) Source: GfK data, excluding buildersā merchants; 2) Source: Mintel, KBB, Gower, Wickes internal forecasts; 3) Source: BCG, MCS & Wickes internal forecasts, for residential properties, excluding double glazing. Retail Design & Installation Total Home improvement1 Kitchens & bathrooms2 Home energy3 Products Ā£19bn Ā£7bn Ā£2bn Ā£28bn Installation services ā Ā£4bn Ā£3bn Ā£7bn Total Ā£19bn Ā£11bn Ā£5bn Ā£35bn With c5% share of the Ā£35bn addressable market, there is plenty of headroom for growth Ā£35bn Total addressable market 22
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Strong foundations and performance leading us to accelerate our network rollout Strong performance of existing & new stores Proven ability to operate successfully in smaller footprint stores Going further & faster Increased ambition to 300 stores 23
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Encouraging performance of new store cohort ā¢ Conļ¬dence from cohort of new stores ā Stores performing well ā 13 stores opened in 3.5 years1 ā¢ Revenue & margins maturing and on track to meet returns expectations ā Target 25% ROCE in year 5 ā¢ Ongoing rollout ā White space opportunities ā Under-served larger towns and cities Leamington Spa Northampton Riverside 1) Opened mid-2022 until end-2025. 24
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Ability to operate successfully, with full range, in smaller footprint stores ā¢ Successfully trading with full Wickes format in smaller footprint stores ā Full customer proposition ā Existing sites of this size performing well ā¢ Access to greater number of potential target locations ā Catchments with lower population ā Inļ¬ll of major urban areas All ļ¬gures as at FY25. 1) Comprises a basket of 21 stores which have been trading for more than one year; 2) Gross internal area; 3) Average Store EBITDA deļ¬ned as mean store-level earnings before interest, tax, depreciation, and amortisation, after rent charges, across our standard footprint stores. This excludes central overheads and is calculated on an ordered sales basis, rather than IFRS delivered sales. Staines Performance of smaller footprint stores Sq.ft2 SKUs in store Store EBITDA3 Smaller footprint stores1 15 - 20k 9-10k Ā£0.8m Group average 27k 9-10k Ā£0.8m 25
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Greater store growth opportunity ā¢ Securing property pipeline, with rollout to accelerate from 2028 onwards ā Anchor tenant, very strong 5A1 covenant ā Commercial negotiations, planning permissions, construction ā¢ Access to smaller catchments enables new ambition for 300 stores ā¢ Reļ¬t programme evolving towards more refreshes ā Lower capex requirement per site Today 230 stores Previous ambition 250 stores New ambition 300 stores 1) Total capex comprises store capex shown in table above plus cĀ£15-20m other capex (digital, maintenance, range reviews, other). 26 Current expectation 2026 2027 2028 onwards New stores, # 4 - 5 7 - 9 10 + Reļ¬ts & refreshes, # 12 15 - 20 20 + Store capex1 c. Ā£20m Ā£25 - 35m Ā£35 - 45m
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Increased growth investment, within established capital allocation framework 1. Strong balance sheet Net cash at all times Min Ā£50m YE cash RCF for extra liquidity 3. Ordinary dividend Target dividend cover 1.5x - 2.5x in normal trading 4. Return of surplus cash Excess cash will be returned to shareholders 2. Investing in the business Capex 2-3% of sales Reļ¬ts, new stores & tech Target blended ROIC >15% ā¢ Opportunity for enhanced investment into the business ā Going further & faster on proven new store rollout and reļ¬ts/refreshes ā Property capex to increase by cĀ£20m pa in medium term ā Ambition to reach 300 stores ā¢ Dividend policy unchanged ā Target cover ratio 1.5x - 2.5x ā Dividend and cover to start increasing as proļ¬ts grow ā¢ Share buyback programme ā Future buybacks dependent on speed of store rollout 27
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A balanced business supporting three customer propositions 28
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Our 4C customer service model 29 Order Fulļ¬lment Orders picked and ready for collection or delivery Assisted Selling Support to ļ¬nd exactly what you need Design & Installation Space to dream and visualise your project with expert help at handSelf Serve Simple, quick and easy to shop
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How we deliver our unique customer proposition 30 All data as at FY 2025
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Sustainable competitive advantage driving investment returns 31 All data as at FY 2025
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Disclaimer 32 This presentation has been prepared by Wickes Group Plc. This announcement may include statements that are, or may be deemed to be, "forward-looking statements" (including words such as "believe", "expect", "estimate", "intend", "anticipate" and words of similar meaning).To the extent it includes forward-looking statements, these statements are based on current plans, estimates, targets and projections, and are subject to inherent risks, uncertainties and other factors which could cause actual results to differ materially from the future expectations expressed or implied by such forward-looking statements. Neither Wickes Group Plc, nor any of its oļ¬cers, Directors or employees, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this presentation will actually occur. Wickes Group Plc does not undertake any obligation, other than in accordance with our legal and regulatory obligations, to update or revise any forward-looking or other statement, whether as a result of new information, future developments or otherwise.