Wickes Group plc
Annual Report and Accounts 2024
Helping the
nation feel
house proud
W
Wickes Group Plc
Annual Report and Accoun ts 2024
Helping the
nation feel
house proud
About this report
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For over 50 years, Wickes has been
proud to have played a part in the history
of home improvement in the UK.
The UK home improvement market has seen significant change
over recent years and, despite short term economic headwinds,
the long term outlook remains strong, with market growth
underpinned by robust structural fundamentals.
Our balanced business, across the three distinct customer
propositions of Local Trade, Design & Installation and Do-it-yourself
(DIY), means we are perfectly placed to help all customers,
whatever their home improvement project might be.
We use our market insights to evolve our products and
services to meet all our customers’ needs and we continue
to invest in our strategic growth levers to win in the UK’s home
improvement market and achieve our purpose, simply...
To help the nation
feel house proud.
What’s inside this report
Strategic report
2 Financial highlights
3 Strategic highlights
4 At a glance
6 Chair of the Board’s statement
7 Investment case
8 Chief Executive Officer’s statement
12 Market review
16 Business model
17 Strategy at a glance
18 Strategy in action
24 Key performance indicators
26 Financial review
30 Responsible business
53 Climate-related financial disclosures (TCFD)
66 Non-financial and sustainability information statement
67 Risk management overview
69 Principal risks and uncertainties
76 Viability statement
Governance
78 Governance report
80 Board of Directors
92 Nominations Committee report
98 Audit and Risk Committee report
104 Responsible Business Committee report
106 Remuneration Committee report
118 Directors’ report
121 Statement of Directors’ responsibilities
Financial statements
122 Independent Auditor’s report to the members
of Wickes Group Plc
130 Consolidated income statement and other
comprehensive income
131 Consolidated balance sheet
132 Consolidated statement of changes in equity
133 Consolidated cash flow statement
134 Notes to the consolidated financial statements
160 Company balance sheet
161 Company statement of changes in equity
162 Notes to the Company financial statements
Other information
165 Shareholder information
166 Glossary
Chair of the Board’s
statement
See page 6
Chief Executive Officer’s
statement
See page 8
Responsible
business
See page 30
Investment
case
See page 7
Wickes Group Plc Annual Report and Accounts 20241 Strategic report Governance Financial statements Other information
2024
2023
2022
2021
1,538.8
1,553.8
1,559.0
1,534.9
2024
2023
2022
2021
43.6
52.0
75.4
85.0
2024
2023
2022
2021
23.2
41.1
40.3
65.4
2024
2023
2022
2021
86.3
97.5
99.5
123.4
2024
2023
2022
2021
14.1
15.1
23.8
27.2
2024
2023
2022
2021
7.7
11.8
12.6
23.3
2024
2023
2022
2021
(2.0)
(0.3)
3.5
13.0
2024
2023
2022
2021
10.9
10.9
10.9
10.9
2024
2023
2022
2021
32.2
46.1
29.0
16.6
Financial highlights
Revenue (£m)
1
£1,538.8m
2023: £1,553.8m
Adjusted PBT (£m)
2
£43.6m
2023: £52.0m
Statutory PBT (£m)
£23.2m
2023: £41.1m
Cash (£m)
£86.3m
2023: £97.5m
Adjusted basic earnings per share (p)
3
14.1p
2023: 15.1p
Statutory basic earnings per share (p)
7.7p
2023: 11.8p
LFL sales growth (%)
1
(2.0)%
2023: (0.3)%
Dividend per share (p)
10.9p
2023: 10.9p
Free cash flow (£m)
4
£32.2m
2023: £46.1m
1 Refer to note 5 on page 139
2 Refer to note 9 on page 141
3 Refer to note 11 on page 143
4 Refer to note 33 on page 158
2 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Strategic highlights
Wickes Solar
This year we have made a meaningful strategic entry into
the UK’s home energy solutions market with the acquisition
of a controlling stake in Solar Fast, one of the UK’s leading
operators in solar installation. Wickes Solar is now available to
customers through our website and in stores and we believe
that our trusted brand, coupled with significant experience
in design and installation services at scale, makes us well
placed to become a leader in the market for domestic solar
installations, estimated to be worth £1.5bn pa by 2028
1
.
Flexible working
At the beginning of the year, we rolled out flexible working across
our entire store network. This followed a six-month pilot across 14
stores that showed a significant increase in the number of managers
who were happy with their working hours, which had no negative
impact on store performance. Busting the myth that managers
in retail operations need to be on-site at all hours of the day, all
Wickes store management teams can now explore flexible working
options that enable them to achieve a healthy work-life balance.
One million TradePro members
2024 has been a tremendous year for our TradePro membership
scheme. In September, we celebrated a milestone in the
TradePro success story, hitting our target of one million
members. We are now focused on growing the number of active
customers and this cohort has been rising steadily, standing
at over 580,000. TradePro members are our most strategically
valuable customers, spending on average ten times more in a
year than a typical DIY customer and we are actively recruiting,
developing and nurturing this important customer base.
Colleague Promise
To showcase why Wickes is a great place to work we have developed
our Colleague Promise, which describes who we are as an employer,
explains what we offer to our colleagues and reflects our culture and
values. For 18 months, we engaged with over 250 colleagues across
Wickes, listening to their experiences, ideas and aspirations and we
created our Colleague Promise, founded on three central pillars –
‘Freedom to be’, ‘Empowering you’ and ‘Big on what matters’.
Four energy efficient new stores
In 2024 we opened four new stores in Long Eaton, Durham, Aberdeen
and Leamington Spa, creating around 120 new jobs. As part of our
commitment to growing responsibly, all four stores are fitted with
air source heat pumps and our Aberdeen and Leamington Spa
stores have solar panels installed on their roofs. We have an exciting
pipeline of new stores planned for the coming years, as we target
an overall estate of around 250 stores over the medium term.
Entry into FTSE4Good index
Our progress with delivering our ‘Built to Last’ strategy and
increasing the transparency of our ESG disclosures was
recognised by our entry into the FTSE4Good index and achieving
a ‘AAA’ ESG rating from MSCI. For our 2024 CDP (Carbon
Disclosure Project) submission, we successfully maintained
a ‘B’ rating for Climate Change and a ‘C’ for Forests.
Read more on page 35 Read more on page 21
Read more on page 38Read more on page 20
Read more on page 19 Read more on page 42
1 Source: Wood MacKenzie UK PV Capacity Forecast
Wickes Group Plc Annual Report and Accounts 20243 Strategic report Governance Financial statements Other information
Our winning
behaviours
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At a glance
Three distinct customer propositions
Our culture
Local
Trade
Design &
Installation
DIY
We are trusted by local
tradespeople to provide
quality products they need
at great value, saving them
time and money. Our
TradePro loyalty scheme
offers a 10% discount and
our Wickes own brand has
built a strong reputation with
Local Trade over the past
50 years.
For customers who are
looking to buy a new
bathroom, kitchen or solar
panels, we offer a full service
from concept design to
installation. Our team of
design consultants and
nationwide network of
installers are on hand to
support the customer
with their project.
We provide a highly curated
range of branded and own
brand products in store and
further products online to
help customers undertake
their DIY project. Our store
teams and online guides are
there to provide customers
with expert advice and
knowledge to support them.
Read more on page 20
Read more on page 21 Read more on page 22
We are proud of our special culture where everyone
is welcome and given the opportunity to thrive. We are
guided by a set of values we call our Winning Behaviours.
Our colleague promise
Freedom to be
Empowering you
Big on what matters
Our Built to Last strategy
Read more on page 34 Read more on page 38
As we grow, we are committed to doing so
sustainably. Our Built to Last Responsible
Business programme is focused on
three pillars.
Read more on page 30
People
Colleagues • Customers • Communities
Environment
Carbon • Waste • Nature
Homes
Products • Services • Installations
Our vision
A Wickes project
in every home
Our purpose
To help the nation
feel house proud
228
stores across the UK
7, 4 0 0
colleagues
4 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
At a glance continued
Read more on page 12
Three long-term market drivers
support our growth ambitions
Supported by our efficient
operating model
A balanced business supporting
three customer propositions
The role
of the home
Local Trade
We are a purpose-led business
Read more on page 18 Read more on page 16
Curated product ranges
Simple, clear value pricing
Digitally-led, service-enabled
Distinctive operating model
Low cost, right size store estate
A winning culture
The drive to
save energy
Design &
Installation
Digitally
enabled retail
DIY
Perfectly placed to
deliver exceptional
customer experience
and fulfil our purpose
of helping the nation
feel house proud.
Wickes Group Plc Annual Report and Accounts 2024
5
Strategic report Governance Financial statements Other information
Chair of the Board’s statement
Investing
in growth
Christopher Rogers, Chair of the Board
Our distinctive
proposition and excellent
execution of our strategy
have helped deliver a
strong performance.
On behalf of the Board, I’d like to take this
opportunity to thank our colleagues who
do such a fantastic job taking care of our
customers and each other.
Performance
As expected, 2024 has been another year impacted
by significant global, political and economic events
that have weighed on consumer confidence. In
challenging trading conditions we have delivered
a strong performance with sales of £1,538.8m and
we have grown our market share to record levels.
Faced with significant increases in operational
costs, especially employment costs, we have
focused on improving productivity and delivering
efficiencies to deliver a profit of £43.6m.
Our balanced business model continues to
provide us with competitive advantage. Whilst
our Design & Installation business saw subdued
sales due to reduced consumer demand for
bigger ticket items, this was compensated for
by strong demand in our Local Trade business,
helping to drive Retail sales growth of 1.9%.
Investing in growth
In 2023, we outlined a new Capital Allocation
Policy, underscoring our commitment to investing
in our high-returning proven growth levers and
returning excess cash to shareholders through
a share buyback programme. I’m pleased to
report that the buyback programme has been
successfully delivered with £25m returned to
Shareholders in 2023 and 2024. We continue to
invest in our strategic growth levers to further
strengthen the business and secure our position
as a leader in the UK home improvement market.
This includes a significant investment to enter
the domestic home energy solutions market,
through our acquisition of a majority stake in Solar
Fast, giving us a further platform from which to
accelerate our Design & Installation business.
As a growing business it is critical that we do so in
a responsible way and I was delighted that we have
been included in the FTSE4Good Index, recognising
all the great work that our teams do to progress our
ESG agenda. You can learn more about our
approach to ESG in the Responsible Business
section of this report (see pages 30-52).
Our culture
In 2024, we wanted to shine a spotlight on what
makes our culture so special and have developed
a new ‘Colleague Promise’, which articulates
what it feels like to work at Wickes. This special
culture is reflected in our colleague engagement
scores, with high levels of ‘overall engagement’ at
77%, and low colleague turnover rates compared
with the wider retail sector. You can read more
about our Colleague Promise and how we embed
and monitor our culture on pages 34-39.
Dividend
The Board is pleased to recommend a final dividend
of 7.3 pence per share, taking the full year ordinary
dividend to 10.9 pence per share.
Board
As a Board we always enjoy the opportunity to
meet store teams from across the business and,
this year, we’ve had highly valuable and enjoyable
visits to our Slough store and with one of our key
partners, Wincanton, at its Distribution Centre
in Corby.
Looking ahead
We expect the external environment to continue
to be difficult in 2025. However, we believe our
relentless focus on managing those costs that
we have control over, at the same time as investing
significantly in our growth levers, will continue
to drive market outperformance, as more
customers turn to us to help them with their
home improvement projects. I, along with the
Board and all my Wickes colleagues, are looking
forward to another year of delivering our growth
plans and helping the nation feel house proud.
Christopher Rogers
Chair of the Board
6 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Investment case
Sustainable competitive advantage
driving investment returns
Profit growth >
revenue growth
Our proven growth levers are
successfully driving sales densities,
profit contribution and returns from
stores. Our efficient model keeps
operating costs low, generating
operating leverage so that over the
economic cycle we would expect
to grow profit faster than revenue.
Sales growth:
mid-single digit
Our balanced business model
enables us to access three customer
propositions of Local Trade, Design
& Installation and DIY, offering
greater resilience through the
economic cycle.
Wickes has just c6% share of the
home improvement market, offering
significant opportunity for future
growth. Through consistent market
share gains and underlying market
growth we aim to generate mid-single
digit revenue growth over the cycle.
Strong
cash flow
Our profitable business model
generates strong operational cash
flow. This cash flow supports future
investment into proven growth
levers such as store refits and digital,
as well as enhancing shareholder
returns through dividends and share
buybacks. In 2023 we unveiled a
revised Capital Allocation Policy and
announced our first share buyback.
Large and
growing market
UK home improvement
worth£27 billion per year.
Distinctive
business model
Digitally-led, service-enabled,
with a highly efficient
operating model.
Read more on page 12
Read more on page 16
7
Growth levers
c.20
new stores over four to five years
£41m
returned to Shareholders in 2024
Wickes Group Plc Annual Report and Accounts 20247
Strategic report
Governance Financial statements Other information
Chief Executive Officer’s statement
A year of strong
progress
David Wood, Chief Executive Officer
The actions we have
taken across the business
to invest in our growth
levers and productivity
plan position us well for
future growth.
2024 was a year of strong progress for Wickes as
our balanced business model and brand strength
saw us continue to deliver for customers and take
further market share. I would like to thank my
colleagues for their continued hard work and
support and, together, we remain focused on
helping the nation feel house proud.
We grew volumes and share throughout the year in
our Retail business, as customers bought more of
our products for their home improvement projects,
however big or small. In our Design and Installation
business, we have been encouraged by a return
to growth in ordered sales in Q4, following the
actions we took to enhance our customer offer
and experience.
As expected, overall profitability declined versus
2023, reflecting a market with softer demand
for larger ticket purchases and continued cost
headwinds, which we were largely able to offset
through our productivity savings. As a result,
I am pleased to report that we were able to deliver
adjusted PBT at the top end of expectations.
Market
The UK home improvement sector represents a
large and attractive market of c. £27bn
1
. Within
this market we have a significant opportunity for
long-term growth, given our relatively small market
share of around 6%. The challenging trading
conditions of the last two years have resulted in
the exit of retailers such as Homebase, Carpetright,
CTD Tiles and Wilko, presenting an opportunity for
strong businesses of scale, such as Wickes. The
market has grown at c. 2.5% per annum on average
over the past ten years, driven by the high average
age of the UK’s housing stock, the rising number
of UK households and increasing home ownership.
Specialist DIY sales are forecast to grow by 16%
between 2024 and 2029, according to Mintel
2
driven by improved confidence and expected
improvement in the housing market.
There are a number of macroeconomic trends
which affect our market. Whilst the Wickes home
improver customer base has not been immune
from cost of living pressures (such as increased
mortgage rates or rents), they tend to be slightly
older and more affluent than the UK average.
Moving house is often a trigger to undertake major
home improvement projects over time and the rate
of UK housing transactions has improved over
2024
3
. Wickes has virtually no exposure to civil
engineering or the new build housing market, given
that our customers are mostly home improvers
and independent tradespeople.
Britain’s 29.8m
4
homes are among the least energy
efficient in Europe, losing heat up to three times
faster than in continental Europe
5
. The average
household energy efficiency rating for England and
Wales is band D
6
and the UK government estimates
that 33% of homes with a loft do not have loft
insulation13. At Wickes we are committed to
helping our customers improve the energy
efficiency of their homes and save money on their
energy bills. The January 2025 report from our
proprietary Mood of the Nation survey showed that
around 15% of home improvers have considered
installing solar panels over the last year.
1 Source: GfK, Mintel and Wickes estimates
2 Source: Mintel UK DIY Retailing report, June 2024
3 HM Revenue & Customs monthly property transactions
completed in the UK with a value of £40,000 or above,
31 January 2025
4 Department for Energy Security & Net Zero, Household Energy
Efficiency, 28 March 2024
5 Decarbonising Buildings: Insights from Across Europe,
published by the Grantham Institute – Climate Change and the
Environment at Imperial College London, December 2022
6 ONS Energy efficiency of housing in England and Wales 2024
8 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Chief Executive Officer’s statement continued
Our December 2024 Mood of the Nation survey
showed that planned spend by UK consumers on a
new kitchen or bathroom remains below historical
norms, but stable over recent months. Demand has
been stronger in the <£4k segment of the kitchens
market. Consumers remain interested in DIY but
have been spending a bit less, with Mintel reporting
that smaller projects have been the most popular
type of DIY completed
1
. The December 2024 Mood
of the Nation survey also shows that local trade
professionals remain busy, with 1 in 4 having a
pipeline of work of more than 12 months.
Progress against strategic growth levers
The company’s strategy, as outlined at the time
of demerger, has delivered strong operational
progress centred around developing and extending
the Group’s growth levers. These contribute to an
improvement in our products and services, saving
our customers time and money. Continued
investment in our growth levers will drive market
share growth in the coming years.
Winning for trade
Our TradePro membership scheme continues to
attract local traders, who choose Wickes for its
strong value credentials and simple discount
scheme, high quality products, availability on the
lines that matter most, as well as the convenience
of our 30-minute Click-and-Collect service.
Sales from TradePro members increased steadily,
by 14% over the year. The strong growth in the
number of active customers to 581,000 was
partially offset by a slight decline in average
basket size as tradespeople have been managing
their material quantities more carefully. Total
membership of the TradePro scheme surpassed
the one million mark in September, achieving the
target set at the time of demerger.
TradePro members benefit from our rewards
programme, with access to special deals on
services such as skip hire, insurance and media
subscriptions. In 2024, we added further services,
including TradePro membership for trade
accredited members of trade federations such
as Checkatrade and SafeContractor, as well as
rather than separate Bespoke and Lifestyle paths.
This new approach encompasses brochures,
website, advertising and promotions. We have
streamlined the customer journey in store by
ensuring that new customers are able to interact
directly with a Design Consultant as soon as they
begin the design process, by adding around 160
Design Consultants and removing the Kitchen
& Bathroom Adviser role. In addition to improving
the customer experience, this has reduced the
associated operating costs. Customers are now
able to book an appointment instantly with a
Design Consultant, through our website, in the
store of their choice, replacing a more cumbersome
telephone booking system. We also use a technical
solution for scheduling installers, with our
Customer Experience Centre overseeing the
multi-stage installation process. Product
development continues to drive growth, with new
kitchen ranges proving successful with customers.
The acquisition of a 51% controlling interest in
Solar Fast was completed on 21 May and is fully
consolidated from that date. We have now installed
Wickes Solar point-of-sale displays in all of our store
estate in order to support the digital journey on the
Wickes website. We are seeing an encouraging
response, with around 1 in 4 Solar Fast leads coming
through the Wickes channels and with these leads
resulting in above average conversion. The market for
domestic solar installations in the UK is in long-term
growth with the market estimated to be worth £1.5bn
pa by 2028
4
. It is a highly fragmented market with no
clear brand leader; with a trusted brand and
significant experience in design and installation
services at scale, Wickes is well-placed to be a
market leader in home energy solutions. We have an
option to purchase the remaining 49% of the issued
share capital of Solar Fast during the five years
discounted fuel and vehicle maintenance with Fuel
Card Services. We have also continued to invest in
improving TradePro members’ digital experience,
making it easier to shop via the app, adding VAT/
Non-VAT pricing and the ability to use the TradePro
card in a digital wallet.
Partnerships with trade federations give us access
to new sources of accredited tradespeople. In order
to build loyalty with tradespeople at the start of
their careers and to foster long-term engagement
and spending, we have partnered with several
apprenticeship organisations. Access Training
provides essential training programs that help
individuals upskill and gain qualifications in the
construction sector, ensuring they are equipped for
long-term success. Additionally, Building Heroes
supports ex-servicemen and women by offering
training and opportunities to transition into careers
in construction. Through these partnerships, we
are not only supporting individuals to get started
in their careers but also contributing to the growth
of a skilled and diverse workforce in the
construction industry.
We continue to use behavioural analytics to
understand the drivers of average spending by
decile. Our proprietary and market-leading machine
learning model, the Mission Motivation Engine
(MME), drives deeper customer relationships and
extracts greater lifetime value.
Accelerating Design & Installation
Design & Installation delivered sales
2
reflected the
challenging market environment for larger ticket
purchases in the UK. LFL sales declined by 13.9%,
whereas ordered sales
3
showed a single digit
year-on-year decline. Momentum later in the year
improved significantly, with LFL delivered sales
improving from -13.3% in Q3 to -3.1% in Q4 and
ordered sales moving into year-on-year growth in
the fourth quarter for the first time since Q2 2023.
This improvement has been driven by the
enhancements we have made to the business. In
response to customer feedback, we have simplified
the customer journey and now present a unified
Wickes Kitchens and Wickes Bathrooms offering,
following completion, in tranches of not less
than 10% of the issued share capital, based on
a valuation of 6x last twelve months EBITDA at
the time.
DIY category wins
Our market share in Retail has continued to grow,
with strength across numerous categories,
particularly in the DIY categories of interior paint,
decorative accessories and garden projects.
These compounding market share gains have
been driven by our ongoing development of
new and existing categories, as we broaden the
reach of the Wickes brand. We have grown our
decor proposition by selectively introducing
third party brands such as Crown, Zinsser and
extended ranges of Dulux as well as refreshes
to some of our own label ranges and one third
of baskets now include at least one decorative
product. The two own brand paint colours which
we have launched with Kimberly Walsh have
been a huge success and have helped to broaden
our appeal, such that now over 1 in 3 Wickes
customers are female
5
compared to less than
1 in 6 in 2019. The relaunch in recent years of
ranges such as our storage & shelving ranges
continues to boost sales and market share in
these categories. We have driven incremental
revenue through launching new categories and
expanding existing categories such as acoustic
wall panelling, motor accessories and decorative
accessories. The continuous range development
within gardening and landscaping has grown our
market share and attracted gardeners of all ages.
We continue to strive for the best possible range,
price and availability for our customers. Our
right-sized stores sell a carefully curated range
160
new Design Consultants
1 Source: Mintel UK DIY Retailing report, June 2024
2 Delivered sales refers to the revenue which is recognised when
the Group has satisfied its performance obligation to the
customer and the customer has obtained control of the goods
or services being transferred
3 Ordered sales refers to the value of orders at the point when the
order has been agreed
4 Source: Wood Mackenzie UK PV Capacity Forecast
5 Proportion of Wickes DIY customers identified as female in 2024
Wickes Group Plc Annual Report and Accounts 20249 Strategic report Governance Financial statements Other information
2024, as a second Buy Now Pay Later option.
We will subsequently be trialling both Klarna and
Clearpay in some of our stores.
We have invested in a AI-driven predictive
stock forecasting platform, which is delivering
materially enhanced productivity whilst driving
an improved customer experience and lower
costs. The platform has led to a significant
improvement in stock forecast accuracy with
material financial benefits. We have delivered a
reduction in total stock units held and a c. 70%
reduction in third party storage usage over two
years. Store availability has improved alongside
the reduction in stock levels. We expect further
network efficiency opportunities for 2025.
Enhanced store service model
Our ‘4C’ model aims to meet our customers’ needs
through all four of our store network journeys: Self
Serve, Assisted Selling, Order Fulfilment and the
Design & Installation showrooms. Our approach
offers a seamless shopping experience for
customers and ensures that our store estate works
hard for us. Recent changes to the store estate
have increased back of house capacity for Click &
Collect and Home Delivery Order Fulfilment, while
reducing the impact on customers in the store.
A winning culture
We are proud of the Wickes culture which over the
past fifty years has evolved to become a modern,
inclusive workplace where all colleagues can feel
at home and have the opportunity to grow their
skills and develop their career. We continue to
engage with colleagues so that they are informed,
inspired and motivated to play their part in
delivering our strategy through exceptional
levels of customer service.
As part of our new Colleague Promise, we have
rolled out flexible working to all roles in the Support
Centre and to all store management teams.
Responsible Business Strategy update
During 2024 we have continued to focus on
integrating our Responsible Business Strategy
‘Built to Last’ across our business and supply chain,
with continued progress made across all three
of c.9,000-10,000 SKUs and we are constantly
reviewing the range to ensure that each product
category is meeting expectations. During 2024 we
carried out 19 comprehensive range reviews.
All of these actions have contributed to our all-time
high customer satisfaction metrics. 84% of our
customers responded that our Click & Collect
service was ‘excellent’ or ‘good’ in 2024, an
improvement of two percentage points. Our
customer satisfaction scores for Home Delivery
remain at very high levels, with 89% rating the
service as ‘excellent’ or ‘good’.
Store investment
Investment in our store network continues, to
modernise the stores, improve our showrooms and
create additional fulfilment space.
Our refit programme continues to deliver good
returns with strong sales uplifts, particularly from
the Design & Installation areas, where we are
able to showcase our full offer of kitchens and
bathrooms. The refits enable us to upgrade
the efficiency of multi-channel order pick and
despatch, which drives sales densities and
underpins our 30-minute Click & Collect promise
and increases customer satisfaction metrics.
182 stores, or 80% of the network, are now in
our new format. Seven store refits were
successfully completed during 2024, in Ashford,
Burgess Hill, Slough, Bedford, Worcester,
Edmonton and Lowestoft.
Our new store opening programme is performing
well, and we expect our new stores to deliver good
economic returns, once mature. Four new energy
efficient stores opened during 2024 in Long Eaton,
Durham, Aberdeen and Leamington Spa, creating
around 120 new jobs. During 2024 we closed five
stores (Ashton Gate, Inverness, Sheffield Central,
Warwick Kitchen & Bathroom, Battersea Kitchen &
Bathroom). We therefore ended the year with 228
stores. Total square footage remained broadly flat
year-on-year.
Our property plans for 2025 are on track. Early in
2025 we acquired three former Homebase stores,
in Leeds Moor Allerton, Bury St Edmunds and
pillars of the strategy – People, Environment and
Homes. As a responsible business we ensure we
continue to also focus on our three fundamental
topics – Health & Safety, Ethical Business Conduct
and Responsible Sourcing.
The health and safety of our colleagues and
customers remains our number one priority. In
2024, we had an 8% reduction of injury numbers
across the business and a 36% reduction in
colleague injuries leading to lost time or work days,
compared to 2024.
In 2024, our progress with delivering our ‘Built to
Last’ strategy and increasing the transparency of
our ESG disclosures was recognised by our entry
into the FTSE4Good index and achieving a ‘AAA’
ESG rating from MSCI. For our 2024 CDP (Carbon
Disclosure Project) submission, we successfully
maintained a ‘B’ rating for Climate Change and a ‘C’
for Forests.
People
Inclusion and diversity is central to our new
employee value proposition, launched in 2024. In
our management population we increased female
representation from 35.1% to 37.0% in 2024, and
representation of people from an underrepresented
ethnic background from 11.3% to 11.9%. Fair pay
remains at the core of our reward offering and we
recently reported favourable median gender and
ethnicity pay gaps.
Dunfermline. Having already acquired the former
Homebase store in Northampton in late 2024,
we now have four former Homebase stores in our
new store opening programme for 2025. We are
planning a total of 10-15 refits in the year and 5-7
new stores. We have an exciting pipeline of new
stores planned for the coming years, as we target
an overall estate of around 250 stores over the
medium term.
Digital capability
We continue to invest in our digital capabilities to
deliver an integrated multi-channel shopping
experience for our customers.
We use our proprietary and market-leading
machine learning model, the Mission Motivation
Engine (MME), to deliver tailored content to
customers to help them complete their home
improvement missions and this is driving
significant revenues. Our MME collects data
to help us understand who our customers are,
what they browse, what they buy, how and
when, in order for us to produce personalised
communications. We have a comprehensive suite
of MME-led programmes of marketing emails
and app notifications, all of which are optimised
for timing, audience and content for our different
customer profiles, with incrementality measured
against control groups. These communications
predict which products a customer may need and
encourage them to go deeper into their project or
mission. Our lifetime value calculator assesses
behavioural data to determine whether each
customer is likely to be a high value customer, to
determine their shopper type algorithm and gauge
our marketing efforts accordingly. The MME is
a highly effective method of using first party
data to inform personalised communications
to thousands of individual customers.
We continue to improve our offering of digital
payment options. In order to complement our
existing Apple Pay functionality, in January we
rolled out Google Pay functionality for digital
payments, offering ease of checkout and increased
conversion rate. Following a successful launch of
Klarna in 2023, we launched Clearpay in August
Chief Executive Officer’s statement continued
Our market share in Retail
has continued to grow,
with strength across
numerous categories,
particularly in the DIY
categories of interior paint,
decorativeaccessories
and garden projects.
10 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
In 2024, we provided 178 people with Early Careers
opportunities including apprenticeships, work
experience placements, traineeships, internship
and graduate roles, in order to help develop the
skills our business needs for the future. We
introduced a School Outreach Programme and
Wickes School Challenge for year nine students
from across the UK, which promoted key skills
like communication, teamwork, problem solving,
creativity, numeracy and digital skills.
Through our Wickes Community Programme, we
supported 47% more local community projects in
2024 compared to 2023, by donating over 28,000
products. We raised £926,000 for The Brain Tumour
Charity in 2024, with thanks to the generosity of our
customers, suppliers, and colleagues. In total we
have now raised £1.6 million towards our £2 million
target for the two-year partnership.
Environment
We completed a comprehensive exercise in 2024
to re-baseline our near term science-based targets
(SBTs) in response to business changes in
contracting out some of our distribution activities.
We subsequently announced an update to our
corresponding 2023 and 2024 LTIP targets. All
three of our SBTs have been re-submitted to SBTi
for validation following the re-baselining.
We have made significant progress towards
our target to reduce Scope 1 and 2 emissions
by 42% by 2030. Through sourcing 100%
renewable electricity and delivering other
energy efficiency improvements we have
reduced our Scope 1 and 2 GHG market-based
emissions by 61.3% compared to rebaselined
2021. We are continuing to collaborate closely
We employed on average 7,774 people in 2024
(2023: 7,919). As part of the work we have
undertaken to improve the customer experience
in Design & Installation (D&I), we restructured
the team to ensure that our customers’ first point
of contact is with the person who will take them
through the whole sales journey. This resulted
in the difficult decision to remove the Kitchen
& Bathroom Adviser (KBA) role in stores and
reinvest in additional Design Consultant (DC)
roles, with many people in KBA roles being offered
the opportunity to move into a DC role or other
roles within the business. As described above
we opened four new stores in 2024 and closed
five and, as always when we make the difficult
decision to close a store, we took all reasonable
steps to support colleagues who are affected in
securing alternative employment with Wickes.
with our strategic suppliers and 52 suppliers,
representing 27.3% of our Scope 3 emissions,
now have their own SBTi-validated targets.
From February 2025, 100% of our own brand primary
packaging on new stock is now PVC and polystyrene
free and therefore easier to recycle.
We are making progress towards our target to
increase the recycled content of the primary plastic
and paper packaging for our own brand products.
By delivering on these targets we will be able to
reduce costs associated with the introduction of
the Extended Producer Responsibility (EPR)
packaging regime and other packaging legislation
in the UK, as well as reducing the environmental
impact of our packaging.
We have furthered our understanding of the
Company’s nature-related dependencies, impacts,
risks and opportunities and in 2024 we stopped
selling compost containing peat. Timber remains
a significant part of our business and in 2024 we
once again achieved a level of 99.8% of the timber
sold having either an FSC or PEFC Chain of
Custody certificate, confirming that it had been
responsibly sourced.
Homes
In line with our purpose to make the nation feel
house proud, and supporting our customers with
the increased cost of living, we want to help our
customers save energy and reduce the carbon
footprint of their homes. We continued to expand
our online range of solar PV products, air source
heat pumps and charging products for electric
vehicles. Following the completion of the Solar Fast
acquisition, we have also been able to support our
customers with the installation of solar.
Confidence in our business model, underpinned
by our strong balance sheet, drives us to continue
investing in our proven growth levers, ensuring
we are well placed to win in the UK’s home
improvement market and deliver for our
colleagues, customers and shareholders.
David Wood
Chief Executive Officer
Chief Executive Officer’s statement continued
3 7.0 %
female representation
of management population
80%
of the store network
is now in our new format
We continue to strive for
the best possible range,
price and availability for
our customers.
Wickes Group Plc Annual Report and Accounts 202411 Strategic report Governance Financial statements Other information
100.0
104.8
106.8
110.1
110.4
113.3
2019
2020
2021
2022
2023
2024
Market review
UK home improvement is a
large market worth £27bn
1
per year
The UK home improvement
market has grown at c.2.5% on
average over the past ten years,
driven by the high average age of
the UK’s housing stock, the rising
number of UK households and
increasing home ownership.
Within this market we have a
significant opportunity for long
term growth, given our relatively
small market share of c.6%.
2024 has been a year of significant change and
consolidation within the UK home improvement
market. The challenging trading conditions of the
last two years have sadly led to some specialist
home improvement retailers exiting the market,
such as Homebase, Carpetright and Wilko. This
consolidation creates opportunities for Wickes to
meet the needs of former customers of those
businesses and to gain further market share.
Home improvement remains a priority
Our three customer propositions, across Local
Trade, Design & Installation and DIY, mean that we
span the entire market and can support customers
however they decide to improve their homes.
In recent years, the home improvement market
has been impacted by major global economic
and social events, most notably climate change,
the pandemic and the cost-of-living crisis.
Throughout, our balanced business model has
stood us in good stead as consumer trends
have shifted. Across the following three pages
we explore how the role of the home, the drive
to save energy and changes in how people
shop are shaping the UK’s home improvement
market and how, at Wickes, we are adapting and
evolving our business to win in this market.
1 GfK, Mintel and Wickes estimates
2 Source: GfK GB point of sale data, sourced from GfK DIY
Category Reporting December 2024
Retail market share (indexed, 2019 = 100)
2
Understanding our customers
We understand these fundamental changes
to consumer behaviour through regular and
comprehensive consumer research, and we use
our insight to evolve and enhance our products
and services to meet our customers’ needs.
We run monthly consumer research of over
1,000 UK households and tradespeople, which
we call our ‘Mood of the Nation’ survey, and
we also hold monthly customer focus groups,
which are conducted online and in person and
are available for all colleagues to watch either
in real time or playback on demand. This gives
us a finger on the pulse of immediate consumer
sentiment and short to medium term trends.
>1,000
UK participants in our monthly
Mood of the Nation research
12 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Celebrity Kimberley Walsh’s ‘Subtle Sage’
own label paint colour
50%
of tradespeople have a
pipeline of work of over
three months
1
Helping the nation
improve
their
homes
One of the most significant shifts
in consumer behaviour impacting
the home improvement market is
that, since the pandemic, people
are spending more time at home.
The pandemic lockdowns forced people to
fundamentally rethink how they used their homes.
They became multi-purpose, serving as an office,
a classroom, a gym and a place to socialise
with friends and family. People now have a new
appreciation for their homes and gardens and
want them to reflect the way we live and work
today, fuelling further desire from homeowners
and rental tenants to invest in their properties.
While people are still keen to improve their homes,
the continued high cost of living and economic
uncertainty has led to a squeeze on household
finances and people are spending less by
undertaking smaller DIY projects.
We conduct regular surveys with tradespeople and
50% tell us that they have a pipeline of work lined up
for over three months, and one in four have work
lined up for over 12 months.
The volume of transactions in the housing
market is an important indicator and driver of
spending on home improvement projects. In
2024, high levels of interest rates have continued
to suppress UK housing transactions, which
are often a trigger to undertake major home
improvement projects such as a new kitchen
or bathroom, although this is typically partially
offset by renovations to properties in which
homeowners decide to stay for longer.
How we are responding
Within a challenging market for large consumer
purchases, our Wickes Lifestyle Kitchens range,
which addresses the value end of the kitchen
market (below £4,000) has proved popular. As
customers focus on smaller DIY projects, to
meet this customer need, we have enhanced and
extended our product ranges in categories, such as
painting and decorating and garden maintenance.
A trend that has gained momentum since the
pandemic is that more women and younger
people are taking on home improvement
projects. We proactively market to this customer
base, working with female celebrities and
influencers to inspire followers with their DIY
successes, and create DIY hacks and ‘how to’
videos aimed at less experienced DIYers, to help
them with their home improvement projects.
1 Source ‘Wickes Mood of the
Nation’ survey December
2024
Market review continued
Wickes Group Plc Annual Report and Accounts 202413
Strategic report
Governance Financial statements Other information
Market review continued
Helping the nation
save
energy
Heating and lighting our homes
remains a significant burden on
people’s finances and the
continued high cost of energy
has motivated consumers to
seek out ways to improve the
energy efficiency of their homes
and save money.
The average household energy efficiency rating for
England and Wales is band D
1
and Great Britain’s
29.8m
2
homes are among the least energy efficient
in Europe, losing heat up to three times faster than
in continental Europe
3
. To achieve the
Government’s target of net zero emissions by 2050,
there will be increasing pressure to decarbonise our
homes through retrofitting energy saving solutions.
How we are responding
At Wickes we recognise how important climate
change is and, as well as looking to reduce the
energy we use as a business, through our Built to
Last ‘Homes’ pillar, we are committed to helping our
customers improve the energy efficiency of their
homes and save money on their energy bills.
Customers can visit our interactive online ‘Energy
Efficient Home’ where they can find information
and ‘how to’ videos to make their homes more
energy efficient, with direct links to the products to
purchase. We continue to expand our range of
energy saving products such as new air source
heat pumps and electric vehicle charging products.
In 2024, we took the strategic move to enter
meaningfully into the home energy solutions
market, with the acquisition of a majority
stake in solar installation company Solar Fast.
As a trusted national brand with significant
experience in design and installation services
at scale, we believe we are well placed to
become a market leader in solar installations
and home energy solutions more broadly. For
more information on Wickes Solar see page 21.
Wickes ‘Energy Efficient Home’ with energy
saving hints and tips verified by the
Energy Saving Trust is available at
www.wickes.co.uk
£1.5bn
estimated annual value of UK domestic
solar installation market by 2028
4
1 ONS Energy efficiency of housing in England and Wales
8 October 2024
2 Department for Energy Security & Net Zero, Household Energy
Efficiency, 28 March 2024
3 Decarbonising Buildings: Insights from across Europe,
published by the Grantham Institute - Climate Change and the
Environment at Imperial College London, December 2022
4 Wood MacKenzie UK PV Capacity Forecast
14
Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Click
&
Collec
Self Serve
Order Fulfilment
Home Delivery
Park & Collect
Click & Collect
Collection Point
Assisted Selling
OLI
Design & Installation
Market review continued
Helping the nation
shop
with ease
In today’s retail environment,
customers have come to expect
a streamlined, personalised
shopping experience.
They may choose to shop in-store or conduct their
entire shopping mission online, from searching
social media for inspiration and information, to
buying online and getting their product through
Home Delivery or Click & Collect services.
Customers increasingly trust User Generated
Content (UGC), which is content created and shared
online and via social media by consumers. Brands
are using UGC as part of their marketing and
communication activities to make them more
authentic and we use Instagram and Facebook to
share home improvement projects that our
customers are proud of.
The shopping experience is also being transformed
with a shift from traditional payment types to digital
wallet payment types, such as Klarna and Apple
Pay. Retailers are having to adapt swiftly to the
changing preferences of their customers and
new digital technologies entering the market.
How we are responding
Our stores are designed and managed to
meet all the shopping needs of our customers
and maximise operating efficiencies. We do
this through our unique ‘4C’ service model
(shown below), which incorporates four
customer shopping routes and seamlessly
integrates both a digital and physical shopping
experience – Design & Installation, Self Serve,
Assisted Selling and online Order Fulfilment
(Click & Collect or Home Delivery).
Every one of our stores acts as a last mile fulfilment
hub for digital orders and we offer 30-minute Click
& Collect, along with the option for Home Delivery.
For our Design & Installation customers, our digital
design tool enables them to visualise and co-create
their new kitchen or bathroom on-screen with one
of our design consultants.
2/3rds
of sales are digitally enabled
96%
of sales go through our stores
For customers browsing in store, if we don’t stock
the product in our Self Serve area, our Online
In-Store (OLI) terminals provide real-time access
to our extended range of products online.
Our Mission Motivation Engine (MME) uses
machine learning to collect customer data to
help us understand what home improvement
mission the customer is working on. We then
use this information to tailor personalised
communications to optimise the shopping
experience (for more information see page 23).
Wickes Group Plc Annual Report and Accounts 202415 Strategic report Governance Financial statements Other information
O
u
r
b
r
a
n
d
O
u
r
p
e
o
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l
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&
c
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e
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r
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o
d
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c
t
s
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r
s
t
o
r
e
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c
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b
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l
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t
y
O
u
r
d
i
g
i
t
a
l
Business model
Efficient
operating model delivers
strong performance
High sales densities
High volume/fast stock turn
High colleague retention
Low operating cost
Local Trade
DIY
Design &
Installation
How we deliver our unique
customer proposition
Creating value for
our key stakeholders
Customers
– High levels of customer satisfaction
– High Trustpilot scores
Shareholders
– Profitable and cash generative
– Good return on capital invested
– Attractive returns through dividends
and share buybacks
People
– High levels of colleague engagement
– Job creation
– Skills and career development
opportunities
Suppliers
– Long-standing relationships
with trusted suppliers
– Growing volumes
Communities
– Supporting community projects
– Fundraising for our charity partner
Read more on page 88-89
A highly curated range of c.9,000-10,000
branded and own brand products in our
stores, and a total of c.30,000 products
online, with simple everyday low pricing
We use our digital strength to
gain insight into our customers’
shopping habits and our
tech-enabled operating model
to provide a multi-channel
shopping experience
For over 50 years, the trusted
Wickes brand has been
synonymous with home
improvement in the UK
228 stores conveniently
located in quality UK retail
parks with an average
c.28,000 sq ft and our 4C
store design, providing an
integrated and seamless
shopping experience
An inclusive workplace
where our highly engaged
colleagues deliver exceptional
customer service to support
our purpose of helping the
nation feel house proud
16
Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Strategy at a glance
Our vision
A Wickes project in every home
Our purpose
To help the nation feel house proud
Growth levers
Winning for trade
TradePro growth
Store
investment
High return on investment
refits and new stores
Digital
capability
Continued development
of a seamless offer
Enhanced store
service model
Laying the foundations
for future growth
A winning
culture
Engaged colleagues and
growing responsibly
Accelerating Design
& Installation
Broadening the proposition
with category extensions
DIY category wins
Getting our fair share in
underweight categories
Growth levers
We have seven strategic growth
levers that will help us to win in
the UK home improvement
market and achieve our purpose
– to help the nation feel house
proud. These are illustrated in
our growth levers house.
Read more on page 20 Read more on page 21 Read more on page 22
Read more on page 23
Wickes Group Plc Annual Report and Accounts 202417 Strategic report Governance Financial statements Other information
Strategy in action
Winning for trade
Our TradePro membership
scheme offers a simple digital
loyalty scheme for tradespeople,
designed to save them time
and money
Accelerating Design
& Installation
Accelerate growth in Design &
Installation through digital
development and product
innovation
DIY category wins
Provide a curated range in store
with an extended range online to
offer the best range, price,
availability and convenience
Strategic focus
– Continue to add TradePro members to scheme
– Increase number of active TradePro members
1
– Extend TradePro to access additional businesses
through trade federations
– Enhance TradePro Rewards scheme to build
deeper relationships and increase the frequency,
spend, loyalty and brand preference
What we achieved
– Hit target of one million TradePro members
2024: 1.04m (2023:881,000)
– Active TradePro members increased to 581,000
– Grew TradePro sales by 14%
– Added further enhancements to TradePro
Rewards programme (see page 20)
Strategic focus
– Continue to enhance and innovate the
proposition, introducing new ranges and
refreshing our showrooms
– Grow Wickes Lifestyle Kitchens proposition
– Create a unique digitally-enabled, high-service
installation process
– Develop Wickes Solar proposition to build market
presence
What we achieved
– Acquired majority stake in Solar Fast and rolled
out Wickes Solar proposition online and in stores
throughout H2 (see page 21)
– Introduced three new kitchen furniture ranges,
over 1,000 new bathroom products and launched
Bosch appliances
Strategic focus
– Get our fair share in underweight product
categories
– Hold regular range reviews to innovate and
evolve product offering
– Increase number of energy saving products to
support customers, as part of our Built to Last
Homes pillar
– Broaden our customer base, targeting more
women and younger DIYers
What we achieved
– Completed 19 range reviews in key areas
including refreshes to gardening, decorating and
flooring as well as selected parts of electrical,
hardware and roofing
– Launched new categories such as acoustic wall
panelling and motor accessories
– Extended our range of air source heat pumps
and EV charging products
– Stopped selling compost containing peat
We have invested significantly
in our growth levers in 2024 and
have made good progress on
each of them. Over the next six
pages we have summarised
the strategic focus and key
achievements for each
growth lever.
1 Members who have shopped with us in the last 12 months
18 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Strategy in action continued
Store investment
We have a ‘right size, right place,
right cost’ approach, to ensure
stores are strategically located
for maximum footfall and act as
efficient fulfilment centres for
digital sales
Digital capability
We are investing significantly in
our digital capabilities to deliver
a seamless and inspiring
shopping experience for our
customers by integrating our
digital and in-store propositions
Enhanced store
service model
Our unique ‘4C’ model is
designed to meet all our
customers’ needs through Self
Serve, Assisted Selling, Order
Fulfilment and Design &
Installation Showroom areas
A winning culture
Delivering exceptional
customer service through
engaged colleagues and
growing responsibly
What we achieved
– Opened new stores in Long Eaton, Durham,
Aberdeen and Leamington Spa.
– Refitted seven stores. 80% of stores are now in
the new format, delivering good returns. We
closed five stores in the year.
– Completed roll out of heating controls to 206
stores and voltage optimisation in 50 stores
Installed air source heat pumps in four stores.
Ten stores now have on-site solar generation
What we achieved
– Increased digital visit market share from 13.6% to
14.3% year on year
2
– Introduced new functionality across digital
channels, including a new AI-driven product
bundling tool to help customers find the items
they need for their project
– Ran 11 communications programmes using our
MME, delivering incremental revenues across
TradePro, Design & Installation and DIY customer
audiences
What we achieved
– Embedded new AI-driven logistics system to
enhance productivity, driving improvement in
stock forecast accuracy, with 10% reduction in
total stock units held and c. 70% reduction in third
party storage usage over two years
– Achieved record levels of customer satisfaction,
with customers giving the following ratings of
’excellent’ or ‘good’ for Click & Collect - 84%,
Home Delivery - 89% and Self Serve - 88%
What we achieved
– Entered the FTSE4Good Index
– Rolled out flexible working across all stores
– Launched our new Colleague Promise
– See pages 30-52 for further achievements
across our Responsible Business Built to Last
pillars of Environment, People and Homes
Strategic focus
– Open around 20 new stores over five years
– Continue to invest in our store refit programme
– Enhance high-volume stores to increase their
storage capacity to facilitate more Click & Collect
and Home Delivery orders
– Improve energy efficiency and reduce carbon
emissions across the estate through investment
in energy saving technologies
Strategic focus
– Develop our digital ecosystem to modernise
technology, creating a platform for growth and
more agile change capability
– Leverage digital marketing channels and our
Mission Motivation Engine (MME) to create
tailored inspirational advice for customers
– Enhance fulfilment capability and customer offer,
using technology to modernise order management
solutions
Strategic focus
– Continue to develop our 4C model across store
estate
– Integrate digital capabilities across the four
areas of the store
– Continue to grow Click & Collect and Home
Delivery services through increased capacity,
service-enabling technology and best-in-class
delivery partners to ensure outstanding customer
service and a reduced cost to serve
Strategic focus
– Build a modern workplace and special culture
where everyone can feel at home and has the
opportunity to thrive (see page 34 for People
targets)
– Develop and implement our Built to Last Strategy
(see pages 30-52 for full overview)
2 SimilarWeb
Wickes Group Plc Annual Report and Accounts 202419 Strategic report Governance Financial statements Other information
Strategy in action continued
2024 has been a tremendous year for our TradePro
membership scheme. In September, we celebrated
a milestone in the TradePro success story, hitting
our target of 1 million members. We are now
focused on growing the number of active
customers and this cohort has been rising steadily.
It now stands at 581,000, and has more than
doubled since 2018.
TradePro members are our most strategically
valuable customers, spending on average ten times
more in a year than a typical DIY customer.
Customers signing up to TradePro typically
demonstrate a positive shift in buying behaviour,
with a sustained increase in sales and transactions
in the six months after joining, compared to the six
months before.
Members are attracted by the simple proposition of
a flat 10% discount right across the store, the easy
to use TradePro app, live availability on the lines
that matter most, and the convenience of our
30-minute Click & Collect service, all of which saves
them time and money.
Winning for trade
Over one million
TradePro
customers
We are actively recruiting, developing and nurturing
this customer base. In 2024 we worked to establish
Wickes as the preferred partner for the trade by
extending the scheme through partnerships with
trade federations and several apprenticeship
organisations.
TradePro members benefit from our rewards
programme, with access to special deals on
services such as skip hire, insurance and media
subscriptions. In 2024, we added further services,
including discounted membership of trade
federations such as Checkatrade and Safe
Contractor, discounted fuel and vehicle
maintenance with Fuel Card Services and
promotional offers with easy toolhire. We have also
continued to invest in improving members’
TradePro digital experience, making it easier to
shop via the app, adding VAT/Non-VAT pricing and
the ability to use their TradePro card in their digital
wallet.
Our TradePro app
enables customers to
see stock availability
in real time
Our TradePro
enhancements
demonstrate continued
personalisation of the
customer experience
and are helping to drive
membership growth
and loyalty.
Gary Kibble, Chief Marketing & Digital Officer
14%
increase in TradePro
sales year on year
20 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
2024 was an exciting year for our Design &
Installation business, as we expanded our
installation offer beyond our core services of
kitchens and bathrooms, to that of solar panel
installation. In May 2024, we acquired a 51%
controlling interest in Solar Fast, one of the UK’s
leading operators in solar installation. Since then,
we have rolled out Wickes Solar with point-of-sale
now in all stores and the digital journey live on the
Wickes website. We have seen an encouraging
early response, in both leads and sales conversion.
As outlined on page 14, the market for domestic
solar installations is estimated to be worth £1.5bn
per annum by 2028
1
. It is a highly fragmented
market with no clear brand leader and with a trusted
brand and significant experience in design and
installation services at scale, Wickes is well placed
to be a market leader in home energy solutions.
For our Kitchens and Bathrooms business, 2024
has been a challenging year as people cut back
spend on large consumer purchases, resulting in a
decline in like-for-like sales. However, performance
improved significantly later in the year, driven by
enhancements we made to the business.
We simplified our Bespoke and Lifestyle kitchen
ranges to present customers with a unified Wickes
Kitchens offering, with a single brochure, website
and clearer advertising stance. We continue to
innovate for our customers, and introduced three
new furniture colourways to our kitchens range,
launched over 2,000 new kitchen products and
1,000 new bathroom products.
We have also taken a number of steps to simplify
the customer journey. In the summer, we removed
the role of kitchen & bathroom adviser and
increased the number of design consultants in
response to customer feedback, introducing
technology to facilitate new customers to book
directly with a design consultant. These
enhancements have resulted in a better customer
experience and reduced operating costs.
Accelerating design
& installation
Expanding our
installation offer
Wickes Lifestyle kitchen Ohio range
The Wickes brand has
been trusted by home
improvers for over 50
years and with Wickes
Solar as part of our
proposition, we will be
perfectly placed to support
them with their energy
saving plans.
David Wood, Chief Executive Officer
160
New design consultants
Strategy in action continued
1 Source: Wood Mackenzie UK PV Capacity Forecast
Wickes Group Plc Annual Report and Accounts 202421
Strategic report
Governance Financial statements Other information
Strategy in action continued
DIY category wins
Increasing
market share in
key categories
We continue to strive for the best possible range,
price and availability for our customers. We sell a
highly curated range of 9,000-10,000 stock keeping
units (SKUs) in our stores, and a total of c.30,000
products online and we are constantly reviewing
the range to ensure that each product category is
meeting expectations.
Whilst market demand for large projects, such
as tiling and flooring, has been more subdued, we
have successfully gained market share in these
categories, as well as increasing sales in the
categories for smaller projects, such as paint
and garden maintenance.
To ensure we are meeting the demands of today’s
consumers, we always strive to adapt and innovate
our product offering and carry out a regular drum
beat of range reviews in the year. In 2024, we
conducted 19 range reviews with a strategic
emphasis on introducing new and innovative
products in our core categories as well as
consolidating our existing SKUs. We have
introduced new products, such as acoustic
wall panelling, which is proving very popular
with customers.
In recent years we have been actively seeking
to broaden our customer base, especially to
encourage more women to try their hand at DIY.
We partner with female influencers to reach this
audience and through our partnership with celebrity
Kimberley Walsh, we have worked with her to create
her own paint colours. This year’s colour, Subtle
Sage was our best-selling own brand paint colour.
As part of our Built to Last Strategy, our Homes
pillar seeks to help customers find ways to
reduce their energy consumption. In the year,
we augmented our range of home energy
saving products, introducing such products as
ThermaSkirt skirting panels, expanding our range
of air source heat pumps and we made changes
to our labelling and promotional materials to give
guidance to customers on the environmental
benefits of certain products. (For more information
on our Homes pillar see pages 46-47).
At Wickes we pride
ourselves on always
having the best availability
and best price on the lines
that matter most to our
customers.
Mark Cooke, Chief Commercial Officer
19
Range reviews
The new acoustic wall panels
are a hit with customers
22 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Enhancing the
digital journey
Weekly email to TradePro customers
tailored to their needs
Digital capability
In 2024, we continued to invest in our digital
capability to deliver an improved omni-channel
shopping experience for our customers. Digital
sales have remained flat year on year despite a
much tougher market. We have been successful in
increasing sales conversion, which is up 8% due to
improvements in our digital experience and
expansion of our payment options.
Our key digital tool is our proprietary and market-
leading machine learning model, our Mission
Motivation Engine (MME), which we use to deliver
tailored help and product advice to customers to
help them complete their home improvement
projects. Our MME collects data from web and
social media channels to better understand who
our customers are, what they browse, what they
buy, how and when. We use this insight to predict
what home improvement mission they are
undertaking and produce personalised marketing
communications sent via owned and paid channels
to suggest to them the products they might need to
help them with their project.
In 2024, our Missions Motivation Engine delivered
significant incremental sales, with a particularly
strong performance from our Local Trade customer
programmes and we will continue to develop
and evolve this tool to enhance the customer
experience, build loyalty and brand preference
and deliver competitive advantage.
We also introduced several other technology-
enabled features to further enhance the customer
journey. We added Clearpay as a digital payment
method in 2024 and now offer Klarna, Clearpay,
Apple Pay and Google Pay alongside traditional
card payment methods. In 2025 we plan to further
enhance the customer experience by continuing to
develop more payment options for customers.
Digital is at the vanguard of
everything we do to grow
our relationship with
customers and enhance
the customer journey.
Paul Canavan, Director of Digital
5%
Wickes digital market share growth
1
1 Source: SimilarWeb (13.6% to 14.3% year on year)
Strategy in action continued
Other new digitally-led features to help customers
plan, shop and complete their home improvement
projects include our ‘Matchmaker’ selection tool,
which enables customers to visualise their dream
kitchen or bathroom; an enhanced content search
capability which makes it easier for customers to
search for help and advice on the website; and an
improved product bundling tool, that incorporates
AI-driven recommendations to anticipate all the
items a customer might need for their project.
Wickes Group Plc Annual Report and Accounts 202423
Strategic report
Governance Financial statements Other information
2024
2023
2022
2021
(0.3)
(2.0)
3.5
13.0
2024
2023
2022
2021
43.6
52.0
75.4
85.0
2024
2023
2022
2021
23.2
41.1
40.3
65.4
2024
2023
2022
2021
14.1
15.1
23.8
27.2
2024
2023
2022
2021
10.9
10.9
10.9
10.9
2024
2023
2022
2021
32.2
46.1
29.0
16.6
Key performance indicators
Financial
Group LFL sales (%) Adjusted PBT (£m) Statutory PBT (£m) Adjusted basic EPS (p) Dividend per share (p) Free cash flow (FCF) (£m)
Description
A measure of the underlying sales
growth of products to Local Trade,
DIY and Design & Installation
customers.
Definition
Sales to Local Trade, DIY and Design
& Installation customers from
stores that have been open for more
than 12 months.
Link to growth levers
1
2
3
4
5
6
7
LFL sales is a measure of how
successful we have been in
developing our growth levers.
Remuneration linkage
Linkage is via the impact of LFL
sales growth on Adjusted PBT.
Target
We aim to grow market share from
the existing store estate in order to
generate operating leverage.
Description
Profit before tax adjusted for items
that are material in size or unusual
in nature as presented as part of the
income statement.
Definition
Adjusted PBT is our key profit target
to measure underlying performance
and is calculated before deducting
adjusting items, such as
impairments or restructuring costs.
Link to growth levers
1
2
3
4
5
6
Adjusted PBT is a key measure of
the efficiency of the business and
the returns we deliver on our growth
investment.
Remuneration linkage
Adjusted PBT represents 70% of the
annual bonus target for Executives.
Target
We aim to grow adjusted PBT each
financial year, although this will be
dependent on market and
competitive conditions.
Description
Profit before tax in the financial year
on a statutory basis, as reported in
the income statement.
Definition
Statutory profit before tax.
Link to growth levers
1
2
3
4
5
6
Profit before tax is a key measure of
the efficiency of the business and
the returns we deliver on our growth
investment.
Remuneration linkage
Linked to Adjusted PBT.
Target
We aim to grow statutory PBT each
financial year, although this will be
dependent on market and
competitive conditions.
Description
A measure of how much adjusted
profit after tax the Company makes
for each share in issue.
Definition
Post-tax adjusted profit divided by
the average number of shares in
issue, before adjusting for share
options.
Link to growth levers
1
2
3
4
5
6
EPS growth is closely linked to profit
growth. It also reflects the effects of
the capital allocation policy, in
particular the share buyback
programme.
Remuneration linkage
Adjusted basic EPS represents 60%
of the Long Term Incentive Plan
target for Executives.
Target
We aim to grow adjusted basic EPS
each financial year, although this
will be dependent on market and
competitive conditions.
Description
A measure of how much adjusted
profit the Company distributes for
each qualifying share in issue.
Definition
The amount per ordinary share the
Company distributes to
shareholders of that financial year’s
retained profit.
Link to growth levers
1
2
3
4
5
6
Dividends to shareholders reflect
the company’s success in executing
its growth levers, and in generating
cash.
Remuneration linkage
Dividends are an important element
of Total Shareholder Return (TSR),
which represents 30% of LTIP
targets for Executives.
Target
We target dividend cover of between
1.5 times and 2.5 times EPS.
Description
Cash flow available for distribution
or debt repayment in any given
financial year, after investing in
the business and paying tax
and interest.
Definition
Cash generated from operations,
before the impact of adjusting
items, after capex, interest and tax.
Link to growth levers
1
2
3
4
5
6
All growth levers are important in
driving sales and profitability, which
in turn support free cash flow.
Remuneration linkage
Free cash flow represents 20%
of the annual bonus target for
Executives.
Target
We aim to grow free cash flow each
financial year, although this will be
dependent principally on the level of
profitability and investment in
capex and working capital.
Strategic growth levers
1
Winning for trade
2
Accelerating Design & Installation
3
DIY category wins
4
Store investment
5
Digital capability
6
Enhanced store service model
7
A winning culture
24 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
2024
2023
2022
2021
86.3
97.5
99.5
123.4
2024
2023
2022
2021
4.3
4.3
4.4
5.1
2024
2023
2022
2021
66.1
66.9
65.5
65.1
2024
2023
2022
2021
1,043
881
746
634
2024
2023
2022
2021
1.593
1.566
1.648
1.766
2024
2023
2022
2021
76.4
73.4
75.1
67.4
Key performance indicators continued
Operational Responsible business
Cash (£m) Stock turn Digital sales (%) TradePro members (k) GHG emissions (m tCO
2
e) Store leadership diversity (%)
Description
A measure of year end cash.
Definition
The total value of our year end
balance of cash and cash
equivalents.
Link to growth levers
1
2
3
4
5
6
Cash will be influenced by our
performance across all our
growth levers.
Remuneration linkage
Linkage is via profit and free
cash flow performance.
Target
Our capital allocation policy has
a target minimum cash balance
of £50m.
Description
A measure of how efficient we are in
converting our stock into sales.
Definition
Cost of goods sold excluding
installation services divided by
the average of inventory held in
the year.
Link to growth levers
1
2
3
More rapid stock turn, especially
relative to the creditor payment
cycle, is a key driver of free
cash flow.
Remuneration linkage
Linkage is via the impact on FCF.
Target
We aim to maintain stock turn at
around 4.0 - 5.0 times, although this
is dependent on trading conditions,
product mix, supply chain issues,
and targets for product availability.
Description
This measures how successfully we
are engaging with our increasingly
digital customer base.
Definition
The proportion of customer
journeys which start online, plus
direct digital sales such as Local
Trade, Click & Collect and Home
Delivery orders.
Link to growth levers
1
2
5
6
Our customer base is increasingly
digital, and if we do not serve them
well our market share and
profitability will suffer over the long
term.
Remuneration linkage
Linkage is via the impact on sales
and profit performance, and the
returns we generate from our digital
investments.
Target
We expect our digital participation
to grow over time as we serve our
customers’ digital needs.
Description
TradePro is our digital membership
club for Trade offering a 10%
discount on all purchases.
Definition
Total number of TradePro members.
Link to growth levers
1
3
4
5
Servicing trade customers is central
to our offer, and reflects our
strengths in digital, pricing and
convenience.
Remuneration linkage
Linkage is via profitable growth
of trade sales.
Target
We have met this target.
Description
We are acutely aware of our impact
on the environment and this
measure covers emissions from our
own stores, transportation and our
wider value chain.
Definition
Scope 1, 2, and 3 greenhouse gas
emissions (GHG), measured as
tonnes of carbon dioxide equivalent
(tCO
2
e).
Link to growth levers
7
We are committed to being
a responsible business, and
greenhouse gas emissions
reductions are a key part of this.
Remuneration linkage
Near term science-based targets
represent 10% of the Long Term
Incentive Plan for Executives.
Target
Deliver near term science-based
targets.
Description
We want to build a more diverse and
inclusive workforce, for the good of
our colleagues and customers.
Definition
The proportion of stores that have
at least one female in every store
leadership team.
Link to growth levers
7
We strive to grow an inclusive and
diverse business in order to best
support the needs of our customers
and communities.
Remuneration linkage
Gender and ethnicity diversity
targets represent 10% of the annual
bonus for Executives in 2024.
Target
Over the long term, the aspiration is
to achieve a gender balanced team
across all roles and functions
at Wickes.
Strategic growth levers
1
Winning for trade
2
Accelerating Design & Installation
3
DIY category wins
4
Store investment
5
Digital capability
6
Enhanced store service model
7
A winning culture
Wickes Group Plc Annual Report and Accounts 202425 Strategic report Governance Financial statements Other information
FY 2023
adjusted PBT
Retail Design &
installation
1
Inflation Growth
investment
Other FY 2024
adjusted PBT
Productivity
plans
2
£52.0m
£10.6m
Trading margin
£12.5m
£2.6m £43.6m
£(16.7)m
£(13.3)m
£(4.1)m
Financial review
Delivering for
Shareholders
Mark George, Chief Financial Officer
Our financial results
have demonstrated the
strength of our business
model, delivering a good
performance in challenging
market conditions.
Revenue of £1,538.8m, including £10.0m
contribution by Solar Fast since completion,
reflects a contraction in sales of 1.0% year-on-year.
Continued volume-driven growth in Retail was
offset by LFL declines in Design & Installation.
Gross margin increased by 16 basis points,
reflecting careful management of range, price
andpromotions.
We faced considerable cost headwinds this
year with another significant rise in the National
Minimum Wage as well as more general inflationary
pressures across the business. Our planned
productivity initiatives have helped to mitigate
these headwinds, with savings made across a
number of areas including simplifying the customer
journey, distribution, customer services and store
shrinkage. Looking ahead, the unforeseen changes
to National Insurance Contributions rates and
thresholds announced in the Autumn Budget 2024
are expected to add c. £6m to our direct costs
on an annualised basis or c. £4.5m pro forma
for 2025. Wewill be seeking further productivity
gains in order to help offset this additional cost
headwind, as well as another significant increase
in National Minimum Wage planned for April 2025.
Adjusted profit before tax declined to £43.6m
(2023: £52.0m) reflecting the factors noted above.
Statutory profit before tax decreased by 43.6% to
£23.2m (2023: £41.1m) reflecting an increased
adjusting items charge, primarily due to non-cash
impairment charges relating to IFRS 16 lease
assets and to property, plant and equipment.
Adjusted PBT waterfall
1 Design & Installation trading margin excludes the impact of Solar Fast
2 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
26 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Financial review continued
Retail sales
Retail LFL
FY ‘24
H1 ‘24
H2 ‘24
Retail Revenue
1.5%
1.9%
0.6%
1.0%
2.6%
3.0%
Our market share in Retail has grown to record
levels with increases across numerous categories,
particularly in the strategic categories of interior
paint, decorative accessories and garden projects.
Wickes remains highly competitive on price,
with weekly benchmarking of hundreds of
thousands of items to ensure we are competitive
on the lines that matter most. Our strategy is
to offer everyday low pricing with limited use of
targeted promotions so that our customers can
rely on consistent and transparent pricing.
Design & Installation delivered revenue
3
– sales
from projects sold by our showroom design
consultants – was £326.5m (2023:£364.7m), a
decrease of 10.5% or 13.9% on a LFL basis. This
reflected challenging market conditions, with a
softer market environment for large consumer
purchases. Ordered sales
4
in 2024 saw a single digit
LFL decline but, encouragingly, returned to
year-on-year growth in Q4.
Design & Installation sales
FY ‘24
H1 ‘24
H2 ‘24
D&I LFLL D&I Revenue
(
13.9
)
%
(
10.5
)
%
(
18.3
)
%
(
17.0
)
%
(
8.4
)
%
(
2.5
)
%
From 2025 onwards, all kitchen and bathroom
revenue will be reported within the Design
& Installation Ranges revenue stream. This
presentational change to segmental reporting
groups all kitchen and bathroom ranges together,
whether they are Lifestyle or Bespoke. This
presentation aligns with our commercial operations
and customer approach to buying kitchen and
bathroom projects. Previously, any sales of Wickes
Lifestyle Kitchens that included a design element
were classified in the Design & Installation revenue
stream, whereas self-serve purchases of the
Wickes Lifestyle Kitchens range were classified
in the Retail revenue stream. From 2025 onwards,
There was £86.3m of cash on balance sheet at the
end of the period (2023:£97.5m), after the net initial
payment for the acquisition of a 51% controlling
stake in Solar Fast
1
, the completion of the £25.0m
share buyback programme
2
and the sale and
leaseback of our Braintree store, which raised
£6.2m. Average cash across the year was £144.3m,
reflecting our normal cycle of working capital.
Year end 2024 Average 2024
Debt Nil Nil
Cash & equivalents £86m £144m
Net cash/(debt) £86m £144m
Revenue
Revenue for the 52 weeks to 28 December 2024 was
£1,538.8m (2023:£1,553.8m), a decrease of 1.0% on
the prior year. Net selling area was broadly flat year
on year as new store openings in Long Eaton,
Durham, Aberdeen and Leamington Spa were offset
with closures of some older stores. LFL sales for the
period were -2.0%.
Retail revenue – sales from products sold to DIY
customers and local trade professionals –
increased by 1.9% to £1,212.3m (2023:£1,189.1m).
Retail LFL revenue increased by 1.5%, driven by
positive volume growth, with selling prices in
mild deflation.
Within Retail, our TradePro business continues to
perform strongly, with sales +14%. This is driven by
the number of active members increasing to
581,000 in 2024, as local traders continue to choose
Wickes to save them time and money.
FY 2024 current methodology FY 2024 new methodology
Retail Revenue
Revenue growth
LFL revenue growth
£1,212.3m
1.9%
1.5%
£1,129.8m
1.9%
1.5%
Design & Instillation Revenue
Revenue growth
LFL revenue growth
£326.5m
(10.5)%
(13.9)%
£409.0m
(8.0)%
(10.9)%
Group Revenue
Revenue growth
LFL revenue growth
£1,538.8m
(1.0)%
(2.0)%
£1,538.8m
(1.0)%
(2.0)%
In FY24 sales of Wickes Lifestyle Kitchens which include a design element are classified as D&I, whereas self-serve purchases of the Wickes
Lifestyle Kitchens range are classified as Retail. From 2025 onwards, D&I will include 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. D&I will continue to include
installation revenue and Wickes Solar.
Design & Installation Ranges will include 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.
Solar sales will continue to be included in Design
& Installation Ranges.
Had the new presentational approach been adopted
for 2024, Retail revenue would have been £1,129.8m
with revenue growth of 1.9% and LFL revenue growth
of 1.5%. Design & Installation revenue would have
been £409.0m with a revenue decline of 8.0% and
LFL revenue decline of 10.9%.
Gross profit
Adjusted gross profit for 2024 was £565.1m,
a slight decrease compared to the prior year
(2023:£568.1m). Adjusted gross profit margin
increased by 16 basis points, reflecting careful
management of range, price and promotions.
Statutory gross profit of £566.6m increased slightly
from the prior year (2023: £565.0m). Statutory gross
profit margin increased by 46 basis points, for the
reasons described above for adjusted gross profit, in
addition to a positive derivative fair value movement
in the year.
1 The enterprise value of the 51% stake in Solar Fast was £5.1m. A further payment was made of £2.7m, representing Wickes’ 51% of the cash
acquired on completion, of which £2.5m was subsequently repaid by way of dividend
2 £10.0m (plus £0.1m stamp duty and fees) of the £25.0m share buyback programme was executed in 2023, with the remaining £15.0m (plus
£0.1m stamp duty and fees) completed in 2024
3 Delivered sales refers to the revenue which is recognised when the Group has satisfied its performance obligation to the customer and the
customer has obtained control of the goods or services being transferred
4 Ordered sales refers to the value of orders at the point when the order has been agreed
Wickes Group Plc Annual Report and Accounts 202427 Strategic report Governance Financial statements Other information
Financial review continued
Operating profit
Adjusted operating profit of £67.4m decreased by
8.7% year on year (2023:£73.8m) and the adjusted
operating profit margin decreased to 4.4%
(2023:4.7%). The decline in operating margin reflects
an environment of weaker consumer demand for
larger ticket items combined with the impact of
pressure on operating costs due to wage inflation and
other general inflationary factors as described above.
These increases were partly mitigated by strong Retail
performance and planned productivity initiatives.
Statutory operating profit decreased by 24.8% to
£47.3m (2023:£62.9m), reflecting the decline in
operating margin described above and the impact
of increased impairment charges in the year,
partially offset by reductions in other charges such
as business separation/restructuring costs and a
positive derivative fair value movement in the year.
Net finance costs
Adjusted net finance costs were £23.8m
(2023:£21.8m). These costs are a combination
of the IFRS 16 interest charges associated with
our property and equipment leases, partially
offset by interest income earned on cash held
in the business.
Statutory net finance costs were £24.1m
(2023:£21.8m), comprising the elements noted
above in addition to fees incurred in extending
the Group’s revolving credit facility (RCF).
Adjusted profit before tax
Adjusted profit before tax was £43.6m
(2023:£52.0m), a decline of 16.2% year-on-year,
reflecting the factors noted above. Adjusted PBT
in the second half of the year was only 3.3%
down year on year, representing a significant
improvement compared to the first half.
Adjusting items
Pre-tax adjusting item charges were £20.4m
(2023:£10.9m). These comprise a right-of-use
asset impairment charge of £12.3m (2023:£2.7m),
a property, plant and equipment impairment charge
of £5.8m (2023:nil), costs related to restructuring
in Design & Installation of £4.0m (2023:£8.8m
of IT separation costs), costs related to the Solar
Fast acquisition of £0.8m (H1 2023: nil) and costs
related to the extension of the Revolving Credit
Facility of £0.3m (H1 2023: nil), partially offset by
derivative fair value gains on foreign exchange
contracts of £1.5m (H1 2023: losses of £3.1m)
and a reversal of impairment of right-of-use asset
recognised in prior periods of £1.3m (2023:£3.7m).
Profit before tax
Profit before tax decreased to £23.2m
(2023:£41.1m) reflecting the factors noted
above and includes £0.4m from Solar Fast.
Tax
The tax charge for the period was £4.8m (2023:
£11.3m). The effective tax rate for the period was
20.3% (2023: 27.5%). The decrease primarily reflects
capital allowance claims made in the period in
respect of historical expenditure.
Tax credit on adjusting items was £4.9m
(2023:£2.6m).
Investment and capital expenditure
Capital expenditure for the year was £26.1m
(2023:£38.2m).
The largest component of capex was £13.3m
investment in the store estate (2023:£20.4m),
of which refits were £5.3m, new stores £7.1m
and other store capex across the estate £0.9m.
There was £4.8m capex investment in our digital
capabilities (2023:£6.1m), as we continue to develop
our multi-channel offer.
There was a net cash outflow of £5.1m for the
acquisition of our 51% stake in Solar Fast. This
comprises the initial aggregate consideration of
£7.6m, representing £5.1m for the equity shares,
less a £0.2m negative working capital adjustment,
plus £2.7m for acquired cash, of which £2.5m cash
was repaid to Wickes by dividend post completion.
£1,538.8m
Revenue 2024
£43.6m
Adjusted PBT
Productivity initiatives
have largely mitigated
headwinds in costs.
28 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Financial review continued
We expect capital expenditure for 2025 to be
c. £30-35m, driven by continued investment in the
store estate and further IT capital expenditure, as we
continue to enhance our operating systems and
customer experience. In addition we expect to
continue to invest in SaaS IT projects, which will
be expensed through the income statement.
Cash/net debt
Cash at the end of the period was £86.3m
(2023:£97.5m), in line with our expectations. This
cash balance is stated after the net initial payment
for the acquisition of a 51% controlling stake in Solar
Fast, the completion of the £25.0m share buyback
programme
2
and the sale and leaseback of our
Braintree store, which raised £6.2m.
Operating profit decreased year-on-year, resulting
in cash flows from operations of £170.6m
(2023:£177.0m). Cash outflows related to working
capital movements were £1.5m (2023:inflow of
£2.6m), reflecting a lower Design & Installation
order book, partially offset with improved
inventory management.
Cash outflows from financing activities of £158.5m
(2023:£150.4m) include £114.4m (2023:£111.7m)
related to lease liabilities, £26.1m dividend payments
(2023:£27.4m) and £15.1m of share buybacks
2
(2023:£10.1m).
Inventories decreased slightly to £192.9m
(2023:£195.5m).
Dividend
The Board has recommended a final dividend of
7.3p per share, in line with prior guidance, which
will be paid on 6 June 2025 to shareholders on the
register at the close of business on 25 April 2025.
This will bring the full year dividend for the 2024
financial year to 10.9p. The proposed final dividend
is subject to the approval of Shareholders at this
year’s Annual General Meeting.
The shares will be quoted ex-dividend on 24 April
2025. Shareholders in the UK may elect to reinvest
their dividend in the Dividend Reinvestment Plan
(DRIP). The last date for receipt of DRIP elections
and revocations will be 15 May 2025.
Share buy back
The £25m share buyback programme commenced
in 2023 was completed in September 2024. A new
share buyback programme of £20m has been
announced today and will commence in April 2025.
Mark George
Chief Financial Officer
£41.1m
Returned to shareholders in 2024
1
£14 4m
Average cash & equivalents 2024
Capital
allocation policy
Strong balance sheet
Operate with net cash at all times
Cash of at least £50m at year end
RCF provides additional liquidity
Ordinary dividend
Target dividend cover of
1.5x – 2.5x in normal trading
Investing in the business
Capex of c.2% of sales
Refits, new stores and IT
Target blended ROIC >15%
Return of surplus cash
Excess cash will be
returned to shareholders
1 From dividends and completion of £25m share buyback
2 £10.0m (plus £0.1m stamp duty and fees) of the £25.0m share
buyback programme was executed in 2023, with the remaining
£15.0m (plus £0.1m stamp duty and fees) completed in 2024
We continue to deliver
strong cash generation
and good returns to
shareholders.
Wickes Group Plc Annual Report and Accounts 202429 Strategic report Governance Financial statements Other information
Responsible business
Introduction
to Responsible
Business
Sonita Alleyne, Chair of the
Responsible Business Committee
The wellbeing and
empowerment of our
colleagues is a high priority
for the business, and
enables it to deliver a
positive impact to society.
As Chair of the Responsible Business Committee,
I am pleased to introduce the Responsible Business
section of this Annual Report and Accounts.
Amidst an ongoing turbulent macroeconomic
backdrop, in 2024 the business continued to focus
on delivering key targets and commitments it set
as part of its Responsible Business Strategy. The
wellbeing and empowerment of our colleagues
is a high priority for the business, and enables
it to deliver a positive impact to society. The
business has a proven track record of supporting
its colleagues, and the launch of its new employee
value proposition, the Colleague Promise, in 2024,
helps cement this further (see pages 38-39).
As a business we are excited about the role
we can play in supporting customers to save
energy and reduce the carbon emissions of
their homes by expanding our home energy
solutions proposition. The acquisition of
Solar Fast in 2024 has introduced a new
service offering to help customers with the
installation of solar panels (see pages 46-47).
Reducing carbon emissions from the business’s
direct and indirect activities remains a key focus.
Weare pleased with the work undertaken during the
year to better understand the business’s full carbon
footprint, and rebaseline its science-based targets.
Collaboration is paramount to tackle the challenge
of decarbonising the business and its supply
chain, and Wickes’ involvement in the global home
improvement industry’s Make it Zero initiative will
be pivotal to hitting its net zero goal (see page43).
This year, progress has been made with
integrating responsible business into all aspects
of the business. Colleague gender and ethnic
diversity targets have continued to be linked to
the Executive annual bonus scheme, and the
decarbonisation roadmap is linked to the Long
Term Incentive Plans for 2023, 2024 and 2025.
The Board and I remain committed to facing the
challenges that lie ahead for the business, and we
continue to ensure that the business addresses
its substantive social and environmental impacts,
whilst balancing positive commercial performance.
Sonita Alleyne
Chair of the Responsible Business Committee
19 March 2025
30 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Our approach to
responsible business
Responsible business continued
Our Responsible Business
Strategy ‘Built to Last’ directly
supports our corporate
purpose to help the nation
feel house proud.
By delivering Built to Last, we are building a
business we are proud of:
– where all our colleagues can feel at home and
are empowered to support their communities
and customers;
– by supporting the fight against climate change
and taking action to protect the natural
environment; and
– by helping our customers to save energy and
reduce the carbon footprint of their homes.
Understanding what’s important
When we developed our Built to Last Strategy in
2021, we engaged with our key stakeholders to
inform our understanding and assessment of our
most material sustainability topics. We address our
priority topics through three core pillars: People,
Environment and Homes. These are underpinned
by our Fundamentals – these are ESG areas that
are critical to operating a responsible business. We
manage and measure our performance across
these critical topics: health and safety, ethical
business conduct, and responsible sourcing.
Throughout 2024, we have continued to engage
with key stakeholder groups, including our
colleagues, customers and investors, to ensure
that we maintain our focus on the topics that are
of most importance to them. Relevant insight
from our customer research is discussed on page
46, and a summary of our colleague listening
forums is provided on page 37. Key themes arising
from conversations with investors continue to
focus on our climate change targets and our
performance in ESG ratings. In our Section 172
statement, we have formally recognised the
environment as a key stakeholder of the business
alongside our communities (see page 89).
As a large business and prominent brand in the UK,
we recognise the important role that we hold with
building a sustainable society. We map how our
strategy aligns to the UN’s 2030 Sustainable
Development Goals (SDGs). The targets in our
Responsible Business Strategy directly contribute
to the delivery of targets that sit within 8 of the 17
SDGs (see summary table on page 33).
Governance
Our Board-level Responsible Business Committee
is responsible for:
– reviewing and approving the Responsible
Business Strategy, ensuring it addresses key
issues relevant to the business;
– monitoring the execution of the Responsible
Business Strategy, including approving related
targets and monitoring performance against
these targets; and
– providing assurance to the Board that the
Responsible Business Strategy is the right
strategy to support the long term sustainable
success of the business and that it is being
implemented effectively.
The Committee regularly reports to the Board on
progress and matters arising.
Our Executive Board receives regular updates
from the Head of Sustainability and Environment
on progress with delivering the Responsible
Business Strategy across the business. A
Responsible Business Working Group brings
together leaders in the business to work
collaboratively to deliver the strategy.
Further information on these governance
arrangements in the context of climate-
related risks and opportunities is set out in
our Climate-related Financial Disclosures
report on pages 53-65 and the Responsible
Business Committee report on pages 104-105.
Disclosures
We recognise that disclosing our performance
is an essential part of building trust with
our stakeholders by demonstrating how
we are performing with the delivery of our
Responsible Business Strategy. We disclose
our performance on material ESG issues
through several external benchmarks. We have
aligned our climate-related disclosures with
the UK’s current requirements (see page 65).
In 2024, we continued our engagement with CDP,
and we’re pleased to have maintained our scores
of B for Climate Change and C for Forests.
We were also delighted to have been recognised in
the FTSE4Good Index Series, by achieving a score
of 3.4 in the FTSE Russell ESG Scores. We also
increased our score in MSCI’s ESG Ratings from
AA to AAA.
We have continued to disclose against the
Sustainability Accounting Standards Board (SASB)
standard for our sector – Multiline and Speciality
Retailers & Distributors. This can be found on our
website, along with additional ESG metrics:
www.wickesplc.co.uk/company/responsible-
business/policies-and-reporting/.
Wickes Group Plc Annual Report and Accounts 202431 Strategic report Governance Financial statements Other information
Our Built to
Last strategy
We believe we have an important
role to play in society, from the
products we sell, to the stores we
run and the infrastructure we use
to serve our customers.
Responsible business continued
Read more on pages 48-52
Read more on pages 42-45 Read more on pages 46-47Read more on pages 34-41
People
Where all our colleagues can feel at
home and are empowered to support
their communities and customers.
Colleagues
Customers
Communities
Environment
Supporting the fight against climate
change and taking action to protect
the natural environment.
Carbon
Waste
Nature
Homes
Helping our customers save
energy and reduce the carbon
footprint of their homes.
Products
Services
Installations
Fundamentals
Underpinned by our
Safety and wellbeing
Our safety culture is centred around
commitment and care and we make it
our priority to ensure that everyone who
works and shops with us goes home
safe and well every single day.
Ethical business conduct
We are committed to conducting
our operations honestly, responsibly
and with integrity.
Responsible sourcing
From the materials used to make
our products, to how they are
manufactured and transported,
everything we do is built on a
responsible supply chain.
32 Wickes Group Plc Annual Report and Accounts 2024Strategic report Other informationFinancial statementsGovernance
Responsible business continued
Built to Last progress update
Pillar Focus Area Our Targets Progress in 2024 Further information
Alignment with UN Sustainable
Development Goals (SDG) and Targets
People
Inclusion and
diversity
Gender: 35.6% female representation across our
management population by the end of 2024
Ethnicity: 11.6% Underrepresented Ethnic Minorities
(UEM) representation across our management
population by the end of 2024
36.98% females in our management
population by the end of 2024
11.86% UEM in our management population
by the end of 2024
See page 35
SDG 10 Reduced Inequalities
– Target 10.2
Learning and
development
Offer and support 200 Early Career places in 2024 178 Early Career places were provided in 2024 See page 36
SDG 4 Quality Education
– Target 4.4
Charity and
community
Raise £1 million for The Brain Tumour Charity in 2024,
towards our £2 million fundraising goal
£926,635.80 fundraised in 2024; total fundraised
£1,556,199.24 (at 28 December 2024)
See page 41
SDG 3 Good Health and Wellbeing
– Target 3.4
Support 1,500 projects across our local communities in
2024 through the Wickes Community Programme
2,156 projects supported across our local
communities
See page 41
SDG 9 Industry, Innovation and
Infrastructure – Target 9.1
Environment
Carbon Reduce absolute Scope 1 and 2 greenhouse gas (GHG)
emissions by 42% by 2030 (from a 2021 base year)
61.3% reduction in 2024 Scope 1 and 2 GHG
market-based emissions compared with 2021
See page 43 SDG 7 Affordable and Clean Energy
– Target 7.3
55% of our suppliers by emissions covering purchased
goods and services to have science-based targets by
2027
52 of our suppliers, representing 27.3% of our
2024 Scope 3 GHG emissions, have set
SBTi-validated targets
See page 43
SDG 7 Affordable and Clean Energy
–Target 7.3
Reduce absolute Scope 3 GHG emissions from the
use of sold products by 42% by 2030 (from a 2021
base year)
19.7% reduction in absolute Scope 3 GHG
emissions from the use of sold products in 2024
compared with 2021
See page 43
SDG 12 Responsible Consumption
and Production – Target 12.2
Packaging Primary plastic and paper packaging for our own brand
products to have at least 50% recycled content by 2025
30% of primary paper and plastic packaging
used on Wickes own brand products contains at
least 50% recycled materials
See page 44
SDG 12 Responsible Consumption
and Production – Target 12.5
100% of PVC and polystyrene removed from primary
packaging on our own brand products to make it easier
to recycle by 2025
100% of PVC removed from primary packaging
on Wickes own brand products by the end of
2024, and 100% polystyrene removed by
February 2025.
See page 44
SDG 12 Responsible Consumption
and Production – Target 12.5
Homes
Products 50% (by revenue) of our own brand products classified
as ‘supporting sustainability’
59% (by 2024 revenue) of our own brand products
classified as ‘supporting sustainability’
See page 47 SDG 13 Climate Action – Target 13.1
Fundamentals
Safety Our aim is: Everyone home safe and well, every
single day
36% reduction in colleague Lost Time Accident
Frequency rate and 1% reduction in actual
customer accidents
See page 49 SDG 8 Decent Work and Economic
Growth – Target 8.8
Data subject to Independent Limited Assurance by DNV Business Assurance Services
UK Ltd (DNV). DNV’s Limited Assurance Statement isavailable on our website at
www.wickesplc.co.uk/company/responsible-business/policies-and-reporting/
Wickes Group Plc Annual Report and Accounts 202433 Strategic report Governance Financial statements Other information
Our winning
behaviours
A
u
t
h
e
n
t
i
c
W
i
n
n
i
n
g
B
e
i
n
g
a
t
y
o
u
r
b
e
s
t
H
u
m
i
l
i
t
y
C
a
n
d
o
s
p
i
r
i
t
People
Colleagues
Customers
Communities
Our objective
We are building a business we
are proud of, where all our
colleagues can feel at home and
are empowered to support their
communities and customers.
Our targets
– A gender-balanced team across all roles and
functions at Wickes.
– A business that reflects the communities we
serve through ethnic diversity and leadership
ethnicity balance.
– Offer and support 200 Early Careers places
each year from 2022 to 2024. We are reviewing
our performance and will set a new Early
Careers target for 2025.
– Raise £2 million for our charity partner over the
two-year partnership.
– Wickes’ Community Programme to support
1,500 projects across our local communities
each year.
Culture
Our values are strongly embedded in our culture. We call them our Winning Behaviours. Our
colleagues understand and display the behaviours, which support us in achieving our plans.
At Wickes, our people are our greatest asset. We’re building a space where everyone can be themselves
and be empowered to support our communities and customers.
In 2024, our leadership team co-created a set of behaviours specifically for colleagues in leadership roles
within the business. These leadership behaviours build on our values and will underpin our selection,
development and performance management going forward. We believe that these will make the biggest
difference to our success in the future by providing a guide for our leaders in terms of what is expected of
them and how they bring leadership to life at Wickes.
Winning
We relentlessly pursue our targets, celebrate
and share successes, support all colleagues
and embrace challenges positively.
Can do spirit
We say ‘yes’ to challenges, go the extra mile
for customers and take initiative.
Being at your best
We approach every day with fresh enthusiasm, lead
by example and learn every day.
Humility
We acknowledge we don’t have all the answers
and are honest and accountable.
Authentic
We embrace our true selves, respect our colleagues
and have courage to face tough conversations.
People key performance indicators
76.4%
stores that have at
least one female in
leadership
2023: 73.4%
39.0%
of all our colleagues
identify as female
2023: 39.9%
13.3%
of all our colleagues
identify as Black, Asian
or other ethnic minority
2023: 12.8%
22.6%
voluntary colleague
turnover
2023: 23%
2,156
projects supported
across our local
communities
2023: 1,468
178
early career placements
supported
2023: 280 placements
£926,635
banked for our charity
partner, The Brain
Tumour Charity
2023: £719,060
7.7/10
overall colleague
engagement¹
2023: 7.9/10
Responsible business
continued
1 Calculated from four engagement questions in colleague survey
34
Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Wickes Group Plc Annual Report and Accounts 2024
Responsible business continued
Ways of working and reward
Guided by our colleague reward principles,
we continued to enhance our reward offering
during 2024. We awarded an average wider
workforce salary increase of over 5%, and made
specific enhancements to the reward package
for our Duty Managers. We pay the National
Minimum Wage as a minimum. Basic pay within
stores is supplemented by ‘Gainshare’, our
store profit share plan, which incentivises and
rewards team performance whilst also helping
us keep our costs flexible. We do not have
zero-hours contracts, and all our colleagues
are on a minimum of 16 hours a week (unless
the colleague has requested otherwise).
In response to colleague feedback, in 2024
we introduced ‘Save’, allowing colleagues to
build up personal savings directly from their
pay. ‘Save’ supplements our existing salary
advance and payroll loan options, which were
utilised by colleagues over 15,000 times last
year. In 2025, we will continue to review this
benefit alongside the rest of our offering.
Fair pay remains at the core of our reward offering,
and we recently reported favourable median
gender and ethnicity pay gaps for the 12 months
to April 2024 of -0.77% (2023:0.07%) and 0.87%
(2023:-0.74%) respectively. The full report is
available on our website www.wickesplc.co.uk. We
supplement our pay offering with comprehensive
wellbeing benefits for colleagues, such as our
Digicare service. This service represents a key part
of our wider wellbeing support for all colleagues,
Director, senior manager and colleague gender and ethnicity breakdown¹
Gender Ethnicity
Male Female White Ethnic minority³ Unknown
Board 5 71.4% 2 28.6% 6 85.7% 1 14.3% 0 0%
Executive Board 6 66.7% 3 33.3% 7 77.8% 2 22.2% 0 0%
Senior managers² 63 65.6% 33 34.4% 80 83.3% 12 12.5% 4 4.2%
All other colleagues 4,437 61.0% 2,840 39.0% 4,973 68.3% 967 13.3% 1,337 18.4%
1 The data for this disclosure is as at 31 December 2024
2 Senior managers: D2 Director level, D1 Senior leadership roles, M3 Senior management including technical and Head of Department roles
3 All ethnic groups except White British and White ethnic minorities
Building a workplace where
all colleagues can thrive
which includes digital GP, home health test kits,
and mental health support, all free of charge.
During the year we saw Digicare registrations
increase by 36% to 1,684 (from 1,243 in 2023).
We now offer all of our store management
colleagues the opportunity to work flexibly,
which we launched in early 2024. We are
monitoring the uptake of this initiative by
our store management colleagues, and in
2025 we will explore the opportunity to roll
out this offer to our distribution sites.
Inclusion and Diversity
As an organisation, we have continued
to work towards our three key missions
for inclusion and diversity:
– A gender-balanced team across all roles and
functions at Wickes.
– A business that reflects the communities we
serve through ethnic diversity and leadership
ethnicity balance.
– A colleague life cycle experience that drives
equity and equality.
We have continued to leverage the strength
and voice of our six colleague networks to
further drive the diversity of our colleagues and
to ensure that inclusivity is at the heart of our
decision making, right across our organisation.
The growing maturity of some of our networks
has meant that they have been able to begin
to drive fundamental change through our
policies and processes, whilst still providing
awareness and education throughout the year.
Colleagues
In 2024, our colleagues from our Balance for
Better network (which focuses on gender
balance in the business) were responsible for
the launch of our first-ever Menopause Policy,
as well as introducing a women’s and men’s
health support package through our partnership
with Peppy, a health focused employee benefits
digital platform. Our Raising Awareness and
Action on Culture and Ethnicity (RAACE) network
launched an internal mentoring programme
for ethnically diverse colleagues. Through
an intersectional lens, our networks came
together to propose diversity marker questions
in our colleague engagement survey so that
we can better understand the engagement
levels for all of our communities at Wickes.
Our performance
Following the inclusion of gender targets in the
2023 Executive remuneration annual bonus
scheme, we have evolved our approach in 2024,
by including ethnicity targets, and capturing
a broader population of colleagues to include
all leadership roles. We also extended the
bonus scheme to our senior leadership team,
as we continue to ensure that all of our line
managers understand the role they play in driving
inclusion and diversity across the business.
In 2024, we increased female representation
in the target groups from 35.08% to 36.98%,
and from 11.28% to 11.86% for ethnicity.
This shift represents a good improvement in
diversity at a leadership level in Wickes.
In the year we also communicated our local census
data to all of our stores, so that they can better
understand the ethnic make-up of the communities
that they serve, and overlay this data with their own
store demographics. This allows our store teams
to be more considerate of their local community’s
needs, and to put talent plans in place that will
enable our colleague make-up to better represent
their local community over the longer term.
External recognition for our work
in inclusion and diversity
In 2024, our Ability colleague network signed
up for the Government-led Disability Confident
Scheme and we achieved Level 1, demonstrating
our commitment to creating an inclusive and
supportive workplace. We are pleased to have
now achieved Level 2 – Disability Confident
Employer – and we are working towards
achieving the next level in the scheme.
In 2024, Wickes and our colleagues have received
a number of awards, including being recognised
by the 2024 Inclusion In Awards: Top 5 Most
Inclusive CEO in Retail – David Wood; and Top
5 Most Inclusive CPO in Retail – Sonia Astill.
Wickes Group Plc Annual Report and Accounts 202435 Strategic report Governance Financial statements Other information
Colleagues
Responsible business continued
Inspiring and enabling future talent
At Wickes, we are committed to building skills
within our local communities, with our Early
Careers programmes playing a key role in
attracting and developing the talent needed for
future growth. Through these initiatives, we aim
to support social mobility by equipping young
people with the skills and pathways needed to
gain employment and thrive within our business.
Investing in Early Careers
In 2024, we provided 178 people with Early Careers
opportunities. This was slightly below our target of
200 places due to the structural changes in our
business resulting in fewer entry level roles.
147 people were engaged in apprenticeships, 28
people completed work experience placements,
and 3 completed traineeships, internships or
graduate roles. The cohort completing these
placements were more gender balanced than our
overall workforce.
Since launching in 2019, our 22 apprenticeship
programmes have supported 1,239 individuals,
either completing or actively engaged in an
apprenticeship. By growing these programmes,
we ensure a robust pipeline of diverse talent,
reflecting the communities we serve.
Our Installer Apprenticeship Programme plays a
vital role in developing a skilled and sustainable
workforce. Since its inception, we’ve run 17
cohorts for kitchen installers and three cohorts
for bathroom installers, achieving a 100%
pass rate, with 94% of apprentices earning
Distinction grades. We are proud to have over
30 graduates now actively applying their skills
in customers’ homes, contributing to the quality
and consistency that Wickes is known for.
Developing work-readiness skills
In 2024, we introduced our School Outreach
Programme to support local schools in developing
students’ employability skills through the Wickes
School Challenge and Enterprise Curriculum. The
challenge aims to bridge the gap between
education and the workplace by promoting key
skills like communication, teamwork, problem
solving, creativity, numeracy and digital skills.
The Wickes School Challenge invited Year
9 students from across the UK to reimagine
an unused space in their school to foster
inclusivity and wellbeing, using Wickes
products. The winning team, from Oasis
Academy Sholing in Hedge End, was awarded
£2,000 in products to bring their project to
life, and the runner-up team received £500.
Through our partnership with The Inspirational
Learning Group, Wickes provides schools with a
suite of online resources aimed at fostering
entrepreneurship and introducing students to the
world of work. These resources include a
360-degree virtual tour of a Wickes store from a
colleague’s perspective, as well as webinars and
live-streamed sessions focused on career
opportunities and essential skills development.
Employment
We employed on average 7,774 people in 2024,
compared to an average headcount of 7,919 in
2023.
As part of the work we have undertaken to improve
the customer experience in Design & Installation
(D&I), and deliver an elevated customer journey for
our customers, we restructured the D&I team to
ensure that our customers’ first point of contact
is with the person who will take them through the
whole sales journey. This resulted in us taking
the difficult decision to remove the Kitchen
and Bathroom Adviser (KBA) role in stores and
reinvest in additional Design Consultant (DC)
roles across the business. As part of this process,
people in KBA roles were offered the opportunity
to move into a DC role or other roles within the
business. We were able to retain just over 30%
of colleagues who were in KBA roles, with the
remaining colleagues leaving the business.
In 2024, we opened four new stores (Long
Eaton, Durham, Aberdeen and Leamington
Spa) and closed five (Ashton Gate, Inverness,
Sheffield Central, Warwick K&B and Battersea
K&B). When we make the difficult decision to
close a store, we take all reasonable steps to
support our colleagues who are affected in
securing alternative employment with Wickes.
Case study
Store traineeship
Joshua Law
Before starting my traineeship, I struggled
to find a job for six months despite several
interviews. During my six weeks as a Trainee in
the Coventry store with Wickes, I developed
valuable skills in teamwork, product knowledge,
customer service, attention to detail and
working under pressure. My colleagues were
incredibly supportive, guiding me whenever I
had questions or faced challenges, which gave
me the confidence to succeed.
Thanks to this traineeship, I’ve gained essential
skills and insights into the real world, which
have helped me move forward in my career. I’m
proud to have achieved my goal of securing a
job as Customer Assistant at Wickes and am
excited for what is next to come.
Joshua Law, Store Trainee
36 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Responsible business continued
Colleague feedback and outcomes
Feedback Outcome
Culture
Colleagues continue to take great pride in Wickes’
culture, and we remain committed to strengthening
this to thrive in an ever-evolving environment.
Colleagues gave us an 8.2/10 engagement survey
rating for satisfaction with our inclusion and
diversity efforts, matching the industry benchmark
and aligning with the ‘freedom to be’ pillar of our
new Colleague Promise.
We will continue our efforts to further embed
our Colleague Promise, which reinforces
Wickes’ culture and resonates personally
with current and future colleagues. We’ll launch
our colleague ambassador programme to
support this.
Strategy and
purpose
Colleagues are confident in Wickes’ direction
and its balanced business model, which they
see as a competitive advantage. Established
communication channels and Executive
management updates provide clear insight into
strategy progress. At a shop floor level colleagues
feel confident in working towards operational goals,
but less connected to the Company level strategy.
We continue to keep our colleagues updated
on our strategic approach and launched
Wickes Life colleague magazine to bring
our store colleagues closer to broader
strategic messaging.
Career
development
Colleagues have mentioned perceived barriers
to career progression, requiring further support
from managers. In particular, they have cited
uncertainty about available opportunities or how
to access them, especially regarding movement
across business areas.
We are looking at how we further evolve
the performance management process
and the tools available to support colleagues
and line managers with career and personal
development conversations. Additionally,
in response to feedback last year, we have
commenced a phased introduction of
Leadership Behaviours to clarify expectations
at each level. Ongoing enhancements are
being made to the Internal Careers site and
online learning platform iLearn to better
connect colleagues with opportunities.
Environment
Colleagues agree safety in the workplace remains
a strength, with ongoing improvements to the work
environment making a positive impact. Initiatives
such as the store refit programme, office
refurbishments, and store refresh programme have
enhanced the overall atmosphere. Additionally, the
shift in flexible working policy has transformed the
approach from focusing on challenges to
embracing solutions.
We’re empowering managers to make
the best decisions with regard to working
arrangements within their teams without the
need for escalation and the environment
continues to be and feel safe to our
colleagues. We are looking at data to better
understand how well embedded flexible
working has become among our store
management population and how flexible
working options can be adopted in the
distribution area of our business.
Meaningful
work
Engagement survey feedback shows that we need
to keep our attention on meaningful work amongst
the colleague population. This is largely in our
store and distribution environments. With our
increased proposition and service offerings, this
requires more from colleagues. This can result in
colleagues feeling that they are delivering more at
times, which is not always valued. This can then
impact service and morale – in particular,
colleagues feeling a lack of recognition from
their managers.
The Operations leadership team has this
driver as a priority part of their colleague
engagement action plan. We continue to
focus on how we make our reward and
recognition offering more visible and
accessible for those in store and
distribution roles.
At Wickes, we remain committed to fostering
transparent communication with our colleagues.
We use a variety of formal and informal methods
to ensure regular, open and robust two-way
dialogue. Our independent Non-executive Director,
Sonita Alleyne, takes the lead on ensuring
colleague views are heard by the Board and taken
into consideration in their decision making.
Our listening channels
We’ve continued our listening initiatives in 2024 to support our ‘always on’ approach:
Colleague Voice
Held annually, we invite a variety of colleagues to
meet with independent Non-executive Director
Sonita Alleyne, where they can ask questions on
various topics.
Colleague engagement survey
This survey seeks both quantitative and
qualitative feedback from colleagues on
a range of subjects and assesses overall
colleague engagement. In 2024, our colleague
engagement
1
was 7.7/10 (2023:7.9/10).
‘Hangout with the Exec’ sessions
These quarterly virtual roadshows give store,
distribution and Support Centre managers the
opportunity to ask Executive management
questions on any subject.
Inclusion and Diversity network surveys
Ad hoc surveys supporting insights from colleague-
led networks focused on inclusion and diversity.
Cost of living working group
Bi-annual group providing insights and feedback
to support colleagues with the cost of living.
Colleague voice
Colleagues
1 Calculated from four engagement questions included in our
colleague survey
Wickes Group Plc Annual Report and Accounts 202437 Strategic report Governance Financial statements Other information
Colleague promise
To be a trusted name in home improvement and deliver
our purpose of helping the nation feel houseproud,
Wickes needs to be able to attract and retain the best
people. Our Employee Value Proposition, which we are
calling our ‘Colleague Promise’, is a resource we have
developed to support our talent strategy.
Our Colleague Promise mantra
We’re a down-to-earth business, and how we work
is special. That’s down to our unique culture. We
believe in doing what’s right – winning for our
customers, our communities, our planet and our
people. We take pride in being an open, welcoming
place where everyone feels at home. Where you
can be yourself, do your best work and make a
positive difference every day.
Our mantra is our commitment
we make for our colleagues.
Our Colleague Promise outlines the promise
we make to our people and what we ask of
them in return. It answers the question ‘Why should
I work for Wickes as opposed to somewhere else?’.
Our Colleague Promise makes it easier for us to
attract and retain the best talent, so that people
looking for a job know to consider Wickes, and
those who already work for us understand how
different we are to other employers in the market.
We created our authentic employer brand, which is
inclusive and reflective of who we are, under the
mantra of ‘Experience Beyond the Everyday’ and
three pillars ‘Freedom to be’, ‘Big on what matters’
and ‘Empowering you’. The three pillars were tested
with our colleagues and are the final reflection of
what they’ve told us.
The three pillars embed our culture:
– ‘Freedom to be’ covers our inclusive culture and
making sure every colleague feels at home.
– ‘Big on what matters’ covers our business
priorities, our approach to sustainability, and our
charity and community work.
– ‘Empowering you’ covers career growth and
learning and development.
Responsible business continued
While we already have a strong consumer brand, we
needed to invest in building an employer brand that
would enable us to attract and retain the people we
need to succeed.
We developed our Employee Value Proposition
(EVP) in 2024, by listening to people across our
organisation through a series of interviews and
workshops, to capture their views about the value
of working with us. We are now embedding our EVP
throughout our organisation.
Colleagues
38 Strategic report Governance Financial statements Other information Wickes Group Plc Annual Report and Accounts 2024Governance Financial statements Other information
What we offer you
We’re proud of our inclusive culture which allows everyone to feel at
home. As different as we all are, we share a way of being. Welcoming
new people and ideas. Having an ambitious, can-do spirit but also
showing humility. Giving each other a voice that can be heard. We
have each other’s backs. We have the freedom to be ourselves.
That’s how we all thrive.
What we expect from you
Be you and welcome others.
What we offer you
We care about doing what’s right for our people just as much as we do
for our customers, communities and planet. We help people make
their lives better by inspiring them to improve their homes. We support
you by creating an environment that works for you, with a purpose that
inspires you. By focusing on what really matters together, we will all be
so much the better for it.
What we expect from you
Be the difference we make.
What we offer you
Whatever role you come to Wickes for, we’re here to help you get what
you want from it. As part of a unique team, we’ll support you to make
the most of your talents and provide a space for you to be valued,
rewarded and supported. We will empower you to make your working
experience your own.
What we expect from you
Own the opportunity.
Pillar 1
You have the Freedom to be
Bringing our authentic
selves to work every day
For me, my religion is something I cherish a lot.
And for me to get to practice my religion without
any problem is the best feeling for me.
Buhari, Warehouse Administrator
Offering benefits that
help make lives better
When me and my partner split up, I was left with a lot
of debt. I was pointed in the direction of the financial
hub to see what advice I can get. This changed my life
and now I am working towards being debt-free.
Nicola, Warehouse Supervisor
Owning the opportunity
I expressed an interest in wanting to develop
myself using the apprentice scheme. I feel like
now I am getting hands-on experience. Wickes
has been amazing.
Laura, L&D Adviser
Pillar 2
We’re Big on what matters
Pillar 3
We care about Empowering you
Responsible business continued
Wickes Group Plc Annual Report and Accounts 202439 Strategic report Governance Financial statements Other information
Responsible business continued
Our customers
Understanding our customers’ views and needs
is a cornerstone of our approach to stakeholder
engagement, and is covered in detail in our Market
review (pages 12-16) and Section 172 statement
(pages 87-90).
How we prioritise the safety of our customers and
our performance in 2024 can be found on pages
48-49.
We also continue to enforce Challenge25 in our
stores, to ensure that we are not selling age-
restricted products to those who are underage. Due
to the significant risk, we do not sell age-restricted
products online.
Our approach includes a consideration of the
financial wellbeing of our customers who chose
to take out consumer finance for their design
and installation projects. We have policies and
procedures in place to ensure that we comply
with our obligations under the Financial Conduct
Authority’s Consumer Duty to deliver good
outcomes for our customers, including treating
customers fairly and identifying vulnerable
customers so that we can provide a tailored
service to meet individual customer needs.
We continue to seek to mirror the values and
diversity of our communities so we can best
support our customers. We want everyone to feel at
home in a Wickes store and everyone is welcome.
We continue to extend the support of our Wellbeing
Ambassador, Jeff Brazier, to our TradePro
members. They are able to access his coaching
content to help with their wellbeing. We know that,
for many of our customers, financial wellbeing
and cost efficiencies continue to be top of mind.
Our ‘Let’s care for each other’ ethos is not just
an internal principle but also extends to the
communities we serve; we have a zero tolerance
stance on physical, verbal or racial abuse against
colleagues or customers. We stand in solidarity
with fellow retailers by participating in Shop
Kind, an initiative designed to tackle violence
and abuse against shopworkers, and welcome
the Government’s progress on establishing
a specific offence to help as a deterrent.
Supporting our customers
and local communities
Case study
New kitchen for Norfolk foodbank
A donation from our Kings Lynn store was
made to St. Mary’s Church Foodbank in St.
Massingham in an effort to help with the
increase in demand from communities using
food banks.
These kitchen units with a retail value of over
£3,000, were donated through the Wickes
Community Programme. The new kitchen will
help to increase the foodbank’s capacity to
efficiently store and distribute food supplies to
those in need.
In recent years, St. Mary’s Church Foodbank
has acted as an essential lifeline for many
residents in the St. Massingham area and has
seen demand for its services surge as families
face difficult financial times.
Seeing our kitchen units assist
St Mary’s Church Foodbank in their
invaluable work brings us immense
joy and reinforces our commitment
to giving back to the communities
we serve.
Glen Hammond, Design Consultant
Customers Communities
40 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
People
Looking forward
We want all of our colleagues
and customers to feel at home
when visiting a Wickes store
and to be able to make a
difference through charity
and their communities.
In 2025 we plan to
Colleagues
– Continue to mature our inclusion and diversity
strategy, and review how we can formalise our
role through supporting our colleagues’ social
mobility and neurodiversity.
– Evolve our Early Careers programme to adapt
to our changing colleague profile and respond
to external Government policy.
Customers
– Connect our brand proposition with our
Responsible Business strategy.
Communities
– Increase the number of projects we support
through the Community Programme to 2,250
in 2025, and better understand the social value
of the donations.
– Complete fundraising for our existing charity
partnership, and launch our new charity
partnership.
Case study
Enabling transformational impact
Our charitable partnership with The Brain
Tumour Charity provides funding which
can be used in an unrestricted manner,
helping the charity to develop life-saving
treatments and support everyone
affected by a brain tumour diagnosis.
The increased funding from Wickes
has helped us propel our first major
treatment breakthrough in over 20
years, pioneering a new treatment for
paediatric brain tumours with the
BRAF gene mutation. Children are
now able to take a pill at home rather
than going to hospital, enabling them
to spend more time at school and with
their families, and suffering fewer
negative side effects.
Sally King, Corporate Partnerships Manager
Our local communities
At Wickes, we’re committed to making a positive
impact on the communities where our colleagues
and customers live and work. Through our
Community Programme, we empower our
colleagues to give back by donating Wickes
products to local good causes. All stores have
access to a dedicated fund of £300,000 every year
in order to support good causes and community
groups in their local area. In 2024, we supported
2,156 projects across England, Scotland and
Wales, reaching an estimated 345,400 people,
by donating 28,557 products. That’s a 47%
increase in the number of local community
projects supported from the previous year.
In the first full year of our initiative with
Crown Paints, our key partner for paint
donations, we have donated 9,323 litres of
paint to our local communities, enabling our
stores to support even more community
initiatives, on top of the great work carried
out through the Community Programme.
We continue to explore the opportunities to further
embed colleague volunteering into the business.
Our approach is to allow colleagues from across
the business to lend their skills to good causes,
while being able to support ongoing community
projects with passionate volunteers from our
stores. In 2025, we will look for opportunities to
formalise our approach and further the impact
of the Wickes Community Programme providing
volunteer time on a more regular basis.
Charitable giving
Throughout 2024 we raised funds for The Brain
Tumour Charity, our 2023-2025 charitable partner,
through a number of activities. In the first full year
of the partnership we hit a milestone of raising
£1,000,000 (from April 2023 to April 2024).
With the incredible support of our customers,
our colleagues raised just over £559,000 through
our dedicated ‘50 pence ask’ weeks in store, of
which we held five in total. As well as asking for
a 50 pence donation at the till, our colleagues
were able to raise further funds through bespoke
in-store activities such as bake sales and in-store
challenges. Some of our colleagues went even
further and took on challenges throughout the
year, either as a team or individually, with one of
our colleagues climbing to Everest base camp. We
also held our annual Charity Dinner where, with
the support of our suppliers, we raised £164,400.
Our colleagues also raised £682 for The Brain
Tumour Charity through the Give As You
Earn scheme. In total through the scheme,
our colleagues raised £61,907 for more than
105 charities as well as our official partner,
with over 670 colleagues donating.
The search for our new charity partner also
started in 2024. This year over 200 charities
were nominated by colleagues from across
the business, of which 18 met the necessary
criteria to become our two-year partner.
Through a collaborative process between the
Executive Board and the Charity Committee,
these were narrowed down to five charities
which were able to present a partnership plan
to us before the final two, demonstrating the
best fit and alignment to our strategic goals,
were put forward to a final colleague vote.
Responsible business continued
Wickes Group Plc Annual Report and Accounts 202441 Strategic report Governance Financial statements Other information
Environment
Carbon
Waste
Nature
Our objective
We are building a business we
are proud of, by supporting the
fight against climate change and
taking action to protect the
natural environment.
Our targets
Carbon
– Reduce absolute Scope 1 and 2 GHG
emissions 42% by 2030 from a 2021 base year.
– 55% of our suppliers by emissions across
Scope 3 will have science-based targets
by 2027.
– Reduce absolute Scope 3 GHG emissions from
the use of sold products by 42% by 2030 from a
2021 base year.
The target boundary includes land-related
emissions and removals from bioenergy feedstocks.
Packaging
– Primary plastic and paper packaging for our
own brand products to have at least 50%
recycled content by 2025.
– 100% of PVC and polystyrene removed from
primary packaging on our own brand products
to make it easier to recycle by 2025.
Our approach
Our commitment and ambition to addressing
our environmental impacts are set out in
our Environment Policy, which is available
on our website www.wickesplc.co.uk. The
Company’s environmental management
controls are designed to align with the
international environmental management
system (EMS) standard ISO 14001. We plan
to further develop our EMS, establishing
robust environmental controls and
integrating these into key business areas.
In 2024, we refreshed our controls to respond
to environmental incidents. This included
updating our internal training resources, and
integrating environmental incident notifications
into our new incident notification system
(see safety and wellbeing on pages 48-49).
Carbon
Understanding our impacts
The Company recognises the substantial risk
that climate change poses to local and global
societies and the environment. Throughout the
reporting period, we have continued to focus
on mitigating our impact and preparing our
business for a future within a changing climate.
As is common with other businesses in the retail
sector, 99% of our emissions arise from our
value chain (also known as Scope 3). We have
calculated that in 2024, 95% of our total footprint
was directly attributed to the manufacturing,
transport, use and disposal of the products
we sell. Further breakdown of our greenhouse
gas (GHG) footprint can be found on page 63.
Net zero commitment and contributing to an
economy wide transition
We have committed to play our part to achieve
the UK’s 2050 net zero target by reducing
our own GHG emissions. As signatories to
the BRC’s Climate Action Roadmap, we are
working towards achieving net zero by 2040,
and will set our own net zero target in due
course. We also have an important role to
play in helping our customers transition to
a low-carbon economy in a fair and equitable
way, by expanding our product offer in home
energy solutions. Our approach to this is
covered by the Homes pillar on page 46-47.
Near term science-based targets
In 2022, we set our near term science-based
targets which cover our Scope 1, 2 and most
material Scope 3 emissions. We received
validation for these targets from the Science
Based Targets initiative (SBTi) in 2022, confirming
that our near term targets are consistent
with a 1.5°C pathway. We communicated in
our 2023 Annual Report and Accounts our
intention to rebaseline our targets, in line with
our Emissions Recalculation Policy (available
on our website www.wickesplc.co.uk).
We have spent time in 2024 improving our GHG
accounting methodology and rebaselining our
2021 GHG footprint. We have also recalculated
our GHG emissions for 2022 and 2023, and our
updated results can be found on page 63. Our
rebaselining found that due to business changes
and improvements in our methodology, our
2021 footprint was 8.8% lower than the original.
As this exceeded 5% we have needed to review
our near term science-based targets against
the SBTi’s Corporate Net-Zero Standard.
The rebaselining exercise found that our absolute
reduction targets remain valid. Due to changes
in the measurement of our Scope 3 emissions,
we have found that we need to increase our
supplier engagement target from 45% to 55%,
i.e.,55% of our suppliers by emissions across
Scope 3 will have science-based targets by 2027.
We also reassessed the proportion of our
footprint that is related to Forest, Land and
Agriculture and we have reconfirmed that we
have not exceeded the threshold, and therefore
are not required to set an additional target.
We have submitted our updated targets, based
on our revised methodology and assumptions,
to the SBTi for validation through its Target
Update Service. We expect to receive
validation during 2025.
Responsible business
continued
42
Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Wickes Group Plc Annual Report and Accounts 2024
Decarbonisation action plan
Following the work to rebaseline and
recalculate our GHG footprint, we used the
2023 results to forecast a glidepath to meeting
our near term science-based targets.
We then developed a decarbonisation roadmap
aligned to the five-year business plan. It has been
informed by external policy developments and
improvements, for example, projections of the
decarbonisation of the UK electricity grid. We then
created a deliverable and credible decarbonisation
action plan, setting out the key actions that the
Group needs to deliver to meet our near term SBTs
and also to prepare for further decarbonisation
post 2030 in order to reach net zero.
Scope 1 and 2 emissions
Our primary focus is on ensuring that we are
getting our own house in order. To that end we
have developed a Scope 1 and 2 decarbonisation
action plan focusing on our property and transport
emissions. We are starting with decarbonising
our buildings and improving our energy
efficiency for 2025-2030, whilst decarbonising
our HGV fleet is planned for post 2030.
Scope 3 emissions
With the majority of our climate change impact
coming from our value chain, working with our
suppliers is a critical part of our decarbonisation
Responsible business continued
roadmap. We have spent more time in 2024 to
better understand the GHG emissions intensity
associated with the products that we sell.
Meeting our revised supplier engagement target
of 55% of Scope 3 emissions being covered by
suppliers with an SBT, is reliant upon the supplier
and product mix within the 2027 financial
year. Our supplier engagement approach is to
work in partnership with our suppliers, many
of whom we have strategic and long-standing
relationships with. We are in conversation with
many of our strategic partners about their
plans for decarbonisation, and the appropriate
roadmaps for their businesses. Wehave not
mandated setting SBTs, but we are encouraging
all of our suppliers to understand the business
benefits of understanding their GHG footprints
and developing appropriate plans to reach net
zero in an organised and orderly manner.
Our plans to meet our third SBT, 42% emissions
reductions from energy-powered products when
they are in use by customers, are primarily reliant
on the decarbonisation of the UK electricity grid.
For our other product ranges, we are working with
our suppliers to understand their innovations in
design, which will continue to give our customers
the quality and performance they expect.
Our performance in meeting our
science-based targets
A more thorough analysis of our 2024 GHG
footprint is provided in our GHG and Streamlined
Energy and Carbon report on pages 63-64.
Scope 1 and 2 decarbonisation levers Objectives of levers
A Improve energy
efficiency and secure
zero carbon electricity
– Increase capacity and resilience of our electrical infrastructure to support
levers B and C.
B Decarbonise
our buildings
– Source of 66% of our 2024 Scope 1 and 2 market-based GHG emissions.
– Main focus is to move away from gas to electric heating to reach net zero.
C Decarbonise our
vehicles
– Source of 34% of our 2024 Scope 1 and 2 market-based GHG emissions.
– Main focus is to prepare for a switch post 2030 from diesel fuel to zero
emission vehicles, dependent on technology developments.
We are making good progress with achieving
our near term Scope 1 and 2 science-based
target. In 2024, our Scope 1 and 2 market-
based GHG emissions were 61.3% lower than
our 2021 baseline. This is primarily due to
the switch to a 100% renewable electricity
contract (excluding Solar Fast). Following the
acquisition of Solar Fast, we are also working on
moving it to a renewable electricity contract.
Emissions from electricity-powered products
in use by customers are heavily dependent
upon the decarbonisation of the UK electricity
grid. In 2024 we saw a 19.7% reduction in our
emissions from Scope 3 Category 11 compared
to our 2021 baseline. For further detail, refer to
pages 63-64 for our GHG and SECR report.
By the end of 2024, 52 of our suppliers
which contribute to our supply chain GHG
emissions had set SBTs validated by the SBTi.
This represents 27.3% of our Scope 3 GHG
emissions. We recognise that seeking SBTi
validation is not always an appropriate route
for our suppliers. To this end, we also welcome
suppliers seeking support and validation
from other schemes and initiatives to help
them work towards achieving net zero.
Collaboration
We pledged our support to the British Retail
Consortium’s (BRC) Climate Action Roadmap when
it was first launched in 2021. In 2024, we continued
to collaborate to work towards collectively
meeting net zero in the UK retail industry.
Recognising that we have a global supply
chain, in 2024 we joined the Retailer Taskforce
of the ‘Make it Zero’ initiative launched by the
European DIY Retail Association (EDRA) and
the Global Home Improvement Network (GHIN).
This initiative focuses on decarbonising Scope 3
emissions across the global home improvement
sector. Our existing SBTi validated targets align
directly with Make It Zero’s commitments.
Case study
Our new-build store standard
We fitted air source heat pumps in all four of
our new build stores that we opened in 2024,
Long Eaton, Durham, Aberdeen and
Leamington Spa.
In our Aberdeen store we also installed 62
solar panels, fitted by Solar Fast. This means
that our Aberdeen store is powered by 100%
renewable energy, both from the solar panels
and our renewable electricity contract.
Case study
Make it Zero
We became one of the first retailers to become
signatories to EDRA/GHIN’s Global Scope 3
Decarbonisation Commitment
www.makeit-zero.com.
We are in a critical decade where we
must make real inroads to moving to a
net zero future that is fair for everyone.
Wickes has an important role to play in
this and we have already made
progress with our own SBTi-validated
science-based targets. We’ll do it
faster by working in collaboration with
our peers and supply chain partners
across the home improvement retail
sector, and the EDRA/GHIN Scope 3
Initiative provides an excellent
platform to be able to do this.
David Wood, CEO
Carbon
Wickes Group Plc Annual Report and Accounts 202443 Strategic report Governance Financial statements Other information
Responsible business continued
Operational waste
In 2024 we focused on mapping and tracking
all the waste generated through our business,
both from our retail operations and kitchen
and bathroom installations. We continue to
work with our principal waste contractors to
improve the quality of the data available to us.
Installation waste, where around 90% of our
waste is generated, is difficult to segregate at
source due to the space constraints and the
variety of waste being generated. We have
been working with our waste contractors to
develop more granular data of the treatment of
our waste, as well as exploring the possibility
of a simple onsite waste segregation option.
We continue to backhaul and recycle easy-
to-recycle waste from our stores through our
Northampton-based Stores Distribution Centre,
where we recycled 7,442 tonnes of cardboard,
wood, plastic wrap and plastic banding. Other
waste streams are collected directly from stores
by our store waste contractor for recycling, and in
total we recycled 62% of our operational waste.
This comes from a total 12,297 tonnes of waste,
of which 100 tonnes was hazardous waste.
Lastly, we started the development of our
Resources and Waste Strategy, looking at further
opportunities across the business to minimise
our waste, improve recyclability and embed the
circular economy into our processes, all in line
with UK Government policy. Going into 2025, we
will launch the strategy throughout the business
and identify suitable opportunities to embed
circularity into our products and processes.
Packaging
We have a Packaging and Materials Policy,
which sets out our requirements for Wickes
own brand products, and we are members of
the On-Pack Recycling Label (OPRL) scheme.
In 2021, following the demerger, we established
packaging improvement targets for our own
brand products and we have continued to make
good progress on these goals since then. Our
understanding of the definitions of recyclable
and recycled packaging is informed by the UK’s
evolving policy, and as such we have sought
to add further clarification to our targets.
By delivering our targets we are reducing costs
associated with the introduction of the Extended
Producer Responsibility (EPR) packaging regime
and other packaging legislation in the UK, as well
as reducing the environmental impact of our
packaging. In light of the ongoing developments
with packaging policy guidance, we will review our
targets in 2025 to ensure they are aligned with the
policy definitions and focus on the greatest impact.
In 2024, we have calculated that 30% of our
primary plastic and paper packaging on own
brand products contains at least 50% recycled
materials (both pre and post consumer waste). We
are continuing to validate our packaging data for
our second EPR submission due in April 2025.
Our performance is dependent on any packaging
redesigns required for product protection as
well as the mix of products we have sold in the
year. We will continue to work alongside our
own brand suppliers to ensure that we continue
to increase recycled content where we can.
Polystyrene and PVC are hard to recycle materials
and we have focussed on removing and replacing
these with cardboard or paper materials. By the end
of 2024, we completed the removal of PVC from
all of our own brand packaging for new stock, and
we successfully removed polystyrene by February
2025. There will be legacy stock in our system
which will have PVC or polystyrene included in
the packaging until this stock is sold through.
Case study
Introducing a new spares
process for bathrooms
In 2024, we developed a new process for
ordering spare parts for own brand bathroom
items still under warranty. The previous
system was manually driven and led to
many items being reordered when only one
component needed to be replaced, usually
through wear and tear of the part. This
resulted in greater expenditure, as well as
unnecessary waste in customers’ homes.
We introduced a service that allows customers
whose bathrooms are still under warranty to
contact us and receive the part they require
within three days. We also created and rolled
out a comprehensive catalogue of parts for all
Wickes own brand bathrooms, as well as
guides for our store and customer support
colleagues detailing the different parts, their
use, and potential faults and solutions. This
has also allowed us to improve order planning,
leading to greater financial efficiencies as well
as increased customer satisfaction.
Going forward, we plan to roll out the process
to Wickes own brand kitchen items and
out-of-warranty bathrooms, as well as launch
online troubleshooting guides for our
customers.
Taking action
on waste
Next, we will address other hard to recycle
packaging materials, and we are working with
our industry partners to identify an appropriate
solution to enable our paint containers to be
more easily recycled.
Water
Our direct use of water is limited to colleague
catering and welfare, and cleaning our stores
and fleet vehicles. In 2024, we have measured
that we consumed a total of 84,704m
3
water
(2023:57,821m
3
). We continue to work
with our facilities suppliers to improve the
data availability from our water meters.
Case study
Switching out polystyrene
In 2024, we worked with our suppliers to
transition our kitchen installation product
packaging from polystyrene to cardboard,
which we successfully completed by February
2025. This has allowed us to further improve
the recyclability of waste from our installation
projects, and help our installers to recycle
more, by simplifying the types of waste they
dispose of at our customers’ homes.
Waste
44 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
We acknowledge the scientific evidence that
global nature is deteriorating and biodiversity
is declining. In 2024, we have furthered our
understanding of the Company’s nature-related
dependencies, impacts, risks and opportunities.
Our most significant impact on nature is
indirect, through product sourcing and
product use. Of particular relevance to our
sector is the link between product sourcing
and forest risk commodities (such as
wood and palm oil) and the potential to be
connected with illegal deforestation.
Timber
We continued to source products in line with our
Timber Sourcing Policy (available on our website
www.wickesplc.co.uk). We purchase only material
that complies with the UK Timber Regulations and
we aim for 100% of all own brand and branded
products to contain timber that is certified as
responsibly sourced. Responsibly sourced
means that environmental and ethical issues
associated with the raw material sourcing and
manufacture of a product have been addressed.
Timber remains a significant part of our business;
we estimate that in 2024 33% of Wickes Building
Supplies Ltd’s revenue was from timber-based
products. We have continued to focus on ensuring
that, where possible, timber or materials derived
from timber have received chain of custody
certification from one of the two primary global
responsible sourcing schemes for timber: Forest
Stewardship Council (FSC) and the Programme for
the Endorsement of Forest Certification (PEFC).
In 2024, we maintained our high standard of
99.8% (by revenue) of products manufactured
with timber sourced from FSC or PEFC certified
forests (2022 and 2023: 99.8%). For the remaining
0.2%, whilst the timber has not received full
certification, they are still subject to our strict
responsible sourcing requirements. In 2024, 81%
of the timber we sold was certified by the FSC
(2023:78%) and 19% by the PEFC (2023:21%).
Through completing our second CDP Forests
submission (based on 2023 data), we have
undertaken further analysis to understand the
origin of our own brand timber. In 2023, just
under 95% of our own brand timber was sourced
from Europe, with just over 60% sourced from
the UK. The remaining 5% was sourced from
China, Brazil, Canada and South Africa.
Environment
Looking forward
We will continue to play
our part in the fight against
climate change and take
action to protect the
natural environment.
In 2025 we plan to
Carbon
– Continue to deliver the decarbonisation action
plan and continue to develop our Net Zero
Transition Plan.
Waste
– Update our environmental controls to respond
to changing regulation such as the new
Simpler Recycling regime in England.
– Work with industry partners to identify an
appropriate solution to enable our paint
containers to be more easily recycled.
Nature
– Complete a desk-top assessment of our
nature-related dependencies, impacts, risks
and opportunities.
Responsible business continued
Peat
In 2024, we sold our existing stock of compost
containing peat, and we are proud to declare
that we now only source and sell compost
that is peat free. This is ahead of the UK
Government’s plan to stop the retail sale of all
bagged peat compost in England and Wales.
Landscaping
We have a smaller, direct impact on nature
from our estate management. In 2024, we
developed internal guidance to help promote
opportunities to enhance biodiversity through
the landscaping activities across our estate. This
includes recommendations for plant species
that are better at supporting biodiversity, as
well as other enhancements which can further
encourage wildlife, for example bug hotels.
Making
nature count
Nature
Wickes Group Plc Annual Report and Accounts 202445 Strategic report Governance Financial statements Other information
Our objective
We are building a business we
are proud of, by helping our
customers save energy and
reduce the carbon footprint of
their homes.
Our targets
– Half (50% by revenue) of our own brand
products to be classified as ‘supporting
sustainability’.
Understanding what is
important to our customers
We regularly check in with our key customer
groups to ensure that we understand how the
growing awareness of sustainability may be
influencing buying decisions. In our 2024 market
research, we explored energy saving as a key
motivator for our customers. We also participated
in a deep analysis of how other sustainability
factors might influence customers choosing to
shop at Wickes.
In the home improvement retail sector, our DIY
customers have continued to be concerned
about the rising cost of energy and the economic
outlook. They told us that saving money on
energy bills remains a key motivator for installing
home energy solutions. Further insights on the
home energy solutions market is provided in the
Market review section on page 14.
It is important that we understand the
importance of other sustainability-related factors
for our customers relevant to our sector. When
choosing a home improvement retailer, we found
that sustainability continues to be less important
than other factors such as value for money,
quality of product offered, price, location and
range of products offered.
Out of all sustainability issues, environmental
responsibility was the most important to
customers surveyed. Themes such as the
recyclability of packaging and ethical sourcing
of materials was top of mind, followed by climate
change. We are addressing all of these key
issues, as discussed on pages 42-45.
Opportunities to provide services which support
a circular economy are becoming increasingly
popular for customers, and we are maintaining
a watching brief on what this means for Wickes.
Home energy solutions
We have pivoted the focus of this area of our
strategy to align with our commercial strategy to
respond to the market growth driver of saving
energy. By bringing home energy solutions to
market, we are helping our customers to save
energy and reduce the carbon footprint of their
homes. This is how we are supporting a societal
transition to a net zero future. The commercial
opportunity around this driver is discussed in the
strategy in action section on pages 21-22.
Improving the sustainability
of our full product offer
It is also important that we look at our wider
product and service offering and how we can
improve the sustainability of these. Sustainability
is a broad term that could cover products that have
been ethically and responsibly sourced, or products
and services that have a lower environmental
impact than a similar product or have a positive
social impact.
Our approach to reducing the environmental
impact of our products is covered under our
Environment pillar (see pages 42-45). And how
we ensure that we are sourcing responsibly, and
seeking certification where available, is covered
on page 45.
As a responsible business and commercial
organisation, we are continuing to monitor
developments that could impact our product
ranges, for example new Government policy, and
the innovations in the UK home improvement
market. We have removed peat from our compost
ahead of expected UK legislation, in line with the
market and customer expectations. Other
examples of changes that could affect us are the
UK Government’s consultation on stopping the sale
of plastic-based wet wipes. We have assessed the
potential impact for our business, and we already
stock non-plastic alternatives.
Homes
Products
Services
Installations
Responsible business
continued
46
Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Wickes Group Plc Annual Report and Accounts 2024
Responsible business continued
Responsible marketing
Building trust with our customers is central to our
brand proposition, and how we advertise and
promote our products is key to building and
maintaining trust. We have an internal policy which
sets out the principles that we follow when we are
advertising and communicating. This includes:
– Legal, decent, honest and truthful
– Not misleading
– Capable of substantiation
– Clear as to any qualifications or significant
limitations
Our approach to responsible marketing extends to
ensuring that we are accurately talking about any
environmental credentials of our products – also
known as green claims. We have a robust internal
process for reviewing adverts and promotions
which include environmental credentials, ensuring
that we are adhering to the principles set out in the
UK’s Competition and Markets Authority (CMA)
Green Claims Code.
Measuring our progress
In 2022, we set ourselves a goal for 50% of our own
brand revenue to be from products that we have
classified as ‘supporting sustainability’.
Sustainability is a broad term with many different
definitions and applications. To this end, we have
worked to classify all of our own brand products
according to specific criteria. These are terms that
we have developed which we believe our customers
will understand, and are claims that can be
substantiated.
– Supports energy efficiency
– Supports water efficiency
– Contains recycled materials
– Contains responsibly sourced timber
We have analysed our sales data to assess how we
are progressing against our goal for 50% (by
revenue) of our own brand products that have been
classified as ‘supporting sustainability’. In 2024,
59% of our own brand revenue was from the sale of
products classified as ‘supporting sustainability’
(2023:60%). 58% of our own brand revenue was
from products that contain responsibly sourced
timber, with the remaining categories representing
less than 1% each of own brand revenue.
Going forward, we will align our criteria with metrics
from the forthcoming UK Sustainability Reporting
Standards. We will also focus our efforts, and set
goals, in product areas where we can have the
most impact.
Homes
Looking forward
Whilst developing our product
ranges that incorporate
sustainability attributes, we
will continue to closely follow
evolving customer trends
and understand market
developments and Government
policy and how that influences
behaviour changes and
lifestyle choices.
In 2025 we plan to
Products
– Continue to build our home energy solutions
product offer to enable our customers to be
more energy efficient
– Explore how we can measure the avoided
emissions of our home energy solutions
product offer, in line with best practice
Services
– Increase our communications to customers
on our wider sustainability credentials to
continue to build trust in our brand
Wickes Group Plc Annual Report and Accounts 202447 Strategic report Governance Financial statements Other information
Nothing is more important than making sure that
everyone goes home safe and well every single
day to their families or loved ones. Our focus
continues to be achieving and maintaining an
embedded culture of safety and care. Risks to the
health and safety of our people and customers
come first, led by strong and active safety leaders
across our business and supported by our Feel at
Home culture.
Our safety management framework
Our Safety Policy was revised in 2024 and sets
out our promise to always be legal, always aim
to be safer, and always learn from our mistakes.
This year we reinforced this message by
documenting our safety management framework
for senior leaders and creating a new ‘Safety at
Wickes’ induction video for our colleagues. The
policy has been communicated to all colleagues
through our internal Safety Management System
and we have also disclosed this externally on our
website www.wickesplc.co.uk.
We have identified the key safety risks across our
business, and have established comprehensive
Safety Risk Registers owned by our operational
areas. Our Operations team has clear
accountability for ensuring that any risk of harm
is identified and controlled, and it is supported by
our safety team that provides advice and support
regarding safety management.
Responsible business
continued
Fundamentals
Safety and wellbeing
Ethical business
conduct
Responsible sourcing
Our Safety Policies and Risk Registers are
supported by operational procedures that are
communicated to our colleagues through training
and instructions, so that they understand how
to work safely or protect others from harm. We
continually seek to reduce the risk of harm in our
operations by identifying annual safety
improvement plans. These are identified through
various safety reporting channels including our
incident reporting system.
We take pride in our learning culture, and actively
seek to understand how we can do better through
accident investigations and Executive Board-led
incident review meetings. Through this process,
we continue to make significant improvements in a
number of areas, including how we manage risks to
visitors in all our sites and the level of safety
training for our managers. Our third line of defence
involves assurance activities by both the safety
team and group internal audit. The safety team
carries out assurance of our stores, Support Centre
and Distribution Centres at a frequency informed by
the level of risk.
Our model is supported by strong governance,
with clear accountability for safety and monthly
reporting of our safety performance to the
Executive Board. The Board is provided with
updates at every meeting and six-monthly deep
dives on key aspects of safety performance and
improvement plan activity.
Everyone home safe
and well, every single day
Safety: Our three lines of defence
1
Operations
Accountability – Responsible for
implementation of our Safety
Policy, identifying and managing
operational risks and developing
and implementing procedures.
2
Stay Safe Team
Oversight – Responsible for the
development of the Wickes Safety
Management Framework and
provision of assurance to the
Wickes Executive Board.
3
Internal Audit
Assurance – Responsible for
independent verification of the
Wickes Group Plc Safety Policy
and its implementation.
Responsible business
continued
Safety and wellbeing
48
Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Wickes Group Plc Annual Report and Accounts 2024
Responsible business continued
Our progress
Our focus in 2024 was to continue to improve our
management of safety risks, and embed key parts
of our safety management framework, including
how we identify and prioritise risks, the safety
knowledge and awareness of our leadership and
how we engage and consult with our colleagues.
In2024:
– We documented our safety management
framework to support the effective
implementation of safety controls by senior
leaders, aligning it with the principles and
structure set out in the International Safety
Management System standard ISO 45001.
– We reviewed our Risk Register format, to simplify
and ensure consistency across the business.
In the reporting period, we reviewed all Risk
Registers, enabling us to comprehensively map
our safety risks business wide, which informed
our improvement plan for 2025.
– The Safety Committees we created last year
continued to evolve, and are now instrumental in
the development of local safety risk and culture
improvement plans, ensuring active participation
of colleagues from all areas of the business.
– Our Safety Leadership training was extended to
include all 1,100 Operational and Duty Managers
across our stores who received face-to-face
safety training in 2024. This has ensured that all
leaders have a consistent message and learning
experience, no matter where they work.
– In the reporting period, we launched our new
Incident Reporting System (IRS), allowing us to
capture better insight into specific safety events
across our business. We use the system for all
safety events including injuries, near misses,
hazards, regulatory visits, medical incidents and
incidents of abuse. It has allowed us to improve
our escalation processes, ensuring the right
people and teams receive the right information
quickly to allow them to support our colleagues.
– Insight gathered from the IRS helped us to build
a business case to install over 230 defibrillators.
In 2024, we installed a defibrillator in every store,
our main distribution centre and support centre.
Each defibrillator is linked to the British Heart
Foundation’s public circuit so that they can be
used by others in the event of an emergency.
– Our Risk assessments across both Retail and
Distribution were reviewed, as part of a
programme to ensure simplification of safety
messaging to colleagues and clarity on our
safety controls.
– We completed our three-year Safety Review
Programme with over 260 audits of our stores
and Distribution Centres, allowing us to provide
assurance against all four key safety risk areas.
Any sites that did not meet our high safety
standards were supported to achieve the
expected standards and then reaudited three
months after the initial review, ensuring a cycle
of continuous improvement and learning.
– A new colleague safety video was launched,
communicating our promise to colleagues, our
key expectations of everyone working for Wickes,
and promoting the strong safety culture we have
in Wickes. The video involved colleagues from all
areas of the business describing what safety
meant to them and why it matters.
– Our successful Primary Authority Partnership
with West Northamptonshire Council continued,
with our Primary Authority Partner attending a
number of stores to review our key procedures,
providing relevant business advice, and giving
feedback to our Chief Operating Officer.
Our performance
In 2024, we expected a levelling out of our safety
performance figures following a number of very
strong years of pleasing performance on injury
reduction. However, we have continued to show
strong performance in our reduction of total injury
numbers across the business, with a 8% reduction,
and a very positive 36% reduction in colleague
injuries leading to lost time and lost work days.
Although we have maintained a strong focus on
hazard spotting across our business, our customer
injuries remained relatively level compared to 2023. It
was our customer accidents that also impacted our
increase in RIDDOR reportable injuries. These were
mainly driven by slips, trips and falls, and this will be
the focus of a business wide safety working group in
2025 to consider ways to improve this area.
Wellbeing
Our internal Wellbeing network continued to focus
on the financial, mental and physical wellbeing of
our colleagues, with support from our Wellbeing
Ambassador Jeff Brazier, a trained life coach, grief
counsellor and wellness and mental health
advocate. A full programme of events included
accessible workout videos, Wellbeing Fairs and
awareness sessions on stress management,
self-care and managing grief to support colleagues
with specific issues in their lives. For the first time
the Wellbeing network held a one-day Congress to
gain engagement from the Wellbeing Committee on
the Company’s future Wellbeing Strategy. The
Committee continues to support our Mental Health
First Aider Programme with over 100 people
managers trained in 2024 alone.
Looking forward
We will continue to ensure that our risks are
effectively managed, and actively support
colleague wellbeing by listening to both our
colleagues’ needs and external requirements.
Our focus in 2025 will be on our operational risk
improvement plans, and the development and
maintenance of an embedded safety culture that
all our team can be proud of. This will include:
– Establishing a Slips Trips and Falls working
group to identify opportunities to improve
risk management.
– Launching the next three-year Safety Review
Programme across the business.
– Establishing a Safety Champions event, to
engage and inspire colleagues from across the
business, providing opportunities for them to
consider and be involved in broader safety
improvement plans.
– Continuing our successful relationship with West
Northamptonshire Council.
– Working with Solar Fast’s management team
to support the implementation of our safety
management framework into our newly
acquired business.
– Reviewing our Safety Management System to
ensure it is aligned to our framework and
represents all areas of our business.
KPI 2024 performance compared to 2023
% change in total injuries reported 8% reduction
% change in Lost Time Accident Frequency rate 36% reduction
% change in hours worked before a Lost Time Incident 56% increase
% change in actual customer accidents 1% reduction
% change in Reportable incidents (RIDDOR)
11% increase
Wickes Group Plc Annual Report and Accounts 202449 Strategic report Governance Financial statements Other information
Our approach
During 2024, Wickes developed a compliance
framework to sit within the overarching governance
framework, which supports the business to operate
within its legal and ethical boundaries. It provides
a simple, clear and consistent approach to
compliance and is built on three key elements of
strong ethical culture, robust risk management
processes and effective monitoring.
In addition, a new compliance oversight group
was formed in 2024, which brings together
subject matter experts from across the business
to oversee compliance against applicable laws
and regulations and provide assurance to the
Executive team and the Board. The Compliance
Oversight Committee aims to promote a culture
of compliance, integrity and ethical behaviour
throughout the Group and ensure that all areas
of law and regulation are consistently assessed,
managed and monitored in accordance with
the Wickes compliance framework. This
Committee covers compliance with all laws
and regulations applicable to the business
including Health & Safety, Consumer Protection,
Data Privacy, Restricted Sales, Construction
and Planning, Product Safety and Responsible
Sourcing, Environment and Community,
Financial, Tax, Employment, Competition,
Fraud, Modern Slavery and Whistleblowing.
Members of the compliance oversight group are
required on an annual basis to carry out a review of
the compliance area for which they have oversight
and report back on performance, including any
instances of non-compliance. This forms part of
the twice-yearly legal and regulatory update to the
Board to enable it to ensure that Wickes is
discharging its legal obligations.
A summary of the audit programme that has been
carried out in 2024 is set out on page 102 of the
Audit and Risk Committee report, which includes
an audit of Wickes’ compliance framework. In
addition, a number of compliance measures are
included within the key control audits carried out by
Wickes’ internal operational audit team in stores,
including training completion rates, pricing checks
and data privacy checks.
Business ethics
Wickes is committed to conducting our operations
honestly, responsibly and with integrity. We have a
Code of Business Ethics that applies to all our
colleagues and is at the heart of our business. All of
our part-time and full-time colleagues are required
to complete e-learning training on this on an annual
basis. In addition, we have policies which support
the Code of Business Ethics for all key regulatory
areas, including Competition Law, Anti-Bribery and
Corruption, Anti-Money Laundering, Corporate
Criminal Offence, Consumer Duty, Data Privacy,
Market Abuse and Anti-Fraud. Colleagues working
in relevant areas of the business or in higher risk
roles also complete bespoke e-learning on these
key regulatory subjects.
We are committed to engaging colleagues on
business ethics and regulatory matters in a
practical and relevant way, and have a calendar of
communication activity in place to ensure colleagues
are both clear on the standards we expect and know
what to do if they are concerned something is wrong.
We review and update our regulatory e-learning
modules on a periodic basis to ensure they remain
relevant and engaging for colleagues.
Whistleblowing
Wickes does not tolerate any wrongdoing or
malpractice and has a Whistleblowing Policy in
place which protects whistleblowers from
retaliation. We encourage colleagues and third
parties to report any concerns of wrongdoing
through our confidential and independent
whistleblowing service and we ensure that any
reports are thoroughly investigated. Both the
Executive team and the Board receive update
reports on whistleblowing on a regular basis.
Further detail on whistleblowing can be found
on page 86.
Human rights and modern slavery
Wickes is committed to respecting all internationally
recognised human rights, standards and legislation
relevant to our operations. Our Human Rights
Policy sets out how we uphold human rights by
identifying our areas of responsibility and taking
relevant action. We are awaiting further UK policy
guidance on necessary requirements for conducting
human rights risk and impact assessments.
Our Human Rights Policy includes our respect of the
right of freedom of association and collective
bargaining for all colleagues.
We recognise the harmful impact that modern
slavery has on individuals and society, and we are
committed to help prevent these illegal practices.
Our Modern Slavery and Human Trafficking Policy
sets out our zero tolerance approach to any form of
forced, bonded or involuntary labour, human
trafficking, child labour, and other kinds of slavery
and servitude within our own operations or within
our supply chain. Our biggest risk of modern
slavery is in our supply chain. We are committed
to upholding human rights and promoting positive
working conditions and practices throughout our
supply chain, and we commit to meet the principles
of the Ethical Trading Initiative (ETI) Base Code.
More detail can be found in our Modern Slavery
Statement on our website www.wickesplc.co.uk.
We aim to work collaboratively, and to create
an environment that enables transparency
throughout the supply chain. We promote our
whistleblowing helpline to our suppliers for
them to report concerns. We are a member
of Sedex (Supplier Ethical Data Exchange), a
leading platform that supports the management
and improvement of working conditions in
supply chains, and we require all suppliers
providing Wickes own brand products
to undertake and deliver an acceptable
ethical audit before we begin trading.
Anti-fraud and anti-money laundering
We have an Anti-Fraud Policy in place and take
a zero tolerance approach to any activity that
either amounts to fraud or is dishonest. All
colleagues are required to complete an annual
training module on fraud and due diligence is
completed on third parties before contracting
with them. We encourage colleagues to report
any suspected incidents of fraud or dishonest
behaviour either through line management
or through our independent, anonymous
whistleblowing service. We will continue to review
and develop our Anti-Fraud Policy, processes and
monitoring to meet legislative requirements.
An Anti-Money Laundering Policy is also in place
to ensure our business is not complicit in money
laundering activities and that we have the
appropriate controls and processes in place to
mitigate any risk. All part-time and full-time
colleagues are required to complete anti-money
laundering training on an annual basis to ensure
they understand the risk and how they can protect
against the risks of money laundering and corrupt
practices. A subject matter expert is in place for
both fraud and money laundering who reports to
the compliance risk oversight group. Any issues of
non-compliance are reported to the Board.
Responsible business continued
Promoting an
ethical culture
Ethical business conduct
50 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Anti-bribery and corruption
We are committed to the highest standards of
ethics and have a zero tolerance approach to any
form of bribery and corruption in our business
and supply chain. We have an Anti-Bribery and
Corruption Policy, which sets out our commitment
to prevent bribery and corruption, and we
require all full-time and part-time colleagues,
to complete annual e-learning on anti-bribery
and corruption. Our suppliers are required to
have their own anti-corruption policies and
programmes in place, as set out in our Supplier
Code of Conduct, and we monitor compliance
with this through our supplier audit process.
Our anti-bribery and corruption programme is built
around a clear understanding of how and where
bribery risks affect our business and comprises
key controls of: policies (including anti-bribery
and corruption, gifts and hospitality, and conflicts
of interest); procedures (such as conducting due
diligence on suppliers); training all colleagues on
bribery risks; and ongoing assurance programmes
to monitor the effectiveness of controls.
We consider that Wickes has a low risk of bribery
and corruption due to our geographical location
and the robust processes and controls we have
in place. Further, Wickes has no government
ownership or government contracts.
We encourage any instances of alleged bribery and
corruption to be reported either through line
management or through the anonymous
whistleblowing service. All reports are thoroughly
investigated and the Board receives reports at least
annually on any breaches of the Anti-Bribery and
Corruption Policy.
Privacy and data security
The cyber threat being faced by all organisations
continues to grow. Whilst data and security
remains one of our most significant business risks,
it has remained stable over the year thanks to the
mitigations, processes and controls we have in
place. Further detail on this is set out in the Risk
section on page 70.
We recognise that maintaining and safeguarding
the security of our colleague, customer and
confidential data, along with the availability and
security of our systems, are critical for Wickes to
operate successfully. Across the year, we have
continued to improve our data and security controls
to prevent, detect and mitigate unauthorised
activity, as well as improve our operational
processes, and have invested in both our privacy
and information security teams to achieve this.
We have a clear governance framework in respect
of data security and privacy, which is overseen and
monitored by a dedicated data and information
security committee – chaired by the Director of
Legal and Governance as the Data Protection
Officer and with Executive sponsorship from the
General Counsel and Company Secretary – which
meets every two months throughout the year.
Regular update reports on both data privacy and
information security are provided by both the
Director of Legal and Governance and the Head
of Information Security to the Board.
We have a Protecting Personal Information Policy,
which is applicable to all full-time and part-time
colleagues, contractors and temporary workers
within the Group, and which sets out how we
safeguard all personal data that we process as
well as our commitment to process only data that
is required to fulfil the defined purpose to
ensure data minimisation. Alongside this, we
have a Data Retention Policy which sets out
our requirements for retaining and disposing of
data. We also have robust processes to assess
the security and data controls of any third party
data processors, including carrying out Data
Protection Impact Assessments and Vendor
assurance. A cyber response plan is also in place
alongside an Information Security Policy.
We seek to be completely transparent in our
data processing activities and our Privacy Policy,
which is available on our customer website
(www.wickes.co.uk), sets out how we process
the personal data of our customers, including
consent management, customers’ right of access,
rectification and right to be forgotten. We also
have an Employee Privacy Policy, which sets
out how we process the data of our colleagues
along with their rights as a data subject.
All full-time and part-time colleagues are required
to complete both cyber security training and
data privacy training on an annual basis. The
data privacy training that colleagues complete is
determined based on risk, with those in higher risk
areas of the business completing more detailed
and focused training. This training is supported
by an ongoing awareness and communication
programme, including phishing tests and a ‘data
privacy takeover’, to keep colleagues informed and
aware of data privacy and cyber security risks in
a practical and relevant way.
Responsible business continued
All data breaches are recorded on a breach register
and investigated to root cause to ensure the
appropriate learnings can be put in place to avoid
reoccurrences. We had no reportable breaches
during 2024.
As we continue to invest in new technology and
decommission old systems, we follow a ‘Privacy by
Design’ approach to ensure data security and
privacy are appropriately embedded into the design
at the outset and throughout the life cycle. We are
working towards alignment with ISO 27001 (the
international standard for information security
management systems).
With the growing focus on artificial intelligence
(AI), we have taken steps to understand both
the opportunities and risks for the business.
In 2024, we launched a Generative AI Policy
and created an AI Council which is made up
of a group of functional experts and meets at
least every two months. It serves as a central
steering committee, focused on guiding and
promoting best practice to facilitate the successful
integration of AI across the business, ensuring
appropriate controls and safeguards are in place
to meet our legal and ethical obligations.
Wickes Group Plc Annual Report and Accounts 202451 Strategic report Governance Financial statements Other information
Responsible business continued
Building a
responsible
supply chain
Supplier assessment
We have a global supply chain of approximately
350 first tier suppliers, with around 100 of these
supplying Wickes own brand products. We have
continued to enhance and deliver our Supplier
Online Risk Assessment (SORA) programme
throughout 2024. Our SORA programme includes
all of our first tier suppliers, and helps us to better
understand the risks within our supply chain, and
to educate and improve our supplier base. We
regularly review the outcomes of the assessments
and report these to the Executive Board annually.
We review our minimum standards each year to
make sure that our policy remains fit for purpose.
During the reporting period, we completed the
planned 2024 SORA risk assessments, which
focused on assessing new Goods for Resale
(GFR) suppliers and high-risk Goods not for Resale
(GNFR) suppliers. With the acquisition of Solar
Fast, we also extended our SORA programme
to their business’s top suppliers. In addition,
our Responsible Sourcing team completed all
planned in-person verification visits with key
suppliers, including to suppliers located in China.
In 2025, we will repeat our two-year SORA
programme, assessing all our GFR suppliers and
high-risk GNFR suppliers. We will continue to visit
our suppliers, prioritising our own brand suppliers.
Recognising that our highest exposure to
modern slavery is through our supply chain, we
have developed a robust approach to ethical
procurement. Our primary and preferred ethical
audit provider is Supplier Ethical Data Exchange
(Sedex), but we will also consider the Business
Supply Chain Initiative (BSCI) and SA8000 audits.
We require that a Sedex Members Ethical Trade
Audit (SMETA) is completed every two years for
our own brand suppliers; where a significant risk
is identified, the frequency is increased to annual
audits. These independent audits are designed
to help protect workers from unsafe conditions,
overwork, discrimination, low pay and forced labour.
Responsible sourcing of timber and compost
Our approach to the responsible sourcing of timber,
timber products and compost is discussed on
page45.
Product quality and safety
Wickes aims to source only products that are safe
and fit for purpose, and meet or exceed our
customers’ expectations. We require each product
that enters our supply chain to comply with all
applicable legislation.
As a responsible retailer, we have developed an
internal process that aligns with the UK
Government’s Office for Product Safety and
Standards (OPSS) guidance on product safety
alerts, reports and recalls. We review this process
each year to ensure our controls remain fit for
purpose. In 2024, there were no product recalls,
safety alerts or reports issued in relation to the
products that we sell.
We recognise the concerns of safe use, content
and labelling of chemicals. We actively abide
by all UK legislation to reduce the impact of
substances of concern and, where possible, use
a suitable alternative. Wickes has committed
to identifying any products that are supplied
to us that contain any substances of very
high concern (SVHCs), explosives precursors
or poisons, and we take steps to replace any
products that contain restricted substances
or SVHCs with suitable alternatives.
We require our suppliers to ensure that products
supplied to Wickes are free of any banned
substances and compliant with any restrictions
detailed by the UK’s Registration, Evaluation,
Authorisation and Restriction of Chemicals
(REACH) regulations. We also ensure that all paint
and varnish products that we sell are compliant
with volatile organic compound (VOC) regulations.
As the UK Government develops its own
approach to chemical safety policy, we
continue to maintain a watching brief on
the developments with EU chemical safety
policy. To stay abreast of developments, we
engage with cross-sector product quality
groups, and this year we have joined the BRC’s
Household Chemicals Working Group.
Health and safety in our supply chain
At Wickes we value the health and safety of
everyone who operates in our supply chains,
both in the UK and globally. We have been
working with our suppliers to understand the
risk posed by two substances, which are not
banned, but can be responsible for negative
health effects during the production process
if adequate controls are not in place.
When chemical compounds that contain
Chromium 6 are used to chrome-plate products,
it can create negative health effects for people
in our supply chain. Once manufactured, there
are no known risks to the consumer associated
with products of this nature. We have worked
with our suppliers to remove Chromium 6
during the manufacturing of Wickes own brand
products. By the end of 2024, we have removed
it from 99% of our chrome-plated products, such
as taps and hand tools, and we are working
to completely remove it from all of our own
brand product lines by the end of 2025.
During 2024, there was media coverage related
to reports of negative health effects experienced
by some stone fabricators linked to working
with quartz materials. Once fabricated there
are no known risks to the consumer associated
with products of this nature. All suppliers to
Wickes of quartz stone products comply fully
with the UK’s health and safety laws and our
Responsible Sourcing team has visited the
manufacturing sites to confirm that appropriate
operating systems are in place which reduce
the risk of harm to the stone fabricators.
Policy and processes
In 2024, we updated our Responsible Sourcing
Policy, which sets out how we source products
and services in a safe, sustainable and legally
compliant way using responsible suppliers and
partners. Our controls are designed to protect
our customers and meet all relevant legislative
requirements, as well as to provide confidence
for our stakeholders that Wickes is a trusted
partner and retailer. We also formalised our
Responsible Sourcing Steering Group, chaired
by our General Counsel and Company Secretary
to oversee the application of the policy.
We produced a new Supplier Code of Conduct
and updated our Supplier Manual. We ensure
that our suppliers demonstrate and share similar
values to our own, especially in the areas of
labour standards and human rights, safety and
wellbeing, environmental responsibility and
community engagement, business integrity
and ethics, and management processes and
systems. Our Responsible Sourcing Policy,
Supplier Code of Conduct and Supplier Manual
for Goods for Resale (GFR) can all be found
on our website www.wickesplc.co.uk.
Responsible sourcing
52 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Compliance Statement
We have set out below our climate-related
financial disclosures as required by the
Companies Act 2006. In line with our ‘comply or
explain’ obligation under the UK Listing Rules,
we can confirm that we have made disclosures
consistent with the recommendations and
recommended disclosures of the Task Force
on Climate-related Financial Disclosures
(TCFD). Our disclosures are consistent
with the TCFD’s 4 recommendations
and 11 recommended disclosures.
Summary overview of
progress in FY2024
Tofurther our understanding and strengthen our
approach, we have done thefollowing:
Governance
– Quarterly reporting to the Executive team and the
Responsible Business Committee on progress
with delivering our near term science-based
targets.
Strategy
– Further modelling of significant climate-related
risks and opportunities to better understand the
existing and future materiality for the business,
specifically focusing on climate-related flood
risk to our Distribution Centres.
– Forming our Climate Transition Plan, with more
detail on how we intend to achieve our near term
net zero targets, how we plan to respond to
climate-related risks and opportunities, and how
we expect to position ourselves to support
achieving societal net zero.
– Demonstrated how achieving the near term
science-based targets has been factored into
the five year (2025-2029) business plan.
Risk management
– Reviewed our FY2023 disclosures against the
International Sustainability Standards Board’s
(ISSB) International Financial Reporting
Standards (IFRS) S1 and S2 in anticipation that
these form the basis of the forthcoming
mandatory UK Sustainability Reporting
Standards.
Metrics and targets
– Rebaselined and revised our science-based
targets, submitting these for revalidation to the
Science Based Targets initiative (SBTi).
– Expanded our internal monitoring to include
more climate-related metrics and integration of
these metrics into relevant decision making.
Agreed areas of focus
in FY2025
The Board has agreed with the Responsible
Business Committee’s recommendations that
management focus on these areas in the next year:
Governance
– Form an Executive-level Climate Steering Group,
to provide more management team focus on the
development and delivery of the decarbonisation
action plan.
– Regular updates from the Climate Steering Group
to the Executive team and the Responsible
Business Committee with regard to the
development and delivery of the decarbonisation
action plan and climate-related financial risks.
Strategy
– Analysis of the impacts of future carbon pricing,
with particular reference to forthcoming UK
Carbon Border Adjustment Mechanism (CBAM)
and anticipated rates.
– When considering any material investment
proposition, the Board is to further integrate
climate-related information to consider the likely
climate-related consequences, alongside other
business impacts.
Risk management
– Annual review of corporate climate risk register,
in light of emerging UK policy developments and
the latest climate projections.
Metrics and targets
– Formalisation of climate dashboard to inform
Climate Steering Group.
– Assurance of rebaselined 2021 GHG footprint.
Disclosures
– Following the anticipated release of the UK’s
Sustainability Reporting Standards in Q1 2025,
develop plans to meet future disclosure
requirements.
1
Governance
1a) Board oversight
The Board has ultimate responsibility for setting
the Group’s strategy, including how the strategy
addresses ESG matters, including climate-related
issues.
The Board has delegated responsibility for ESG
matters, including climate-related matters, to the
Responsible Business Committee (RBC) and
receives updates from the Committee on its work
following each meeting. The Board considers
climate-related issues when reviewing and guiding
strategy, budgets and business plans – for
example, at the Board Strategy Meeting held during
the year, the Board considered the commercial
risks and opportunities related to the Group’s future
growth driver of the home energy solutions market.
The RBC is a formal committee of the Board
chaired by a Non-executive Director. Its primary
purpose is to oversee the development of Wickes’
Responsible Business Strategy and monitor the
Company’s performance in relation to substantive
ESG matters (including climate-related issues).
The CEO, CFO, General Counsel and Company
Secretary, and Head of Sustainability attend
all RBC meetings to provide regular updates
on climate-related issues and alignment with
climate-related financial disclosure requirements.
More information on the RBC can be found in the
Responsible Business Committee report on
pages 104-105.
The RBC’s duties include overseeing the Group’s
ESG conduct, and this includes climate-related
issues, which are a regular agenda item for the
Committee. The RBC monitors and oversees
progress against the Group’s carbon reduction goals
and targets and for addressing climate-related risks
and opportunities by reviewing and discussing the
reports presented by roles in the business who are
responsible for overseeing delivery of the science-
based targets (e.g., Head of Sustainability), and for
delivering specific carbon reductions (e.g., roles
within Operations and Commercial teams).
Climate-related financial disclosures
Climate related
financial
disclosures
Wickes Group Plc Annual Report and Accounts 202453 Strategic report Governance Financial statements Other information
Climate-related financial disclosures continued
Governance of climate-related issues The reports also cover progress against targets
and plans, highlighting any operational or
financial impacts.
In 2024, the RBC met five times. The agenda
for the year is planned in advance to ensure
that appropriate attention is paid to climate-
related matters. At all Committee meetings
during the year climate-related matters were
discussed, including updates on the project to
rebaseline and revise the SBTs. A summary of
topics discussed at each meeting is provided
in the RBC report on pages 104-105.
During the year, the RBC monitored progress against
the near term science-based targets through a
quarterly dashboard, and updated the Board on
progress against targets after each Committee
meeting by tabling the meeting minutes.
The RBC is responsible for reviewing the Company’s
climate-related risks and opportunities, and content
included in the Annual Report that meets the TCFD
recommendations and recommended disclosures.
The RBC makes recommendations to the Audit and
Risk Committee (ARC) in relation to the inclusion of
climate-related risks in the Company’s principal and
emerging risk disclosures, including the assessment
of financial materiality. The ARC has overall
responsibility for the oversight of risk management
systems on behalf of the Board and carries out a
robust assessment of the Company’s principal and
emerging risks (including climate risks) on an annual
basis. The ARC takes account of the assessment
and recommendations made by the RBC in relation
to climate-related risks.
The Remuneration Committee also approves and
monitors performance against the near term
science-based targets, including using key
performance indicators relating to the targets,
which form part of the Long Term Incentive Plan.
More information on these targets is provided in the
Metrics and Targets section on pages 60-63.
The Board has reviewed and approved the revised
near term SBTs which have been submitted to the
SBTi for validation. No other climate-related targets
have been set by the Board during the year.
The Board Committees which have formal
responsibilities related to climate issues are
highlighted in the diagram, along with the reporting
relationship between the Committees and the
Board, as well as management.
1b) Management’s role
The CEO reports directly to the Board and has
overall responsibility for ESG and the Company’s
response to climate-related issues. The
General Counsel and Company Secretary is the
nominated Executive Board sponsor, reporting
into the CEO and supporting them to oversee
the Company’s approach to ESG matters. The
Head of Sustainability reports directly to the
General Counsel and Company Secretary, and
is responsible for coordinating the Company’s
approach to assessing, monitoring and managing
climate-related matters. The Head of Sustainability
also supports our Group Finance team to integrate
climate-related financial information into financial
and risk business processes where appropriate.
Responsibility for achieving the SBTi validated
science-based targets sits with the appropriate
Executive functional lead; the Chief Operating
Officer and the Chief Property and Services Officer
are responsible for the delivery of the Scope 1 and 2
science-based target; and the Chief Commercial
Officer is responsible for the delivery of the Scope
3-related science-based targets. In addition, the
Executive Board monitors store electricity and gas
performance, reported through the Company’s
balanced scorecard each month. Department
specific initiatives are overseen by the Executive
Board, ensuring climate-related decision making
is integrated across the business.
Board
Plc Board
Management
Executive Board
Audit & Risk
Committee
Nominations
Committee¹
Remuneration
Committee
Responsible Business
Committee
Disclosure Committee¹
General Counsel
& Company Secretary
Head of Sustainability
Responsible Business
Working Group
Climate Steering Group
TCFD Working Group
Property & Transport Climate
Working Group
Product Climate Working Group
1 The Nominations Committee and Disclosure Committee do not formally provide governance on climate-related matters.
54 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Climate-related financial disclosures continued
The Executive Board is regularly updated by the
Head of Sustainability and operational leads
(who are members of the Climate Working
Group (CWG)) on progress towards achieving the
near term science-based targets and progress
of the workstreams to assess and manage
climate-related risks and opportunities. This has
representation from operational teams, responsible
for the property estate and transport activities,
as well as the Finance Director for Financial
Planning and Analysis. The CWG tracks the
delivery of climate-related targets and initiatives
across the business, through monthly meetings.
The Head of Sustainability reports on progress
of the overall Responsible Business Strategy,
and delivery of the targets to the Executive Board
and the RBC on a regular basis.
The refit and new store programme is an important
part of delivering the Company’s Scope 1 and 2
targets to decarbonise its estate. Improvements
such as installing solar panels, as well as utility and
energy costs and contracts, are overseen by the
Property and Store Development Board, which is
chaired by the Chief Property and Services Officer.
2
Strategy
2a) Climate-related risks and
opportunitiesidentified
In 2024, we continued to use the time horizons that
we developed in 2023.
– Short term: 1-5 years. This time horizon was
selected because it aligns with the Company’s
five-year business planning cycle.
– Medium term: 6-15 years. This time horizon was
selected because the typical length of lease for
the Company’s property estate falls within the
time period of up to 15 years.
– Long term: 16-30 years. This time horizon was
selected because it aligns with the UK
Government’s net zero by 2050 target, and also
includes the British Retail Consortium’s net
zero by 2040 goal which the Company has
alignedwith.
Following the identification and assessment
process set out in the Risk Management section
on page 59, in 2023 we identified seven thematic
categories of potentially significant climate-related
risks and opportunities. We have reviewed these
in 2024 and these remain relevant. During the
reporting period, we have recognised two emerging
thematic risk categories: the market and
technology transition risk of the decarbonisation
of our value chain, and the physical opportunity
from the sale of products in response to severe
weatherevents.
In these disclosures, we discuss nine potentially
significant climate-related risks and opportunities:
– Two physical risks and one physical opportunity
that could significantly impact the business in
a High Physical Impact Scenario (4°C), where
the business and its value chain is operating
in chronic changes to local climates, and an
increase in the frequency and severity of
extreme weather events.
– Five transitional risks and one transitional
opportunity that could significantly impact the
business in a Rapid Transition Scenario (1.5°C),
where the business is operating in a rapid
transition to achieve net zero by 2050 resulting
in progressive government policies, market
pressures from competitors and landlords,
reputational impacts from investors, and
impacts where technology is not keeping pace
with the decarbonisation changes required.
The scenarios we have used are discussed further
in Section 2c Resilience of the business’s strategy.
A description of how each thematic risk category
could materialise was first provided in our 2023
disclosures, and has been updated here to reflect
our increased level of understanding.
Potentially significant physical risks
and opportunities
We have explored chronic risks to our business and
supply chain operations, such as sea level rises,
temperature changes, and water stress. We have
also explored acute physical risks such as which
of our properties are in long term flood risk areas,
and how heatwaves impact our operations.
Potential risks to the business from a High Physical
Impact Scenario (4°C) can be split into risks to
the operation of the business and risks to our
supply chain.
PR1 – Acute physical risk: Operations
Our distribution network is reliant on the operation
of our two main Distribution Centres (which are
located in Northampton), an outbase in Crawley,
and our road-based logistics operation supported
by third party logistics bases, delivering products
to stores and customers’ homes across the UK.
An increase in the severity and frequency of
extreme weather events could disrupt the operation
of our Distribution Centres and result in a negative
impact on our ability to serve our customers and
stores, potentially significantly impacting our
business. The most likely weather event that
increases with frequency and severity in a High
Physical Impact Scenario (4°C) is localised surface
water flooding as a result of a storm or heavy
rainfall. Our Distribution Centres are not located
in an area at risk of rising sea levels.
In 2024, we commissioned desktop climate change
flood risk assessments of our main Distribution
Centres’ sites in Northampton, assessing the
risk up to 2070 under three global temperature
scenarios (2.6°C, 4.5°C and 8°C). The assessments
concluded that these sites are predicted to be at
a marginally increased risk from flooding
when considering a variety of climate change
scenarios in the long term. Undertaking further
onsite assessments to better understand the
actual risk and mitigating actions required
will be considered in future years.
The risks to individual stores from a climate-
related incident, such as a storm, or from rising
sea levels are not deemed to have a significant
business impact. This is because it is unlikely that a
significant number of stores would be impacted
at the same time to the extent of having to cease
trading over a prolonged period. Furthermore,
all of our stores are now leasehold, and so over
the medium to long term time horizon we can
assess how to reduce our risk further by store
relocations at lease renewal time, if necessary.
During 2024, we experienced a number of
intense storms as they moved across the UK.
We were able to continue trading throughout
these events, unless it was unsafe to do so where
we closed individual stores for a few hours.
Damage to our property estate wasminimal.
Wickes Group Plc Annual Report and Accounts 202455 Strategic report Governance Financial statements Other information
Climate-related financial disclosures continued
PR2 – Chronic and acute physical risk:
Supplychain
Chronic and acute climate changes could impact
our supply chain, most notably the impact of water
stress and climatic changes on our timber supply
chain. We commissioned a scenario analysis in
2022 looking at the risks to our supply chain from
water availability, which suggested that key parts of
our supply chain are dependent on industries which
are vulnerable to water availability (e.g., paper and
timber, chemicals). The supply chain and strategic
impacts to the business are uncertain over the long
term, and require additional data to assess.
We have regular discussions with our strategic
timber suppliers on how they are assessing and
managing the risk of the changing climate in their
locations. We understand that they are looking at
adaptation measures to chronic risks, which might
involve switching tree species, as well as acute
risks by relocating plantations to areas with lower
risk. As a retailer, we are agile in being able to
switch to alternative suppliers and work with our
suppliers to identify materials (including different
timber species) which are more resilient.
We plan to update our scenario analysis of climate-
related impacts to our supply chain every three to
five years, when more data becomes available.
PO1 – Acute physical opportunity:
Increasedsalesrelated to extreme weather events
This year we have incorporated the commercial
opportunity of increased sales related to extreme
weather events into our TCFD disclosures. We sell
a range of products that are often in high demand
following a severe weather event, for example
fencing, flood defences and in-house cooling.
As severe weather events are forecast to increase
in frequency and severity, we expect this to be an
ongoing commercial opportunity for our business.
In our supply chain and merchandising plans,
we continue to plan for weather-related events
to ensure that we can capitalise on these
opportunities and support our customers with
high-quality, value products to enable them to
prepare for and recover from these events.
Potentially significant transition risks
and opportunities
We have explored potential transition risks for our
business in a Rapid Transition Scenario (1.5°C),
including policy and legal, technology, market, and
reputational risks. The risks that we have identified
are broadly applicable to the home improvement
retail sector operating in the UK with a global
supply chain, and not unique to Wickes.
TR1 – Policy and legal transition risk:
Carbonpricing and broader policy requirements
In 2022, we commissioned a scenario analysis
of the business’s potential exposure to future
carbon pricing mechanisms. This concluded that
under a Rapid Transition Scenario our suppliers
in carbon intensive industries could be subject
to high carbon prices by 2030. Although we don’t
underestimate the potential impact of carbon
pricing on the products we sell, we recognise
that the impact will be across our entire sector
and, whilst we would look to mitigate the impact
on our customers, where this is not possible
sector pricing would adjust accordingly.
We will continue to maintain a watching brief on
future carbon pricing forecasts as well as the UK’s
forthcoming CBAM that we expect to be introduced
from 2027. We will update our modelling to
understand the impact of future UK CBAM rates on
direct and indirect imports once the Government
has issued more conclusive details of the scheme.
The risk from UK policy changes to prompt a
low-carbon transition that could impact our
products and services is covered in TO1 – Market
transition: Products and services for the low-
carbon transition. We remain cognisant that the UK
Government may introduce other UK net zero policy
requirements that could impact our business
directly. We have not identified any policy changes
that would significantly impact the business in our
short term time horizon; we expect the introduction
of additional disclosure requirements to be
managed by existing management resources.
TR2 – Technology transition risk:
Decarbonisingthe fleet
The Wickes fleet is made up of mostly heavy goods
vehicles. In our decarbonisation roadmap, we have
identified that electric powered HGVs are likely to be
the most appropriate technological option for the
business to move away from diesel in the long term.
Until 2030, we are continuing to improve the
efficiency of our fleet. We understand that we will
need to invest in infrastructure upgrades across
our estate and our suppliers’ networks to provide
sufficient electrical capacity to charge our future
HGV fleet.
As we develop our infrastructure and fleet
investment plans, we will continue to further
refine cost implications. As a retailer, we are
transparent with our customers on the delivery
costs, and switching to a significantly more
costly alternative could negatively impact the
business commercially.
Installing electric car vehicle charging across the
estate will be required to support the switch of the
company car and colleagues’ own vehicles to
low- and zero-carbon emissions vehicles. The same
chargers could also provide destination electric
vehicle charging for customers to encourage footfall
at stores, as well as support the wider transition of
the UK economy to electric vehicles. The associated
increased electricity demand is a risk to the roadmap
to decarbonise the estate and in some cases may
require additional electricity generation to be
installed. Where possible, we are looking to negate
this through the installation of onsite solarPV.
TR3 – Market transition risk:
Decarbonisingtheestate
The roadmap to decarbonise our property
estate is centred around transitioning away
from gas heating, improving energy efficiency
and switching to the supply of renewable
electricity (grid and onsite generation). In April
2023, the Company switched to a renewable
electricity contract for all grid-sourced
electricity used across the estate (excluding
Solar Fast). Maintaining this is inherently
included within our five-year business plan.
To mitigate the risk of increasing costs from
renewable sources, the business is also
installing onsite solar power generation
where this has been assessed as structurally
feasible and where there can be a commercially
favourable purchase power agreement with the
respective landlord. The acquisition of Solar
Fast in 2024 also provides us with an additional
commercial opportunity to the Company from
installing solar PV provided by SolarFast.
Installing new or replacement assets that are
more energy efficient or enable the transition away
from gas heating (such as air source heat pumps
(ASHPs)) is technically feasible and a relatively low
operational risk. The forecast capital expenditure
to include ASHPs in new-build store fitouts and
progressively deliver the asset replacements of
retrofitting ASHPs is afforded within the Company’s
strategic five year plan. The risk to the business is
from the increasing costs of new equipment and
associated electricity generation infrastructure
due to inflation and increased demand.
TR4 – Reputational transition risk and opportunity:
Increased scrutiny from Shareholders on delivering
net zero and access to capital
We recognise that it is important to our current
and future Shareholders that we contribute to
meeting the global transition to net zero, and
specifically that we play our part to achieve the UK
Government’s net zero goal. We are committed
to continuing to improve our disclosures over
time in line with future UK Sustainability Reporting
Standards in order to build trust through
increased transparency, and we recognise
that failure to meet Shareholders’ (and other
stakeholders’) expectations could impact our
access to capital. For these disclosures, we
have also recognised the converse situation:
the growing opportunity of new routes to capital
investment, where investors and funders are
actively seeking to support businesses that can
demonstrate credible net zero transitionplans.
56 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Climate-related financial disclosures continued
Feedback from our current investors through the
year confirms that the home improvement retail
sector is not considered to be a highly exposed
sector to climate-related risks. Furthermore, our
SBTi-validated near term science-based targets
give assurance that we are aligned to a 1.5°C
pathway. We will continue to review this potentially
significant risk and opportunity each year, to
ensure that we are maximising our ability to
accesscapital.
TR5 – Market and technology risk:
Decarbonisingthe value chain
In recognition of the scale of the challenge, we
have pulled out the transitional risk related to the
decarbonisation of our value chain from TR1 into
its own discrete thematic category.
Looking across all of the products we sell, there is a
risk to our suppliers from other policies in a net zero
scenario that aim to reduce emissions from carbon
intensive sectors. Greenhouse gas emissions
produced during the manufacture, transport, use
and disposal of the products that we sell currently
represent around 95% of our footprint.
Decarbonising our supply chain, and moving away
from fossil fuels as an ingredient in carbon-based
products, is a significant challenge to us meeting
our long term net zero goal. We will continue to
monitor policy developments, which could impact
the production or sale of these products, as well
as changing market and consumer expectations
for increased transparency on product specific
carbon labelling.
We recognise the potentially significant market-
and technology-related transition risk regarding our
suppliers in industries that are recognised as hard
to abate, such as chemicals, cement, steel and
aluminium. Furthermore, the global transportation
of products from suppliers is reliant upon the
decarbonisation of shipping and trucking. There is
a potential risk that our suppliers in these sectors
do not have the technology available to them to
reduce the carbon intensity of the manufacturing
and transport of the products, or that the cost of
investing in such technology could add to the
product cost, and the rate at which decarbonisation
is realised is different across different suppliers.
Some raw materials could increase in cost or
become unavailable in the future and so
alternatives would have to be found.
We will continue to engage with our supply chain to
obtain further data, which may also give additional
information on climate-related risks and
opportunities as they evolve.
TO1 – Market transition opportunity:
Productsandservices for the low-carbon transition
In 2022 and 2023, we commissioned indicative
analyses to look at the potential market opportunity
to supply products and services that are required
for the UK to meet its net zero target. In a Rapid
Transition Scenario (1.5°C) we concluded that there
is a significant opportunity for our business to
expand our product ranges into home energy
solutions, for example heat pumps, electric vehicle
chargers and solar panels.
Since the new UK Government came to power in
July 2024, the policy that supports the transition
of decarbonising the UK’s homes has been under
review. The Government is signalling that it is
more ambitious with its net zero plans, but is yet to
confirm plans for the phase-out of certain types
of carbon intensive products (for example,
gas boilers). This creates further uncertainty
in the market, and slower uptake of alternative
technologies than the Rapid Transition
Scenario predicts.
Further explanation of how we are responding
to the business opportunity from home energy
solutions is provided in the Market Review section
on page 14. We see that seizing this opportunity
also enables the Company to contribute to the
economy-wide transition to net zero, and therefore
it is a key pillar of our net zero transition plan.
Alongside expanding our product ranges, there is
a minor transition risk from the potential phase-out
of a small number of ranges that we currently sell.
For example, in a Rapid Transition Scenario, this
assumes no new gas boilers sold after 2025.
The UK’s policy to phase out gas boilers remains
under review following a significant backlash in
the media.
We also recognise there is a market transition
risk with the electrification of other fossil fuelled
powered products, for example barbecues and
patio heaters. Whilst the electrification of these
products is technically feasible, customers may
prefer the more traditional fossil fuel alternative.
Where Government policy does not push forward
the phase-out of these products, were we to
stop stocking such products earlier than our
competitors in order to hit our net zero ambitions,
we could see a risk of competitive disadvantage.
We stock a limited number of product ranges that
could be at risk of being phased out in the journey
to decarbonise homes (for example, gas boilers).
Therefore, we consider overall that products and
services for the low-carbon transition represents
a net opportunity to the business.
2b) Impact of climate-related risks
andopportunities
Recognising the impact of climate change on
our business, in the near, medium and long term,
resulting in the potential of rising costs, the Group
robustly considers the actual and potential
financial impacts on our business, our strategy
and our financial planning. Where possible, the
Group looks to mitigate cost pressures through
procurement efficiencies or, in the case of
operational costs, to reduce consumption
where possible.
Given our budgets and strategic financial plans
are underpinned by two significant focus areas –
namely (a) going concern/viability and (b) store
and investment impairment – we have considered
these factors carefully and set out in the table
below our assessment of the potential business
and financial impact of potentially material
climate-related risks. We have not assessed
the financial impact related to TR4 – Increased
scrutiny from Shareholders (current and future)
on delivering net zero, as we consider it to be
an unlikely event that the business does not
meet its near term science-based targets.
We will continue to keep this under review.
To find further information on our assessment of
the actual and potential business and financial
impact of the transition opportunity ‘TO1 – Market
transition opportunity: Products and services for
the low-carbon transition’, refer to the Business
Growth Levers Accelerating Design & Installation
and DIY category wins section on pages 18, 21
and 22.
In addition to the short summary of our strategic
response, management controls and mitigation
measures provided in the table on page 58, further
information on how these risks and opportunities
have informed our financial planning process can
be found in section2a).
Wickes Group Plc Annual Report and Accounts 202457 Strategic report Governance Financial statements Other information
Climate-related financial disclosures continued
Financial impact of potentially material climate-related risks
High-level
climate-related
risk categories Risk type
Potential
business
impact
Potential
financial
impact
Scale of financial impact
(high/medium/low/uncertain)
1
Climate
scenario Strategic response Management controls and mitigation measures
Short term
1-5 years
2025-2029
Medium term
6-15 years
2030-2039
Long term
16-30 years
2040-2054
PR1 – Acute
weather-related events
impacting operations
Acute
physical risk
Operations Expenditure
Revenue
Low Low Low High Physical
Impact
Scenario
(4°C)
– Continue leasehold model for property estate
with10- to 15-year lease agreements.
– Continue distribution strategic approach to work with
expert logistics providers to prepare for and respond
toany potential disruption in distribution network.
– Commission further onsite long term flood risk
assessments of Distribution Centres in High Physical
Impact Scenario.
– Business continuity plans for distribution and stores.
– Leasehold model, and long term flood risk assessed
when reviewing new sites and regears.
– Distribution strategy is developed, implemented and
monitored by the Distribution team in Operations.
PR2 – Chronic climatic
changes and acute
weather-related events
impacting supply chain
Acute
and chronic
physical risk
Products
and services
Value chain
Expenditure
Revenue
Low Low Uncertain High Physical
Impact
Scenario
(4°C)
– Continue to partner with strategic suppliers to
understand risks in operating regions and discuss
mitigating actions.
– Impacts to higher risk and strategic suppliers are
monitored by key teams within Commercial, including
theResponsible Sourcing and Quality team, and
Categoryteams.
TR1 – Carbon pricing
and broader policy
requirements
Policy
and legal
transition risk
Products
and services
Value chain
Expenditure
Revenue
Uncertain Uncertain Uncertain Rapid
Transition
Scenario
(1.5°C)
– Monitoring relevant policy developments.
– Focusing on delivering decarbonisation targets.
– Climate-related policy developments (including carbon
pricing) monitored by the Head of Sustainability through
the Environmental Management System legal horizon
scanning process.
TR2 – Decarbonising
the fleet
Technology
transition risk
Operations Expenditure Low Low Low Rapid
Transition
Scenario
(1.5°C)
– Engaging on long term decarbonisation strategy
ofmain transport providers.
– Defining business case for potential low- and
zero-carbon emissions fleet options.
– Plan to decarbonise the fleet is in development by the
Distribution team in Operations.
– Supported by the Property and Transport Climate
Working Group, andoverseen by the Climate Steering
Group.
TR3 – Decarbonising
the estate
Market
transition risk
Operations Expenditure Low Low Low Rapid
Transition
Scenario
(1.5°C)
– Monitoring energy usage and GHG emissions of stores.
– Exploring emission reduction opportunities in stores.
– Monitoring relevant policy discussions on Minimum
Energy Efficiency Standards and green leases.
– Plan to decarbonise the estate is in development by the
Property team in Operations, governed by the Property
and Store Development Board.
– Supported by the Property and Transport Climate
Working Group, andoverseen by the Climate Steering
Group.
TR5 – Decarbonising
the value chain
Technology
and market
transition risk
Products
and services
Value chain
Expenditure
Revenue
Low Uncertain Uncertain Rapid
Transition
Scenario
(1.5°C)
– Engaging with suppliers to understand their
science-based targets and net zero plans.
– Roadmap of suppliers’ decarbonisation plans is
monitored by the Product Climate Working Group, and
overseen by theClimate Steering Group.
1 Refer to section 3a for definitions
58 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Climate-related financial disclosures continued
2c) Resilience of the business strategy
We have used two extreme scenarios to stress
test our business model and strategy. These are set
out below. By choosing these scenarios, we have
sought to identify and understand the risks and
opportunities that could arise for our business and
strategy, supply chain and wider economy that we
operate in, to ensure that we anticipate and prepare
for these extremes. We believe that it is likely that
the future will fall somewhere between these two
scenarios. These are the same scenarios that we
used to inform our 2022 and 2023 disclosures and
are commonly used by industry.
Rapid Transition Scenario (1.5°C)
The International Energy Agency’s Net Zero
Emissions by 2050 Scenario (NZE) was first
published in 2021 and updated in 2023. This
scenario is a normative (or prescriptive)
demand-led transition scenario that shows
a pathway for the global energy sector to
achieve net zero greenhouse gas emissions by
2050. It is consistent with limiting the global
temperature rise to 1.5°C and achieving the
Paris Agreement. In this scenario, businesses
will be impacted by significant policy changes
and the scenario assumes an orderly transition
with stringent climate policies and carbon
pricing, rapid technological innovation
and changing consumer expectations.
High Physical Impact Scenario (4°C)
The Intergovernmental Panel on Climate Change
(IPCC) Representative Concentration Pathway
(RCP) 8.5 scenario (published in 2013 as part of
the IPCC’s Fifth Assessment Report) projects the
most likely climate outcomes associated with a
trajectory where global emissions continue rising
at current rates, leading to a potential temperature
increase of 4°C by 2100. In this scenario,
businesses will be impacted by extreme climate
change, and the scenario assumes severe impacts
of extreme weather events worldwide, and shifting
weather and climate patterns.
We recognise that the climate science community
regularly updates scenarios. We keep these under
review, and when we next undertake a significant
scenario analysis exercise, we will use the most
appropriate scenarios available at the time.
In 2024, we have reviewed how these potentially
significant climate-related risks and opportunities
might influence our business strategy and financial
planning at a high level. (See ‘Potential financial
impact’ column in the table on page 58).
Based on our latest assessment of the potential
financial impacts of the significant risks and
opportunities following the process we set out in
the Risk Management section, we consider that our
current business strategy continues to be resilient
to these two extreme climate-related scenarios.
Our market-led strategy means that we identify
what customers want and adapt quickly with
short lead times and stock holding times. We
have established partnerships with strategic
suppliers that allow us to understand their risks
and mitigation plans, and we can also adapt
where appropriate through a global, agile and
flexible supply chain model. Although a few
of our key home improvement product ranges
are currently emissions intensive during the
manufacturing phase (e.g., cement, paint), we are
not dependent on these and we are encouraged
by the commitments from these sectors to
meet net zero. Any inflationary effects of carbon
pricing will impact all home improvement
retailers, and therefore our business will remain
competitive, whilst we continue to work with
our suppliers to reduce carbon emissions
across the life cycle of the products we sell.
We do not have a major reliance on products
which are powered by fossil fuels (such as gas
boilers) and therefore we are not significantly
exposed to planned Government phase-outs.
Within the reporting period, we acquired 51% of
Gas Fast Ltd, trading as Solar Fast. Although the
business was originally set up as a gas boiler
installation company, the main driver for the
acquisition was the pivot of the business into
the solar installation business. We currently sell
a relatively small proportion of electric powered
products. We remain reliant upon the UK grid
decarbonisation to reduce the emissions when
products are being used in customers’ homes.
Our property strategy is leasehold, with an
average remaining lease term of 8 years. This
gives us flexibility with our property estate to
locate in areas which are lower risk from extreme
weather, for example surface water flooding.
In a Rapid Transition Scenario, as a home
improvement retailer, we are not significantly
energy intensive, and technology is readily
available to support the decarbonisation of our
estate. Our fleet strategy is also leasehold and
we are working with our partners to understand
the future of low-emissions road logistics, which
is not a unique challenge to our business.
3
Risk management
3a) Processes for identifying and assessing
climate-related risks
Identification
Risks and opportunities are identified at the Group
level and apply to the activities of the main trading
subsidiary of the Group; Wickes Building
SuppliesLtd.
Each year, we undertake an exercise with
key internal stakeholders to review the list of
existing climate-related risks and opportunities
as well as identifying any potentially new risks
and opportunities arising due to changes
in the business, or external changes. This
creates a longlist of climate-related risks and
opportunities. This identification exercise also
considers existing and emerging regulatory
requirements related to climate change in
the UK, where the business operates.
Within the year, the Company acquired 51% of Gas
Fast Ltd trading as Solar Fast. The nature of the
business’s activities is similar to the rest of the
Company namely purchasing and installing solar
panels and gas boilers. Therefore, no additional
climate-related risks and opportunities have been
identified from this acquisition.
Assessment
We then screen the longlist of climate-related
risks and opportunities, across each time
period as set out in section 2a), to assess the
potential significance to the business. For
each risk and opportunity, we look through
the lens of two extreme future climate
scenarios: a High Physical Impact Scenario
(4°C) and a Rapid Transition Scenario (1.5°C)
(covered in more detail in section2c).
Climate-related risks and opportunities have been
prioritised on the basis of:
– indicative potential financial or strategic impact
on the business, using the business impact
framework in the Wickes Risk Management
Policy;
– the strength of the climate change signal for a
specific risk driver or physical risk hazard; and
– the magnitude of projected change from the
baseline in a future climate scenario.
Those risks and opportunities that exceed an
internally agreed threshold are identified as
potentially significant, prioritised for further
assessment, and logged on our Climate Risk
Register. We have grouped these potentially
significant risks and opportunities into nine
thematic categories (as discussed in section 2a)
for ease of assessment and discussion with the
business and the Board.
Further scenario and sensitivity analysis is
undertaken on these high-level categories on a
two-to three-year frequency depending on updates
Wickes Group Plc Annual Report and Accounts 202459 Strategic report Governance Financial statements Other information
Climate-related financial disclosures continued
and changes from external factors, such as policy
and legislation changes, as well as business
changes (such as new product category ranges).
To assess the impact to the business arising from
climate-related risks, we align with the business’s
Risk Management Policy for all Group risks. For
the purposes of this assessment, how we assess
materiality in relation to climate-related matters
is outlined in the table above.
Where there is inadequate information to undertake
an assessment of financial materiality and
therefore financial impact, these cases have been
identified as ‘uncertain’. The business impact of
such risks is discussed in the Strategy section
on pages 55-59.
3b) Processes for managing climate-related risks
We manage our climate-related risks in the same
way as other risks that the business faces (refer
to the Risk Management section of this report
for further explanation on our overall approach
on pages 67-75). Following our risk management
framework, we identify measures to mitigate
the impact of significant climate-related risks in
accordance with our risk appetite. We monitor the
risks and integrate any key changes into the twice-
yearly review of the climate change principal risks.
This is undertaken by the Head of Sustainability,
then the General Counsel and Company
Secretary discusses and agrees changes with
the Executive Risk Committee. Any changes are
then included in the updates to the Executive
Board, Audit and Risk Committee and the Board.
We have summarised the management controls and
mitigation measures we have in place to manage the
potentially significant climate-related risks in the
table set out in section 2b.
To respond to the transition risk TR4, Increased
scrutiny from Shareholders to delivering net zero,
our Investor Relations team continues to have open
dialogue with Shareholders and maintains a
watching brief on the evolving responsible
investment landscape. We also intend to continue
active management of key ESG rating assessments
and to participate annually in CDP.
3c) Integration into overall risk management
The Company’s approach to risk management is
set out in the Company’s Risk Management Policy.
This explains how the Company identifies,
assesses and mitigates risks, as well as how the
Company reports and monitors the Corporate Risk
Register and principal risks to the Executive Board,
Audit and Risk Committee and the Board. A more
detailed explanation of the Company’s approach to
risk management is provided in the Risk
Management section on pages 67-75.
Through the Company’s risk management
approach, climate change was identified and
assessed as a principal risk for the business at
its demerger in 2021. The topic has continued
to be considered as a principal risk for the
business since 2021, with the relative exposure
remaining stable over this time period. The
mitigations put in place and progress of
managing significant climate-related risks and
opportunities are summarised in the Principal
Risks and Uncertainties section on page 73.
On the Company’s Corporate Risk Register, there are
20 identified risk categories – climate change is
considered within the ‘ESG’ risk category. During
2024, the Audit and Risk Committee reviewed the
Company’s risk appetite for all risk categories. The
risk appetite for the ESG risk category remained
stable compared to 2023.
The Climate Risk Register sits separately to the
Corporate Risk Register, and the outputs of the
Climate Risk Register feed into the Climate Change
Principal Risk on the Corporate Risk Register.
We are monitoring developments with the ESG and
climate-related reporting landscape and will review
our approach to integrating climate-related risk into
the corporate risk approach, as and when required.
4
Metrics and targets
4a) Metrics used to assess climate-related
risksand opportunities
Management regularly reviews metrics associated
with the Company’s near term science-based
targets to track progress on our goal to achieve net
zero. Our key metrics for measuring and managing
climate-related risks are therefore as follows:
– Scope 1 and 2 emissions: The Executive Board
monitors store energy consumption on a
monthly basis via the Company’s balanced
scorecard. Management reports to the RBC on
high-level performance against the Scope 1 and
2 emissions targets at mid-year and end of
theyear.
– Scope 3 emissions: For our most material Scope
3 emissions categories, namely Category 1
(purchased goods and services) and Category 11
(use of sold products), we have been tracking the
number of our Goods for Resale suppliers who
are planning to set or have set a science-based
target validated by the SBTi. Each year, we
measure the Company’s full carbon footprint,
including all relevant Scope 3 categories, in
accordance with the Greenhouse Gas Corporate
Protocol – the full methodology is available on
our website.
– We report against the SASB Multiline and
Speciality Retailers and Distributors industry
standard, which is available on our website.
For more information on how these metrics are
incorporated into performance measures within
remuneration policies, refer to the Remuneration
Committee report on pages 112-113.
We monitor and report progress against additional
appropriate metrics relating to our material
climate-related risks to the Responsible Business
Committee on a quarterly basis via the Responsible
Business dashboard.
We do not currently use an internal carbon price
but this is a future consideration which we will
review annually.
4b) GHG emissions and related risks
Our Scope 1, 2 and 3 GHG emissions are key
metrics in monitoring our climate impact over
time. We have calculated our full 2024 GHG
footprint for our business, covering absolute
Scope 1, 2 (market and location) and 3 emissions
and carbon intensity. Our methodology for
calculating our footprint is aligned to international
best-practice guidance from the World
Business Council for Sustainable Development
(WBCSD) and World Resources Institute (WRI)’s
Greenhouse Gas Protocol Corporate Standard.
The 2024 GHG footprint for the business is
reported on page 63. Selected metrics within our
2024 reporting have been independently assured
to the International Standard on Assurance
Engagements (ISAE 3000). Our methodology,
the external Independent Limited Assurance
Statement and full GHG footprint is available on
our corporate website: www.wickesplc.co.uk.
A GHG emissions intensity ratio is also reported
in the table on page 64 comparing GHG
emissions against gross internal floor area
of our property estate.
Threshold of materiality in relation to climate-related matters – adjusted profit before tax (PBT)
average of last three financial years
High level of materiality >50% adjusted PBT
Medium level of materiality 10-50% adjusted PBT
Low level of materiality and not deemed material in this time horizon <10% adjusted PBT
Uncertain Insufficient data to assess at this time
60 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Climate-related financial disclosures continued
Climate-related Metrics and targets
TCFD recommended cross-industry metric Metric used by Wickes and commentary Link to thematic climate-related risk or opportunity category
GHG emissions
Absolute Scope 1, 2, and 3
emissions intensity
Within the reporting period, we have been tracking the following metrics:
– Tonnes of CO
2
e for Scope 1 and 2 GHG emissions (six monthly)
– % of GFR suppliers that have set science-based targets (six monthly)
– Tonnes of CO
2
e for Scope 3 GHG emissions (annually)
– Intensity – Tonnes CO
2
e Scope 1 and 2 GHG emissions/sq ft gross internal area (annually)
– Intensity – Tonnes CO
2
e Scope 1 and 2 GHG emissions/sq m gross internal area (annually)
– Store energy consumption (monthly)
Operational waste, packaging waste, and water consumption metrics can be found in the Responsible
Business section on page 44. They are not included in our TCFD disclosures as they are not material
impacts to our GHG footprint.
– TR2 – Decarbonising the fleet
– TR3 – Decarbonising the estate
– TR4 – Increased scrutiny from Shareholders on delivering net
zero
– TR5 – Decarbonising the value chain
Transition risks
Amount and extent of assets
orbusiness activities vulnerable
totransition risks
In 2024, we have continued to develop our taxonomy and classification methodology of products that
we sell to be able to monitor the following metrics:
– % of revenue from products that UK Government has announced will be phased out as part of
transition to net zero
– % of revenue from sale of fossil fuels
– TO1 – Products and services for the low-carbon transition
– TR5 –Decarbonising the value chain
Physical risks
Amount and extent of assets
orbusiness activities vulnerable
tophysical risks
In 2024, we have continued to review our property estate and defined appropriate measures to monitor
physical risks:
– % of property portfolio located in an area subject to flooding, heat stress or water stress
– Expenditure on property remediation required due to severe weather-related events
– PR1 –Extreme weather-related events impacting operations
Climate-related opportunities
Proportion of revenue, assets,
orotherbusiness activities aligned
with climate-related opportunities
In 2024, we have continued to develop our taxonomy and classification methodology of products that
we sell to be able to monitor the following metrics.
– Revenue from products or services that support the transition to a low-carbon economy
– Revenue from products or services related to extreme weather events
– TO1 – Products and services for the low-carbon transition
– TR5 – Decarbonising the value chain
– PO1 –Increased sales related to extreme weather events
Capital deployment
Amount of capital expenditure,
financing, or investment deployed
toward climate-related risks and
opportunities
In 2024, we have monitored the following metrics to track this expenditure:
– Investment in physical climate adaptation measures (flood resilience installation and planned
maintenance)
– Investment in capital required to decarbonise the estate and fleet
– PR1 –Extreme weather-related events impacting operations
– TR2 –Decarbonising the fleet
– TR3 –Decarbonising the estate
Internal carbon prices
Price of each tonne of GHG emissions
used internally by an organisation
We have not yet developed an internal carbon price, and we are considering using one in the future. – TR2 – Decarbonising the fleet
– TR3 –Decarbonising the estate
– TR4 – Increased scrutiny from Shareholders on delivering net
zero
Remuneration
Proportion of executive management
remuneration linked to climate
considerations
The 2023, 2024 and 2025 Long Term Incentive Plans (LTIP) incorporate an additional ESG measure
linked to our decarbonisation plans, weighted at 10%. Refer to the Remuneration Committee report,
page 112-113 for further information.
– TR2 – Decarbonising the fleet
– TR3 – Decarbonising the estate
– TR4 – Increased scrutiny from Shareholders on delivering net
zero
Wickes Group Plc Annual Report and Accounts 202461 Strategic report Governance Financial statements Other information
Climate-related financial disclosures continued
In 2024, when calculating emissions from Goods
for Resale, we have continued to use estimated
emissions for key materials from global databases
(e.g., ecoinvent for Scope 3, Category 1, Purchased
goods and services). In the near and medium term,
we will be working with our strategic suppliers,
as well as collaborating with the global home
improvement retail sector, to move towards
improved accuracy of emissions from suppliers,
and ultimately emissions directly associated with
the manufacture and transport of products. This
process will result in a continuous improvement
of our methodology and may require further
rebaselining of our footprint in future years.
To support the increased complexity of GHG-
related data handling and analysis, and enable
future reporting to meet legal requirements,
such as CBAM, we have identified a business
need for a specialist GHG management software
system. During the reporting period, we have
undertaken a market review of Software as a
Service emissions platforms, and identified
a preferred supplier. In the near term, we will
integrate the preferred system into our business
processes, and engage with key suppliers to
commence collecting supplier-specific GHG data.
4c) Climate-related targets and performance
Wickes is a signatory to the British Retail
Consortium’s Climate Action Roadmap, which
commits to collectively achieving net zero across
the UK retail sector by 2040. Within the reporting
period, the Company also became a signatory to
the global home improvement sector’s Scope 3
initiative, called Make it Zero. More information can
be found in the Responsible Business section on
page 43.
In 2022, our original near term science-based
targets received validation from the SBTi,
confirming that the targets were set following the
SBTi’s Corporate Net-Zero Standard and aligned
with the scale of reduction required to keep global
temperature increase by the end of this century to
1.5°C compared to pre-industrial levels. Following
the rebaselining exercise, in 2024, we submitted our
revised targets for validation. Further explanation
of the rebaselining exercise is provided on page 63.
We remain committed to achieve our near term
science-based targets:
– Operations: Achievement of our Scope 1 and 2
reduction target will be largely met by the
switching of our electricity supply to a renewable
electricity contract in April 2023. We have
developed a decarbonisation roadmap that
identifies further opportunities to reduce Scope 1
and 2 emissions from our gas and diesel
consumption, helping us to work towards the
longer term net zero goal.
– Suppliers: We are making good progress with our
strategic suppliers committing to set science-
based targets. The increase in the target from 45%
to 55% of Scope 3 emissions will be challenging to
achieve due to our large supplier base.
– Products: The reduction in emissions from the
products that we sell whilst they are in use is
largely dependent on the decarbonisation of the
UK electricity grid.
A significant proportion of our products are timber
derived. Therefore, as part of our SBTi submission
to revise our SBTs, we reviewed our GHG emissions
that relate to landuse change and land management
(also called Forest, Land and Agriculture (FLAG)
emissions). Wehaveconcluded that for 2023 we did
not exceed the SBTi’s threshold of 20%, and we are
therefore not required to set an additional FLAG
reduction target.
Progress on SBTi-validated near term science-based carbon reduction targets
Revised suite of SBTs Near term SBT
1
FY2022
progress
2
FY2023
progress
2
FY2024
progress
2
Operations:
Reduce absolute Scope 1 and 2 greenhouse gas
emissions by 42% by 2030 (from a 2021 base year)
42% by 2030 0.6%
3
-41.9%
3
-61.3%
3
Suppliers:
55% of our suppliers by emissions covering
purchased goods and services will have science-
based targets by 2027
55% by 2027 9.6% 18.1% 27.3%
Products:
Reduce absolute Scope 3 greenhouse gas
emissions from the use of sold products by 42% by
2030 (from a 2021 base year)
42% by 2030 -6.4% 0.1% -19.7%
1 Submitted for validation by SBTi.
2 Each year’s progress is compared to the Group’s 2021 rebaselined GHG emissions.
3 Market-based GHG emissions.
62 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Climate-related financial disclosures continued
Greenhouse gas (GHG) and Streamlined Energy
andCarbonReporting (SECR)
Selected metrics have been subject to Independent Limited Assurance by DNV. DNV’s limited
Assurance Statement is available on our website:
www.wickesplc.co.uk/company/responsible-business/policies-and-reporting/
Greenhouse gas emissions (GHG)
This table represents a summary of our calculated GHG inventories for the current and historic periods. A full
GHG inventory as originally reported and the recalculated emissions are available on our website:
www.wickesplc.co.uk/company/responsible-business/policies-and-reporting/
Scope and category
FY2021 FY2022 FY2023 FY2024
Original
emissions
tCO
2
e
Recalculated
emissions
tCO
2
e
Rebaselined
1
emissions
tCO
2
e
Recalculated
emissions
tCO
2
e
Recalculated
emissions
tCO
2
e
Calculated
emissions
tCO
2
e
Scope 1 23,087 17,530 16,076 16,411 14,658 12,399
2
Scope 2 (location-based) 9,687 9,410 9,410 8,330 8,923 8,683
Scope 2 (market-based) 14,541 15,937 15,937 15,760 3,931 7
3
Scope 1 and 2 (location-based) 32,774 26,940 25,486 24,471 23,581 21,082
Scope 1 and 2 (market-based) 37,628 33,467 32,013 32,171 18,589 12,406
Scope 3 Category 1
– Purchased goods and services 1,075,463 1,226,479 1,226,479 1,142,421 1,054,358 1,159,225
Scope 3 Category 4
– Upstream transportation 5,589 129,249 129,149 111,129 101,791 85,566
4
Scope 3 Category 11
– Use of sold products 362,655 216,156 216,156 202,359 216,331 173,469
Scope 3 Category 12
– End of life treatment 120,951 117,277 117,277 119,578 126,064 121,127
Scope 3 Other
5
(categories 2, 3, 5, 6, 7, 9 and 13) 20,686 42,985 44,792 40,647 49,153 40,778
Scope 3 1,585,420 1,732,146 1,733,853 1,616,134 1,547,697 1,580,165
6
Total Scope 1, 2 and 3
(location-based) 1,623,048 1,759,086 1,759,439 1,640,875 1,571,278 1,601,246
Total Scope 1, 2 and 3
(market-based) 1,623,048 1,765,613 1,765,965 1,648,305 1,566,286 1,592,571
1 The rebaselined numbers reflect the 2021 GHG emissions according to the Company's 2023 operational boundary.
2 Includes gas consumption from Gas Fast Ltd, but excludes diesel consumption from their fleet of three vehicles.
3 Represents the electricity consumption of Gas Fast Ltd which is not part of the Wickes Building Supplies Ltd renewable electricity
contract, which comprises 0.04% of the total electricity consumption of the Group.
4 A more granular set of assumptions of the mode of transport from source continents has been applied to the 2024 calculations, which
has resulted in a decrease compared to previous year calculations.
5 Excludes Scope 3 Categories 8, 10, 14 and 15 as these are not included in the Group’s operational boundary.
6 Excludes Scope 3 activities carried out by Gas Fast Ltd.
Overview of greenhouse gas emissions
performance
We measure our GHG footprint across all three
Scopes, in line with the Greenhouse Gas Protocol
Corporate Standard. We continue to develop our
approach, with key assumptions detailed in our
methodology statement (available on our website)
and key exclusions detailed in the footnotes of
the table.
In 2024, our Scope 1 and 2 market-based GHG
emissions have reduced by 33% compared to 2023,
and by 61% compared to our 2021 rebaselined
emissions. This is mainly due to our 100%
renewable electricity contract that the company
(excluding Solar Fast) has had in place since April
2023. As such we have made great progress against
our 2030 near term target to reduce Scope 1 and 2
emissions by 42% compared to 2021.
In 2024, the majority of our emissions (99%)
continue to arise from our Scope 3 activities.
Following our rebaselining exercise earlier this year,
we have identified upstream transportation (5%)
as another main contributor to this, alongside
purchased goods and services (73%), use of sold
products (11%), and end of life treatment of
products (8%).
We have reported an increase of 2% in our total GHG
emissions compared with 2023. This can be mainly
attributed to a 10% increase in GHG emissions from
purchased goods and services due to a change in
the product mix sold in the year.
Methodology
We currently continue to use standard emissions
factors for key materials. For more detail on our
emissions calculations and methodology, our
method statement is available to view on the
Responsible Business pages of our website
www.wickesplc.co.uk.
Independent assurance
Independent Limited Assurance was carried out
on selected metrics by DNV, in accordance with
DNV’s assurance methodology VeriSustain
TM
and the ISAE 3000 revised standard. For more
details on the engagement and methodology,
please refer to the Assurance Statement
available on the Responsible Business pages
of our website www.wickesplc.co.uk.
Rebaselining exercise
Following structural changes in our business
resulting in outsourcing of some distribution
activities, and improvements in the accuracy of
source and activity data, we rebaselined our 2021
inventory in 2024 – the results of which can be seen
in the Greenhouse Gas Emissions table.
The recalculated baseline triggered the Company’s
Emissions Recalculation Policy, which includes the
SBTi’s 5% threshold. Therefore, we were required to
recalculate our targets and seek revalidation of
these targets by the SBTi. The revised targets have
been submitted to the SBTi for revalidation.
We used this as an opportunity to also recalculate
emissions for 2022 and 2023. By applying the same
operational boundaries, improved methodology and
more accurate source and activity data, we can use
the historic data to analyse our performance and
identify trends. We also used the recalculated 2023
inventory to develop forecasts of future GHG
emissions and inform the development of our
decarbonisation action plan.
For full transparency, we have disclosed the original
and recalculated emissions for 2021 in this report,
along with recalculated emissions for 2022 and
2023. The full set of original and recalculated data
is available on our corporate website.
Wickes Group Plc Annual Report and Accounts 202463 Strategic report Governance Financial statements Other information
Streamlined Energy and Carbon Reporting (SECR)
Group/UK 2021¹
emissions
(originally
reported)
Group/UK 2021¹
emissions
(recalculated)
Group/UK 2022¹
emissions
(recalculated)²
Group/UK 2023¹
emissions
(recalculated)³
Group/UK 2024¹
emissions
4
Annual GHG emissions (tCO
2
e)
(Scope 1 and 2 location-based) 9,687 25,486 24,742 23,581 21,082
Annual GHG emissions (tCO
2
e)
(Scope 1 and 2 market-based) 14,541 32,013 32,172 18,589 12,406
Annual energy use (kWh) 114,515,000 126,598,259 123,060,465 115,911, 312
99,273,071
Emissions intensity: location-
based (tCO
2
e / 1,000sq ft) Not reported 4.0 3.9 3.6 3.2
Emissions intensity: market-
based (tCO
2
e / 1,000sq ft) 5.0 5.0 5.0 2.9 1.9
1 The Group does not conduct any activities in the offshore area.
2 Emissions originally reported for 2022: annual GHG emissions Scope 1 and 2 market-based) 33,206 tCO
2
e; annual energy use 170,003
kWh; emissions intensity (location-based) not reported; emissions intensity (market-based) 5.0.
3 Emissions originally reported for 2023: annual GHG emissions (Scope 1 and 2 market-based) 23,744 tCO
2
e; annual energy use 159,994
kWh; emissions intensity (location-based) not reported; emissions intensity (market-based) 3.15.
4 Includes gas consumption from Gas Fast Ltd, but excludes diesel consumption from their fleet of three vehicles.
We implemented a range of energy efficiency
measures across our property estate throughout
2024 to address electricity, gas and diesel
consumption. These include:
– LED lighting upgrade: We have continued to
upgrade our lighting to LEDs. By the end of 2024,
90% of our stores have been upgraded.
– Heating control roll-out: We have continued to
roll-out heating controls for our stores heated by
gas. By the end of 2024, 90% of stores have been
upgraded.
– Replacement of diesel forklifts: We have
continued the replacement of diesel forklift trucks
with electric powered forklifts. By the end of 2024,
84% of stores have electric powered forklift trucks
only.
– Air source heat pumps (ASHPs): We have
installed ASHPs in four new stores, resulting
in a total of eight stores now with electric
only heating.
Energy efficiency action
Improving the energy efficiency of our estate has
continued to be a focus for the business in 2024.
This year, we reduced our energy consumption by
14% compared with 2023, and we have continued
the trend of improving our emissions intensity
(both location-based and market-based).
This was delivered through the work of our store
colleagues monitoring and managing their energy
consumption, the roll-out of energy efficiency
technology, upgrades as part of our store refit
programme, and an ongoing focus on fleet
fuel efficiency.
We incorporate energy efficiency into the design
of our new store and refit programmes, as well as
rolling out improvements across the estate.
– Solar photovoltaic (PV) panels: We have
continued site assessments to identify
opportunities for onsite renewable energy
generation. By the end of 2024, ten stores now
have on-site solar PV panels fitted. The energy
generated from the solar PV panels is used at
each of the stores.
– Voltage optimisation: Voltage optimisation
technology is now installed in 50 stores,
equating to just over 20% of our estate.
– Store engagement: We regularly engage with
our store managers to increase and improve
education and awareness of energy
performance. Energy consumption data is
shared with store managers to help track
progress against energy efficiency actions
and determine opportunities for improvement.
Methodology
We have reported our GHG emissions and energy
consumption in accordance with the Large and
Medium-Sized Companies and Groups (Accounts
and Reports) Regulations.
To calculate our SECR emissions, we have followed
the GHG Protocol Corporate Accounting and
Reporting Standard. Our methodology is available
on our website. The organisational reporting
boundary is based on operational control. We have
included all of our stores and distribution centres
which fall within our operational control boundary,
and excluded any energy usage and associated
emissions by other companies also operating on
our premises. Scope 2 emissions have been
calculated using both location-based and
market-based approaches.
Climate-related financial disclosures continued
We have reported all of the Company's fuel
and electricity consumption activities (the
Company does not conduct any activities in
the offshore area):
– Natural gas consumption (Scope 1)
– Diesel consumption (Scope 1)
– LPG (Scope 1)
– Electricity consumption (Scope 2)
Energy consumption figures in kWh were obtained
from natural gas and electricity invoices and
consolidated centrally across Wickes’ sites.
Fuel consumption for the vehicle fleet (including
forklifts) and the sprinkler pump house was
obtained through mileage and invoice data, which
were subsequently converted into kWh using
conversion factors for passenger and delivery
vehicles from the UK Government’s 2024 GHG
Conversion Factors for Company Reporting.
Recalculations
Following the rebaselining exercise that we carried
out to review and revise our SBTs, we have
recalculated our historic GHG emissions and
annual energy usage for our SECR reporting.
Energy Savings Opportunity Scheme
In 2024, we completed energy audits and submitted
our notification of compliance to the Environment
Agency, as required by the mandatory Energy
Savings Opportunity Scheme (ESOS) Phase 3. We
have identified energy efficiency opportunities that
we plan to implement over the period of Phase 3,
and have submitted our ESOS action plan to the
Environment Agency.
64 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Climate-related financial disclosures continued
TCFD Alignment Index
This index table signposts to where TCFD-related disclosures are included in the 2024 Annual Report and Accounts.
TCFD recommended disclosures Companies Act 2006 Page
1. Governance
(a) Describe the Board’s oversight of climate-related risks and opportunities. (a) A description of the company’s governance arrangements in relation to assessing
and managing climate-related risks and opportunities.
53
(b) Describe management’s role in assessing and managing climate-related risks andopportunities. 54
2. Strategy
(a) Describe the climate-related risks and opportunities the organisation has identified
overtheshort, medium, and long term.
(d) a description of:
(i) the principal climate-related risks and opportunities arising in connection
withthecompany’s operations; and
(ii) the time periods by reference to which those risks and opportunities are assessed.
55-57
(b) Describe the impact of climate-related risks and opportunities on the organisation’s
businessstrategy, and financial planning.
(e) A description of the actual and potential impacts of the principal climate-related
risks and opportunities on the company’s business model and strategy.
57-58
(c) Describe the resilience of the organisation’s strategy, taking into consideration different climate-
related scenarios, including a 2°C or lower scenario.
(f) An analysis of the resilience of the company’s business model and strategy,
takinginto consideration different climate-related scenarios.
59
3. Risk management
(a) Describe the organisation’s processes for identifying and assessing climate-related risks. (b) A description of how the company identifies, assesses, and manages
climate-related risks and opportunities.
59-60
(b) Describe the organisation’s processes for managing climate-related risks. 60
(c) Describe how processes for identifying, assessing, and managing climate-related risks
areintegrated into the organisation’s overall risk management.
(c) A description of how processes for identifying, assessing, and managing
climate-related risks are integrated into the company’s overall risk
managementprocess.
60
4. Metrics and targets
(a) Disclose the metrics used by the organisation to assess climate-related risks andopportunities
inline with its strategy and risk management process.
(h) A description of the key performance indicators used to assess progress against
targets used to manage climate-related risks and realise climate-related
opportunities and of the calculations on which those key performance indicators
are based.
60
(b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions,
andtherelated risks.
No additional requirements in the Companies Act. Covered by existing
SECRdisclosures.
60-62, 63-64
(c) Describe the targets used by the organisation to manage climate-related risks andopportunities
and performance against targets.
(g) A description of the targets used by the company to manage climate-related
risksand to realise climate-related opportunities and of performance against
thosetargets.
62
Wickes Group Plc Annual Report and Accounts 202465 Strategic report Governance Financial statements Other information
Non-financial and sustainability information statement
This table sets out where the
key content requirements of
the Non-financial information
statement (as required by
sections 414CA and 414CB of
the Companies Act 2006) can
be found in this document or
on our website.
Section 172 of the UK Companies Act 2006
Under Section 172 of the UK Companies Act 2006
(‘Section 172’) directors must act in the way that
they consider, in good faith, would be most likely
to promote the success of their company. In doing
so, our Directors must have regard to stakeholders
and the other matters set out in Section 172. Our
Section 172 statement includes the information
set out on pages 87-90 of the Governance Report.
Our stakeholders are set out on pages 88-89,
along with details of how the business engaged
them during 2024. Page 90 gives examples of
how our Directors have taken steps to understand
the needs and priorities of these stakeholders
when taking decisions concerning the business.
The relevance of each stakeholder group may
vary depending on the matter at hand.
Non-financial matter Disclosures of policies and standards Page
Employees Section 172 statement: colleagues
Board leadership and Company purpose
Strategic report: People, Inclusion and diversity, Colleague Voice
Strategic report: Safety and wellbeing, Safety Policy
Nominations Committee report: Inclusion and diversity
Directors’ Remuneration report
88
82-83
34-39
48-49
95-96
106-117
Human rights Code of Business Ethics
Human Rights Policy, Modern Slavery and Human Trafficking Policy
2
Modern Slavery Statement
1
50
50
50
Social matters Section 172 statement
Strategic report: People, Environment, Homes
87-90
34-47
Anti-corruption and anti-bribery Modern Slavery Statement
1
Anti-bribery Policy
Anti-fraud Policy
Whistleblowing Policy
2
50
51
50
50, 86
Environmental matters Response to Task Force on Climate-related Financial Disclosures (TCFD)
recommended disclosures
Principal risks and uncertainties: Climate change
Strategic report: Environment
Responsible Business Committee report
Environment Policy
2
Responsible Sourcing Policy
2
Timber Sourcing Policy
2
53-65
73
42-45
104-105
42
52
45
Climate-related financial disclosures Response to TCFD recommended disclosures 53-65
Principal risks and impact of business activity
Principal risks and uncertainties, in particular People and Safety
Audit and Risk Committee report
73
98-103
Business model Business model 16-19
Non-financial key performance indicators Key performance indicators: GHG emissions; Store leadership diversity 25
1 Our Modern Slavery Statement is available on our website
2 Policy can be found on our website
66 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Risk
management
process
Lines of defence
3rd line
2nd line
1st line
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Risk management overview
Our approach to risk
In line with previous years, we continue to maintain
a structured approach to risk management at
Wickes, allowing us to maintain an appropriate risk
culture that supports us in meeting our strategic
objectives in a balanced and risk-aware way.
Our risk framework
With an ever-changing environment, maintaining an
effective approach towards risk requires ongoing
refinement in the way we identify, assess and
manage risks which may impact us, our customers
and the communities in which we operate. In the
year, we have continued to evolve our principal risks
and risk appetite assessments as part of a regular
review and challenge approach, maintaining the
principles of effective risks management. The
Board are ultimately responsible for the effective
management of risk across the Group, and we
manage our risks in line with the risk appetite set by
the Board. The Audit and Risk Committee, under
delegated authority from the Board, is accountable
for overseeing the effectiveness of risk
management at Wickes, including regularly
reviewing our principal risks and any emerging risks
which may impact on the delivery of our strategy,
operations or customers.
The three lines of defence model was designed to
provide a blueprint of how effective governance,
risk management and internal control processes
work together.
The first line of defence is responsible for operating
systems of risk management and control, the
second line oversees the activities of the first line,
with the third line providing independent assurance
that the first and second lines are operating as
intended. Together, the three lines provide
assurance to governance structures that risks
are being managed effectively.
In keeping with the three lines model, the Executive
maintain day-to-day responsibility for identifying
and managing risks in line with the risk appetite
established by the Board. In addition to risk forming
a standing agenda item during monthly Executive
Board meetings, where individual corporate level
risks are discussed and emerging risks considered,
a biannual Executive Risk Committee provides an
opportunity to holistically review and challenge the
principal risks and underlying corporate-level risk
register, ensuring that risk scoring is consistently
and appropriately applied and the overarching risk
position being reported to Board remains reflective
of the risks being encountered.
Wickes’ assessment of risk, and in particular its
assessment of principal risks and uncertainties,
forms the basis for assessing the Group’s long-term
viability as highlighted on pages 76-77 of this report.
Board oversight
Top down
Oversight,
identification,
assessment and
mitigation of risk
across the
Company
Bottom up
Identification,
assessment and
mitigation of risk
across key
functional areas
Risk management process
Develops vision
and strategy
Defines organisational
Code of Business
Ethics
Sets risk appetite
and tolerance
Monitors the nature
and extent of principal
risk exposure
Risk identification
and assessment
Identifies and owns
relevant risks assigning
responsibilities at
operational/
functional level
Risk
mitigation
Ensures internal
control systems are
embedded across
the business
Risk monitoring
and reporting
Ensures mitigating
actions are monitored
and implemented.
Escalates risk identified
at operational or grass
roots level to Executive,
Audit and Risk
Committee
and the Board
Continuous
improvement
Reviews the outputs of
the risk management
process, identifies
improvements and
supports the further
embedding of effective
risk management
processes within the
business
Executive Board
Represents all key functions
and teams of Wickes.
Maintains policies and
programmes, monitors risk
exposure, mitigation and internal
controls, and manages business
risk on a day-to-day basis
Audit and Risk Committee
Reviews the design and
implementation of Wickes’
risk management and internal
control programmes.
Supports the Board in monitoring
exposure against risk appetite
Internal audit
Supports Wickes to identify risks
and gaps in compliance, and
recommends mitigating actions
Facilitates the maintenance
of the Corporate Risk Register
and monitors progress in the
mitigation of each risk.
Reviews and tests the
effectiveness of internal controls
and provides assurance
Wickes Group Plc Annual Report and Accounts 202467 Strategic report Governance Financial statements Other information
Risk management overview continued
How we identify and manage our risks
Risk appetite and risk scoring
To support the management of risks by the
Company, the Board has established risk appetite
levels for the categories of risk reflected within
the corporate risk register, providing a mechanism
to give a more refined view of acceptable
risk which can be applied by management to
ensure that all risks, corporate and operational,
are managed in line with risk appetite.
During the year, driven by the review and update
of principal risks in the prior year, the Board,
via the Audit and Risk committee, undertook
a rigorous review of risk appetite levels during
2024. These were reviewed to ensure that the
achievement of the Group’s strategy remains
supported by the risk management process
and reflect the level of risk the Board believes
is appropriate for each risk category. Through
this exercise, the Board confirmed that the risk
appetite levels established are appropriate.
Alongside the review of appetite, the Audit and
Risk Committee as part of their delegated remit,
reviewed the risk scoring methodology to ensure
that the overarching risk assessment framework
remains effective. This exercise included
assessing our risk appetite and its associated
score against the scenarios presented within
the Group’s viability assessment presented on
page 76-77. As a result, the Board, via the Audit
and Risk Committee, remains confident of the
robustness, applicability and effectiveness
of the risk management process inplace.
Emerging and evolving risks
The Board operates processes to help identify
and assess potential risks that may impact
the business in the short, medium and long
term. Outside of the Board and Audit and Risk
Committee meeting schedule, regular assessment
of risk impacting, and arising from the areas of
responsibilities for each Executive risk owner is
undertaken. The assessment of emerging and
evolving risks may result in updates to existing
risks, including a re-assessment of likelihood and
impact, where the underlying risk and associated
mitigations are common. Additional risks may be
added where it is felt that specific focus is needed
to be maintained to ensure that the emerging risk
is appropriately considered and managed.
During the year, we have continued to assess
the risks associated with climate change and
associated extreme weather events to our
operations, global supply chain, customers and
the communities in which we serve. We have
made progress with thedecarbonisation of our
own business and supply chain and this work
will continue to be a focus as wework towards
our carbon reduction targets. We also remain
committed to supporting our customers to reduce
their impact on the environment by expanding
our Home Energy Solutions proposition
demonstratedby ourinvestment in Solar Fast.
Further details of our approach to reducing
ourimpacts on the environment are provided
on page 42-45.
During previous periods, the rebalancing of the
home improvement market and pressures relating
to high inflation have been felt across the home
improvement sector, retail and the economy in
general. These events have reduced customer’s
ability and willingness to spend as they manage
their finances. Although there has been easing of
inflation rates throughout the year, consumer
confidence remains cautious.
Wickes remains relatively well insulated from
supply chain disruptions from ongoing geopolitical
instability within Europe and the Middle East,
retaining a keen view on potential impacts to
tertiary suppliers and developing strategies to
mitigate adverse impacts, should they arise.
68 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Low
Impact
High
Principal risks and uncertainties
Overview
Heat mapPrincipal risks and uncertainties
Identification, assessment and management of
our principal risks and uncertainties remains the
cornerstone of the Wickes risk management
process. To support our understanding of the
principal risks and associated risk themes, a
detailed assessment of contributory risks, forming
the basis for the corporate risk register, is regularly
undertaken. Through regular reviews of the
corporate risk register, an up to date view of our
principal risks is maintained while ensuring that
principal risk causes and consequences are
managed as part of the day-to-day management
of identified risks.
Regular review of principal risks throughout the
year highlighted that the twelve principal risks
previously identified remain reflective of Wickes’
principal risks and uncertainties during 2024.
No material changes to these risks were made
during the year. The principal risks are:
A
Cyber and data security
B
Business change
C
Brand integrity and reputation
D
Regulatory and legal compliance
E
IT operations
F
Growth strategy
G
Climate change
H
People and safety
I
Commercial and supply chain
J
Financial management
K
Customer experience
L
Stores, distribution and installations
Throughout the year, the Board, supported by the
Audit and Risk Committee, hasconfirmed that it
has undertaken a robust assessment of the
emerging and principal risks facing the group,
including those that would threaten its business
model, future performance, solvency or liquidity.
To support this assessment, opposite, a risk map
shows the relative likelihood and impact for Wickes’
principal risks, and the movement of risks across
the period under review. A more detailed
assessment of each principal risk is provided
over the next few pages.
Heat map key
Risk decreasing
Risk stable
Risk increasing
A
B
D
C
E
H
I
J
K
L
F
G
Low
Likelihood
High
Wickes Group Plc Annual Report and Accounts 202469 Strategic report Governance Financial statements Other information
Principal risks and uncertainties continued
Strategic growth levers
1
Winning for trade
2
Accelerating Design
& Installation
3
DIY category wins
4
Store investment
5
Digital capability
6
Enhanced store
service model
7
A winning culture
Stakeholder groups
Colleagues
Customers
Suppliers
Installers
Communities
Shareholders
Government and
regulators
Risk trend
Decreasing
Increasing
Stable
Cyber and data security
Stakeholder groups Strategic growth levers
5
Risk trend
Executive responsibility
CEO, General Counsel and Company Secretary, and Chief Information Technology Officer
Description of risk
The availability and security of our IT systems andaccurate data is critical for us to operate successfully whilst
maintaining the security ofcolleague, customer and company confidentialdata. A key system being unavailable or
suffering asecurity breach could lead to operational difficulties, loss of sales, increased costs, legaland regulatory
penalties, reputational damage and loss of stakeholder trust.
Progress
With the scale and sophistication of attacks originating from criminal activity, the cyber risk being faced by all
organisations and society at large continues to grow. However, the net risk after mitigations has remained stable over the
year as we have continued to invest in our systems, controls and underlying processes to ensure that we maintain the
capability to prevent, detect and mediate cyber threats and incidents. Third-party assessments of our cyber security
posture have provided assurance over existing measures and have helped to shape a clear roadmap to continually
improve our cyber mitigation strategies. New phishing tests were also introduced during the year as part of the cyber
training programme to equip colleagues to deal with the increasing sophistication of phishing attacks.
Key responses and controls
– Ongoing investment in maintaining an effective cyber security posture
– Continual process to decommission legacy systems and replace them with solutions with greater levels of inbuilt
security in line with our strategic technology roadmap
– Mandatory training and ongoing awareness programme, including phishing tests, to keep colleagues informed and
aware of data protection and cyber security risks
– Restricted access to sensitive data
– Security controls to prevent, detect and mitigate unauthorised activity which are regularly tested
– Vendor assurance process to assess the robustness of suppliers’ security and data protection controls as part of
onboarding orcontract renewal
– ‘Privacy by Design’ approach inbuilt into systems
– Data protection and information security policies and procedures in place and regularly reviewed
– Data and security provisions are included inthird party contracts
– Crisis management plans and business continuity plans in place
– Investigation process including a feedback loopto ensure learning from mistakes
– Dedicated management data and information security and AI committees
– Monitoring and reporting to the Executive Boardquarterly and Plc Board twice a year
Business change
Stakeholder groups Strategic growth levers
1
2
3
4
5
6
7
Risk trend
Executive responsibility
Executive Board
Description of risk
The nature and pace of change can have a significant influence on our business. Keeping pace with, and where
possible being ahead of change is a business imperative without which we will be unable to achieve our strategic goals
and aspirations.
Progress
Although historically seen in terms discrete events, business change is widely acknowledged to be part of the normal,
day to day functioning of any successful business. Wickes has maintained its investment in innovation, ensuring that the
business and its operations remain optimally positioned to meet the current and future demands of customers. Regular
insights into future trends are captured through a variety of means, assessed and distilled to provide insights on the shape
and direction of change and inform strategies to approaching this change. To date, our outstanding customer offer, proven
growth levers and focus on cost control leave us well-placed within a home improvement market which continues to offer
significant opportunities.
Reflecting the nature of this risk and the progress made against our strategic transformation programme which started
with our transition to a stand-alone, listed business, an exercise will be preformed in 2025 to assess if this remains
a principal risk.
Key responses and controls
– Customer view programme and brand monitoring programme in place to identify trends
– A watching brief is maintained by the executive on demands and potential impacts relating to change
– Key metrics in place to identify early indications of change and measure impact of Wickes’ responses to that change
– Business strategies in place aligning to a continuous change agenda
– IT strategic and tactical plans are aligned with business strategies and priorities have been defined in line with
business goals
– Change Management expertise embedded into functional areas
– Learning and Development team support the change management process by supporting colleague learning
and development
– Effective governance of change in place across the business including a The Senior Transformation Group, which has
been established to oversee the entire change programme in place at Wickes, ensuring coordination
– Executive responsibilities and senior leadership team responsibilities have been clearly defined in order to support the
nature of change being undertaken
– SME and project managers in role
70 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Brand integrity and reputation
Stakeholder groups Strategic growth levers
1
2
3
4
5
6
7
Risk trend
Executive responsibility
Executive Board
Description of risk
Maintaining and growing our brand integrity and brand reputation underpins our long-term strategic aims, allowing us to
maintain and grow our position in the home improvement market. Failure to do so may prevent us from achieving our
strategic objectives.
Progress
A strong focus has been maintained throughout the year on our brand integrity and reputation, both key factors in the
continuing growth of market share despite challenging market conditions. Our distinctive customer proposition, curated
product range and low-cost efficient operating model remain the key foundations for the maintenance of our brand and
reputation. We also recognise the importance of our brand and reputation to our stakeholders and shareholders and
maintain a keen focus on probity and integrity across all levels at Wickes in line with our cultural values.
Key responses and controls
– Key regulatory and statutory reporting requirements are well understood and reviewed to ensure that compliance with
requirements is maintained
– Corporate Communications Manager in place
– Regular meetings with potential investors including store visits and attendance of conferences
– Structured monitoring of responses to online tags/mentions through a wide range of media channels provides insight
into the external perception of the Wickes Brand
– Detailed and regular Customer surveys provide a view of what customers think / perceive about Wickes. Results inform
strategies and approaches as well as confirming that activities have led to expected results
– Appropriate due diligence on potential partners and collaborators and presented to the Executive team for approval to
ensure that Wickes’ brand and reputation remains protected
– The Wickes Brand, customer service and our culture features prominently during the induction of new colleagues
– Key policies and procedures in place relating to external communications
– List of approved spokespeople who are appropriately briefed and trained
– Rolled out customer experience centre. Customer Experience Groups are also established to gain feedback from
customers as well as to engage and keep them informed
Regulatory and legal compliance
Stakeholder groups Strategic growth levers
7
Risk trend
Executive responsibility
General Counsel and Company Secretary, and the Executive Board
Description of risk
We operate in an increasingly regulated environment, and we must comply with a broad range of laws, regulations
and standards.
Failure to comply with or to take appropriate steps to prevent a breach of these requirements could result in formal
investigations, legal and financial penalties, reputational damage and other consequences for the business, its
colleagues and Directors.
Progress
The UK legal and regulatory framework protects colleagues, consumers and society. Although legal and regulatory
obligations on businesses continue to grow, this risk remains stable for Wickes as the business is set up to continuously
evolve its policies and procedures to meet new legal and regulatory requirements as they arise. During the year, the
Group’s compliance framework was reviewed and a new oversight committee was put in place to monitor legal and
regulatory compliance across the Group. Colleague training was also reviewed and additional training implemented
on Green Claims in light of the increasing regulatory focus on this area.
Key responses and controls
– Code of Business Ethics in place, supported by legal and regulatory compliance policies which are regularly reviewed
– Mandatory training based on risk for all key areas including health and safety, data protection, consumer credit,
competition law, pricing and promotions, modern slavery, anti-bribery, anti-money laundering, anti-tax evasion, market
abuse and age restricted sales
– Bespoke training provided for high-risk roles
– Dedicated teams of subject matter experts across the business, supported by the in-house legal team
– Supplier Code of Conduct requiring commitment from supply partners to comply with all applicable laws and
regulations is incorporated into contractual terms of business and monitored through the ethical audit programmes
– Anonymous whistleblowing service for colleagues, suppliers and other third parties to enable concerns to be reported
in confidence
– Investigation process including a feedback loop to ensure learning from mistakes or incidents
– Monitoring of key risks and overall legal and regulatory compliance through dedicated management committees
– Monitoring and reporting to the Executive Board quarterly and Board twice a year with higher risk areas such as health
and safety reporting to every meeting
– Active monitoring of legal and regulatory developments by the in-house legal team
Principal risks and uncertainties continued
Wickes Group Plc Annual Report and Accounts 202471 Strategic report Governance Financial statements Other information
Principal risks and uncertainties continued
IT operations
Stakeholder groups Strategic growth levers
5
Risk trend
Executive responsibility
Chief Information Technology Officer
Description of risk
As a digitally enabled business, reliable, available and appropriate back-office and customer facing IT operations
underpin the delivery of every aspect of our strategy.
Separate from cyber security, the maintenance of our IT estate is a critical success factor to our short, medium and long-
term success. Failure to manage our IT operations effectively may impact sales and our ability to operate as a business.
Progress
Through the year, investment in our IT operations has continued in line with our IT Strategy and improvement roadmap.
Our programme of replacing legacy systems with future-fit platforms, designed to meet current and future growth
aspirations and digital trends continues at pace. Our continued investment in this area and the benefits that have
been realised to date support our stable assessment of this risk.
Key responses and controls
– IT Roadmap has been developed and is regularly reviewed to ensure that it meets the needs of the future-business
– Confirmed levels of investment in IT operations has been ringfenced within the strategic plan
– In-sourcing of key IT capability has been completed, providing in-house expertise to support our digital journey
– Robust change management process in place to identify and manage change impacts across the business. This is
supported by effective governance of change
– Effective policy framework is in place to provide guidance to colleagues
– Key IT controls in place to manage, monitor and safeguard systems and infrastructure
– Disaster recovery protocols employed have been based on recognised industry standards
Growth strategy
Stakeholder groups Strategic growth levers
1
2
3
4
5
6
7
Risk trend
Executive responsibility
CEO and Executive Board
Description of risk
Our aspiration to grow market share in the competitive home improvement sector is a fundamental driver for our
investment in stores, technology, products and our people. Sustainable growth enables us to make this investment.
Failure to achieve our growth strategy may limit the level of investment we are able to make towards realising the future
of Wickes.
Progress
The economic climate throughout much of 2024 remained challenging, with indications that spending on home
improvements, although increasing towards the latter quarter of 2024, remained stubbornly low. Throughout the period,
the business had a steady growth in market share and we continue to focus on providing a compelling customer
proposition, curated product range and low-cost efficient operating model to underpin our growth plans and help ensure
that we are able to invest growing responsibly and sustainably.
Key responses and controls
– Clear strategies on Advertising, Marketing and Pricing
– Wickes has a diversified portfolio of products which is uniquely balanced in terms of the sector, focusing on our three
routes to market
– Defined, distinctive customer journey for our design and installation business
– 4C customer service model
– Consistent brand and customer service experience across the group
– Regular review of marketing materials to ensure relevance to customer demographics
– Ongoing processes to revisit and clarify expectations of end-to-end service for all our customer journeys
– Focus Group testing is conducted monthly and includes a customer closeness programme
– Monthly mood of the nation sessions
– Market research informs approach
– Sales forecasted and delivery resources planned to meet demand
– In depth scenario and sensitivity analysis is undertaken, considering a wide range of scenarios, including combinations
of these scenarios occurring during the same period. This analysis is reviewed at periodic intervals and updated with
any new risks which materialise
– Innovation built into Wickes’ strategic plan with clearly defined targets and metrics to measure and manage success
– Acquisition of Solar Fast to facilitate entry into high growth home energy solutions market
72 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Principal risks and uncertainties continued
Climate change
Stakeholder groups Strategic growth levers
4
6
7
Risk trend
Executive responsibility
Executive Board
Description of risk
The success of our business relies on the Group operating sustainably over the long term and our stakeholders need to
be assured that we are acting responsibly across our operations and supply chains.
Physical risks from extreme weather events and transition risks from potential stringent regulation, or failure to
efficiently decarbonise our value chain, could increase costs and impact operational flexibility.
Failure to positively change our impact on the environment would fall short of stakeholder expectations which could
lead to reputational damage and impact our financial performance.
Progress
The UK and the world are not on track to meet the commitments agreed in the Paris Agreement. However, the risk for our
business has remained stable as we continued to make progress with the decarbonisation of our own business and supply
chain (see pages 42-45 and 63-64).
As well as progressing with our store re-fit programme which has been designed to ensure updated stores become more
energy efficient, we have continued with our roll out of LED lighting and improved heating controls to improve energy
efficiency across our estate. During the year we completed a data cleansing exercise and finalised our approach to
categorising ‘products that support sustainability’ such as products that support energy or water efficiency, contain
recycled materials or responsibly sourced timber. We have also focused on developing a customer proposition for Home
Energy Solutions including our acquisition of a leading solar installations business, Solar Fast.
Due to changes affecting the baseline for our approved Science Based Targets, we completed a re-baselining exercise and
resubmitted updated targets for approval during the year.
Key responses and controls
– Assessment of physical and transitionary climate change related risks (see TCFD statement page 53-65)
– Allocation of capital across the five-year business plan to enable the delivery of further operational carbon reductions
– Approved near-term Science based targets in place to reduce our Scope 1 & 2 and most material Scope 3 emissions
– Carbon reduction targets built into the Executive Board’s long-term incentives
– Active collaboration with strategic suppliers to decarbonise our supply chain
– Dedicated sustainability team
– Monitoring of policy and regulatory developments, future carbon pricing and stakeholder views
– Assessment of the physical risk to the property estate relating to long-term climate change
– Aligning climate change related disclosures with developing standards (e.g. IFRS) and frameworks (e.g. CDP)
People and safety
Stakeholder groups Strategic growth levers
6
7
Risk trend
Executive responsibility
Executive Board
Description of risk
Our people are our biggest asset; together we are all responsible for making Wickes successful and providing the best
service possible to our customers. Failure to support our colleagues effectively and in the right way may impact their
ability to bring “their best selves to work” and therefore our ability to meet our strategic objectives.
Maintaining the safety of our colleagues and customers in store and during installations in their homes is a key priority.
Progress
People – At Wickes, we recognise that our people sit at the very core of everything that we do. We maintain a positive,
supporting culture and our motto of “let’s do it right” runs throughout everything that we do including how we engage with
customers, suppliers and colleagues. We have continued to liaise closely with colleagues to understand their views and
challenges and have continued to provide support to promote good mental health and financial wellbeing where needed.
These approaches are embedded within our people strategy, which has been built around the four pillars of awareness,
education, policy and practice.
Health and Safety – Health and safety incidents have continued their downward trend throughout 2024 and maintaining
our good record remains a key area of focus for the business in managing the health and safety risks that we are able to
control. Reflecting the continued improvement in training, risk assessment and risk mitigation which have contributed to
the trends noted, recognising a reduced level of net risk in this area is deemed appropriate. We remain aware and proactive
in reducing risks posed by violence towards our colleagues including violence resulting from an increase in “professional”
shoplifting activity.
Key responses and controls
– Future leaders programme in place to identify potential successors and offer training
– General recruitment, marketing and specific recruitment campaigns aimed at early careers level (e.g. apprentices) are
in place. The use of social media and other channels increase the level of brand awareness and support the targeting of
more diverse talent pools
– Wickes has in place a modern flexible workforce package, combining office and remote working and ensuring that our
offering is tailored to market expectations
– Effective, supportive and positive culture is fostered at Wickes and strong benefits package supports recruitment and
retention
– Health and safety training provided to all new staff on induction and refreshed regularly
– Visitors to sites have a mandated H&S induction
– Accident log with numbers and trends reported and investigated
– Near miss reporting is in place
– Root cause investigations taken on incidents so that we learn and put in place appropriate measures to prevent
recurrence
– Regular Board level reviews of Health and Safety systems
– Monthly incident review board (IRB) in place and chaired by the Chief Operating Office (COO) – root cause analysis and
cascading of mitigations across all sites (stores, distribution and offices)
Wickes Group Plc Annual Report and Accounts 202473 Strategic report Governance Financial statements Other information
Principal risks and uncertainties continued
Commercial and supply chain
Stakeholder groups Strategic growth levers
1
2
3
Risk trend
Executive responsibility
CEO, Chief Operating Officer and Chief Commercial Officer
Description of risk
Effective management of our commercial relationships with suppliers and our wider supply chains helps provide a
platform which enables the business to provide an excellent level of customer experience. Working in partnership with
our suppliers, we are able to support sustainable, long-term relationships based on fairness and trust. Failure to do so
may impact our ability to manage our product costs and ensure the availability of products.
Progress
2024 has seen fewer supply chain shocks than in prior years. Our teams have continued to maintain close relationships
with our key suppliers helping to ensure continuity of stock levels throughout the year. Improving the sustainability of our
supply chain has again been a focus, working with our partners to reduce environmental impact throughout product
lifecycles as well as increasing the efficiency of supply networks.
Key responses and controls
– Contractual agreements with key suppliers and plans to move to alternative suppliers or products in place
– Defined procurement policy and procedures are in place which includes details of supplier checks to promote
safeguarding of the Wickes Brand and operations
– Regular supplier engagement to understand their risks and how these may impact on Wickes
– Business continuity plan in place, which is tested
– We seek evidence to support supplier ISO accreditations where possible
– Clearly defined minimum requirements for suppliers to achieve prior to engagement
– All suppliers as subject to a risk assessment process
– Robust stock management and demand forecasting protocols in place
– Clear strategic vision relating to our Product Range is in place, with consumer trends monitored to help inform our
product selection
Financial management
Stakeholder groups Strategic growth levers
1
2
3
4
5
6
7
Risk trend
Executive responsibility
Chief Financial Officer
Description of risk
Managing finances, including understanding and managing the impact of external influences on our costs, revenue and
cash flows is key to our long-term success.
It helps to ensure that we are able to continue investing inour growth levers, operational capability, and digital and
IT innovation.
Failure to effectively manage our financial position sustainably may result intheinability to invest in the future of Wickes
and meet our short- and long-term liabilities.
Progress
Well established financial processes and controls enable us to maintain an accurate and up to date financial view of
performance across our stores and together with accurate cashflow modelling, the financial performance of Wickes is
managed appropriately.
In 2024, we have continued our investment in our people and in financial processes to ensure that we continue to operate
a robust and effective system of financial control. This work, which will continue into 2025, underpins our preparation for
meeting the requirements for the UK Corporate Governance changes as published by the FRC and underpins the recorded
reduction in the likelihood of this principal risk occurring.
Key responses and controls
– Clear treasury management approach in place with a defined policy, roles and responsibilities and scheme
of delegated authority
– Timely reporting both at a management level and to the Board
– Rigorous cashflow forecasting process in place
– Risk based stress testing and viability modelling undertaken
– Financial information used to inform key areas of operations including purchasing and marketing
– Experienced and skilled finance team in place
– Defined accounting policies reviewed regularly
– Internal audit reviews provide assurance over key financial controls
– Suite of effective finance related controls at a store level
74 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Principal risks and uncertainties continued
Customer experience
Stakeholder groups Strategic growth levers
1
2
3
4
5
6
7
Risk trend
Executive responsibility
CEO, Chief Operating Officer, Chief Marketing and Digital Officer
Description of risk
Our success is dependent on providing our customers with the highest levels of customer service and a positive
customer experience that results in customers coming back to Wickes. Failure to maintain high standards of customer
service and experience may impact sales and brand reputation
Progress
In the year, we launched our customer satisfaction programme with our new partner, InMoment, providing richer feedback
through which we have been able to continue to shape our proposition and approach to maintain our excellent CSAT
(customer satisfaction) performance.
Our approach to identifying and addressing the root causes of incidents which may result in a reduction in the quality of
customer’s experience has been a key part of our success in this area. We have maintained our investment in this area,
improving related systems and processes to ensure that we are able to meet and exceed the expectations of
our customers.
Key responses and controls
– Customer Experience staff receive regular training to ensure that we manage customer complaints and recalls
in an appropriate way
– Quality control checks on products
– The CAT (Corrective Action Team) focuses on customer complaints and drives the resolution of any issues
– Restructured team to better support issue resolution across design and installation
– Excellent relationships with installers, including improved job allocation processes
– High quality training provided to colleagues to ensure that high level of customer satisfaction is maintained
Stores, distribution and installations
Stakeholder groups Strategic growth levers
6
Risk trend
Executive responsibility
CEO and Chief Operating Officer
Description of risk
Effective operations support us in our drive to be the home improvement partner of choice, whether a customer opts to
do it themselves, hireslocal tradespeople or works with Wickes directly to achieve their home improvementdreams.
Failure to manage our operations effectively will impact our ability to provide the right level of customer help, the right
volume of stock to support their needs or a timely connection to our installation teams, reducing the high quality of
customer experience we strive to deliver.
Progress
We are committed to ensuring our stores remain a key part of our multi-channel customer proposition, including through
ongoing investment in the store refit programme. The introduction of systems to support the allocation of work to our
installers in 2023 continues to ensure that adequate resources are in place to meet customer demand. Updates to our
delivery and distribution processes, including working closely with our delivery partners, has provided us with sufficient
capacity within our network to meet current and future demand. These structural updates to how we operate have
contributed to the overall reduction in our exposure against this principal risk.
Key responses and controls
– Store level controls providing physical security measures to prevent and detect theft
– Regular review of pricing across all stores
– Strategic stock locations to meet projected demand in a timely way
– Carefully selected logistics and delivery partners in place
Wickes Group Plc Annual Report and Accounts 202475 Strategic report Governance Financial statements Other information
Viability statement
Introduction
The UK Corporate Governance Code requires
companies to state whether they have a
reasonable expectation that the Company
will be able to continue in operation and meet
its liabilities as they fall due over the period
of assessment. Several scenarios have been
modelled to support our viability statement,
which assess the impact of our principal risks
on the solvency and liquidity of the Company.
Assessment period
The Directors’ assessment of viability has been
made over a five-year period. This is considered
appropriate as it is consistent with the period over
which the Group considers its principal risks and
aligns with the Company’s Five-Year Plan, which is
regularly presented to the Board, and covers the
period up to December 2029.
Assessment of prospects
This viability statement should be read in
conjunction with the description of the Group’s
business model and strategy, which are set out
on page 16 and 17-23, respectively. The Directors
assess the Group’s prospects on a regular basis
and in particular progress against the strategic
objectives set out in its Five-Year Plan. The
Plan delivers forecasts of the Group’s financial
performance including cash flows, and allows the
Directors to assess the Group’s liquidity position
and adequacy of funding. Sensitivity analysis of
the main assumptions underlying the plans is
also carried out. The plans are approved by the
Directors and financial budgets and KPIs are
subsequently used to monitor performance in the
Board’s monthly review of the Group’s results.
In its assessment of the Group’s prospects, the
Board has taken into account:
– Uncertain trading conditions and expectations of
the future economic environment, as well as the
potential influence of climate change on our
business. The continuing macroeconomic
uncertainty brought about by the recessionary
environment in the UK and inflation risks; despite
the impact of these uncertainties in 2024, the
Group has maintained revenue levels and
continued to be profitable, although at a slightly
reduced level.
– The Group’s financial position: despite the
ongoing and increasing challenges of the wider
economic environment, the Company has
reported a strong set of results and positive
operating cash flows, offset by our continuing
commitment to invest in our business and deliver
the capital allocation policy announced in the
prior year. We have continued to demonstrate
that Wickes is resilient as a standalone entity
and we remain confident that our Five-Year Plan
shows strong sustainable growth.
Assessment of viability
The scenarios for assessing the viability of the
Company were identified by considering the
potential impact of individual principal risks and
potential combinations (as shown in the table on
page 69).
All twelve principal risks have been considered
when completing the modelling. These risks
combine to represent severe but plausible
scenarios covering a range of different operational
and financial impacts on the business. In total,
six individual scenarios have been created,
with a seventh ‘collective’ scenario, which
combines a number of the individual scenarios
to model a worst-case hypothetical situation
(as these could theoretically run together,
with different impacts on our business).
None of the individual scenarios modelled were
found to have an impact on the long term viability
of the Company over the assessment period. The
modelling showed we are in a strong position to
withstand each of the individual scenarios with the
exception of the revenue drop scenario where a
controlled and limited set of mitigations would be
required if the scenario materialised.
The collective scenario (see page 77 for more
detail) is more extreme and whilst the scenario is
plausible, it exceeds the impact of principal risks
which the Company has encountered in its trading
experience to date. Under this scenario, which
assumes dividends continue to be paid in line
with the capital allocation policy (2.5x cover), the
Group would remain cash positive supported by
controlled mitigating actions. If required, further
mitigation would be possible to improve the cash
position, for example reducing or delaying our
investment plans or to target cost savings. The
model does not assume use of the bank facility.
Additionally, reverse stress tests were
performed on each scenario to identify what
level of sensitivity on each scenario would
cause the business to no longer be viable, and
the likelihood of these reverse stress tests
was considered and found to be remote.
Viability statement
Having assessed the current position, principal
risks and prospects of the Company, and taking
into account the assumptions above, the Directors
confirm they have a reasonable expectation that
the Company will be able to continue in operation
and meet its liabilities as they fall due over the
five-year assessment period.
Viability statement
and going concern
76 Wickes Group Plc Annual Report and Accounts 2024Strategic report Governance Financial statements Other information
Viability statement continued
Scenario modelled Link to principal risks
Scenario 1
Reduced customer confidence and lower spending
Reduced customer confidence and lower spending, either through external economic factors or through loss of customer confidence in Wickes as a brand. The budgeted
sales increases are not delivered: sales decline in 2025 and return to growth in 2026.
Assumptions
Sales decline by 6% in 2025, followed by a recovery in 2026 of 2% above the growth percentage applied in the Five-Year Plan but from a lower starting point, followed by the
Five-Year Plan growth percentages for the subsequent years.
No change to margin and administrative costs.
Customer Experience
Growth Strategy
Brand Integrity
and Reputation
Scenario 2
Supply chain and cost management difficulty
Costs to obtain and distribute goods are impacted by internal factors (operational efficiency, people factors, IT operations) or external factors (macroeconomic factors
such as inflation, the cost implications of ESG, and the availability of goods and the costs of delivery). The business is able to maintain revenue levels but is required to
increase the cost base to do so.
Assumptions
No change to sales.
Margin rate reduced by 1%.
Commercial and
supply chain
IT Operations
Stores, distribution
and installations
Climate change
Legal and regulatory
compliance
Scenario 3
Further increases in energy costs
Energy cost increases beyond the level currently budgeted. The business is able to maintain revenue levels but is required to increase the cost base to do so.
Assumptions
Energy costs are £5m above those budgeted in each year of the plan.
Financial management
Climate change
Scenario 4
Increase in payroll costs
A continued cost of living crisis and potential future increases in minimum wage results in salary increases in excess of those budgeted. The business is able to maintain
revenue levels but is required to increase the cost base to do so.
Assumptions
No change to sales.
Payroll costs increase by 5% more than the increase factored into the budget for 2025, with subsequent years applying the percentage increases in the Five-Year Plan from
this higher starting point.
People and safety
Financial management
Scenario 5
Inability to deliver business change programme to budget or to time
The Company’s change programme to be delivered over the coming years is expected to be a key underpin for future growth. It includes significant investment in the
company’s core operational IT platforms, which will need to be carefully delivered to maximise business value, and minimise disruption. IT change programmes are
inherently risky and it is possible that it cannot be delivered to time or to budget.
Assumptions
Anticipated annual spend on business change programme is over budget in later years of the plan by 20% due to unforeseen impacts of technology or scope.
No changes to sales or margin.
Business Change
Scenario 6
Operational shock
A significant external disruption (e.g. a cyber attack or a disease outbreak) requires the business to shut down fully for a short period of time, returning to budget within
two months as soon as the effects of the disruption have been addressed.
Assumptions
Zero revenue for two weeks, returning to budget within one month.
No change to gross margin percentage: all costs other than direct cost of stock assumed to remain in line with budget, as it is anticipated that any potential cost
reductions during a shutdown would be offset by increased costs required to mitigate the potential losses.
Cyber and data security
Scenario 7
A combination of scenarios set out above
This is seen as a worst-case scenario and whilst the scenario is plausible, it exceeds the impact of principal risks which the Company has encountered in its trading
experience to date. The combined scenario does not include Scenario 5, Business Change, on the basis that an operational shock would likely trigger a reconsideration of the
timing and scope of the current change programme.
As above (Excluding
Business Change)
Going concern
The Group’s business activities, together with the
factors likely to affect its future development,
performance and position are set out in the
Strategic report, including the principal risks of the
Group set out on pages 69-75. The financial position
of the Group, its cash flows, liquidity position and
borrowing facilities are described in the Financial
review on pages 26-29. The Directors have
considered the above and how they may impact
going concern. They have also completed modelling
for scenarios 1 to 4 opposite, as well as a severe but
plausible scenario which assesses the impact on
the Group’s liquidity headroom when combining
these risks together. When considering scenarios 1
to 6, the Directors do not consider risks 5 or 6, based
on the mitigating controls in place, will impact in the
next 12 months and are therefore not included in
their going concern assessment.
As a result of this review, the Directors have a
reasonable expectation that the Group has
adequate resources to continue in operational
existence for a period of at least 12 months from
the date of approval of the financial statements and
therefore consider it appropriate for the Group to
continue to adopt the going concern basis of
accounting in preparing the annual financial
statements. Furthermore, based on the Group’s
strong performance, prospects and liquidity
position, the Directors do not consider going
concern to be a critical accounting judgement.
Further detail in relation to the use of the going
concern assumption and the scenarios modelled
by the Directors are detailed in note 1 of the Group
financial statements.
The Strategic report has been approved by the
Board of Directors and is signed on its behalf by:
David Wood Mark George
Chief Executive Officer Chief Financial Officer
19 March 2025 19 March 2025
Wickes Group Plc Annual Report and Accounts 202477 Strategic report Governance Financial statements Other information
Governance report
Introduction
to governance
Christopher Rogers, Chair of the Board
Throughout 2024, the Board has continued to focus
on supporting the business to both deliver
efficiencies to mitigate the ongoing impact of the
economic environment and to continue to develop
our well-established growth levers that we believe
will deliver long term value. The business has been
resilient and agile and the Board believes that our
strategy remains the right one for the long term
success of the business and that the right team is
in place to deliver it.
The Board strongly supports diversity in its
broadest sense in the boardroom and across the
business and more details on our approach can be
found in the Nominations Committee report on
pages 95-96. We recognise that there remains
opportunity to further increase the diversity of the
Board and this will continue to be an area of focus
in future years.
We conducted an internal Board performance
evaluation this year. I was pleased that the review
showed that there is a high level of satisfaction with
the effectiveness of the Board and its Committees,
with no high priority or urgent matters identified as
needing to be addressed. More details can be found
on page 96-97.
Having strong governance standards, a clear
purpose and a healthy culture across the whole
business are key to our success. At Wickes, we
have a special culture in which colleagues feel
free to be themselves and new people and ideas
are welcomed. It is a pleasure for me and the
Board to work with such an engaged, inclusive
and welcoming team and I would personally like
to thank all of our colleagues for their continued
hard work and commitment to the business.
Christopher Rogers
Chair of the Board
19 March 2025
Dear Shareholder,
On behalf of the Board, I am pleased to present
our Governance report for the period ended
28 December 2024. This report sets out the
governance structures and processes we have
to support the creation of long term value for
the benefit of our stakeholders as a whole,
including the controls and oversight the Board
has established to ensure it is effective in its
decision making. The Board remains aware of
the value of good governance and I am
confident that our governance framework is
effective and supports the delivery of our
strategy and purpose.
Wickes Group Plc Annual Report and Accounts 202478 Strategic report Governance Financial statements Other information
Governance report continued
Compliance
with the UK
Corporate
Governance
Code 2018
The Company has applied the Financial Reporting
Council’s (FRC) UK Corporate Governance Code
2018 (the ‘Code’) Principles and complied with all
the Code’s Provisions throughout the year ended
28 December 2024. The Code is available on the
FRC’s website at www.frc.org.uk.
Signposts to where key content showing how the
Company has applied the Principles of the Code are
shown on this page.
Board leadership
and Company purpose
Audit, risk and
internal control
Division
of responsibilities
Composition, succession
and evaluation
– Information on the work of the Board and its role
in setting the Company’s strategy, creating an
inclusive culture and engagement with
stakeholders, as well as details on the Board’s
leadership in these activities can be found in the
Governance report on pages 82 - 90. (Code
Principles A, B & D)
– We acknowledge our impact as a business on the
environment and communities that we operate in,
and we are committed to creating long term
sustainable success and contributing positively to
wider society. More information on our activities
in these areas is set out in the Responsible
Business section on pages 30-52 and Responsible
Business Committee report on pages 104-105.
(Code Principle A)
– The Board has set a clear purpose, to ‘help the
nation feel house proud’ which is supported by our
business model, culture and values. More
information can be found in the Strategic report on
pages 16-23. (Code Principle B)
– We’re proud of the Wickes culture and values and
strive to make sure that everyone feels able to be
themselves when they are at work. The Board sets
the tone from the top, living our Winning Behaviours
and always acting with integrity. More information
on our Winning Behaviours and workforce can be
found on pages 34-39. (Code Principle B)
– Our approach to risk management and internal
controls is set out on pages 67-68. The Audit and
Risk Committee supports the Board with the
oversight of risk and controls, further details of
which can be found on page 103. (Code Principle C)
– The Board values engagement with all of our
stakeholders and information on our engagement
activities is contained within our Section 172
statement on pages 87-90. (Code Principle D)
– Information on our Whistleblowing Policy is set out
on page 86 and details on our employment policies
and practices and their alignment with our values
and strategy are set out on page 109. (Code
Principle E)
– The work of the Audit and Risk Committee is set
out on pages 98-103. This includes a description
of the oversight and effectiveness of the internal
and external audit functions. (Code Principle M)
– The Directors consider that the Annual Report
and Accounts, taken as a whole, is fair, balanced
and understandable and provides the information
necessary for Shareholders to access the
Company’s position and performance, business
model and strategy. The work of the Audit and
Risk Committee in monitoring the integrity of the
annual and interim reports is set out on pages
98-103. (Code Principle N)
– The principal risks and uncertainties and the
procedures in place to manage risks and internal
controls are regularly reviewed by the Audit and
Risk Committee as set out on pages 70-75. (Code
Principle O)
– Our governance framework and the division of
Board responsibilities is shown in the diagram on
page 91. (Code Principles F, G, H & I)
– The effectiveness of the Board is reviewed
annually. The process and findings are described
in the Nominations Committee report on page
96-97. (Code Principle F)
– Information on Directors’ time commitments is set
out on page 94, and information on independence
can be found on page 86. (Code Principle H)
– The skills and capabilities and other significant
commitments of the Board are detailed in the
Board biographies on pages 80-81. (Code
Principles G & H)
– The work of the Nominations Committee is set
out on pages 92-97. (Code Principles F, G & H)
– Board succession planning and the appointment
process for Board members is set out in the
Nominations Committee report on page 93-95.
(Code Principle J)
– The composition of the Board, along with
biographies and details of the skills, experience
and contribution of each Director can be found on
pages 80-81. A skills and experience matrix can
be found on page 83. (Code Principle K)
– The conclusions and recommendations from this
year’s internal board evaluation can be found on
page 96-97. (Code Principle L)
Remuneration
– Information on our remuneration policies and
practices, along with details of the remuneration
outcomes and any discretion applied by the
Remuneration Committee, is set out in the
Directors’ Remuneration report on pages 106-117.
(Code Principles P, Q & R)
1
4
2
3 5
Wickes Group Plc Annual Report and Accounts 2024
79 Financial statements Other informationGovernanceStrategic report
Board of Directors
The Board comprises seven
Directors, two Executive
Directors, four independent
Non-executives and the Non-
executive Chair of the Board.
Committee membership key
Chair of Committee
A
Audit and Risk Committee
N
Nominations Committee
R
Remuneration Committee
RB
Responsible Business Committee
D
Disclosure Committee
Christopher Rogers
Non-executive Chair of the Board
N
R
RB
D
Pronoun: He/Him
Appointment date: 23 March 2021
Skills and experience
Christopher has significant board, retail and finance
experience gained during his extensive executive career,
having held a number of senior roles in, and directorships,
of public companies. From 2005 to 2016, he was an
Executive Director of Whitbread plc, serving as Group
Finance Director from 2005 to 2012 and as Global
Managing Director of Costa Coffee from 2012 to 2016.
Christopher previously held senior roles in both the
finance and commercial functions of Woolworths
Group plc, Comet Group plc and Kingfisher plc. He was
a Non-executive Director and Audit Committee Chair
of Vivo Energy plc from April 2018 to July 2022 and
a Non-executive Director of Travis Perkins Plc from
September 2013 to April 2021, where he was Senior
Independent Director from November 2015 to April
2020. In addition, Christopher served as a Non-executive
Director of Sanderson Design Group Plc from April 2018
until January 2025, where he chaired the Remuneration
Committee from April 2019 to January 2025.
Contribution
Christopher brings many strengths to his role as
Chair of the Board, in particular his leadership;
strategy, commercial and financial acumen; his
deep grounding and understanding of corporate
governance, risk management, compliance and
regulatory issues; his experience in M&A and
corporate transactions; and experience both
internationally and in retailing and operations.
External appointments
– Non-executive Director and Senior
Independent Director of Kerry Group plc
– Chair Elect of Mitie Group plc
David Wood
Chief Executive Officer
D
Pronoun: He/Him
Appointment date: 23 March 2021
Skills and experience
David is a highly experienced executive and CEO with
over 30 years in the retail and consumer sector and
extensive board level experience in the UK, Europe and
North America, having spent the majority of his career
with Tesco, Unilever and Mondelez. David served as
Commercial Director on the Board of Tesco Hungary
from 2010 to 2012 and between 2012 and 2015 he
served on the UK Operating Board of Tesco plc as Chief
Marketing Officer and Group Managing Director.
David was Group President of Kmart Holding Corp
from 2015 to 2017, followed by a brief tenure as
CEO of Mothercare plc in 2018. David joined Wickes
as CEO on 28 May 2019 when Wickes was part of
Travis Perkins Plc in anticipation of the demerger.
Contribution
David is an engaging leader with extensive and
international experience in retailing and operations.
He has significant experience in change management,
strong strategic and commercial acumen, and a proven
record in brand building and marketing. David’s strong
leadership and passion for home improvement drive
the effective delivery of the business strategy.
External appointments
– Non-executive Chair of Green Sheep Group Ltd
Mark George
Chief Financial Officer
D
Pronoun: He/Him
Appointment date: 29 July 2022
Skills and experience
Mark has significant experience in finance and
strategy and, in addition to his role as CFO of the
Group, he also chairs the Board of the Company’s
51% owned subsidiary, Solar Fast. He has held senior
roles in finance, strategy and general management
in a number of public listed consumer businesses
including Tesco, ASOS and Auto Trader. More recently,
Mark was Chief Financial Officer and a member of
the Board of The Gym Group plc from 2018 to 2022.
Mark started his career as a management consultant
with McKinsey & Co. and holds a degree in Philosophy,
Politics and Economics from Oxford University.
Contribution
Mark has sound commercial acumen, as well as
extensive retailing experience. His financial, risk
management, strategic and leadership skills are key
strengths for the role of CFO. He is also experienced
in M&A and investor relations. Mark’s financial and
strategic strengths ensure continued focus and
development of the long term strategy for the business.
External appointments
– None
Wickes Group Plc Annual Report and Accounts 202480 Strategic report Governance Financial statements Other information
Board of Directors continued
Mark Clare
Senior Independent Non-executive Director
A
N
R
RB
D
Pronoun: He/Him
Appointment date: 23 March 2021
Skills and experience
Mark has extensive public listed company experience
in the consumer service, property and construction
sectors, particularly in customer facing businesses and
has served on a number of remuneration committees.
Mark was Senior Independent Director at United Utilities
Group plc from 2013 to 2022, Senior Independent
Director at Ladbroke’s Coral Group plc from 2016
until 2018, and Non-executive Director and Audit
Committee Chair at BAA plc from 2001 until 2006.
Mark’s executive career included Chief Executive
for Barratt Developments plc from 2006 until 2015;
Managing Director of Centrica’s retail subsidiary
British Gas from 2002 to 2006; and CFO of Centrica
plc from 1997 to 2002. He also served as a trustee
of the Energy Savings Trust, the Green Building
Council and BRE. Mark is a qualified accountant.
Contribution
Mark’s wealth of knowledge in governance,
compliance and regulatory matters gained from
his public listed company experience, as well as his
leadership skills, enhance his ability to undertake
his duties as Senior Independent Non-executive
Director. His financial acumen and commercial
experience are particularly beneficial in his role
as Chair of the Remuneration Committee.
External appointments
– Chair of Grainger plc
– Chair of Ricardo plc
– Non-executive Director of Premier Marinas Holdings Ltd
Sonita Alleyne OBE
Independent Non-executive Director
A
N
R
RB
Pronoun: She/Her
Appointment date: 23 March 2021
Skills and experience
Sonita has extensive experience as a Non-executive
Director on both private and public sector boards. She
was a Non-executive Director of the British Board of
Film Classification from 2009 to 2019, including Chair
of the Council of Management in 2019 and Chair of the
Remuneration Committee from 2016 to 2019. She was
Chair of the Radio Sector Skills Council from 2008 to
2012; Non-executive Director of Archant from 2012 to
2016; and a trustee of the BBC Trust from 2012 to 2017.
Sonita was a Non-executive Director of the
Department for Digital, Culture, Media and Sport,
the National Employment Panel and the London
Skills and Employment Board. In her earlier media
career, Sonita was the co-founder and former
CEO of the production company Somethin’ Else
and worked as a journalist and broadcaster.
Contribution
Sonita’s background in communications and journalism
brings a different perspective to the Board. She has
strong leadership, commercial and strategic skills.
Her public sector roles have contributed to her sound
governance, compliance and regulatory skills. This,
and her environmental, social and governance (ESG)
experience, enables her to effectively chair the
Responsible Business Committee. Sonita also fulfils the
role of designated non-executive for colleague matters.
External appointments
– Master of Jesus College, Cambridge
Laura Harricks
Independent Non-executive Director
A
N
R
RB
Pronoun: She/Her
Appointment date: 1 June 2023
Skills and experience
Laura brings a deep experience of developing
omnichannel customer journeys that drive engagement
and commercial return, with a background in
e-commerce, marketing, and strategy consulting.
Laura is currently the Chief Customer Officer for
Ocado Retail and previously held roles as Digital
Director at Monsoon Accessorize and a number of
roles at Dixons Carphone, most latterly Online Trading
and Marketing Director for Carphone Warehouse.
Laura started her career at L.E.K. Consulting and
holds a Bachelor of Engineering and Bachelor
of Arts from the University of Sydney.
Contribution
Being the most recently appointed member of the
Board and without an extensive non-executive
career, Laura has a fresh perspective. Her customer
focus, combined with strategic, e-commerce,
commercial, and marketing acumen, brings valuable
insight to the Board. Laura also fulfils the role of
the Company’s Consumer Duty Champion.
External appointments
– Chief Customer Officer of Ocado Retail Ltd
Mike Iddon
Independent Non-executive Director
A
N
R
RB
Pronoun: He/Him
Appointment date: 23 March 2021
Skills and experience
Mike has extensive public listed company experience,
having held a number of senior finance roles
throughout his career, and has been the Chief Financial
Officer of Pets at Home Group plc since 2016.
Mike was previously the Chief Financial Officer of
New Look from 2014 to 2016, and prior to this he
held a number of senior finance roles over 13 years
for Tesco plc both in the UK and overseas. These
roles included Group Planning, Tax and Treasury
Director, UK Finance Director and Chief Financial
Officer of Tesco Homeplus (South Korea).
Mike has also held senior roles with Kingfisher
plc and Whitbread plc. Mike is a Chartered
Accountant and a graduate of the Harvard
Advanced Management Programme.
Contribution
Mike’s significant experience as an executive of public
listed companies, along with his strong strategic
and commercial acumen, change management,
and current retail experience are a valuable asset
to the Board. His financial acumen, leadership, risk
management, and governance, compliance and
regulatory experience are advantageous for his
role as Chair of the Audit and Risk Committee.
External appointments
– Chief Financial Officer of Pets at Home Group plc
Wickes Group Plc Annual Report and Accounts 202481 Strategic report Governance Financial statements Other information
Board of Directors continued
Board
leadership
and Company
purpose
Wickes culture, values and purpose
The Board has set a clear purpose to ‘help the
nation feel house proud’ and this is delivered
through our business model, culture, values and
standards. The Board is responsible for setting the
Company’s culture, values and standards and for
their ongoing review. It recognises the importance
of having an engaged workforce in which all
colleagues have the freedom to be themselves
when they are at work and are encouraged to
welcome new people and ideas. The special
culture at Wickes is built on a foundation of
personal responsibility and underpinned by our
values which we call our Winning Behaviours.
Key to achieving the desired culture is setting
the right tone from the top. Each of the Directors
undertakes to conduct themselves in a manner
consistent with our Winning Behaviours, acting
with integrity and leading by example. Our
Winning Behaviours are a simple yet deeply
held set of values that we ask all colleagues
to demonstrate, which underpin our business
model and support our culture through guiding
the decisions and choices we make.
The Board actively monitors culture through regular
feedback from management, colleague listening
groups and the results of colleague surveys. In
addition, a number of Board meetings are held at
store and distribution sites during which time is
allocated to allow the Board to hear from
colleagues first-hand.
The Board, the Responsible Business Committee
and the Remuneration Committee receive reports
on colleague engagement, wellbeing, reward and
turnover, as well as recruitment, whistleblowing and
updates covering the Company’s six inclusion and
diversity colleague networks.
In addition to chairing the Responsible Business
Committee, Sonita Alleyne is our designated
Non-executive Director to champion workforce
engagement on behalf of the Board and regularly
provides feedback from colleagues and insights at
the Board meetings to ensure colleagues’ views are
fully considered in the Board’s decision making.
Further details can be found in the S172
stakeholder engagement section on page 88.
Our Code of Business Ethics sets out the
standards and behaviours expected from
colleagues and all colleagues receive training
on this annually. It sets the tone for responsible
business behaviour and legal compliance,
and directs colleagues to Company policies
and other support services for guidance.
Role of the Board
The Board is responsible for promoting the long
term sustainable success of the Company,
generating value for Shareholders and contributing
to wider society. It has ultimate responsibility for
the direction and governance of the Company,
taking into account the opportunities and risks to
the future success of the business.
The effective operation of the Board is supported
by the collective skills and experience of the
Directors. The diverse experience and views of
Board members enables the Board to consider a
range of perspectives and make decisions in a
balanced way through independent thought and
constructive debate. The Board dynamic supports
open and honest conversations, which ensures that
decisions are made with full consideration of the
impact on all stakeholders. You can find
information about our Directors and the skills and
experience they bring to the Company on pages
80-81 and in the skills matrix on 83.
The Board is passionate about ensuring that, as the
business grows, we do so responsibly and in a way
that benefits all our stakeholders. This is embedded
in our business strategy and articulated in our
Responsible Business Strategy, ‘Built to Last’. We
have a clear framework to win, which is guided by
our purpose – to ‘help the nation feel house proud’
and our Winning Behaviours. Our purpose and
values are at the core of the Board’s discussion,
decision making and strategy.
The Board sets the strategy and ensures it aligns
with the purpose and values and that the business
is resourced appropriately to deliver the strategy. It
does so through shaping a culture that drives the
behaviours we want to see and overseeing that the
culture is maintained.
Elements of the business strategy are discussed at
every meeting and an annual strategy event is held
to review and develop our strategic plans.
Responsibility for developing and implementing
strategy rests with the Chief Executive Officer, who
is supported by the Executive Board.
At the strategy event in June 2024, the Executive
Board presented updates on the achievements and
future plans in relation to the business growth
drivers along with a deep dive on the underlying
drivers of profitability and a range of opportunities
to enhance our strategy. The Board challenged
management on, amongst other things, the number
and prioritisation of initiatives, opportunities for
growth through home energy solutions, and the
opportunities and risks presented by developing
and future trends. A number of topics for further
discussion were identified and it was agreed that
these would be built into the Board agenda.
The opportunities for, and the risks to the future
success of, the business are carefully considered.
Key opportunities are set out throughout the
Strategic report on pages 2-69 and principal risks
and uncertainties can be found on pages 70-75.
The Board requires management to operate
a robust control framework, which enables
risk to be assessed and managed and, with
support from the Audit and Risk Committee, the
Board reviews the framework’s effectiveness
on an annual basis. You can find information
about our internal controls framework and the
assessment of its effectiveness on page 103.
The Board has implemented a governance
framework and Group Delegation of Authority
Policy to ensure that an appropriate level of
oversight is given to material matters. It has
adopted a formal schedule of matters reserved to it,
which sets out the significant matters of focus for
the Board due to their strategic, financial or
reputational importance. This schedule is available
on the Company’s website www.wickesplc.co.uk.
You can find more detail on the activities of the
Board on pages 84-85.
In line with the UK Corporate Governance Code,
the Board places significant importance on
the appropriate governance of the Company,
discharging its responsibilities not only
through its own activities, but also through
Committees of the Board – the Audit and
Risk Committee; Nominations Committee;
Remuneration Committee and Responsible
Business Committee. You can find more details
on these Committees on pages 92-117.
Wickes Group Plc Annual Report and Accounts 202482 Strategic report Governance Financial statements Other information
Board of Directors continued
The Board recognises that it needs the right mix of
skills and experience as well as individual
perspectives and thinking styles which come from
the Directors’ varied backgrounds to enable rich
and effective discussions and decision making. As
demonstrated by the Directors’ biographies on
pages 80-81 our Board members together form a
diverse and effective team.
Christopher
Rogers
David
Wood
Mark
George
Mark
Clare
Sonita
Alleyne
Laura
Harricks
Mike
Iddon
Average
Leadership
5
5
4
5
5
5
4
4.7
Strategic planning
5
5
4
5
4
5
5
4.7
Managing and leading growth
4
5
4
5
4
5
4
4.4
Business development
4
5
4
4
5
5
4
4.4
Financial management & strategy
5
4
5
5
4
3
5
4.4
Risk management
4
4
4
4
4
3
4
3.9
Customer experience
4
5
3
4
4
5
3
4.0
Marketing & communications
3
5
3
4
4
5
3
3.9
Supply chain/Logistics
3
4
3
2
3
4
4
3.3
Operations
3
4
3
3
4
4
3
3.4
Data analytics
3
4
4
3
2
4
4
3.4
Technology/IT
3
3
2
4
3
4
3
3.1
Cyber security
2
3
2
4
2
3
3
2.7
AI
2
3
3
3
3
3
3
2.9
HR/Human capital
3
5
3
4
4
4
3
3.7
ESG/Sustainability
2
3
4
4
4
3
4
3.4
Governance
5
4
4
5
5
3
4
4.3
Regulatory & compliance
4
4
4
4
4
3
4
3.9
M&A
4
4
4
4
4
2
5
3.9
Industry experience
4
5
4
3
4
4
5
4.1
Board of Director experience
5
4
4
5
5
2
5
4.3
The scoring in the skills and experience matrix is based on self-assessment by the Board using a third party application, BoardClic. Board
members were asked to assess their own skill levels against a list of relevant competencies aligned with Wickes organisational goals, using a
1-5 scale (1 = Novice, 5 = Expert) to gauge proficiency.
Meetings of the Board and its Committees
The Board has eight formal meetings scheduled
each year and an annual offsite strategy day.
Additional meetings are held as required to
consider time-sensitive matters such as trading
updates for release to the market and to approve
matters that are reserved for Board decision.
The number of scheduled meetings of the Board
and its Committees during the year is set out below.
Directors are expected to attend all Board and
relevant Committee meetings. All meetings were
held in person and there was full attendance by all
members at all Board and Committee meetings
during the year.
In the event of a Director being unable to attend a
Board or Committee meeting, a process has been
agreed for the Chair of the respective meeting to
discuss the matters proposed with the Director
concerned in advance, seeking their feedback and
questions. The Chair will subsequently represent
those views at the meeting and reports back to the
Director concerned on the discussion and
outcomes.
Agendas are structured to ensure appropriate time
is spent on key areas of focus for the Board and
that it has sufficient time to properly consider and
reach decisions. A programme of work and
priorities is agreed with the Board each year that
forms the basis of the agenda for each meeting,
with topical matters and matters of particular
concern or interest incorporated as required.
The focus of the Board during 2024 was on
monitoring the performance of the business
against the backdrop of continuing economic
uncertainty, developing strategy around our growth
levers and discussing strategic options for future
growth. A summary of the key matters considered
by the Board in 2024 is set out on pages 84-85.
Board attendance at scheduled meetings
Plc Board
4
Audit
and Risk
Committee
Nominations
Committee
Remuneration
Committee
Responsible
Business
Committee
Christopher Rogers
1
Chair of the Board 9/9 n/a 3/3 4/4 5/5
David Wood
2
Chief Executive Officer 9/9 n/a n/a n/a n/a
Mark George
3
Chief Financial Officer 9/9 n/a n/a n/a n/a
Mark Clare Non-executive Director 9/9 5/5 3/3 4/4 5/5
Sonita Alleyne Non-executive Director 9/9 5/5 3/3 4/4 5/5
Laura Harricks Non-executive Director 9/9 5/5 3/3 4/4 5/5
Mike Iddon Non-executive Director
9/9 5/5 3/3 4/4 5/5
1 The Chair of the Board has a standing invitation for all Audit and Risk Committee meetings and attended all meetings.
2 The Chief Executive Officer has a standing invitation for all Audit and Risk and Responsible Business Committee meetings and attended all
meetings. The CEO attended Remuneration and Nominations Committee meetings when requested by the Committees.
3 The Chief Financial Officer has a standing invitation for all Audit and Risk and Responsible Business Committee meetings and attended all
meetings. The CFO attended Remuneration Committee meetings when requested by the Committee.
4 Scheduled meetings including the strategy day.
The skills and experience matrix below shows the
competencies, expertise and experience of Board
members within Wickes. Based on the assessment
completed, the Board considers that it has the
appropriate range of skills to govern effectively,
align with strategy and respond to challenges. For
further information on Board skills and experience,
see page 93 in the Nominations Committee report.
Board skills andexperience
Wickes Group Plc Annual Report and Accounts 202483 Strategic report Governance Financial statements Other information
Board of Directors continued
Board activities
for the year ended
28 December 2024
Business performance and strategy Financial performance
Stakeholder groups
Stakeholder groups
Principal risks
A
B
C
D
E
F
G
H
I
J
K
L
Principal risks
F
J
Strategic growth levers
1
2
3
4
5
6
7
Strategic growth levers
1
2
3
4
5
6
CEO report
At each Board meeting, the CEO led discussions covering all
aspects of performance and progress on key topics including
market developments; colleague feedback and engagement;
customer service and insight; marketing activity; commercial and
supply chain activity; operational performance; new store openings
and store refits; and community and charity projects.
Customer proposition
The Board conducted comprehensive reviews of the customer
proposition, including key insight data on performance statistics,
updates on projects to improve customer experience and using
data to improve customer outcomes.
Commercial and supply chain
The Board evaluated the Group’s commercial strategy and supply
chain risk. The Board also visited a key strategic logistics supplier
where it met with the team and got a first-hand view of its
operations and capabilities, and the impact of new technologies.
Technology
The Board carried out a detailed review of the progress against
plans to improve the Group’s underlying IT infrastructure and
capabilities, as well as considering proposals for development over
the next five years.
Property
The Board reviewed developments in the property market,
approved a proactive property strategy and approved the
acquisition of the leases for four Homebase sites.
Solar Fast
The Board considered options for entering the solar market and
approved the acquisition of a majority stake in the Solar Fast
business, enabling Wickes to expand its offering in the fast-growing
market for home energy solutions.
Strategy review
In addition to regular discussions at each meeting, the Board had a
day dedicated to reviewing and developing strategy.
At the strategy day, the Board discussed the economic backdrop,
customer and competitor behaviour and opportunities to grow the
business, including new propositions, sustainability and the
development of the physical estate.
CFO report
The CFO led discussions at every meeting on financial
performance including risks and opportunities, and the financial
impacts of the changing macroeconomic environment during the
year.
Results and outlook
On the recommendation of the Audit and Risk Committee, the
Board reviewed and approved the full year 2023 and interim 2024
results announcement, and 2023 Annual Report and Accounts,
having considered that the Annual Report and Accounts, taken as a
whole, was fair, balanced and understandable.
Budget and financial plans
At each meeting, the Board considered performance against the
2024 budget and updated forecasts. The Board reviewed a detailed
analysis on the creation of value in each area of the business and
the interdependencies between areas and also reviewed and
approved the budget for 2025 and the Five-Year Plan.
Investor relations
The Board received updates on Investor Relations activities and
plans and feedback from investor engagement at every meeting.
The Board approved the appointment of a new joint broker and an
investor event to showcase TradePro insights.
Treasury and tax
The Board received regular updates on tax and treasury matters,
and reviewed and approved the Company’s Tax Strategy and
Treasury Policy.
Dividend and capital allocation policies
The Board reviewed the Company’s Capital Allocation Policy and
approved the second tranche of the Company’s first buyback
programme. The Board also recommended a final dividend of 7.3
pence per share for the 2023 financial year to Shareholders, which
was approved at the 2024 AGM and paid on 6 June 2024, and
approved the payment of an interim dividend of 3.6 pence per share
which was paid on 8 November 2024.
Stakeholder groups
Colleagues
Customers
Suppliers
Installers
Communities
Shareholders
Government and regulators
Strategic growth levers
1
Winning for trade
2
Accelerating Design & Installation
3
DIY category wins
4
Store investment
5
Digital capability
6
Enhanced store service model
7
A winning culture
Principal risks
A
Cyber and data security
B
Business change
C
Brand integrity and reputation
D
Regulatory and legal compliance
E
IT operations
F
Growth strategy
G
Climate change
H
People and safety
I
Commercial and supply chain
J
Financial management
K
Customer experience
L
Stores, distribution and installations
Wickes Group Plc Annual Report and Accounts 202484 Strategic report Governance Financial statements Other information
Board of Directors continued
Risk management Governance, regulatory and compliance Material contracts and arrangements
Stakeholder groups
Stakeholder groups Stakeholder groups
Strategic growth levers
1
2
3
4
5
6
7
Strategic growth levers
7
Strategic growth levers
1
3
Risk register
The Board reviewed the Risk Register and approved the reporting
on the principal risks and uncertainties for the 2023 full year and
2024 interim results.
Cyber
The Board had detailed discussions on the cyber risks facing the
business and the mitigations in place, which included an overview
of the key controls and progress updates against the actions from
a cyber security internal audit and external cyber posture
assessment.
Generative AI
The Board received briefings on new AI technologies, considered
the risks and opportunities presented by generative AI and
reviewed the Group’s policy and approach for the governance of
generative AI.
Safety
The Board considered reports on safety performance at every
meeting and conducted safety deep dives at two of its meetings to
evaluate progress and provide insight and challenge.
TCFD
On the recommendation of the Responsible Business Committee,
the Board reviewed and approved the Group’s response to the Task
Force on Climate-related Financial Disclosures, including the
Group’s approach to managing climate-related risks.
Insurance
The Board reviewed the approach for insuring the Group’s risks and
approved the renewal of the Group’s insurance programme.
Policies and statements
The Board approved updates to a number of Group policies,
including Significant and Related Party Transactions. It also
approved the Group’s Modern Slavery Statement and reviewed the
Company’s first Consumer Duty Report in compliance with the new
FCA Consumer Duty regulations.
Terms of reference
The Board reviewed and approved amendments to the Terms of
Reference for each of its Committees.
Board performance evaluation
The Board reviewed and discussed the findings from its internal
Board performance evaluation and agreed actions to improve the
effectiveness of the Board and its Committees. Progress with the
action plan from the 2023 Board performance evaluation was also
reviewed.
Planning
The Board reviewed the forward schedule of activities at every
meeting and discussed options for future operational site visits.
Colleague voice
The Board received an update from the designated Non-executive
Director champion for workforce engagement, Sonita Alleyne, on
the themes arising from her listening activities and review of
colleague engagement insight.
Compliance
The Board received reports on legal and regulatory compliance
including the operation of, and reports made to the Company’s
anonymous whistleblowing service.
Contract approvals
In line with the Group Delegation of Authority Policy, the Board
reviewed and approved two Goods for Resale contracts and a
regear of a Distribution Centre lease, which were material contracts
due to their size and strategic importance.
Banking facilities
The Board approved an amended and extended £80m revolving
credit facility.
Percentage of time spent by the Board in scheduled meetings
The chart below sets out the proportion of time spent on key activities
by the Board.
Principal risks
A
B
C
D
E
F
G
H
I
J
K
L
Principal risks
A
D
Principal risks
D
J
Financial
performance
and risk
25%
Governance and
stakeholder matters
16%
Operations
17%
Strategy
42%
Wickes Group Plc Annual Report and Accounts 202485 Strategic report Governance Financial statements Other information
Board of Directors continued
Meetings of the Non-executive Directors
The Chair of the Board meets with the Non-
executive Directors without the Executive Directors
present after each Board meeting and at other
times as required. The Chair of the Board and the
Chairs of each Committee also meet regularly with
the Executive Directors and members of senior
management.
The Senior Independent Director and Non-
executive Directors (excluding the Chair of the
Board) meet from time to time and specifically on
an annual basis to assess the Chair of the Board’s
performance.
Independence
Over half of the Board’s members, excluding the
Chair of the Board, are independent Non-executive
Directors. The Chair of the Board was assessed to
be independent on appointment. Relationships and
circumstances which could affect the
independence of any Director are reviewed annually
and the Board remains satisfied that all Non-
executive Directors remain independent.
External appointments
Before appointment to the Board, all Directors are
required to disclose any external roles they hold
along with the estimated associated time
commitment. The competing demands on
candidates’ time are carefully considered in the
selection process. Appointment letters set out the
time commitment expected of each Director. The
significant external appointments of current
Directors are set out in the biographical details on
pages 80-81.
The Board has an Additional External
Appointments Policy and process in place for the
consideration and, if appropriate, approval of
additional external appointments to ensure that
each Director continues to have sufficient time to
exercise their duties effectively. Appointments
must be approved by the Board in advance.
Executive Directors are not permitted to take on
more than one Non-executive Directorship or other
significant appointment.
The Nominations Committee reviews annually the
external time commitments of the Chair of the
Board and the Non-executive Directors.
Governance support
All Directors have direct access to the General
Counsel and Company Secretary for advice on legal
and governance matters. Directors may also seek
independent professional advice at the Company’s
expense in the furtherance of their duties and there
is an Independent Professional Advice Policy in
place which sets out the procedure. No such
requests were made during the year. The General
Counsel and Company Secretary supports the
Board to ensure that it has the policies, processes,
information, time and resources it needs in order to
function effectively and efficiently.
Policies and procedures
The Board has approved a suite of policies,
summarised in our Code of Business Ethics, which
establish a robust system of control and oversight
in matters of ethics and compliance. This is
supported by mandatory training for all colleagues,
appropriate to their role. The Executive Board
oversees the day-to-day operation of these policies
and related procedures and ensures they are
embedded across the business.
Both the Executive Board and the Board have
oversight and receive reports on compliance with
policies and procedures at least twice a year.
Should a breach of any of these policies occur,
there is a robust incident response procedure in
place and any material issues are escalated to the
Executive Board and, if appropriate, the Board.
During the year, the Board reviewed and approved
updates to existing policies including the
Significant Transactions and Related Party
Transactions policies to align with the changes to
the UK Listing Rules and also to the EBT Funding
Policy. Other policies that require Board approval
were reviewed during the year, but no changes were
required, including Anti-bribery & Corruption,
Whistleblowing and the Company’s Code of
Business Ethics.
Conflicts of interest
The Company has a Conflicts of Interest Policy in
place and all colleagues receive online mandatory
annual training in this area. All Directors are
required to raise any actual or potential conflicts of
interest for consideration and, if appropriate,
authorisation. At every meeting, Directors are asked
whether there are any new potential conflicts of
interest to declare in relation to the matters on the
agenda. Where such conflicts exist, Directors
would be excused from related discussion and
decision making. To date, no such instance has
occurred.
A register of interests and authorised potential or
actual conflicts is maintained and this is reviewed
annually by the Board, with each Director asked to
confirm that the register is accurate and up to date.
Whistleblowing
The Company’s Whistleblowing Policy is reviewed
annually and any updates are approved by the
Board. Colleagues and others are encouraged and
empowered to speak up openly and raise any
concerns through management or directly to the
Board. Should colleagues or third parties feel the
need to raise concerns which cannot be resolved
through the normal routes of line or executive
management, the Company has implemented a
third party anonymous online whistleblowing
platform, telephone line and mobile phone app
through which concerns can be raised in
confidence. Information about the whistleblowing
service is widely publicised across all sites, referred
to in policies and included in our monthly colleague
communications. Third parties are also
encouraged to use the service and details are
published in our Supplier Code of Conduct and on
our supplier portal.
We had a small number of reports made through
the whistleblowing service during the year, all of
which were fully investigated to conclusion.
Concerns raised related to suspected theft, fraud,
conflicts of interest, management issues and
breaches of policy. Appropriate actions were taken
in each case following the relevant investigation.
The Board monitors the operation of the
whistleblowing arrangements and receives reports
twice a year on notable outcomes and learnings
from reports. Any reports of a serious or time
critical nature are escalated to the Executive Board
and/or Board as appropriate and in a timely
manner.
Director concerns
Should a Director have concerns about the
operation of the Board or the management of the
Company, these concerns would be discussed by
the Board. If any concerns remained unresolved,
they would be recorded in the Board minutes. No
such concerns were raised during the year.
Wickes Group Plc Annual Report and Accounts 202486 Strategic report Governance Financial statements Other information
Board of Directors continued
Section 172 –
Promoting the
success of the
Company
Section 172 of the Companies Act 2006 requires
the Directors to promote the long term success of
the Company for the benefit of its members as a
whole, having strong regard to our stakeholders
when making decisions, and seeking to conduct
business responsibly, including reducing our
environmental impact. The differing interests of
stakeholders are considered in the business
decisions we make at all levels across the business
and these decisions are guided by our culture and
purpose and by the Board setting the right tone
from the top.
Our stakeholders have an important role to play in
the success of our business and throughout our
Strategic report you can see how our decisions and
actions have been influenced by our stakeholders.
In this section we describe how the Board has
factored section 172 considerations into decision
making.
During the year, the Board continued to act in an
agile way in responding to the uncertain economic
environment, continued cost of living challenges
and significant inflation, and considering the
effects these have on our stakeholders.
Board decision making is supported by our structured governance framework, which includes regular
Board meetings, as well as having clear policies and authority levels in place for management. The Board
ensures that it receives quality information, including views from stakeholders, to inform decision making.
The Board has approved a suite of policies which establish a robust system of control and oversight. All
Directors are provided with ongoing guidance covering regulatory requirements of their role including the
importance of considering stakeholder views in line with S172. The main activities of the Board during the
year are set out on pages 84-85.
The Board, having considered the matters set out in section 172(1)(a) to (f) of the Companies Act 2006
(S172), confirms, in good faith, that the Directors have acted in a way that they consider would most likely
promote the success of the Company for the benefit of its members as a whole.
Section 172 duties
Examples of how the Directors have undertaken their section 172 duties and have had regard for these
matters when making decisions are included throughout this Annual Report:
a) the likely consequences of any
decision in the long term
Strategy and business model
Principal risks and uncertainties
Financial review
Stakeholder case studies
Pages 16-23
Pages 70-75
Pages 26-29
Page 90
b) the interests of the company’s
employees
People strategy
Responsible Business Strategy
Principal risks and uncertainties
Stakeholder case studies
Director’s report
Directors’ Remuneration report
Pages 34-39
Pages 31-32
Pages 70-75
Page 90
Pages 118-120
Pages 106-117
c) the need to foster the company’s
business relationships with
suppliers, customers and others
Strategy and business model
Responsible Business Strategy
Principal risks and uncertainties
Stakeholder case studies
Pages 16-23
Pages 31-32
Pages 70-75
Page 90
d) the impact of the company’s
operations on the community
and the environment
Responsible Business Strategy
TCFD disclosure
Responsible Business Committee report
Pages 31-32
Pages 53-65
Pages 104-105
e) the desirability of the company
maintaining a reputation for high
standards of business conduct
Strategy and business model
Responsible Business strategy
Responsible Business Committee report
Board leadership and Company purpose
Whistleblowing
Pages 16-23
Pages 31-32
Pages 104-105
Pages 82-86
Page 86
f) the need to act fairly as between
members of the company
Strategy and business model
Board activities
Pages 16-23
Pages 84-85
Engaging with stakeholders
Engagement with stakeholders plays an important
role in ensuring that the Board fully understands
stakeholder views and makes well-informed
decisions that consider different priorities and are
fair and consistent. The Board, its Committees and
management have a programme of active
engagement with, and encourage participation
from, the Company’s stakeholders.
By understanding each stakeholder group and
what they care about, and considering their
perspectives, it enables more meaningful
relationships to be built so the Company and the
Board can ensure that all views are taken into
account in reaching conclusions that will create
value for the long term. The Board recognises that
not every decision will benefit all stakeholders, and
inevitably trade-offs may have to be made between
stakeholder groups from time to time. Where
possible and relevant, decisions are carefully
discussed with affected groups to ensure they are
fully understood and supported when taken. Such
considerations ensure the business is making
decisions with a longer term view in mind and with
the long term success of the business at its core.
The needs and views of our stakeholders are also
considered by colleagues and leaders throughout
the business, which helps us make good decisions
at all levels.
Details of our key stakeholders, how they link with
our strategy and how we engage with them are set
out in the following pages.
Wickes Group Plc Annual Report and Accounts 202487 Strategic report Governance Financial statements Other information
Board of Directors continued
Colleagues
We provide a great place to work with a special
culture where colleagues feel at home and can
bring their true authentic self to work. We value the
different perspectives that our inclusive and diverse
workforce bring. We prioritise the health and
wellbeing of our colleagues, provide development
opportunities to enable colleagues to build their
skills and careers, and create an environment
where colleagues feel recognised and rewarded for
the work they do.
Business model & strategy link
Our passionate and engaged colleagues along with our
winning culture are key to the delivery of our strategy and
our purpose – to ‘help the nation feel house proud’. The
business ensures that colleagues feel supported and
valued, and have the tools to succeed.
How we engage & outcomes
Day-to-day engagement
– We carry out a number of colleague surveys across the
course of each year including two on colleague
engagement, as well as inclusion and diversity and
subject specific surveys.
– There is a regular rhythm of internal communications
including in-person and webcast monthly briefings,
newsletters and face-to-face briefings (‘team 5’).
– We host a number of listening groups including ‘Ask the
Exec’ meetings and subject specific groups on topical
issues of importance to colleagues.
Board engagement
– The Board receives updates on colleague engagement
KPIs at each Board meeting, including outcomes of
surveys and action plans and reports from colleague-
led networks.
– We have appointed a designated Non-executive Director
champion for the workforce, Sonita Alleyne, who
undertook a number of additional activities during the
year to support the Board, including chairing colleague
listening groups, and discussing the results of colleague
surveys and other colleague feedback with the Chief
Executive Officer and Chief People Officer.
– The Board values the opportunity to meet colleagues
from across the business and undertakes a number of
site visits, both organised group visits and individual
Board engagement
– The Board regularly reviews detailed insight reporting
on customer sentiment and satisfaction and has the
opportunity to join customer focus groups.
– Customer listening groups, surveys and data analysis
are used by the Board to understand customer views
and act on what is most important to deliver the best
possible customer experience.
Outcomes
– Continued investment in our Customer Experience
Centre.
– New payment options were introduced online, including
Clearpay, to provide further choice to customers.
– Development of our customer offer, including
increasing the number of TradePro rewards partners
and developing our B2B proposition.
Suppliers
The business places great importance on ensuring
suppliers are treated fairly. This is a key aspect of
nurturing relationships and our suppliers welcome
our collaborative approach to developing long term
partnerships based on trust. These relationships
enable us to provide a great offer and service to our
customers and are a great platform to build
capability and create value that can be shared.
Business model & strategy link
Having strong relationships with our suppliers to ensure
that we offer quality products and services at a
competitive price with good availability underpins our
three customer propositions.
How we engage & outcomes
Day-to-day engagement
– We hold regular supplier events including twice-yearly
supplier conferences and a charity dinner.
– The Category teams have regular meetings with their
supply partners to discuss a broad range of matters,
including the development of new products and
services, and the monitoring of ethical standards.
visits, to gain views of colleagues first-hand. During the
year, the Board visited the Slough store, where they met
the colleagues and received presentations from
management. The Board also regularly meets
colleagues at the Store Support Centre, where a number
of Board and Committee meetings are held.
Outcomes
– A high score of 7.7 out of 10 on overall colleague
engagement was achieved again this year in the annual
colleague survey.
– We achieved continued high levels of colleague
retention for the retail sector, with voluntary colleague
turnover of 22.6%.
– A payroll savings facility was launched for colleagues in
the year to enable easy access to regular savings in
response to the feedback from colleagues on the cost
of living.
– Our men’s and women’s health support offering was
extended through the Company’s partnership with
Peppy and a new Menopause Policy was approved.
More information on colleague engagement can be found
in the Strategic report on pages 34-39.
Customers
We help our customers create their perfect home
and feel house proud however they choose to
undertake their home improvement project.
Business model & strategy link
With our vision of a Wickes project in every home and our
mission to be the partner of choice for home improvers
and local trade, customers are at the heart of our business.
Having a compelling customer proposition and delivering
exceptional customer experience are key to achieving our
growth levers.
How we engage & outcomes
Day-to-day engagement
– We closely monitor consumer confidence and customer
satisfaction across all channels through surveys and
focus groups. A monthly management meeting is
dedicated to the customer proposition.
– We aim to deal with customer feedback and complaints
in a timely manner and take learnings from any issues
raised to improve our service for future customers.
Board engagement
– The Board schedule includes visits to at least one key
strategic supplier each year. During the year, the Board
visited one of the Company’s strategic delivery partners
where it met with the team and experienced the
operation first-hand.
– The Board receives regular updates on commercial
strategy and supplier feedback.
Outcomes
– We have continued longevity of supplier relationships,
with 80% of top suppliers (categorised by spend) having
a relationship with the business of 10+ years.
– We launched our Supplier Code of Conduct and updated
and relaunched a Supplier Manual.
Installers
We recognise the important role that our installers
play as a key partner in delivering our customer
proposition. We work closely with our installers and
our model enables them to focus on installations
and gives them opportunities to grow their
business.
Business model & strategy link
Our specialist installation model provides a full package
for customers to achieve their dream kitchen and
bathroom with the peace of mind of having a two-year
workmanship guarantee.
How we engage & outcomes
Day-to-day engagement
– Our Field Operations teams work closely with our
installers to oversee the delivery of customer projects
and provide installers with any support they need.
– Our Customer Experience Centre agents liaise between
customers and installers to enable installers to focus on
the job in hand.
Board engagement
– The Board receives regular reports on installation
performance and feedback from installers.
Outcomes
– Further development of our Field Services Management
System to streamline interactions between the
business and installers.
– Updated and relaunched our installer contract and
refreshed our ways of working.
Wickes Group Plc Annual Report and Accounts 202488 Strategic report Governance Financial statements Other information
Board of Directors continued
– The Board monitors the Shareholder register and
receives regular reports on Investor Relations activities
and feedback from Shareholder engagement including
proxy advisor reports and voting on AGM resolutions.
Following year end and half year, the Board received a
detailed presentation covering Shareholder feedback
from the investor roadshows. The Board noted the
questions and issues raised by Shareholders and
ensured that communications to the market addressed
these.
– The Board encourages Shareholder attendance and
participation at the Company’s AGM, at which all
Directors and Committee Chairs are available to answer
questions. The Notice of the AGM is published well in
advance of the meeting taking place in accordance with
governance best practice. The Board intends the 2025
AGM to be held as a physical meeting at the Company’s
Support Centre in Watford, Hertfordshire.
Outcomes
– At the 2024 AGM held on 24 May 2024, all resolutions
put to Shareholders were approved, with in excess of
91% of votes in favour for all resolutions. Shareholders
were invited to submit questions in advance and could
also raise questions during the AGM. No questions were
raised.
– The Remuneration Committee Chair’s engagement with
Shareholders in relation to the Committee’s proposal to
amend the Company’s Remuneration Policy provided
useful feedback, which was used to shape the
proposals that were put to Shareholders at the 2024
AGM where the Remuneration Policy received 93.7% of
votes in favour.
– Positive feedback from investor roadshows.
– Capital allocation policy reapproved, including
maintaining the combined interim and final dividend for
the 2024 year at 10.9 pence per share.
Government
and regulators
Our primary relationship with government and
regulators is one of compliance and reporting.
Business model & strategy link
Operating in a safe and ethical way and complying with
laws and regulations that apply to our business gives us a
licence to operate.
How we engage & outcomes
Day-to-day engagement
– We engage through a range of industry consultations,
forums, meetings and conferences to communicate our
views to policy makers relevant to our business.
– Through our membership of the British Retail
Consortium, we contribute to various initiatives and
working groups.
– We work in partnership with our primary authority to
address any concerns raised by consumers and
improve our policies and processes.
– We respond to enquiries from regulators.
Board engagement
The Board monitors the Group’s compliance with laws and
regulations and receives regular updates on legal and
regulatory developments.
Outcomes
During the year we engaged collaboratively with a number
of regulators including our primary authority and the ICO
and we also responded to merger control enquiries.
Communities
and the environment
We are committed to growing responsibly. We
deliver this by maximising our positive impact on
communities, supporting the causes that matter to
our colleagues and customers, reducing our
environmental impacts, and recognising
stakeholders without a voice.
Business model & strategy link
Our Responsible Business Strategy which focuses on our
key areas of impact (People, the Environment and Homes)
is embedded into our strategy and supports our corporate
purpose.
How we engage & outcomes
Day-to-day engagement
– Our in-house Community and Charity team and charity
committee work closely with our corporate charity to
coordinate fundraising events and meet targets.
– Individual stores build relationships with local
community groups through supporting local
community projects.
– Our operational and commercial teams identify
opportunities to reduce waste, energy and carbon
emissions from our direct activities and with our key
suppliers.
Board engagement
– The Board receives regular updates on charity and
community initiatives and progress towards charity and
community project targets, including an annual
expenditure and donation report.
– Through the Responsible Business Committee, the
Board oversees the development of and performance
against our Responsible Business Strategy including
our decarbonisation plan.
Outcomes
– Over £0.9 million was raised for The Brain Tumour
Charity in 2024, bringing the total for our two-year
partnership to date to £1.6 million.
– 2,156 local community projects were supported in 2024
through product donations and colleague volunteering.
– Improved our environmental data and reporting, and
prepared our SBT rebaselining application to the
Science Based Targets initiative (SBTi).
Shareholders
We build Shareholders’ trust through proactive and
relevant engagement to secure their ongoing
investment and support. Our Capital Allocation
Policy reflects our confidence in the Company’s
strategy and business model.
Business model & strategy link
By focusing on increasing our market share, driving
profitable growth with strong cash generation and growing
the business responsibly in line with our strategy, we
create long term and sustainable growth and returns for
our Shareholders.
How we engage & outcomes
Day-to-day engagement
– We hold investor roadshows following the publication of
our year end and half year results and host guided store
visits to investors, both of which provide valuable
feedback on shareholder views on the strategy and
performance of the business.
– We regularly update the market with announcements
and presentations on business performance and
provide in-depth briefings on specific areas of interest.
During the year a TradePro Investor Insight event was
held for analysts and investors, providing further detail
around the Group’s TradePro membership scheme, was
hosted by the CEO, CFO and Chief Marketing and Digital
Officer.
– We respond to investor questions, ESG rating surveys
and participate in CDP (formerly known as the Carbon
Disclosure Project) to provide Shareholders with greater
insight into the Company’s approach to managing its
most significant ESG impacts.
Board engagement
– The Executive Board members hold meetings with
existing and potential institutional investors and
analysts to understand their views and policies and
report these to the Board. All Non-executive Board
members are available for meetings with Shareholders
on request and the Chair of the Remuneration
Committee met with a number of Shareholders to
discuss the proposed Remuneration Policy ahead
of the AGM.
Wickes Group Plc Annual Report and Accounts 202489 Strategic report Governance Financial statements Other information
Board of Directors continued
Decision making in action
Acquisition of Solar Fast
Background
In March 2024 Wickes acquired 51% of Gas Fast Limited, a leading solar installations company trading as Solar Fast. The
acquisition enables Wickes to expand its offering into the fast-growing market for home energy solutions, initially with
solar and, in time, other services supporting the acceleration of the Design & Installation growth lever.
Reorganisation of our Design & Installation operation
Background
As part of a strategic review of customer experience, an opportunity was identified to reshape the way in which we service
Design & Installation customers in the initial booking stages of their projects to provide a better customer journey.
Stakeholder considerations Stakeholder considerations
Colleagues
The Board considered the impact to be positive for
colleagues, with the potential for a new area of growth for
the business, opportunities for colleagues to learn about
new products, and increasing the volume of products
and services supporting home energy solutions in our
offer which our colleagues feel positively about. The
Board considered the impact on Solar Fast colleagues
and was satisfied that the Solar Fast management team
had been engaged throughout the process and were
positive about the opportunities the acquisition would
bring for their colleagues.
Customers
The Board recognised that the availability of home
energy solutions is increasingly important to customers.
The Wickes brand has been trusted by home improvers
in the UK for over 50 years and with the Solar Fast
business alongside the existing proposition, Wickes will
be well placed to support customers across the nation
with their home energy projects.
Suppliers
The Board considered that the acquisition by Wickes
would create an opportunity for growth for the solar
product supply chain. It would also provide a new
opportunity to deepen relationships with landlords to
develop the Wickes estate to become more self-
sufficient in relation to the energy usage of the business
and also help landlords meet their plans to decarbonise
and future minimum energy efficiency standards for
commercial leases.
Installers
The Board noted the potential benefit to Solar Fast and
Wickes installers from the growth in the solar installations
business. The Board also recognised that, to access the
growth opportunity, Wickes installers would need further
upskilling and that there was a sector wide risk due to the
limited number of installers with the necessary skills.
Communities and the environment
The Board recognised that the expansion of home
energy solutions would help the business to decarbonise
its estate and help customers with their home energy
solution projects which would be beneficial to the
community and the environment by supporting the
country’s plans to become net zero.
Shareholders
The Board considered the importance of making
investment decisions that support long term growth and
provide new opportunities to increase market share. The
UK market for domestic solar installations is highly
fragmented and is expected to expand significantly as
homeowners and landlords retrofit their properties in
order to save energy costs and reduce their environmental
impact, providing a good return on the investment.
Government and regulators
The Board reviewed the legal and regulatory
requirements of the acquisition of Solar Fast and also the
additional regulatory requirements associated with the
credit broking permissions held by Solar Fast. The Board
recognised that focus would need to be given to
developing compliance processes and oversight to
ensure the Group would continue to meet the regulatory
requirements for credit broking to Solar Fast customers.
Colleagues
The Board considered the varied ways in which
colleagues would be impacted. The proposals would
result in certain roles becoming redundant, affecting
around 500 colleagues, and the creation of around 150
new jobs. The Board noted the arrangements put in place
to support colleagues at risk of redundancy and also that
the colleagues at risk would be able to apply for the new
roles which were at a more senior level and, if successful,
would be provided with training and support to develop
into the new role.
Customers
The Board recognised that this provided an opportunity
to improve customer service. In particular, it was
identified that having the same Design Consultant
dealing with everything from the first point of contact to
the final design and order simplified the journey and
created a better customer experience. In addition, the
Board considered that this would improve
communication and reduce customer issues.
Installers
The Board noted that, in combination with other
initiatives, the reorganisation would streamline the
installation operation which could be a benefit to
installers.
Communities and the environment
The Board recognised that overall there would be a
reduction in the number of roles which would impact
entry-level job opportunities in local communities.
Shareholders
The Board considered the importance of making
investment decisions that support long term growth and
provide new opportunities to increase market share and
reduce costs, therefore making it a more cost efficient
proposition providing a good return on the investment.
Outcome
The Board concluded that the acquisition of Solar Fast would benefit all key stakeholders and would elevate
the Wickes proposition, which would support the growth and profitability of the business.
Outcome
The Board weighed up the trade-offs that needed to be made between stakeholder groups and concluded that the
implementation of the reorganisation would benefit many key stakeholders and would elevate customer experience,
which would support the growth and profitability of the Design & Installation proposition. This decision was made
with the longer term view and success of the business in mind.
Wickes Group Plc Annual Report and Accounts 202490 Strategic report Governance Financial statements Other information
Division of
responsibilities
Board of Directors continued
The Board
The Board is collectively responsible for overall leadership of the business, setting its purpose, values and strategy, and providing a framework of strong governance and effective controls.
There is a formal schedule of matters that require Board approval before any action is taken by management. The schedule of matters is reviewed annually and updated by the Board when necessary.
Audit and Risk Committee
Provides independent and
objective oversight of the
Company’s financial reporting,
systems of internal control, risk
management and compliance, and
the effectiveness of internal
andexternal audit.
Responsible Business Committee
Oversees the development of strategy and monitors
performance in relation to environmental, social and
governance matters.
Disclosure Committee
Oversees the Company’s compliance with its disclosure
obligations in line with the UK Market Abuse Regulation
andUK Listing Rules. The Committee is only convened
whena full Board meeting or an authorised sub-committee
meeting of the Board is not possible.
There have been no meetings of the Disclosure Committee
during 2024 as all disclosure matters have been considered
bythe Board.
Nominations Committee
Reviews the composition and skills
ofthe Board and leads the process
forappointments to the Board and
Executive team; oversees the
processes for succession planning
and the development of a diverse
pipeline.
Chair of the Board
The Chair of the Board’s principal
responsibility is the leadership of the
Board and ensuring its
effectiveness. The Chair of the Board
encourages aculture of openness
and communication between
members ofthe Board, ensures all
Directors contribute to discussions
and promotes constructive debate.
TheChair of the Board ensures
thatDirectors receive accurate and
clear information in a timely manner
toenable them to make informed
contributions and to support good
decision making by the Board.
Chief Executive Officer (CEO)
The Board delegates responsibility
tothe CEO for the development and
implementation of strategy and for
managing the day-to-day operations
of the business. The CEO ensures
appropriate delegation of
responsibilities to the Executive
Board to ensure decisions of the
Board are implemented. The CEO
plays a key role in devising strategies
for review by the Board and is
responsible for updating the Board
onoperations of the business.
Remuneration Committee
Determines the Remuneration Policy
and packages for the Chair of the
Board, Executive Directors and
Executive Board members, having
regard to workforce remuneration
and related policies and the
alignment of incentives and rewards
with culture.
Senior Independent
Non-Executive Director (SID)
The SID provides a sounding board
forthe Chair of the Board and serves
asan intermediary for the other
Directors and Shareholders should
thisbe required.
The SID meets with theNon-executive
Directors at least once a year to
appraise the performance of the
Chairof the Board and on other
occasions as appropriate.
Chief Financial Officer (CFO)
The CFO is responsible for managing
the Group’s financial affairs and the
system of internal controls, including
risk management. The CFO supports
the CEO in the implementation and
achievement of the strategic
objectives and oversees the
Company’s relationship with the
investment community.
The CFO is appointed asthe FCA
approved person for the purposes of
theGroup’s consumer credit activities.
Independent Non-Executive
Directors (INEDs)
The Non-executive Directors bring
independent oversight and provide
strategic advice and guidance, offer
constructive challenge and hold the
Executive Directors to account to
support good decision making by
theBoard.
One of the INEDs is the Designated
Non-executive Director forcolleague
matters, and another INED is the
Designated Non-executive
Consumer Duty Champion.
General Counsel
andCompanySecretary
The General Counsel and Company
Secretary is responsible for advising
the Board on all governance,
compliance and legal matters.
TheGeneral Counsel and Company
Secretary supports the Chair of
theBoard and the independent
Non-executive Directors to ensure
that they have access to the
necessary resources and
information to operate effectively
and efficiently.
Executive Board
The Executive Board supports the CEO to oversee the day-to-day management of the business and in the development, implementation and oversight of the Group’s strategic objectives approved by the Board.
The Company’s strong governance framework is built upon a foundation of clear and effective division of responsibilities between the Board,
itsCommittees and operational management. This provides an effective and robust corporate governance structure to enable agile decision
making with robust controls, which promote the long term and sustainable success of the business.
The responsibilities of the Chair of the Board, CEO, Senior Independent Non-executive Director, Board and its Committees have been approved
bythe Board, are set out in writing and are available on the Company’s website www.wickesplc.co.uk.
Committees of the Board Members of the Board
Reports, recommends, informs
Reviews, challenges, approves
Read more on pages 98-103 Read more on pages 92-97 Read more on pages 106-117
Read more on pages 104-105
Wickes Group Plc Annual Report and Accounts 2024
91 Financial statements Other informationStrategic report Governance
Committee members
Christopher Rogers (Chair)
Non-executive Chair of the Board
Sonita Alleyne
Independent Non-executive Director
Mark Clare
Senior Independent Non-executive Director
Laura Harricks
Independent Non-executive Director
Mike Iddon
Independent Non-executive Director
Nominations Committee report
Dear Shareholder,
I am pleased to present the Nominations
Committee report for the year ended
28 December 2024, which outlines our
approach to the composition, succession
and performance evaluation of the Board.
The Nominations Committee plays a key
role to ensure that the Board has the right
balance of skills, experience and diversity
to provide strong leadership to drive the
long term success of the business.
There were no new appointments made to
the Board during the year and the Committee
continued its focus on succession planning
and driving improvements in diversity
in the talent pipeline. A key focus for the
Committee is to ensure that there is a stable
and high-quality Executive team supported
by a robust pipeline of talent and contingency
plans to support the ongoing leadership of
the business. An additional member was
added to the Executive Board team during
the year to provide additional focus on the
strategically important areas of property
and services and this appointment has also
increased the diversity of the Executive Board.
The Board strongly supports diversity in its
broadest sense in the boardroom, although it
recognises that being relatively small in size
will make achieving diversity targets more
challenging in the short term. Our female
representation on the Board increased from
17% in 2022 to 29% in 2023 and remains at
this level. Although we are yet to meet the
targets for female representation on the
Board as set under the UK Listing Rules,
the Board strongly supports the objective
to promote greater diversity in the broadest
sense on listed company boards and this
remains a key focus of our succession
plans. More information on the diversity
of the Board is set out on pages 95-96.
Although we currently have no long serving Board
members, we also continued to make plans for the
orderly succession of the Non-executives, taking
into account our aspirations to increase the
diversity of the Board whilst retaining its size. We
continue to believe that the optimal size for our
Board is between six and seven Directors, reflecting
the lean structure of our wider business and our
operations being retailing only in the UK. More
information on succession planning is set out on
pages 94-95.
Looking ahead to 2025, succession planning and
tracking progress on increasing diversity across
the business will continue to be the key areas of
focus for the Committee.
Christopher Rogers
Chair of the Nominations Committee
19 March 2025
Committee composition
The Committee membership comprises the Non-
executive Directors, all of whom are considered
independent, and the Chair of the Board. Details
of the experience and skills of Directors are
set out in the biographies on pages 80-81.
Overall attendance for Committee meetings
was 100%. Further details about meetings
and attendance can be found on page 83.
Role of the Committee
The role and responsibilities of the Committee are
set out in the Committee Terms of Reference, which
are reviewed annually and are available on the
Company’s website at www.wickesplc.co.uk. The
Committee’s main focus is on:
– reviewing Board and Committee composition
and recommending improvements to the Board;
– overseeing the development of a diverse talent
pipeline and ensuring succession plans are in
place for the Board and senior management; and
– leading the process for appointments to the
Board.
Christopher Rogers
Chair of the
Nominations Committee
92 Wickes Group Plc Annual Report and Accounts 2024Financial statements Other informationStrategic report Governance
Nominations Committee report continued
Activities of the Committee
During the year, the Committee held three
scheduled meetings. The Committee has a
structured forward looking planner to ensure that
the responsibilities of the Committee are
discharged during the year. The planner is regularly
reviewed and developed to meet the changing
needs of the Group.
A summary of the key matters considered by the
Board composition
The Board comprises seven Directors, two
Executive Directors, four independent Non-
executives and the Non-executive Chair of the
Board. The 2018 UK Corporate Governance
Code (‘the Code’) recommends that, on
appointment, the chair of a company should
meet the independence criteria set out in the
Code. The Board considers that Christopher
Rogers met the independence criteria set out
in the Code on his appointment as Chair.
Board skills and experience
The Board recognises the importance of
having complementary and diverse skills and
backgrounds within its composition, enabling
rich and effective discussions and decision
making. During the year, the Committee reviewed
the Board’s composition against a skills and
experience matrix to ensure that the Board and
its Committees have the skills needed to provide
effective leadership of the Company. The matrix
can be found on page 83 and more information on
the key strengths and experience of each Director
can be found in the biographies on pages 80-81.
The Committee noted that no Board members
had rated themselves as an expert in relation to
data analytics, technology, cyber security and AI,
which were important skills for the Board given
the developing use of data, technology and AI
in the retail market, the cyber risk faced by the
business and the significant investment being
made in IT systems over the next five years. It
was agreed that these skills would be taken into
account when considering Non-executive Director
refreshment and that specialist advice would be
taken in these areas when significant decisions
needed to be made. The briefing sessions held in
2024 on these areas had been well received and
it was agreed that consideration would be given
to identifying opportunities for more briefings
and training for the Board in these areas.
Board appointment process
There were no appointments to the Board in 2024.
When appointing a new Director to the Board, we
follow a well-established process which is thorough
and inclusive, and is adapted as needed to reflect
the specific circumstances.
1. Search
The Chair of the Board leads a process to
develop a role specification setting out the
skills, experience and background required. The
role specification is placed with an executive
search agency (the ‘agency’).
2. Longlist
The agency produces a diverse longlist of
candidates from a wide range of backgrounds
and industries.
3. Shortlist
The Committee considers a longlist and agrees
a shortlist of candidates based on merit and
against the role specification. In doing so, the
Committee considers the Board Inclusion and
Diversity Policy and the Board time
commitments.
4. Assessment
The candidates are assessed against the
specification including by interview with Board
members.
5. Appointment
The Committee recommends the preferred
candidate to the Board for approval and the
Remuneration Committee considers and
approves a remuneration package.
March June December
Executive
Board
succession
planning
Approval of
updated
Inclusion and
Diversity
Policy
Approval of
updated Terms
of Reference
Executive
Board
succession
planning
Talent
pipeline
Board
composition
and skills
NED
refreshment
plan
Board composition
Executive
2
Chair
1
Non-executive
4
Percentage of time spent by the Committee in
scheduled meetings
Board composition
and skills
18%
Governance
23%
Succession planning
59%
Committee at its meetings in 2024 is set out below.
Wickes Group Plc Annual Report and Accounts 202493 Strategic report Governance Financial statements Other information
Nominations Committee report continued
Induction process
Each new Board Director receives a full and tailored
induction, led by the Chair of the Board and General
Counsel and Company Secretary. Inductions include:
Meetings with all members of the Board
Chair of the Board – the Board and its dynamics
CEO – strategy, business performance and key
opportunities and challenges
Committee Chairs – work and significant matters
relevant to their respective Committees
CFO – financial performance, forecasts, risk
management and financial control
Meetings with the Executive
team and senior management
Management structure, operations, performance,
risks and key areas of focus relevant to each function
Governance framework and programme of meetings
Meetings with colleagues and site visits
Visits to stores (and competitor stores)
Visit to our main Distribution Centre
Meetings with key advisors
Detailed briefing covering Directors’ duties and all
key listing and regulatory compliance areas
Meetings with Committee advisors where relevant
New directors are also provided with key materials
including strategy, Board and Committee papers,
investor information and Company policies.
Training and development
All Directors upon joining the Board participate in
induction training and are provided with ongoing
guidance covering regulatory requirements of
their role.
The Chair of the Board discusses specific
development needs with each Director on an
individual basis. Ongoing Board development
takes place through briefings at Board meetings
and regular store visits. The Board has a
programme of scheduled visits and activities
to enhance the Directors’ knowledge of the
business. This year, the Board visited a strategic
logistics partner and a refitted store in Slough.
Future visits are planned to a strategic supplier
of goods, and both new and refitted stores.
Briefings are provided to the Board and Committees
on relevant legal, regulatory and governance
developments, emerging risks and specific areas of
interest. In 2024, training focused on generative AI
and cyber risk.
Board time commitments
The Code requires that Non-executive Directors
have sufficient time to meet their Board
responsibilities. The Company has a policy for
additional appointments under which Non-
executive Directors may undertake additional
external appointments to those disclosed on
appointment with prior approval of the Board.
Executive Directors may take on one non-executive
directorship in a FTSE company or other significant
appointment with prior approval of the Board.
Every year, the Committee reviews each Director’s
significant external commitments (set out in the
table below) and other factors which could indicate
that a Director had insufficient time to discharge
their obligations to the Company. In 2024:
– attendance at scheduled Board and Committee
meetings was 100%. Further details of
attendance can be found on page 83;
– no significant new appointments were taken on
by any member of the Board during the year;
– all Non-executive Directors have confirmed that
they have sufficient time and capacity to carry
out their duties; and
– the 2024 Board performance evaluation found
that the availability, contribution and engagement
of the Non-executive Directors was high.
After considering all relevant factors, including the
need to ensure there may be periods where
additional time commitments are needed, the
Committee concluded that all Non-executive
Directors continue to have sufficient time to meet
their Board responsibilities.
Significant external appointments
Board of listed plc Other significant appointment
Non-executive
Directors
Christopher Rogers Kerry Group plc – NED
Mitie Group plc – Chair Elect
Mark Clare Grainger plc – Chair
Ricardo plc – Chair
Premier Marinas Holdings Ltd
Sonita Alleyne Jesus College, Cambridge
Laura Harricks Ocado Retail Ltd
Mike Iddon Pets at Home plc – CFO
Executive
Directors
David Wood Green Sheep Group Ltd
Mark George
Non-executive Director succession
The majority of the Non-executive Directors have
the same tenure as when the business was listed
on the London Stock Exchange in 2021 and the
Committee is mindful of the need to plan an orderly
succession in order to avoid a significant change to
the Board membership in a short timeframe. During
the year, the Committee continued to consider
options for Non-executive Director succession. The
process to appoint a headhunter and prepare a brief
for a new Non-executive Director will commence
in 2025. It is anticipated that one of the current
Non-executive Directors will step down from the
Board at the 2026 AGM and a new Non-executive
Director will join the Company towards the end of
2025 or early 2026, ensuring a smooth transition.
Board tenure
4+ years
2–3 years
2–3 years
1–2 years
1
1
1
4
Non-executive
Executive
Wickes Group Plc Annual Report and Accounts 202494 Strategic report Governance Financial statements Other information
Nominations Committee report continued
Executive Director and senior leadership
succession
The Board is committed to recognising and
developing talent within senior management
across the business, creating opportunities
to develop current and future leaders.
Succession plans for the CEO and other
key Executive and leadership roles in the
short, medium and long term have been
reviewed by the Committee in detail.
The Committee is focused on ensuring there
is a robust pipeline of talent and that these
high-potential colleagues are developed and
supported to prepare them for leadership roles.
This includes strengthening the leadership
development proposition, supporting
mentoring initiatives and planning role moves
to provide more experience earlier in the
careers of potential future successors.
Diversity of gender, social and ethnic backgrounds
and cognitive and personal strengths were
considered carefully to ensure the pipeline
is strengthened with appropriate skills and
perspectives. Areas for development for
succession candidates to key leadership roles
have been identified and opportunities for them
to present to and engage with the Board have
been identified and planned for future meetings.
The Board believes that the succession plans in
place will result in a continuously robust leadership
structure that can achieve the Company’s purpose
and ensure its long term sustainable success.
Inclusion and Diversity Policy and targets
The Board believes an inclusive culture
is a key driver of business success. It is
committed to having inclusive and diverse
leadership which provides a range of
perspectives, insights and the challenge
needed to support good decision making.
We have a Board Inclusion and Diversity Policy
which complements our wider colleague Inclusion
and Diversity Policy. The policy is available on our
corporate website. Our ambition through both the
Board and colleague Inclusion and Diversity
Policies is to give everyone the freedom to be
themselves and encourage colleagues to welcome
new people and ideas.
The Board Inclusion and Diversity Policy states that
the Board is committed to promoting inclusion and
diversity in the boardroom and on its Committees,
and aims to meet regulatory targets and industry
recommendations while recognising that there may
be periods when this balance is not achieved. We
define diversity in its broadest sense,
encompassing differences in age, gender, ethnicity,
sexual orientation, disability or educational,
professional and socioeconomic backgrounds.
The policy reflects the targets set out in UK Listing
Rule 6.6.6R(9) as follows:
(i) female representation on the Board of
at least 40%;
(ii) at least one of the roles of Chair, Senior
Independent Director, Chief Executive Officer or
Chief Financial Officer filled by a woman; and
(iii) at least one Director from a minority ethnic
background on the Board.
Board diversity
Board membership reflects a range of skills,
backgrounds and business experiences which
facilitates a broad evaluation of matters considered
by the Board and contributes to a culture of
collaborative and constructive discussion.
As at 28 December 2024, the Board comprised
three male Non-executive Directors (including
the Chair of the Board), two female Non-executive
Directors and two male Executive Directors.
The Board has not yet met the UK Listing Rules
gender diversity targets. In addition, none of
the four leadership roles specified in the UK
Listing Rules are currently held by a woman.
The Board has a clear aim to meet the diversity
targets as soon as is practicable subject to
ensuring that appointments to both the Board
and senior leadership positions are merit-based
and aligned with the Company’s strategy. The
Committee has been, and will continue to be,
mindful of the targets when reviewing succession
plans but notes that with a relatively small Board
and the Board’s belief that its optimal size is
between six and seven members given the size
and shape of the business, the fact that many of
the Directors have a similar tenure linked to the
Company’s demerger, and the need to ensure
orderly succession, these targets will likely be met
over the longer term. The Board has one Director
from a minority ethnic background and therefore
meets this UK Listing Rules diversity target.
Business diversity
In line with our colleague Inclusion and Diversity
Policy, the Board remains committed to improving
diversity at all levels. Members of the Executive
Board as at 28 December 2024 comprise three
female and six male members, representing a
gender split of 33% female and 67% male. Senior
managers (as defined on page 35) have a gender
split of 34% female and 66% male. The gender split
for all colleagues is 39% female and 61% male.
78% of Executive Board members identify as white
British or white ethnic minorities (‘White’) and 22%
identify as other ethnic groups (‘Non White’). Senior
managers have an ethnicity split of 83% White and
22% Non White with 4% with no identified ethnicity.
The ethnicity split for all colleagues is 68% White,
13% Non White and 18% not identified.
Further details of the Company’s approach to
diversity and inclusion can be found on page 35.
Board gender identity
Male
71%
Female
29%
Board ethnic diversity
White
86%
Black/African,
Caribbean/Black British
14%
Wickes Group Plc Annual Report and Accounts 202495 Strategic report Governance Financial statements Other information
Nominations Committee report continued
Diversity data
In accordance with UK Listing Rule 6.6R(10), the prescribed numerical data on the ethnic background and
the gender identity of the Board and the Executive Board is published below. For the purposes of making
these disclosures, the Company has collected this data by asking each Director or officer of the Company to
confirm their gender identity and ethnic background directly. Each response is recorded on the Company’s
HR system.
Reporting table on ethnicity representation as at 31 December 2024
Number of
Board
members
Percentage
of the Board
Number
of senior
positions on
the Board
(CEO, CFO,
SID and
Chair)
Number in
executive
management
Percentage of
executive
management
White British or other White (including
minority-white groups) 6 85.7 4 7 77.8
Mixed/Multiple Ethnic Groups – – – – –
Asian/Asian British – – – – –
Black/African/Caribbean/Black British 1 14.3 – 1 11.1
Other ethnic group, including Arab – – – 1 11.1
Not specified/prefer not to say – – – – –
Reporting table on gender representation as at 31 December 2024
Number of
Board
members
Percentage
of the Board
Number
of senior
positions on
the Board
(CEO, CFO,
SID and
Chair)
Number in
executive
management
Percentage of
executive
management
Men 5 71.4 4 6 66.7
Women 2 28.6 – 3 33.3
Not specified/prefer not to say – – – – –
2024 Board performance evaluation
Board evaluation is not delegated to the Committee and this activity is carried out by the Board. Having
carried out an external evaluation in 2022, facilitated by Board Alchemy, the Board decided to carry out an
internal evaluation this year. Each Director completed a questionnaire in respect of the Board and its
Committees. The Board questionnaire covered six key areas:
– Purpose and strategy
– Board agenda and meetings
– Talent and culture
– Board composition and dynamics
– Chair performance
– Information, reporting and risk management
The General Counsel and Company Secretary collated the responses and presented a summary of the key
findings to the Board for discussion.
Overall, there was a high level of satisfaction with the effectiveness of the Board and its Committees, with
no high priority or urgent matters needing to be addressed. The high scores across all areas reflected a
healthy Board dynamic and a well-managed Board with particular strength in talent and culture, dynamics
and leadership.
In 2025, an external performance evaluation of the Board is planned as it will be three years since the last
external evaluation was carried out. The Corporate Governance Institute’s Principles of Good Practice for
Listed Companies Using External Board Reviewers published in 2023 will be taken into account in preparing
for this review.
2025 action plan
The Board considered the findings and agreed an action plan which will be reviewed by the Board during
2025 to ensure progress is being made. The key actions agreed by the Board arising from the review were
as follows:
Action
Increase the time spent by the Board on measuring the implementation of strategy and scrutinising what makes the
Company money
Review the Group’s crisis management and business continuity plans
Increase the time spent by the Board on technology programmes, AI opportunities and threats and cyber resilience
Firm up the plan and timeline for Non-executive Director refreshment taking into account the outputs from the latest
Board skills assessment and the Board’s aim to increase the diversity of the Board whilst ensuring that appointments
are merit-based
Wickes Group Plc Annual Report and Accounts 202496 Strategic report Governance Financial statements Other information
Nominations Committee report continued
Progress made against last year’s action plan
Action Progress
Review the resourcing model for Group
Internal Audit
The recruitment process for an in-house Internal Audit and Risk
team has commenced. A new partner has also joined the
outsourced Internal Audit and Risk team to provide fresh insight
and focus
Keep diversity in the broadest sense under
review alongside planning the orderly
succession of the Board over the next few years
The Nominations Committee continued to consider options for the
orderly succession of the Non-executive Directors. This will
continue to be a focus over the coming years
Continue to evolve management reporting on
performance against the implementation of
strategy
The financial reporting to the Board has been developed and a deep
dive on the drivers of profitability was reviewed as part of the
strategy offsite event
Arrange briefings on developments, risks and
opportunities in artificial intelligence and cyber
security to increase the knowledge of the Board
The Board had a generative AI deep dive in May 2024 and had two
briefings on cyber risk in May and December 2024. A cyber maturity
assessment was also commissioned and presented to the Board by
an independent third party specialist. Further briefings have been
scheduled as part of the Board’s annual plan
Committee effectiveness
The effectiveness of the Committee was considered as part of this year’s Board performance evaluation
process. The Nominations Committee’s questionnaire covered four key areas:
– the role and operation of the Committee;
– composition;
– leadership; and
– process and procedures.
The General Counsel and Company Secretary collated the responses and presented a summary of the key
findings to the Committee for discussion. The review concluded that the Committee continues to operate
effectively with no areas of concern requiring immediate attention identified.
Director performance reviews
The Chair of the Board reviewed the performance of individual Directors, taking into account feedback from
the other members of the Board, and discussed any identified development opportunities with each
Director. It was confirmed that each Director continues to make an effective contribution to the Board and
demonstrates commitment to their role.
The performance review of the Chair of the Board was conducted by the Senior Independent Director and
included feedback from Board members gathered from a questionnaire. The Senior Independent Director
discussed the output of the review with the Chair of the Board.
Election and re-election of Directors
The Board has confirmed, following a performance review, that all Directors continue to perform effectively
and demonstrate commitment to their roles. All Directors will submit themselves for election or re-election
at the forthcoming AGM. Directors do not participate in discussions involving their own reappointment.
Wickes Group Plc Annual Report and Accounts 202497 Strategic report Governance Financial statements Other information
Committee members
Mike Iddon (Chair)
Independent Non-executive Director
Sonita Alleyne
Independent Non-executive Director
Mark Clare
Senior Independent Non-executive Director
Laura Harricks
Independent Non-executive Director
Audit and Risk Committee report
Dear Shareholder,
I am pleased to present the Company’s Audit
and Risk Committee report for the year ended
28 December 2024. The Committee has
continued to maintain a constructive
environment, encouraging open discussion
and promoting transparent reporting. As Chair
of the Committee, I have fostered effective
working relationships with the external and
internal auditors through regular engagement
outside as well as at the Committee meetings.
The Committee has monitored the
development of internal financial processes
and controls which has continued to progress
well, being focused initially on improving
key controls around financial reporting.
Updates on the development of the internal
financial processes and controls have been
presented to the Committee at every meeting.
These developments are focused on ensuring
that the key financial controls are documented
and assessed for effectiveness, and where
necessary enhanced and improved upon. In
the short term the improvement plans will
also consider the opportunity to increase
the robustness and resilience of the manual
detective controls in operation. In the longer
term, the Company’s strategic IT programme
should enable the financial processes and
controls to be optimised and automated
controls to be embedded where appropriate.
The Committee reviewed the Company’s
proposed approach for preparing to report
against the UK Corporate Governance Code
2024, including assessing whether appropriate
resources have been allocated. Ahead of the
2024 year end, management has made good
progress considering the scope of its material
controls, alongside its key financial controls, for
which detailed documentation will continue in
2025. The Company is also focusing on
enhancing its internal processes for
documenting and managing its risk and
compliance, and has begun the implementation of
a Governance, Risk and Compliance system which
will also be used for capturing the assurance ‘lines
of defence’ for each control, and monitoring the
continued effectiveness of controls.
The Committee spent considerable time during the
year reviewing financial results and assessing the
accounting policies and procedures adopted by
management. In particular, the Committee
reflected on the continuing uncertain economic
backdrop and its impact on the calculation of
impairments on store-related assets. The
Committee also focused on reviewing the
recognition of revenue in Design & Installation and
the accounting treatment of the Solar Fast
acquisition completed in 2024.
During the year, KPMG’s audit of the 2023 financial
statements was subject to an Audit Quality Review
by the Financial Reporting Council (FRC). I am
pleased to note its conclusion with a small number
of recommendations which KPMG has addressed
as part of its audit of the 2024 financial statements.
The FRC also completed a limited scope review of
the Company’s 2023 Annual Report and Accounts,
with a particular focus on how the Company dealt
with online sales transactions within its impairment
model. The Company’s responses were accepted
by the FRC with no additional enquiries. The FRC
also provided guidance on some minor
improvements to the financial statements which
have been reflected in the 2024 financial
statements.
Looking ahead to 2025, the Committee’s key focus
will continue to be on overseeing the development
of the internal control framework.
Mike Iddon
Chair of the Audit and Risk Committee
19 March 2025
Committee composition
The Committee is composed solely of
independent Non-executive Directors who
collectively have considerable financial
experience and provide a wide range of insight
and expertise necessary to fulfil the duties
and responsibilities of the Committee.
The Chair of the Committee has recent
and relevant financial experience being
a current CFO of another listed business,
and the Committee as a whole has
competence relevant to the sector in which
the Group operates. Further details of the
Committee members and their experience
can be found on pages 80-81. Overall
attendance for Committee meetings was
100%. Further details about meetings and
attendance can be found on page 83.
The Chair of the Board is not a member
of the Committee, but was invited to and
attended all meetings in 2024. Members of the
Executive Board and senior managers within
the business are invited to attend meetings
as appropriate to ensure that the Committee
maintains a current and well-informed
view of events within the business, and to
reinforce a strong risk management culture.
Role of the Committee
– The role and responsibilities of the
Committee are set out in the Committee
Terms of Reference, which are available on
the Company’s website at www.wickesplc.
co.uk. The Committee’s main focus is on:
– monitoring the integrity of financial reporting
and narrative reporting;
– reviewing the Company’s internal financial
control and risk management systems;
– monitoring and reviewing the effectiveness
of internal audit; and
– monitoring and reviewing the effectiveness
of external audit.
Mike Iddon
Chair of the Audit
and Risk Committee
98 Wickes Group Plc Annual Report and Accounts 2024Financial statements Other informationStrategic report Governance
Activities of the Committee
During the year, the Committee held five
scheduled meetings. The Committee has a
structured forward looking meeting planner to
ensure that the responsibilities of the Committee
are discharged during the year and reflects
the reporting cycle of the Group. The planner
is reviewed and developed where appropriate
to meet the changing needs of the Group.
Percentage of time spent by the Committee in
scheduled meetings
Risk management
and internal
control
24%
Governance
10%
Internal
audit
10%
Financial
reporting
31%
External
audit
25%
During the year, the Committee received reports and updates from management and internal and external audit. A summary of the key matters considered by the
Committee in 2024 is set out below.
Audit and Risk Committee report continued
Prior to the start of each Committee meeting, the Committee meets without the Executive Directors present to discuss any relevant matters with the internal and
external auditors. Where appropriate, these matters are then raised during the course of the meeting. The Committee Chair also meets the internal auditor and
external auditor prior to all meetings to provide additional opportunity for open dialogue and feedback without management present.
February March June September December
Key judgements and
financial reporting
Internal controls programme
Risk register updates
Operational audit report
Security and
investigations report
External audit update on
progress on year end audit
Non-audit fees
Reappointment of
external auditor
Internal audit reports
and progress against
the Internal Audit Plan
Approval of updated
Terms of Reference
FRC correspondence
on the 2023 Annual
Report and Accounts and
management’s response
Internal controls programme
Controls reporting in light of
the new UK Corporate
Governance Code
Risk register updates
Risk appetite
Accounting policies
Tax and treasury policies
Contractor and consultancy
spend
Interim review strategy and
plan
Non-audit fees
Internal audit reports and
progress against the Internal
Audit Plan
Key judgements and
financial reporting
Annual Report and Accounts
Going concern and viability
Dividend proposal
Internal controls programme
Effectiveness of internal
controls
Group risk register Principal
and emerging risks and
mitigations
External audit report on
financial statements and
Annual Report and Accounts
Non-audit fees
Internal audit reports and
progress against the Internal
Audit Plan
Key judgements and
financial reporting
Going concern
Interim financial statements
Dividend proposal
Internal controls programme
Group risk register Principal
and emerging risks and
mitigations
External audit report on
interim financial statements
Non-audit fees
Internal audit reports and
progress against the Internal
Audit Plan
Key judgements and
financial reporting
Internal controls programme
Risk register updates
External audit strategy and
plan
Non-audit fees and policy
Effectiveness of external
audit
Audit Quality Review
findings
Approval of Internal Audit
Plan for 2025
Internal audit reports and
progress against the Internal
Audit Plan
Effectiveness of internal
audit
Key
Financial reporting
Risk management and internal control
External audit
Internal audit
Governance
Wickes Group Plc Annual Report and Accounts 202499 Strategic report Governance Financial statements Other information
Audit and Risk Committee report continued
Key judgements and financial reporting matters
A key aspect of the Committee’s work is
monitoring the integrity of the annual and
interim reports, including a review of the
significant financial reporting matters and
judgements contained in them. Key accounting
judgements considered, conclusions reached
and their financial impacts for the year ended
28 December 2024 are set out below.
In reaching its conclusions, the Committee
considered papers and explanations given by
management, discussed each matter in detail,
challenged assumptions and judgements made
and sought clarification where necessary.
It reviewed and discussed reports from the
external auditor on the work undertaken to arrive
at the conclusions set out in its audit report
on pages 122-129 and had the opportunity to
discuss it with the external auditor in depth.
The carrying value of right-of-use assets
The Group balance sheet contains £562.5m (2023:
£537.1m) of right-of-use assets. The Directors are
required to determine whether those assets have
suffered any impairment or whether there has been
any reversal of an impairment previously recorded,
taking into account appropriate indicators, for
example store profitability, stores with recent losses
or those with high-value assets. Where there are
indicators of impairment or reversal, calculations
are performed which compare the present value of
future cash flows for each cash generating unit
(CGU) with the carrying value of assets. CGUs are
determined to be individual stores: each store’s
profitability is reviewed, after apportioning an
appropriate amount of central costs and IT
investment costs (such as SaaS).
The calculations undertaken to help arrive at
a conclusion incorporate a consideration of
the risks associated with each CGU and are
based upon forecasts of their cash flows over
the remaining term of the lease, which by their
nature require judgement to be exercised and are
subject to considerable uncertainty. The cash flow
forecasts used for impairment considerations
are prepared taking into consideration the
historical financial performance, the annual
budget, the Five-Year Plan presented to and
approved by the Board, plus an estimate of the
long term growth rate beyond the Five-Year Plan.
Management presented the Committee
with papers setting out the results of the
work performed, the methodology used, the
assumptions made and the conclusions reached.
Management explained to the Committee how
the cash flow, central cost allocation (including IT
investment) and discount rate calculations were
prepared, how individual stores were determined to
be potentially impaired or which indicated reversals
of prior impairments, the key assumptions and
judgements that were made and how sensitive the
cash flows were to changes in key assumptions.
After reviewing these papers and obtaining further
explanation where necessary, the Committee
concluded that management’s final position,
after appropriate challenge and review, reached a
balanced and reasonable conclusion regarding the
impairment charges and reversals of prior charges
recognised and included acceptable judgements.
Revenue recognition
The Group recognised £326.5m (2023: £364.7m)
of revenue in the financial year in respect of
Design & Installation revenue and carried forward
Design & Installation revenue of £22.6m (2023:
£28.5m) as a liability on its balance sheet where
orders had been paid in advance but either fully
or partially undelivered at the period end. Design
& Installation revenue represents a large number
of individual transactions and recognition is
driven from a number of different systems,
including the product delivery system, the
ordering system, as well as the data automatically
posted in the finance system, with each system
showing some timing differences on the point
of completion of individual orders. To ensure
appropriate revenue recognition in the accounting
records, management therefore maintains a
separate order book to track the revenue that
should actually be recognised in the period.
Management performs a significant amount of
analysis and reconciliation to compare revenue
recognised by each system, determine how the
timing differences arise and ensure revenue is
appropriately recognised in line with its accounting
policies. Management reported to the Committee
on the outcome of this exercise and presented
final papers to the Committee at the year end,
setting out how conclusions were reached on the
reported revenue. The Committee reviewed and
discussed the information presented, received
a report from the external auditor on the work
undertaken to arrive at the conclusions set out
in its audit report and discussed the progress
with the external auditor. After reviewing these
papers and obtaining further explanation where
necessary, the Committee concluded that
the process of review and controls operated
by management had resulted in an accurate
revenue and deferred revenue number being
reported in the financial statements.
The carrying value of investment in subsidiaries
(Company only)
The Company balance sheet contains £562.5m
(2023: £603.4m) of investments, representing its
investment in Wickes Group Holdings Limited.
The Group contains two trading entities, Wickes
Building Supplies Limited and Gas Fast Limited
(trading as Solar Fast), and the investment
therefore represents the entirety of the trading
businesses of the Group. The Directors are
required to determine whether this investment
has suffered any impairment whenever there
are indicators of possible impairment. They
do this by comparing the net present values of
future cash flows from the investment with the
carrying value of the investment in the balance
sheet. The calculations undertaken to help arrive
at a conclusion incorporate a consideration of
the risks associated with the business and are
based upon forecasts of its long term future cash
flows, which by their nature require judgement
to be exercised and are subject to considerable
uncertainty. The cash flow forecasts used
for impairment considerations are prepared
taking into consideration the historical financial
performance, the annual budget and the Five-Year
Plan presented to and approved by the Board.
Management presented the Committee with papers
setting out the results of the work performed, the
methodology used, the assumptions made and the
conclusions reached. Management explained to
the Committee how the cash flow and discount rate
calculations were prepared, the key assumptions
and judgements that were made and how sensitive
the cash flows were to changes in key
assumptions.
After reviewing these papers and obtaining further
explanation where necessary, the Committee
concluded that management’s final position, after
appropriate challenge and review, reached a
balanced and reasonable conclusion and included
acceptable judgements.
Wickes Group Plc Annual Report and Accounts 2024100 Strategic report Governance Financial statements Other information
Audit and Risk Committee report continued
Climate reporting
The Committee’s role is to gain assurance that the
effects and consequences of climate change are
being adequately reflected in our financial
statements and valuations. Last year we reported
on all areas of the TCFD framework. This year
management has made further progress with
understanding our climate-related risks and
opportunities and this year we continue to be in full
compliance with the TCFD recommendations. For
more information see pages 53-65.
The Committee will continue to monitor developing
best practice, and seek training/professional
guidance when required, to ensure that it continues
to effectively oversee the reporting in this area.
Financial Reporting Council letter
The FRC performed a limited scope review on the
Company’s 2023 Annual Report and Accounts,
covering certain reporting matters of particular
relevance to retail companies, where it was looking
to enhance its understanding of current and
emerging reporting practices, as part of its
supervisory focus on the retail sector. In particular,
it was looking to understand how the Company had
dealt with the allocation of online sales revenue to
individual stores, for the purposes of calculating
the recoverable amount of each store.
In addition, the FRC also noted points for
consideration in the Group’s disclosures for leases
(IFRS 16), impairment of assets (IAS 36) and the
Group’s alternative performance measures (APMs).
These were mainly focused on improving the
consistency of wording and these have been
addressed in the 2024 interim results and 2024
Annual Report.
The Committee asked management to present its
responses to each of the points raised by the FRC.
These were discussed at a meeting of the
Committee at which the external auditors were
asked to provide their view on the approach taken
to the accounting and disclosures in the 2023
Annual Report and Accounts and the responses
given by management to the FRC letter. Following
discussion on each item, the Committee concluded
that it was satisfied with the approach.
The FRC noted that its review is based solely on the
Annual Report and Accounts and does not benefit
from detailed knowledge of the Company’s
business, or an understanding of the underlying
transactions entered into, but that it is, however,
conducted by staff of the FRC who have an
understanding of the relevant legal and accounting
framework. The FRC correspondence provides no
assurance that Wickes’ Annual Report and Accounts
for the year ended 30 December 2023 is correct in
all material respects; the FRC’s role is not to verify
the information provided but to consider compliance
with reporting requirements.
External auditor
The Committee is responsible for overseeing
the relationship with the external auditor,
including recommending to the Board its
reappointment or removal, assessing external
audit independence and approving the statutory
audit fees. KPMG LLP (KPMG) continued as
the Company’s external auditor for the financial
period ended 28 December 2024, having been
reappointed as auditor of the Company on
24 May 2024 by Shareholders at the AGM.
KPMG was appointed under a competitive audit
tender in 2015. Wickes became a public interest
entity (PIE) in April 2021 when its shares were
admitted to trading on the London Stock Exchange
and therefore, under the Companies Act 2006, the
next tender will be required and will be completed
no later than in respect of the 2031 financial year
(ten years from the date of the Company becoming
a PIE). Auditor rotation is required 20 years from the
date of the Company becoming a PIE and therefore
this will be due no later than 2041.
The Committee agreed that KPMG has a detailed
knowledge of the business and an understanding
of the sector, and continues to demonstrate that it
has the necessary expertise and capability to
undertake the audit. It was further noted that the
audit partner will rotate after the 2024 year end,
which will bring a fresh approach to the audit.
KPMG’s role is to express an opinion on the
financial statements of the Group. KPMG discussed
its findings with management and reported to the
Committee during the year on its audit work and
audit opinion. The Committee reviews any
recommendations made by KPMG and agrees what
actions should be taken with management.
External audit effectiveness
During the year, the Committee considered the
quality, effectiveness, independence and
objectivity of KPMG through the review of all
reports provided and the regular contact with the
auditor both during Committee meetings and
through other interactions. In addition, an annual
assessment was conducted in accordance with a
process agreed with the Committee which involved
seeking the views of the Committee, as well as
those of colleagues who have regular interactions
with the external auditor, on the following areas:
– Resource management and the operation of the
audit
– Knowledge and expertise of the audit team
– Dynamics and challenge
– Planning, reporting and risk management
A summary of the responses was presented
to the Committee at its meeting in December
2024. The Committee used the feedback
to assist its assessment of whether the
external auditor met the required standards
of qualification, independence, expertise,
effectiveness and communication, and
discussed its conclusions and opportunities
for improvement with the external auditor. The
overall feedback was positive and no significant
issues were identified as part of this process.
It was agreed that the audit was robust and
professionally performed, the audit team had a
good understanding of the business and there
was a high degree of constructive challenge
from the external audit team. It was recognised
that there continued to be opportunities
for both management and the auditor for
making the audit process more efficient,
particularly in the final stages of the audit.
The Committee concluded that KPMG had
applied appropriately robust challenge
and professional scepticism throughout
the year which demonstrated KPMG’s
independence and that it possessed the skills
and experience required to perform its duties
and, in particular, the audit effectively.
External audit independence
The Committee regards the independence of
the external auditor as crucial in safeguarding
the integrity of the audit process and takes
responsibility for ensuring the relationships
between the Committee, the external auditor
and management remain appropriate. The
Committee recognises that independence is
also a key focus for the external auditor, and
KPMG has confirmed that it has complied with
its own ethics and independence policies.
KPMG provides confirmation of independence
during the planning stage of the audit,
disclosing matters relating to its independence
and objectivity, and a final independence
confirmation statement at the conclusion
of each audit. There were no independence
issues raised in respect of the 2024 audit.
Wickes Group Plc Annual Report and Accounts 2024101 Strategic report Governance Financial statements Other information
Audit and Risk Committee report continued
Non-audit services
Additional non-audit services provided by the
auditor may impair its independence or give rise
to a perception that its independence may be
impaired. The Non-audit Fees Policy was originally
approved by the Committee in 2021 and was
reviewed in December 2024. The policy is designed
to ensure the ongoing independence and objectivity
of the external auditor. The policy sets out the
permitted and prohibited services for which the
external auditor may not be engaged, and includes
approval limits and a cap on allowable non-audit
fees. Key provisions of the policy are as follows:
Fees for non-audit services provided by the
statutory auditor in any year may not exceed
70% of the average fees for the Group statutory
audit in the three previous years.
The auditor is prohibited from providing certain
non-audit services, including tax work, internal
audit, corporate finance, and involvement in
management activities.
The external auditor may not be engaged to
provide any non-audit services without the
approval of the Committee.
During the year, the Committee reviewed the
non-audit fees at each of its meetings. For the
year ended 28 December 2024, the total fees for
non-audit services provided by the auditor to the
Group did not exceed 70% of the average of the
statutory audit fee for the Group’s consolidated
financial statements and statutory accounts paid
to the auditor in the last three consecutive financial
years. The fees paid to the auditor are set out on
page 139 of the notes to the financial statements.
The Committee is satisfied that the Non-
audit Fees Policy was complied with
throughout the year and, in its opinion, the
external auditor remains independent.
Audit Quality Review (AQR)
The Audit Quality Review team of the FRC
completed a review of the KPMG’s financial
year 2023 Wickes audit. The AQR did not
identify any findings in respect of KPMG’s
audit work which we consider to be significant.
The AQR identified a small number of
findings which have been incorporated into
the audit of the 2024 financial year.
External audit reappointment
Having considered and been satisfied with
the effectiveness and independence of the
external auditor, the Committee agreed that
a recommendation to reappoint KPMG as
auditor would be made to the Board.
Internal audit
The internal audit function provides the Committee
and management with independent and objective
assurance on the adequacy and effectiveness of
the Group’s internal controls.
The Group’s internal audit function is outsourced
to BDO LLP (BDO). The work of internal audit
is set out in an Internal Audit Charter, which is
agreed annually with the Committee. Internal
audit has an independent reporting line to
the Chair of the Committee and a dotted
reporting line to the Chief Financial Officer.
The Committee meets with the Internal Audit team
without executive management present before
each Committee meeting and the Committee
Chair meets with the Internal Audit team on a
quarterly basis or more frequently if required.
At every Committee meeting, the Committee
received and reviewed reports from internal
audit setting out progress against the agreed
Internal Audit Plan, findings from individual
internal audits undertaken and progress against
audit actions previously identified. Internal Audit
also provided the Committee with a briefing on
the UK Corporate Governance Code 2024.
Internal Audit Plan
Each year an audit needs assessment is carried
out. This considers the Group’s principal and
emerging risks, the Group’s appetite for risk, any
changes to the business and findings from prior
audits, along with priorities and specific areas of
focus highlighted by the Executive Board, senior
management and the Committee.
The output from this assessment is used to
establish the Internal Audit Plan for the year. The
Internal Audit Plan for 2024 was approved by the
Committee and included a combination of
risk-based assurance audits and advisory projects.
The following reviews were commenced in 2024:
Cyber security
IT general controls
Payroll
National minimum wage
Third party logistics
Business continuity
Remedial customer deliveries
Consumer credit
Effectiveness of the second line of assurance
Import processes and freight management
Fraud management
Any proposed changes to the Internal Audit Plan
are presented to the Committee for approval
as necessary during the year, to take account
of any new internal or external developments.
During the year, a number of minor changes
were made to the Internal Audit Plan to ensure
planned assurance activity focused on the
key needs of the business. Timings of some
audits were also adjusted to ensure that
management resources were available to fully
support and engage with Group Internal Audit.
The high-level scope of each internal audit review is
agreed with the Committee when the Internal Audit
Plan is set, as well as confirming the Executive
sponsor. The sponsor is involved in the planning
stages of each audit, overseeing completion of the
work and supporting BDO to agree conclusions and
agreeing recommendations.
Ongoing visibility of the internal control
environment is provided via internal audit reports to
the Executive Board and the Committee. Reports
are graded to reflect an overall assessment of the
design and operational effectiveness of the control
environment under review, and the significance of
any control weaknesses identified.
Improvement actions to address findings
are identified and agreed with management.
The Committee regularly reviewed actions
arising from internal audits. Reports on the
progress of the audit actions are presented to
the Executive Board every month and to the
Committee at every meeting, with a focus on the
status of any deferred and overdue actions.
Internal audit effectiveness
During the year, the Committee assessed the
effectiveness of internal audit to satisfy itself
that the quality, expertise and experience of
the function is appropriate for the Group. The
assessment was conducted in accordance
with a process agreed with the Committee and
involved seeking the views of the Committee,
as well as the Executive Board and those of
colleagues who have regular interactions with
the Internal Audit team on the following areas:
– Resource management and the operation of
internal audit
– Knowledge and expertise of Group Internal Audit
– Relationships across the business
– Planning, reporting and risk management
Wickes Group Plc Annual Report and Accounts 2024102 Strategic report Governance Financial statements Other information
Audit and Risk Committee report continued
A summary of the responses was presented to
the Committee at its meeting in December 2024.
The Committee used the feedback to assist its
assessment of the effectiveness of the internal
audit function and discussed its conclusions and
opportunities for improvement with Group Internal
Audit. The overall feedback was positive and a
number of actions to make improvements were
identified as part of this process. It was agreed
that the internal audit function was effective,
although there continued to be opportunities for
further improvement to the clarity of reporting
and strengthening relationships with senior
management. It was also noted that, following the
action agreed from the last effectiveness review to
move to a co-sourced model, recruitment for an in-
house Head of Internal Audit was progressing well.
Risk management and internal controls
In addition to internal audit services, BDO provides
the Committee with support and advice concerning
the Group’s assurance framework more generally
and during the year provided advice and assistance
with the full year risk management process.
Risks are actively managed on an ongoing basis.
Details of risks faced by the Group are maintained
in the Group Risk Register, with key risks regularly
collated and reviewed by management and the
Executive Board to assess the potential impact
and likelihood of occurrence, after taking into
account key controls, mitigating factors and
interdependencies. Additional focus is given to
any risks that fall outside of the Company’s risk
appetite, and further mitigating actions are put
in place, where appropriate, to manage risks
to an acceptable level. The principal risks and
uncertainties are developed from this Group view of
risk management, and are set out on pages 70-75,
together with information on how those risks are
mitigated and how emerging risks are assessed.
The Committee receives regular reports to provide
assurance over the extent and performance of the
control environment and to assist in its oversight of
the principal risks. These reports include:
– reports from management on progress with the
control improvement plan;
– reports from internal audit providing a status
update on the delivery of control improvement
recommendations;
– reports from internal audit on its audit reviews
and recommendations as part of the Internal
Audit Plan; and
– KPMG’s external audit findings and insight from
the external audit process.
The Committee has monitored the development of
internal financial processes and controls which has
continued to progress well, being focused initially
on improving key controls around financial
reporting whilst monitoring and adapting to
changes to the UK Corporate Governance Code.
The initial focus on key financial controls has been
ensuring they are appropriately documented and,
where necessary, implementing enhancements to
improve their design effectiveness. In the near term
the enhancements are considering opportunities to
increase the robustness and resilience of the
manual detective controls in operation. In the
longer term, the Company’s strategic IT programme
should allow the financial processes and controls
to be optimised and, where appropriate, embedding
more automated controls.
In regard to addressing the Code changes, we have
reviewed the Company’s proposed plan for
addressing the requirements for the FY2026 year
end, including assessing whether appropriate
resources have been allocated. Ahead of the 2024
year end, management has made good progress
considering the scope of its material controls,
alongside its key financial controls.
The Company is also focusing on enhancing
its internal processes for documenting and
managing its risk and compliance, and has begun
the implementation of a leading Governance,
Risk & Compliance solution, which will also
be used for capturing the assurance ‘lines
of defence’ for each control, and monitoring
the continued effectiveness of controls.
During the year, the Committee received updates on
the programme and its key findings from
management, as well as discussing the
effectiveness of the control environment in relation
to 2024. The Committee noted that there had been
improvements made to controls during the year and
concluded that, with the support from the manual
detective controls and reviews in place, the internal
control environment was effective.
The Committee recognises the importance of
continuous improvement in the effectiveness of the
Company’s systems and processes, and is highly
focused on ensuring that the Company delivers the
required improvements to its internal financial
controls, as well as addressing the Code changes
to be reported on as part of the 2026 year end.
Committee effectiveness
The effectiveness of the Committee was
considered as part of this year’s Board
performance evaluation process, more details of
which can be found on pages 96-97. The Audit and
Risk Committee’s questionnaire covered four key
areas:
– the role and operation of the Committee;
– composition;
– leadership; and
– process and procedures.
The General Counsel and Company Secretary
collated the responses and presented a summary
of the key findings to the Board for discussion. The
review concluded that the Committee continues to
operate effectively with no areas of concern
requiring immediate attention identified. An action
plan was agreed with key areas of focus for 2025
being the operation of Internal Audit and reviewing
the approach to reviewing key risks.
Wickes Group Plc Annual Report and Accounts 2024103 Strategic report Governance Financial statements Other information
Responsible Business Committee report
Committee members
Sonita Alleyne (Chair)
Independent Non-executive Director
Mark Clare
Senior Independent Non-executive Director
Laura Harricks
Independent Non-executive Director
Mike Iddon
Independent Non-executive Director
Christopher Rogers
Non-executive Chair of the Board
Dear Shareholder,
I am pleased to present the Company’s
Responsible Business Committee report for the
year ended 28 December 2024. The following
pages describe the activities of the Committee
and provide an overview of the topics
addressed during the year.
The Committee has a key role in supporting
the Board by providing guidance and direction
on the Company’s ESG ambitions. The
Committee provides Board oversight for
elements of the Group’s strategy that relate
to social and environmental priorities, in
accordance with the Company’s Responsible
Business Strategy, ‘Built to Last’. David Wood
and Mark George, along with members of
the leadership team and subject matter
experts from across the business, regularly
attend Committee meetings to bring the
benefit of their expertise in ESG matters. Our
collective experience and capability lead
to ambitious, constructive and progressive
discussions on a wide range of existing and
emerging social and environmental topics.
It has been a busy year for the Committee
and we considered a large number of
important matters covering a broad range
of sustainability topics which are set out
in more detail on the following page and
in the Responsible Business report. The
Committee received detailed papers and
briefings and discussed a wide range
of topics over the course of the year
which helped develop a greater depth of
understanding on these important issues.
2024 was particularly exciting with the acquisition
of a majority stake in Solar Fast, which represented
a big step forward for the business towards
delivering our ambitions under the ‘Homes’
pillar of our Responsible Business Strategy.
I am pleased with the progress made in the first
two years following the launch of our Responsible
Business Strategy but recognise there is still much
to do. Looking ahead to 2025, the Committee’s
key focus will continue to be on overseeing the
Company’s performance and key areas of risk
and opportunity in our Responsible Business
Strategy in line with changing stakeholder needs.
Sonita Alleyne
Chair of the Responsible Business Committee
19 March 2025
Committee composition
The Committee membership comprises the
Non-executive Directors, including the Chair of
the Board. Details of their experience and skills
are set out in the biographies on pages 80-81.
Overall attendance for Responsible Business
Committee meetings was 100%. Further details
about meetings and attendance can be found
on page 83.
David Wood, CEO, and Mark George, CFO, are
not members of the Committee but, along with
other key members of management, are invited
to and attend all meetings to provide valuable
operational and financial insight and feedback
on performance against the Responsible
Business Strategy.
Role of the Committee
The role and responsibilities of the
Committee are set out in the Committee
Terms of Reference, which are available
on the Company’s corporate website at
www.wickesplc.co.uk. The Committee’s
main focus is on:
– Reviewing and approving the Responsible
Business Strategy, ensuring it addresses key
issues relevant to the business.
– Monitoring the execution of the Responsible
Business Strategy including approving
related targets and monitoring performance
against these targets.
– Providing assurance to the Board that the
Responsible Business Strategy is the right
strategy to support the long term sustainable
success of the business and that it is being
implemented effectively.
Sonita Alleyne
Chair of the Responsible
Business Committee
104 Wickes Group Plc Annual Report and Accounts 2024Financial statements Other informationStrategic report Governance
Responsible Business Committee report continued
Activities of the Committee
During the year, the Committee held five scheduled
meetings. The Committee has a structured forward
looking planner to ensure that the responsibilities
of the Committee are discharged during the year.
The planner is regularly reviewed and developed to
meet the changing needs of the business.
Percentage of time spent by the Committee in
scheduled meetings
Reporting and
communications
15%
Governance
7%
Remuneration
targets
22%
Reviewing
performance
28%
Strategy
and
planning
28%
A summary of the key matters considered by the Committee in 2024 is set out below.
February March June September December
Annual Report disclosures
Assurance results
Built to Last targets
and action plans
Diversity data
Community programmes and
charitable support
ESG-linked remuneration
targets
Environment Policy
Committee Terms of Reference
ESG disclosures
Inclusion and diversity
progress and targets
Early careers progress
Charity & community
performance and targets
Decarbonisation progress and
targets
Rebaselining SBTs
TCFD
Waste performance
Products to support customers
to reduce energy usage
ESG linked remuneration
targets
ESG disclosures and ratings
Long term diversity targets
ESG-linked remuneration
targets
Decarbonisation progress
Rebaselining SBTs
TCFD
Waste targets
Responsible sourcing
ESOS action plan
Long term diversity plan
Early careers progress
Charity and community
progress
Decarbonisation roadmap and
targets
ESG-linked remuneration
targets
Resources and waste strategy
Packaging waste progress
Supporting customers update
Details about our Responsible Business Strategy and the progress made in 2024 can be found in the Responsible Business and Climate-related Financial
Disclosures sections on pages 30-65.
Responsible business targets
The Committee closely monitors progress against targets for all areas of the Responsible Business Strategy. It also considers the key areas of strategy to link to
remuneration and recommends ESG targets for incentive purposes to the Remuneration Committee. At the end of each year, the Committee considers performance
against targets and makes a recommendation on the level of payout against the targets to the Remuneration Committee. Further details can be found in the
Directors’ Remuneration report.
Committee effectiveness
The effectiveness of the Committee was considered as part of this year’s Board performance evaluation process, more details of which can be found on pages
96-97. The Responsible Business Committee’s questionnaire covered four key areas:
– the role and operation of the Committee;
– composition;
– leadership; and
– process and procedures.
The General Counsel and Company Secretary collated the responses and presented a summary of the key findings to the Committee for discussion. The review
concluded that the Committee continues to operate effectively with no areas of concern requiring immediate attention identified. The key actions agreed arising
from the review were to further develop the Group’s decarbonisation plan and to review the key areas for the Committee to focus on in 2025.
Wickes Group Plc Annual Report and Accounts 2024105 Strategic report Governance Financial statements Other information
Committee members
Mark Clare (Chair)
Senior Independent Non-executive Director
Sonita Alleyne
Independent Non-executive Director
Laura Harricks
Independent Non-executive Director
Mike Iddon
Independent Non-executive Director
Christopher Rogers
Non-executive Chair of the Board
Dear Shareholder,
On behalf of the Remuneration Committee,
I am pleased to present the 2024 Directors’
Remuneration report for Wickes. The report
covers two key areas:
– This letter, which provides a summary of the
key remuneration decisions made in respect
of 2024 and our proposed approach for 2025.
– The Annual Report on Remuneration,
describing how the existing Remuneration
Policy has been applied for the year ended
28 December 2024 and how we intend to
implement the Policy for 2025.
The Company’s Directors’ Remuneration Policy
was approved at the 2024 Annual General
Meeting. A copy of our full Policy is available on
our website https://www.wickesplc.co.uk/
investors/investors-overview/.
As expected, 2024 has been another year
impacted by significant global, political and
economic events that have weighed on
consumer confidence. Despite being faced
with significant increases in operational
costs, we have focused on improving
productivity and efficiencies to deliver
robust performance, which has been
reflected in our remuneration outcomes.
Our approach to remuneration as a Group
continues to be guided by a set of reward
principles that are aligned to our business
strategy. For executives, pay is governed
by our Remuneration Policy, approved
by Shareholders in 2024. Our key focus
for 2025 is effective implementation of
this Policy to ensure that pay continues
to support our business strategy and
remains market competitive.
During the year there have been no changes to
membership of the Remuneration Committee,
which remains focused on maintaining
an open dialogue with Shareholders.
The Committee carefully considered the experience
of key stakeholders during the year, including
colleagues and Shareholders, when making
remuneration decisions.
Reward and benefits across the Group
We continue to support our colleagues with their
financial resilience, as cost of living pressures
remain. In April 2024 we awarded a colleague
salary increase of more than 7%, and we expect to
award an increase of more than 5% in April 2025.
We continue to significantly invest in our variable
pay plans for which all colleagues are eligible to
participate, and we paid out £4.3m in annual bonus
to eligible colleagues for 2024. In July 2024, over
4,000 colleagues gained access to awards which
vested under our 2021 Free Share Award.
Based on colleague feedback we further enhanced
our direct financial support. ‘Save’ was introduced
which supplements our existing salary advance
and payroll loan options that were utilised by
colleagues over 15,000 times last year. Colleagues
also made savings of over £2.6m using our
competitive discount on Wickes’ own products,
helped by periodic discount enhancements.
We continue to place wider colleague wellbeing at
the heart of who we are at Wickes. During the year
we saw ‘Digicare’ registrations increase to 1,684.
This service represents a key part of our wider
wellbeing support for all colleagues, which includes
digital GP, home health test kits, and mental health
support, all free of charge.
Fair pay remains at the core of our reward offering,
and for 2024 we reported median gender and
ethnicity pay gaps of -0.77% and 0.87%
respectively.
Further details of our approach to colleague reward
and wellbeing can be found on page 114.
Committee composition
The Committee membership comprises the
Non-executive Directors, including the Chair of
the Board. Details of their experience and skills
are set out in the biographies on pages 80-81.
Overall attendance for Remuneration Committee
meetings was 100%. Further details about
meetings and attendance can be found on page
83. David Wood, CEO, and Mark George, CFO, are
not members of the Committee but are invited
to attend meetings where required in order to
provide valuable operational and financial insight.
Role of the Committee
The role and responsibilities of the Committee
are set out in the Committee Terms of Reference,
which are available on the Company’s corporate
website at www.wickesplc.co.uk. The Committee’s
main focus is on:
– determining the Remuneration Policy for the
Board and other designated senior management;
– ensuring the Remuneration Policy meets
regulatory and legal requirements, and supports
successful delivery of the Company strategy;
– reviewing wider workforce remuneration and the
alignment of incentives with culture.
Remuneration Committee report
Mark Clare
Chair of the
Remuneration Committee
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Remuneration Committee report continued
Responsible Business
Building skills in our local communities is important
for the business to ensure that it continues
to attract and develop the skills required for
future growth. In 2024, we provided 178 people
with Early Careers placements (147 individuals
enrolled on an apprenticeship programme, there
were 28 work experience placements, and 3
graduate, intern and business placements).
In 2024, the business continued to focus
on integrating Built to Last, our Responsible
Business Strategy, into the business. Targets
for both gender and ethnic diversity were again
included in the Executive Annual Bonus Scheme,
and we extended these targets to our wider
leadership population. Our plans as a business
to decarbonise were linked to the Long Term
Incentive Plan for 2023, 2024 and 2025.
Group performance highlights for 2024
In 2024, despite challenging operating conditions,
we delivered sales of £1,538.8m. Our adjusted profit
for the year was £43.6m.
£1,538.8m
revenue (2023: £1,553.8m)
£43.6m
profit before tax (adjusted) (2023: £52.0m)
£32.2m
free cash flow (2023: £46.1m)
14.1p
adjusted basic earnings per share (2023: 15.1p)
Profit before tax
(adjusted)
Free cash flow
Female representation
across our management
population
UEM representation
across our management
population
Total
£43.6m
£41.5m
48.9%70%
20%
6.5%
3.5%
100%
34.2%
£48.1m
£32.2m
£13.5m
100% 20.0%
£23.7m
36.98%
35.2%
100% 6.5%
36.0%
11.9%
11.4%
100% 3.5%
11.8%
64.2%
0%
64.2%
100%50%
Measure
Weighting Threshold Target Max
% maximum
achieved
% bonus
achieved
Shareholder experience in 2024
The Board is pleased to recommend a final dividend of 7.3 pence per share, taking our full year ordinary
dividend to 10.9 pence per share. We recognise the importance of cash returns to our Shareholders, and,
given the strength of our balance sheet, we have maintained the full year dividend per share at the same
level as 2023.
Our first £25m share buyback programme has now been completed, with approximately £10m having been
bought back in 2023 and the remainder completed by September 2024.
Executive remuneration in 2024
Basic salary
As disclosed in last year’s report, the Committee agreed to award the CEO, David Wood, the first of a two
step base salary increase in 2024 of 9.9% to £580,000. This change followed an extensive Shareholder
consultation exercise, and took into account the performance of the CEO since appointment, and the
appropriate market rate for a valued and experienced CEO. As detailed in last year’s report, alongside the
base salary increase, the annual bonus maximum for the CEO was increased from 140% to 160% of base
salary, and the LTIP opportunity was increased from 175% to 185% of base salary.
From 1 April 2024, the annual salary for the CFO, Mark George, was increased by 4% to £405,600. This was
below the average increase awarded to the wider workforce in 2024 of more than 7%.
Annual bonus outturn
The 2024 annual bonus paid out at 64.2% of
maximum. 34.2% of this related to PBT, 20% related
to free cash flow, and 10% related to ESG.
The Committee considered the formulaic bonus
outcome against the targets which were set at the
beginning of the year. At the time that the targets
were set, the Committee was comfortable that they
were appropriately stretching in the context of the
Group’s ambitions and taking into account the
anticipated headwinds highlighted above in this
letter. The Committee considers the bonus outcome
to be fair and appropriate, therefore no discretion
has been exercised in relation to the bonus payout.
Further details can be found on page 110.
ESG targets for the 2023 and 2024 LTIPs
As disclosed in last year’s report, we committed to
confirm the ESG targets for the 2023 and 2024
LTIPs following completion of the rebaselining of
our science-based targets (SBTs). In December last
year we communicated that no changes would be
made to the existing 2023 LTIP ESG targets as a
result. We also confirmed that, as we now have a
greater appreciation of the need to rebaseline
frequently due to improving carbon accounting
methodology and changes to the business, for the
2024 LTIP we will assess performance based on
absolute carbon emissions, rather than
performance relative to our baseline. Further
details are set out on page 112.
LTIP awards
LTIP grants were made during the year in line with
the Remuneration Policy. The LTIP awarded to
David Wood was 185% of base salary, and the
award to Mark George was 150% of base salary.
More details on the performance measures and
targets are set out on page 112.
The 2021 LTIP, in which David Wood participated,
will not vest, as performance conditions were not
met.
The 2022 LTIP, in which David Wood and Mark
George participated, will not vest, as performance
conditions were not met.
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Governance
Remuneration Committee report continued
Our approach to
remuneration in 2025
As disclosed in last year’s report, the Committee is
proposing to award David Wood, CEO, the second
phase of his salary increase in 2025. From April,
David Wood’s salary will be increased to £630,000,
an increase of 8.6%.
In agreeing the appropriate level of salary increase,
the Committee considered David Wood’s strong
performance in role since appointment, having
successfully delivered on a number of key strategic
objectives (as detailed on pages 112-113 in the 2023
Annual Report and Accounts). The Committee also
noted that despite challenging trading conditions
during 2024, the Group delivered a robust
performance above consensus, whilst providing
strong Shareholder returns by maintaining our
dividends and completing our share buyback
programme.
In reaching its recommendation, the Committee
also recognises the competition for talent at the
senior executive level in the retail sector, noting that
the CEO’s performance to date makes him an
attractive proposition for competitors. A
remuneration market benchmarking exercise was
also undertaken, based on the custom retail sector
peer group and relevant market indices that formed
the basis of the review last year.
This second-phase increase to David Wood, CEO’s
base salary, completes the planned adjustment to
his package communicated to Shareholders last
year, with future increases expected to be in line
with the wider colleague population.
Mark George will receive a 3% salary increase in
April 2025, which is below the average increase of
more than 5% due to be awarded to the wider
workforce as part of the annual review.
2025 annual bonus measures
The annual bonus for 2025 will continue to be
based 70% on profit before tax (adjusted), 20% on
free cash flow, and 10% on people measures that
form part of our wider ESG strategy. Further details
can be found on page 113.
The Committee will continue to set challenging but
motivating bonus targets which reflect our internal
projections, the external market which is expected
to remain challenging, and analyst consensus
estimates. Our approach to target setting has been
consistent over the last three years where the
average payout as a percentage of maximum has
been 52%, with a variety of outcomes reflecting pay
for performance alignment. Bonus opportunity
levels will remain unchanged.
2025 LTIP measures
There are no changes proposed to the LTIP
measures and weightings.
While there continues to be real uncertainty about
the speed of recovery of consumer markets, the
Committee will continue to set LTIP targets that it
believes are stretching but achievable assuming
some recovery in the retail market over the period
of the award. Further details on the 2025 LTIP
measures and targets can be found on page 113.
LTIP opportunity levels will remain unchanged.
We continue to consider colleague pay structures
when implementing our reward strategy for
executives, and further details on colleague pay
can be found on page 114.
The Committee also considers voting on Annual
General Meeting resolutions and is pleased with the
high level of support received, historically, for its
Annual Reports on Remuneration and for the
renewal of the Remuneration Policy in 2024.
The Committee welcomes any comments you may
have on this report or our remuneration
arrangements in general.
Mark Clare
Chair of the Remuneration Committee
19 March 2025
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Governance
108
Remuneration Committee report continued
Our remuneration philosophy
We aim to set
pay at a market
competitive level
across the business
We aim to provide
transparent and fair
rewards, recognising and
rewarding colleagues for
their contribution
We aim to align
the interests of
colleagues and
Shareholders
through share
ownership
We aim, through
our incentive
arrangements, to reward
achievement of short
and long term objectives
and delivery of the
business strategy
Our remuneration philosophy is aligned to Wickes’ business
strategy and informs pay decisions at and below Board:
Whilst we recognise that, due to
the nature of the role of our
executives, their remuneration
structure will have a higher
performance-related element and
greater alignment to long term
measures when compared with
colleagues, our reward principles
apply across both populations to
ensure alignment.
Strategic alignment of executive incentive plan metrics with KPIs
Key performance indicator Measure Annual bonus scheme Long term incentive
Profit Profit before tax (adjusted)
Earnings growth Earnings per share (adjusted)
Cash Free cash flow
Share price growth Total Shareholder Return (relative)
ESG objectives People
1
Environment
2
1 Based on our inclusion and diversity targets in relation to our gender and ethnicity mix in management roles. In 2025 our gender and
ethnicity targets will be based on the wider workforce.
2 Based on our carbon reduction targets.
The table below sets out how our Remuneration Policy cascades throughout the organisation:
Pay element Approach for Executive Directors Approach for wider workforce
Base salary Base salary is typically set with
reference to the market, performance
and wider workforce considerations.
Annual increases are typically in line
with or less than those for the wider
colleague population.
Base salary is typically set with
reference to the market, individual
performance and our internal pay
structures.
Annual cost of living salary increases
typically take place in April each year.
Benefits A wide range of market competitive
benefits plus contractual car and private
medical benefits.
A wide range of market competitive
benefits are available to all colleagues,
including a cycle to work scheme, health
benefits, and enhanced maternity,
paternity and adoption leave.
Pension Pension comprises a contribution into
the Wickes Retirement Savings Plan or a
cash allowance in lieu of pension
contributions (or a mix of both).
All colleagues are members of the
Wickes Retirement Savings Plan unless
they have opted out.
Short term incentives Annual bonus scheme rewarding
achievement of stretching annual
performance targets linked to delivery of
the business strategy. Deferral of one
third of the bonus into Wickes Group
shares.
All colleagues have the opportunity to
participate in a variable pay plan
normally linked to either Company or
team performance.
Long term incentives Long term incentive plan with
performance measures over three years
incentivising and rewarding long term
Shareholder value creation.
All colleagues may participate in the
annual Sharesave (SAYE) plan over three
years.
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Remuneration Committee report continued
Annual Report on Remuneration
Single total figure of remuneration (audited)
The table below sets out the remuneration received by the Directors in respect of the year ended 28 December 2024.
Director
Salary/fees
£,000
Benefits
1
£,000
Pension
2
£,000
Bonus
3
£,000
Long term incentives
£,000
Other
£,000
Total fixed remuneration
£,000
Total variable
remuneration
£,000
Total remuneration
£,000
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Executive Directors
David Wood 567 523 22 21 60 52 596 642 0 0 0 0 649 596 596 642 1,245 1,238
Mark George 402 386 13 12 35 35 312 407 0 0 0 0 450 433 312 407 762 840
Non-executive Directors
Christopher Rogers 203 195 0 0 0 0 0 0 0 0 0 0 203 195 0 0 203 195
Mark Clare 80 77 0 0 0 0 0 0 0 0 0 0 80 77 0 0 80 77
Sonita Alleyne 71 69 0 0 0 0 0 0 0 0 0 0 71 69 0 0 71 69
Mike Iddon 71 69 0 0 0 0 0 0 0 0 0 0 71 69 0 0 71 69
Laura Harricks 60 34 0 0 0 0 0 0 0 0 0 0 60 34 0 0 60 34
Total 1,454 1,353 35 33 95 87 908 1,049 0 0 0 0 1,584 1,473 908 1,049 2,492 2,522
1. Includes the cost to the Company of private medical insurance and company car benefit. David Wood also receives a fuel allowance.
2. Pension contributions equal to 10% of base salary were paid as a combination of pension payments and cash in respect of 2024, in line with the maximum rate available to the wider workforce.
3. One third of bonus earned will be deferred into shares, in line with Policy.
Base salary
Salary effective
from 1 April
2024
David Wood £580,000
Mark George £405,600
Benefits
For 2024, benefits for Executive Directors included the provision of private medical insurance, life
assurance, income protection and a company car or car allowance.
Pension
David Wood and Mark George received pension contributions equal to 10% of base salary, paid as a
combination of pension payments and cash, which is in line with the maximum rate available to the wider
workforce.
Annual bonus
The table below sets out details of the bonus targets and outturns for 2024:
Measure
Weighting %
of bonus Threshold On-target Maximum Actual
%
achievement
of bonus
Discretion or
adjustment
to targets?
Profit before tax
(adjusted)
1
70% £41.5m £43.7m £48.1m £43.6m 34.2% N
Free cash flow
2
20% £13.5m £16.9m £23.7m £32.2m 20.0% N
ESG
% female representation
across our management
population 6.5% 35.2% 35.6% 36.0% 36.9% 6.5% N
% UEM representation
across our management
population 3.5% 11.4% 11.6% 11.8% 11.8% 3.5% N
Total outturn 100% 64.2%
1 As reported in the year end income statement.
2 Cash generated from operations, before the impact of adjusting items, after capex, interest and tax.
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Remuneration Committee report continued
Statement of Director shareholdings and share interests (audited)
A summary of the Directors’ share interests is set out below.
Director
Shares owned
Exercised
1
Vested but not
exercised
Unvested and
subject to
continued
employment
Unvested and
subject to
performance
Shareholding
requirement
Deferred Annual
Bonus Plan
(DABP)
Shareholding as
% of salary28 Dec 2024 31 Dec 2023
Executive Directors
David Wood 484,814 484,814 0 0 0 1,879,644 200% 249,776 163%
Mark George 85,772 58,130 52,319 0 0 1,291,931 200% 92,777 51%
Non-executive Directors
Christopher Rogers 140,000 140,000 0 0 0 0 – – –
Mark Clare 42,797 42,797 0 0 0 0 – – –
Sonita Alleyne 0 0 0 0 0 0 – – –
Mike Iddon 0 0 0 0 0 0 – – –
Laura Harricks 0 – 0 0 0 0 – – –
1 The aggregate gain arising from the exercise of 52,319 options by Mark George on 28 March 2024 was £79,177.
Shareholdings include all shares beneficially owned by the Director and their partner and the post-tax value of any awards that have vested but have not been exercised. Unvested awards subject to performance or
continued employment are not counted. The calculation is based on the closing share price at year end of £1.532. There have been no changes in the shareholding of Directors between 28 December 2024 and the date
this report is signed.
None of the Executive Directors, Executive Committee or Non-executive Directors beneficially owns 1% or more of the issued share capital of the Company, nor do they have different voting rights from other shareholders.
The Executive Directors have five years to meet their shareholding guidelines, in line with Policy.
Share awards made during the financial year (audited)
The below table summarises the terms for the long term incentives and deferred annual bonus awarded to Directors during 2024.
Director Type of award Plan name Date of grant
Number of
shares/options
Award as %
of salary Face value
Performance
period Vesting date Holding period
David Wood Nil cost option LTIP 27/03/24 714,285 185% £1,072,856 1/1/24 – 31/12/26 27/03/27 2 years
David Wood Nil cost option DABP 27/03/24 142,449 24.56% £213,958 n/a 27/03/27 n/a
Mark George Nil cost option LTIP 27/03/24 405,005 150% £608,318 1/1/24 – 31/12/26 27/03/27 2 years
Mark George Nil cost option DABP 27/03/24 90,243 22.25% £135,545 n/a 27/03/27 n/a
The number of shares under award for David Wood and Mark George’s awards was calculated using a share price of £1.502, being the average of the closing market price of the Company’s shares on the five dealing days
immediately preceding the grant date. The Company’s share plan rules are available from the Company Secretary on request.
Further details on performance against the ESG targets during 2024 is below:
– % female representation in management: An increase of 29 females from 448 (35.1%) to 477 (36.9%).
– % UEM representation in management: An increase of 9 UEM colleagues from 144 (11.2%) to 153 (11.8%).
Long term incentives
The 2021 and 2022 LTIPs did not vest as performance conditions were not met.
Payments to past Directors and payments for loss of office (audited)
No payments were made during 2024 for loss of office or to past Directors.
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Governance
ESG targets for the 2023 and 2024 LTIPs
In the 2023 Annual Report and Accounts we committed to confirm the ESG targets for the 2023 and 2024
LTIPs following completion of the rebaselining of our science-based targets (SBTs). In December 2024 we
confirmed that following the rebaselining work we made the decision to assess performance for the 2024
LTIP based on our absolute Scope 1 and 2 carbon emissions, rather than performance relative to our
baseline.
We also confirmed at the time that no changes would be made to the 2023 LTIP ESG targets. These remain
as stated in the 2022 Annual Report and Accounts, page 110.
2024 LTIP
LTIP grants were made during the year in line with the Remuneration Policy. The LTIP awarded to the CEO
was 185% of base salary, and the award to the CFO was 150% of base salary.
Performance conditions attached to long term incentive awards granted during 2024
Measure Weighting Threshold Maximum
Vesting at
threshold
Vesting at
maximum
Adjusted basic EPS in 2026 60% 21.0p 28.4p 20% 100%
Relative TSR vs constituents
ofthe FTSE 250
(excludinginvestment trusts) 30% Median Upper quartile 20% 100%
Reduction in carbon emissions
1
10% 15,879 tCO
2
e 15,257 tCO
2
e 20% 100%
1 Scope 1 and 2 carbon emissions in 2026 (tonnes carbon dioxide equivalent (tCO
2
e)).
Note - vesting of all measures is on a straight line basis between threshold and maximum.
Adjusted basic EPS has been selected because this is a key performance indicator of the business
andisreported externally. It is also a relevant Shareholder measure of Group profitability. Relative Total
Shareholder Return (TSR) has been selected because it aligns executives to our investors’ experience
andhelps to reward outperformance of the market and long term value creation.
CFO remuneration arrangements
As detailed in the 2022 Annual Report and Accounts, upon joining Wickes the Remuneration Committee
agreed to buy out some of the Gym Group incentive awards forfeited by Mark George. In September 2022,
Mark George was awarded a total of 148,114 Wickes shares to replace his foregone 2020 and 2021 Gym
Group LTIPs. As disclosed in last year’s report, a total of 110,025 shares (including dividend equivalents)
vested on 9 September 2023. A further 52,319 shares (including dividend equivalents) vested on
25 March2024.
TSR performance graph and history of CEO pay
The graph to the right shows the Group’s performance from the date of listing to the financial year end,
measured by TSR, compared with the FTSE 250 (exc. investment trusts). The Remuneration Committee has
chosen the FTSE 250 (exc. investment trusts) as the comparative index as it is also the peer group used for
the TSR performance condition in the 2024 LTIP. The table beneath the TSR chart details the total
remuneration for the Chief Executive over this period.
Wickes Total Shareholder Return vs FTSE 250 (exc. investment trusts)
40
60
80
100
120
Dec
2020
Jun
2021
Dec
2021
Jun
2022
Dec
2022
Jun
2023
Dec
2023
Jun
2024
Dec
2024
FTSE 250 (excl. investment trusts)
Wickes
Director Year
Total single
figure of
remuneration
(£,000)
% of annual
bonus paid out
% of LTIP
vested
David Wood 2024 1,245 64.2% 0%
1
David Wood 2023 1,238 86.9% n/a
2
David Wood 2022 857 4.66% 100%
David Wood 2021 1,357 79.0% 100%
1 During 2024 the 2021 LTIP lapsed as performance conditions were not met.
2 There was no LTIP award due for performance testing in 2023.
External appointments
External appointments must be approved by the Board in advance and Executive Directors are restricted to
one Non-executive Directorship or other significant appointment. They are entitled to retain any fees paid
for these services. During the year, David Wood served as Non-executive Chairman, ‘Green Sheep Group Ltd’
and Director, ‘Dremt Consulting Ltd’. David Wood was paid a fee of £53,000 by ‘Green Sheep Group Ltd’
1
. Mark
George served as Director, ‘HMNG Ltd’, Director, ‘The Prentice and Seabright Cups Ltd’ and Director, ‘Fallows
Green Ltd’. No fees applied to any of these appointments for Mark George.
1 Fees earned from Green Sheep Group Ltd are paid to Dremt Consulting Ltd.
Dilution limits
Where shares for use in connection with the Company’s share plans are newly issued, the Company
operates within best practice guidance.
Remuneration Committee report continued
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Remuneration Committee report continued
Summary of remuneration implementation for 2025
The table below summarises the implementation of the Company’s Remuneration Policy for 2025. The rationale for the CEO’s salary increase is set out in the letter on page 108. A copy of our full Policy as approved at the
2024 AGM is set out in the 2023 Annual Report and Accounts which is available on the Company’s website https://www.wickesplc.co.uk/investors/investors-overview/.
Element Implementation details
Base salary – Base salary for the CEO will be increased by 8.6% to £630,000 from 1 April 2025.
– Base salary for the CFO will be increased by 3% to £417,768 from 1 April 2025.
Annual bonus – The annual bonus will operate in line with the framework set out in the Policy table. The maximum opportunity will be 160% of salary for the CEO and 120% of salary for the CFO.
– The performance focus areas and weightings will remain broadly the same as for 2024:
– 70% will be based on profit before tax (adjusted).
– 20% will be based on free cash flow.
– 10% will be based on ESG people targets focused on the gender and ethnicity representation of our total workforce.
– Due to commercial sensitivity, the performance targets will be disclosed retrospectively.
LTIP – The LTIP will continue to operate in line with the framework set out in the Policy table. The maximum opportunity will be 185% of salary for the CEO and 150% of salary for the CFO.
– The performance metrics and weightings will remain the same as for 2024: 60% earnings per share (adjusted), 30% relative TSR, 10% ESG.
– The performance targets for the 2025 LTIP awards are as follows:
Measure and weighting Threshold (20% vesting) Maximum (100% vesting)
Adjusted basic EPS in 2027 (60%) 20.3p 24.8p
Relative TSR vs constituents of the FTSE 250 (excluding investment trusts) (30%) Median Upper quartile
ESG – Reduction in carbon emissions
1
(10%) 15,764 tCO
2
e 15,146 tCO
2
e
Pension and benefits – There are no changes to the benefits provision for Executive Directors and pension will continue to be 10% of base salary in line with the maximum rate available to the wider workforce.
1 Scope 1 and 2 carbon emissions in 2027 (tonnes carbon dioxide equivalent (tCO
2
e)).
Implementation of Non-executive Director Policy in 2025
Non-executive Director fees will be increased by 3% from 1 April 2025, which is below the average increase
for the wider workforce. Fees as at 1 April 2025 are set out below:
Role
Fee level
perannum
Basic Non-executive Director £62,806
Board Chair £211,252
Senior Independent Director (additional premium) £8,565
Chair of a Committee (additional premium) £11,420
In line with our Policy, reimbursement of reasonable expenses in relation to Non-executive duties may be paid.
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Governance
Remuneration Committee report continued
Director remuneration in the context of colleague pay
Remuneration approach for the wider Group
The approach to remuneration for our colleagues is
aligned with the principles that apply to our Policy
for the Executive Directors. Pay and benefits reflect
the nature and contribution of the role and take into
account levels of pay in comparable roles in the
market. Our reward framework is regularly reviewed
to ensure colleague pay is fair and appropriate.
During 2024 we recognised the ongoing impact of
the higher cost of living on our lower paid
colleagues. Basic pay was increased by more than
c.7% on average for the wider workforce, and we
made specific enhancements to the reward
package for our Duty Managers. In 2025 we expect
to increase colleague pay by more than c.5% on
average.
All colleagues are eligible for a performance bonus,
to support our strategy and to encourage and
reward collaboration. The central annual bonus plan
for Support Centre and management colleagues is
based on achievement against Company profit and
sales targets. The plan paid out a total of £4.3m to
colleagues for 2024, representing 40.0% of
maximum bonus.
Our ‘Digicare’ benefit represents a key part of our
wider wellbeing support for all colleagues, which
includes digital GP, home health test kits, and
mental health support, all free of charge. During
the year we saw ‘Digicare’ registrations increase
to 1,684.
Gender and ethnicity pay gap
We continue to focus on gender equality at all
levels of the business, and in 2024 the ESG
element of the executive bonus plan included
specific targets relating to female representation
across our management population.
In January 2025, we published our fourth
gender pay gap report as an independent
business. We reported that our median gender
pay gap has improved from 0.07% to -0.77% in
favour of women.
We also reported our ethnicity pay gap for the
second time. We are pleased with our
negligible median and mean ethnicity pay
gaps of 0.87% and -0.74% respectively, which
we believe reflects our focus to date on equal
treatment in this area.
-0.77%
Our gender pay gap (median)
0.87%
Our ethnicity pay gap (median)
We continue to support our colleagues with their
financial resilience. During the year we introduced
‘Save’, which allows colleagues to make regular
savings via payroll. This supplements our existing
salary advance and payroll loan options which were
utilised by colleagues over 15,000 times last year. In
July 2024, over 4,000 colleagues gained access to
awards which vested under our 2021 Free Share
Award.
Reward and ESG
We continuously review our wider reward offering
to ensure it supports our wider ESG priorities as a
business. From 2024 onwards we now include
gender and ethnicity targets in the annual bonus
plan for our wider leadership population, and for
2025 we have extended our target population under
both measures to cover the wider workforce.
Since its introduction in 2024, 48 colleagues have
now chosen a car under our ‘Green Car’ scheme,
which gives access to electric or hybrid vehicles
with significant savings via salary exchange.
Our Winning Behaviours
Personal responsibility lies at the centre of our
culture and our business is powered by highly
engaged individuals and teams who embody our
winning behaviours.
See more on our Winning Behaviours on page 34.
Engagement with Shareholders
In our engagements with Shareholders since
listing, we have had a number of discussions on key
topics relating to the wider workforce, including the
link between ESG and remuneration, fair pay and
colleague wellbeing. We will continue to take
Shareholder feedback on board when developing
our approach to these important topics.
Engagement with colleagues
(UK Code requirement)
When considering remuneration arrangements for
Executive Directors, the Committee takes into
account, as a matter of course, the pay and
conditions of colleagues at all levels throughout the
Company, to ensure appropriate alignment. The
Committee receives regular updates regarding any
major changes to colleague remuneration during
the year and also reviews information on internal
measures, including details of our gender pay gap
and the ratio of Chief Executive Officer
remuneration to that of our colleagues, and
considers how these compare externally.
The Board continues to place great importance on
listening to the views of our colleagues on a range
of issues including pay and benefits, and Sonita
Alleyne, our designated Non-executive Director
representing colleague views, takes the lead on
ensuring these are heard by the Board (see page 37
for further details). To facilitate more in depth and
open discussion with colleagues on a broad range
of current issues, we held a colleague listening
group in October 2024, with Sonita in attendance.
One of the focus areas of this session was sharing
our approach to executive pay, including how this
aligns with wider Company pay policy, and
colleagues were given the opportunity to share
their views on this topic.
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Remuneration Committee report continued
CEO to employee pay ratio
The table below sets out the ratio of CEO total remuneration to the 25th, 50th and 75th percentile
colleagues. Approach B has been used in order to identify the relevant colleagues to calculate the ratio.
Thiswas chosen as it utilises data already collected for gender pay gap calculation from April 2024,
providing consistency. The Committee is comfortable this approach provides a realistic assessment of
thedifferential between CEO and colleague pay.
Year Method
25th percentile
pay ratio
50th percentile
pay ratio
75th percentile
pay ratio
2024 Approach B 48:1 47:1 37:1
2023 Approach B 53:1 52:1 44:1
2022 Approach B 45:1 43:1 31:1
2021 Approach B 97:1 90:1 71:1
The CEO total remuneration has been taken from the single figure table and reflects 2024 remuneration
earned over the full financial year. Colleague remuneration has been calculated on the same basis.
Whererelevant, each colleagues’ pay and benefits were calculated on a full-time equivalent basis, and no
further adjustments were made. The values for total remuneration for the 25th, median and 75th percentiles
consist of salary, bonuses and employer contribution to pension. To ensure these three colleagues were a
suitable representative of their quartile, the total pay figures calculated were compared against a sample
ofcolleagues either side of the three identified colleagues.
The Remuneration Committee considers pay ratios as one of a number of reference points when reviewing
executive remuneration and considers that the median pay ratio for 2024 is consistent with the pay and
progression policies for the Company.
P25 P50 P75
Base salary £22,541 £22,913 £24,811
Total remuneration £25,969 £26,328 £33,628
Relative importance of spend on pay
The table below illustrates the total spend on colleague remuneration in 2024 compared with other
financialdispersals.
2024
£m
2023
£m %
Total colleague cost
1
232.0 234.3 (1.0)%
Total distributions to Shareholders
2
41.1 37.2 10.5%
Total income taxes paid
3
8.6 0.3 2766.7%
Total capital expenditure
4
26.1 38.2 (31.7)%
1 Includes social security, pensions and share-based payments (see note 8 of the financial statements)
2 (See page 7 of the Annual Report)
3 (See the cash flow statement on page 133)
4 (See the cash flow statement on page 133)
Percentage change in Directors’ and colleague remuneration
The table below summarises the annual percentage change in each Director’s base salary/fee, benefits and bonus received since Wickes publicly listed in 2021. The salary, benefit and bonus figures for colleagues are
based on the median earning colleagues identified for the CEO pay ratio calculation, for consistency. Actual annual increases were higher than those shown below, with colleagues awarded c.7% on average as part of the
2024 annual pay review.
Director
% change in remuneration
between 2023 and 2024
% change in remuneration
between 2022 and 2023
% change in remuneration
between 2021 and 2022
Salary/fee Taxable benefits Bonus Salary/fee Taxable benefits Bonus Salary/fee Taxable benefits Bonus
Executive Directors
David Wood 8.48% 4.24% (7.19%) 3.63% 61.52% 1839.35% 3.80% (2.02%) (93.95%)
Mark George 4.00% 7.62% (23.17%) 111.02% 105.15% 3854.61% n/a n/a n/a
Non-executive Directors
Christopher Rogers 4.00% n/a n/a 3.63% n/a n/a 2.03% n/a n/a
Mark Clare 4.00% n/a n/a 3.63% n/a n/a 1.70% n/a n/a
Sonita Alleyne 4.00% n/a n/a 3.63% n/a n/a 2.49% n/a n/a
Mike Iddon 4.00% n/a n/a 3.63% n/a n/a 2.49% n/a n/a
Laura Harricks
1
76.57% n/a n/a n/a n/a n/a n/a n/a n/a
All employees 2.96% n/a 99.74% 17.33% n/a 91.18% 3.52% n/a (12.09%)
1 Laura Harricks was appointed to the Board on 1 June 2023.
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Governance
Remuneration Committee report continued
Remuneration Committee
The Committee is responsible for determining the Remuneration Policy for the Chair of the Board, Executive
Directors and other designated senior management. In doing so, the Committee is required to consider all
factors which it deems necessary, including:
– relevant legal and regulatory requirements;
– alignment to Company purpose and values;
– the link to the successful delivery of the Company’s long term strategy and long term Shareholder interests;
– workforce remuneration and related policies andthe alignment of incentives and rewards withculture; and
– feedback from the engagement process with colleagues.
The Committee comprises all the independent Non-executive Directors and the Chair of the Board
(whowasconsidered independent on appointment). Prior to appointment, the Chair of theCommittee
hadserved on a Remuneration Committee for at least 12 months in line with the Code. Biographical
detailson the Chair of the Committee and members of the Committee can befound on pages 80-81.
The Committee operates in line with its Terms of Reference, which are available on the Company’s website
at www.wickesplc.co.uk
Activities of the Committee
During the year, the Committee held five scheduled meetings. The Committee has a structured forward
looking planner to ensure that the responsibilities of the Committee are discharged during the year. The
planner is regularly reviewed and developed to meet the changing needs of the business.
A summary of the key matters considered by the Committee in 2024 is set out below.
February September December
Reviewed progress
against bonus and
LTIP targets
Discussed 2024 bonus
and LTIP target
Approved 2024 annual
salary review
Approved 2024 Directors’
Remuneration Policy
Approved Remuneration
Committee Terms of
Reference
Reviewed trends in
remuneration and
governance
Reviewed Group wide
remuneration
Reviewed progress
against bonus and
LTIP targets
Reviewed colleague
bonus structure for 2025
Approved Executive
Board appointment
package
Reviewed operation of
malus and clawback
Discussed the gender
and ethnicity pay gap
reporting outcome for
2024
Approved Executive
bonus and LTIP structure
for 2025
Approved ESG linked
LTIP targets
Reviewed CEO and Chair
of the Board expense
claims
Reviewed Committee
forward agenda and
meeting schedule
March
Reviewed progress
against Shareholding
Requirements
Approved 2023 annual
bonus outcome
Approved 2024 bonus
and LTIP targets
Approved Chair
of Board fees
Approved Executive
Board appointment and
retirement arrangements
Approved Directors’
Remuneration Report
Percentage of time spent by the Committee in
scheduled meetings
Target setting
and reviewing
performance
32%
Governance
& reporting
20%
Remuneration
Policy
39%
Market
trends
& wider
workforce
9%
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Committee Effectiveness
The effectiveness of the Committee was considered as part of this year’s Board performance evaluation
process, moredetails of which can be found on pages 96-97. The Remuneration Committee’s questionnaire
covered fourkey areas:
1. the role and operation of the Committee;
2. composition;
3. leadership; and
4. process and procedures.
The General Counsel and Company Secretary collated the responses and presented a summary of the key
findings to the Board for discussion. Thereview concluded that the Committee continues to operate
effectively with no areas of concern requiring immediate attention identified. An action plan was agreed
with key areas of focus for 2025 being to review the target setting processes and the use of advisors.
Advice to the Committee
Members of the executive leadership team may attend meetings at the invitation of the Committee, but are
not present when their own remuneration is being discussed. The Committee is supported by the Chief
People Officer, Head of Reward, Chief Financial Officer and General Counsel and Company Secretary.
The Committee received external advice during 2024 from Willis Towers Watson, who are members of the
Remuneration Consultants Group and operate under the executive remuneration consulting Code of
Conduct. The Committee is satisfied that no conflict of interest arose in the provision of these services.
The total fees paid to Willis Towers Watson in respect of services to the Committee during the year were
£41,500.
Remuneration Committee report continued
Votes for
98.53%
Votes against
1.47%
Votes for
93.71%
Votes against
6.29%
Directors’ Remuneration Report (2024 AGM) Directors’ Remuneration Policy (2024 AGM)
– Total votes cast: 167,083,766
– Votes withheld: 423,424
– Total votes cast: 167,081,360
– Votes withheld: 425,689
Shareholder voting
The voting outcome from the 2024 AGM showed strong support for our 2024 Directors’ Remuneration
report and 2024 Directors’ Remuneration Policy.
We remain committed to engaging proactively with Shareholders and advisory bodies on remuneration
matters.
The Directors’ Remuneration report has been approved by the Board of Directors and is signed
on its behalf by:
Mark Clare
Chair of the Remuneration Committee
19 March 2025
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Governance
Directors’ report
The Directors present their report, together with the
audited financial accounts for the 52 weeks ended
28 December 2024. This report sets out information
required to be disclosed in the Directors’ report in
accordance with the Companies Act 2006 (the ‘Act’),
the Financial Conduct Authority’s UK Listing Rules
(UKLR), the Disclosure Guidance and Transparency
Rules (DTRs) and the Code.
Principal activity and areas of operation
The principal activity of the Group is the operation
of retail home improvement stores across the UK.
Articles of Association
The Company’s Articles of Association (‘Articles’)
may only be amended by special resolution at
a general meeting of the Shareholders. The
Articles are available on the Company’s website
www.wickesplc.co.uk.
Directors
Details of the Directors at the date of this report
are set out on pages 80-81, together with their
biographical information including all significant
appointments. All Directors held office throughout
the year.
The appointment and removal of Directors are
governed by the Articles, the Act, the Code and
related legislation. In accordance with the Code and
to promote good governance, all Directors shall retire
and those wishing to serve again will put themselves
forward for election or re-election at the AGM.
Powers of Directors
The powers and responsibilities of the Directors are
governed by the Act, the Articles and any direction
given by Shareholders by special resolution, and
subject to these conditions the Board may exercise
all of the powers of the Company.
Directors’ interests
The Company has robust procedures to identify,
authorise and manage actual and potential
conflicts of interest. If any potential conflicts arise
they are reviewed and, if appropriate, approved
by the Board. At no time during the year did any
Director have a material interest in any contract
of significance to the Group’s business.
Information relating to the Directors’ interests in, and
options over, ordinary shares in the capital of the
Company are shown in the Directors’ Remuneration
report on page 111.
Directors’ indemnities
In accordance with the Company’s Articles and
section 234(2) of the Act, a qualifying third party
indemnity is in force to the extent permitted by law
for the benefit of each of the Directors on an equal
basis in respect of liabilities incurred as a result of
their office. For those liabilities for which Directors
may not be indemnified, the Company has
maintained Directors’ and Officers’ Liability
Insurance throughout the financial year.
Share capital and voting rights
The Articles contain provisions governing the
ownership and transfer of shares and voting rights.
As at 28 December 2024, the Company had an
allotted and fully paid issued share capital of
242,066,299 ordinary shares of 10 pence each, with
an aggregate nominal value of £24,206,630.
The ordinary shares of the Company are listed on
the London Stock Exchange and each share carries
the right to one vote at general meetings of the
Company. No Shareholder holds securities having
special rights with regard to control of the
Company. There are no restrictions on voting rights
or the transfer of securities in the Company. The
Company is not aware of any agreements between
holders of securities that result in such restrictions.
Details of the Company’s share capital are set out
on page 150.
Employee Benefit Trust
As at 28 December 2024, The Wickes Employee
Benefit Trust held 4,032,116 ordinary shares (1.7%
of the issued share capital) and the Wickes Share
Incentive Plan (SIP) Trust held 746,634 ordinary
shares (0.3% of the issued share capital) in the
Company for use in connection with the Company’s
share plans.
Shares held by the trusts rank pari passu
with the shares in issue and have no special
rights. Voting rights and rights of acceptance
of any offer relating to the shares held in
these trusts rest with the trustees, who may
take account of any recommendation from
the Company. It is the Company’s policy not
to give voting instructions to the trustees.
The trustees of the SIP Trust may vote in
respect of shares held in the SIP Trust, but
only as instructed by participants in the SIP
in respect of their Free Shares and Dividend
Shares. The trustees will not otherwise vote
in respect of shares held in the SIP Trust.
Authorities
Allotment of shares
At the AGM on 24 May 2024, the Directors of the
Company were authorised to allot new shares in the
Company or grant rights to subscribe for, or to
convert any security of the Company in, shares up
to a maximum number of shares representing not
more than one third of the share capital of the
Company. The Directors were also given the
authority to allot relevant securities in connection
with an offer by way of a rights issue up to a further
one third of the issued share capital of the
Company. No shares were allotted under either
authority during the financial year.
Purchase of shares
The Company was further authorised at the same
AGM to purchase its own shares in the market up
to a maximum of 10% of the Company’s issued
share capital.
On 30 January 2024, the Company completed the
first tranche of the share buyback programme
which commenced on 31 July 2023 under
the authority granted at the 2023 AGM. A
second tranche of the buyback programme
commenced on 19 March 2024 and this
was completed on 13 September 2024.
During the 2024 financial year, a total of
10,059,076 shares with a nominal value of 10
pence per share representing 3.9% of the issued
share capital when the buyback programme
commenced were purchased and immediately
cancelled. The aggregate amount paid for the
shares purchased and cancelled in the 2024
financial year was £15.0m (excluding stamp duty
and commission). The reason for the purchase
of shares was to reduce the Company’s share
capital. Further details on the Company’s Capital
Allocation Policy can be found on page 29.
The Company is seeking to renew these authorities
at the forthcoming AGM, within the limits set out in
the notice of that meeting and within the limits
specified by the Pre-Emption Group.
Political Donations Policy
The Group’s policy is not to make donations to
political parties and no such payments have been
made to either political groups or individual
candidates, nor did the Group incur any political
expenditure during the year. The Company is
seeking to renew the authority to make political
donations at the forthcoming AGM, within the limits
set out in the notice of that meeting. This is on a
precautionary basis to avoid any unintentional breach
of the relevant provisions of the Act.
Significant agreements
The Company’s revolving credit facilities require
the Company, in the event of a change of control,
to notify the Facility Agent of such occurrence.
Following a change of control, a lender will not
be obliged to fund a utilisation request and
may notify the Facility Agent that they wish
to cancel their commitment, resulting in their
share in all outstanding loans, together with
accrued interest, becoming due and payable.
The Company does not have agreements with any
Director or officer that would provide compensation
for loss of office or employment resulting from a
takeover, except that provisions of the Company’s
share plans may cause options and awards granted
under such plans to vest on a takeover.
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Governance
Related party transactions
There were no transactions or proposed
transactions that were material to either the
Company or any related party. Nor were there any
transactions with any related party that were
unusual in their nature or conditions (see note 31 to
the accounts on page 157).
Dividends
The Directors have paid or declared dividends as
follows:
Ordinary shares £m
Paid interim dividend
of 3.6 pence per share
1
8.5
Proposed final dividend
of 7.3 pence per share
2
17.7
Total dividend of 10.9 pence per
share in respect of financial year
ended 28 December 2024
2
26.2
1 Excludes £0.2m dividends waived.
2 Subject to Shareholder approval at the 2025 AGM, the final
dividend in respect of the 2024 financial year will be paid on
6 June 2025 to all Shareholders on the Register of Members at
the close of business on 25 April 2025.
Further information on dividends can be found in
note 27 to the accounts on page 152.
Dividend waivers
The Wickes Employee Benefit Trust (EBT) and the
Wickes SIP Trust hold shares in the Company in
connection with the operation of the Company’s
share plans. An evergreen dividend waiver is in
place on the shares held by the EBT and for shares
held by the SIP Trust that have not been allocated
to colleagues.
Substantial Shareholders
Information provided to the Company pursuant to
the Disclosure Guidance and Transparency Rules
(DTR) is published via a Regulatory Information
Service and on the Company’s website. As
at 28 December 2024, the above substantial
interests (3% or more) in the Company’s issued
share capital had been notified in accordance
with DTR 5. These figures represent the
number of shares and percentages held as
at the date of notification to the Company.
Between the year end and the date of this
report, Equiniti Trust (Jersey), as trustee of
the Wickes Employee Benefit Trust, notified
the Company of an interest in the Company’s
shares of 4.1% of the Company’s issued
share capital (9,944,006 ordinary shares).
Colleague engagement
We know that our strong levels of colleague
engagement and unique culture are what
help our colleagues to feel at home at Wickes.
We communicate with colleagues regularly
through a variety of channels tailored to
each area of the business to ensure they
are informed about the business direction,
including Company performance, and that
they are listened to and inspired to play their
part in delivering our strategy and purpose.
We engage with our colleagues formally and
informally, using weekly newsletters, regular ‘team
5s’ (informal team briefings), ‘The Scoop’ intranet
communications, Google communities, and regular
Company wide updates via email, video and
monthly business briefings. We also host an annual
managers’ meeting which brings together store
managers and leadership teams to communicate
strategy and priorities for the coming year and to
equip them to brief their own teams.
We use varied communication channels to engage
colleagues in the Company’s share schemes, giving
them the opportunity to share in the future success
of the business and a personal connection to
Company performance.
Colleagues have an opportunity to give regular
feedback through our colleague engagement
surveys, topical mini surveys, listening roadshows
with our Executive team and Colleague Voice
sessions. In October, we held a virtual Colleague
Voice session which was represented by
colleagues from across the business, and the
Board was represented by our designated
Non-executive Director for employee voice, Sonita
Alleyne. The matters raised were fed back and
discussed by the Board in December 2024 and it
was concluded that colleague engagement
remained at a good level and the feedback
demonstrated that, although there had been a
slight decrease in colleague participation and the
overall engagement score, the Board’s desired
culture for the business had been maintained.
The Company’s culture and values are critical
to sustaining an engaged workforce, but
we know things can sometimes go wrong.
Grievance and disciplinary policies have
been designed to ensure all colleagues are
treated fairly in line with our values and in a
professional and sensitive manner. Colleagues
know where to go for support, and guidance is
available to help them every step of the way.
Policies are designed to engage and retain talent in
the business and set out the behaviours expected,
what colleagues are entitled to, where they can go
for help and how we will treat all colleagues fairly
and consistently.
More information on colleague reward and
engagement can be found in the Directors
Remuneration Report on pages 109 and 114, the
Responsible Business section on pages 34-39 and
the Section 172 Statement on pages 87-90.
Employment of disabled persons
Our Encouraging Equal Treatment Policy sets
out our principles around promoting equality
of opportunities, including for anyone with a
disability. We regularly review our facilities and
working practices to ensure we cater for people
with special requirements or disabilities and
we have a line manager guide to help explain
the options available to make adjustments to
support colleagues. During the year, the Company
became a Disability Committed employer and is
currently working towards Disability Confident
status. Applications for employment by disabled
persons are given full and fair consideration
having regard to their particular aptitudes and
abilities. Line managers are given support and
coaching to help understand mental or physical
health and wellbeing conditions so they can make
suitable adjustments to ensure their colleagues
can perform at their best and feel at home at
Wickes, including any colleagues who may have
developed a disability during employment.
We do not tolerate any kind of disability
discrimination. We focus on ability and not
disability, ensuring that all colleagues are able
to flourish. The Wickes Ability network is made
up of colleagues across the business who are
committed to making a difference and helping
the business to create an environment where
everyone can be themselves. The Ability network
champions each colleague’s own ability to ensure
they reach their full potential, promotes education
about disabilities and highlights opportunities
where the business can continue to improve
accessibility to colleagues and customers.
Directors’ report continued
Substantial Shareholders
Number of
ordinary shares
% of voting
rights
1
Date of notification
Pzena Investment Management, Inc 12,885,980 4.96 22 June 2021
Jupiter Fund Management Plc 12,801,742 4.93 17 September 2021
Perpetual Limited 12,337,581 5.01 30 April 2024
1 Percentages are shown as a percentage of the Company’s total voting rights as at the date the Company was notified of the change
in holding
Wickes Group Plc Annual Report and Accounts 2024119
Strategic report Other informationFinancial statements
Governance
Events occurring after the reporting period
After the year end, the Group:
– completed an extension of the revolving credit
facility;
– recommended the EBT purchase 7.1m ordinary
shares in the market; and
– approved a new £20m share buyback
programme.
Further details can be found in note 32 of the
financial statements on page 157.
Statement of disclosure to auditor
Each of the persons who is a Director at the date of
approval of this report confirms that:
– so far as the Director is aware, there is no
relevant audit information of which the
Company’s auditor is unaware; and
– that the Director has taken all the steps that they
ought to have taken to make themselves aware
of any relevant audit information and to establish
that the Company’s auditor is aware of that
information.
This confirmation is given and should be interpreted
in accordance with section 418(2)
of the Act.
Branches
The Group does not have any branches outside of
the UK.
Research and development
The Group does not formally undertake research &
development activities in relation to the goods and
services provided to its customers; however, it does
work closely with its suppliers to ensure its product
range remains current and relevant. In addition, the
Group does undertake innovation activities around
its operating model and processes, in particular, the
strategic investment it is making in its underlying
technology platform, which qualify for research and
development expenditure credits for tax purposes.
Additional disclosures
Other information that is relevant to this Directors’
report and which can be incorporated by reference
can be located as follows:
Applicable disclosures required
pursuant to UKLR 6.6.1R Page
Long term incentive schemes
UKLR 6.6.1(3)
112
Dividend waivers UKLR 6.6.1(11)(12) 119
Sections UKLR 6.6.1(1)(2)(4)(5)(6)(7)(8)(9)
(10)(13) are not applicable.
Disclosures incorporated by
reference into this Directors’ report
Page
Disclosures in the strategic report
Business review 8-11
Future likely developments 2-77
Financial review and KPIs 24-29
Colleague engagement 34-39
Streamlined Energy and Carbon
Reporting (SECR) disclosures
63-64
Principal risks and uncertainties 70-75
Going concern and viability statements 76-77
Disclosures in the governance report
Corporate governance statement 78-117
Stakeholder engagement including
customer and suppliers
87-90
Disclosures in the remuneration report
Directors’ interests in shares 111
Disclosures in the financial statements
Financial instruments and financial risk
management
156-157
Cautionary statement regarding
forward looking information
Where this Annual Report contains forward looking
statements, these are based on current
expectations and assumptions, and speak only as
of the date they are made. These statements
should be treated with caution due to the inherent
risks, uncertainties and assumptions underlying
any such forward looking information.
The Group cautions investors that a number of
factors, including matters referred to in this
document, could cause actual results to differ
materially from those expressed or implied in any
forward looking statement. Such factors include,
but are not limited to, those discussed under
principal risks and uncertainties on pages 70–75.
Forward looking statements can be identified
by the use of relevant terminology including
the words: ‘may’, ‘will’, ‘seek’, ‘aim’, ‘anticipate’,
‘target’, ‘projected’, ‘expect’, ‘estimate’, ‘intend’,
‘plan’, ‘goal’, ‘believe’ or other words of similar
meaning and include all matters that are not
historical facts. They appear in a number of
places throughout this Annual Report and
Accounts and include statements regarding
the intentions, beliefs or current expectations
of our officers, Directors and employees
concerning, among other things, the Group’s
results of operations, financial condition, liquidity,
prospects, growth, strategies and the business.
Neither the Group, nor any of its officers, 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 Annual Report and Accounts will
actually occur.
Undue reliance should not be placed on these
forward looking statements. Other than in
accordance with our legal and regulatory
obligations, the Group undertakes no obligation to
publicly update or revise any forward looking
statement, whether as a result of new information,
future events or otherwise.
Disclosures in the Strategic Report
The Company has chosen, in accordance with
section 414C(11) of the Act, and as noted in this
Directors’ report, to include certain matters in its
Strategic report that would otherwise be required to
be disclosed in the Directors’ report. The Strategic
report can be found on pages 2–69 and includes an
indication of future likely developments in the
Company, details of important events and the
Company’s business model and strategy.
The Directors’ report, which comprises pages
78–105 and 118-120, has been approved by a duly
authorised Committee of the Board on 19 March
2025 and is signed on their behalf by:
Helen O’Keefe
General Counsel and Company Secretary
19 March 2025
Directors’ report continued
Wickes Group Plc Annual Report and Accounts 2024120
Strategic report Other informationFinancial statements
Governance
Statement of Directors’ Responsibilities (in respect
of the Annual Report and Financial Statements)
Under company law, the Directors are responsible
for preparing the Annual Report and Group and
parent company financial statements in
accordance with applicable law and regulations.
Company law requires the Directors to prepare
Group and parent company financial statements
for each financial year. Under that law, they
are required to prepare the Group financial
statements in accordance with UK-adopted
international accounting standards and
applicable law. The Directors have elected
to prepare the parent company financial
statements in accordance with UK accounting
standards and applicable law, including
FRS 102 ‘The Financial Reporting Standard
applicable in the UK and Republic of Ireland’.
Under company law, the Directors must not approve
the financial statements unless they are satisfied
that they give a true and fair view of the state of
affairs of the Group and parent company and of the
Group’s profit or loss for that period. In preparing
each of the Group and parent company financial
statements, the Directors are required to:
– select suitable accounting policies and then
apply them consistently;
– make judgements and estimates that are
reasonable, relevant, reliable and prudent;
– for the Group financial statements, state whether
they have been prepared in accordance with
UK-adopted international accounting standards;
– for the parent company financial statements,
state whether applicable UK accounting
standards have been followed, subject to any
material departures disclosed and explained in
the parent company financial statements;
– assess the Group and parent company’s ability
to continue as a going concern, disclosing, as
applicable, matters related to going concern; and
– use the going concern basis of accounting
unless they either intend to liquidate the Group or
the parent company or to cease operations, or
have no realistic alternative but to do so.
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and
explain the Company’s transactions and disclose
with reasonable accuracy at any time the financial
position of the parent company and enable them to
ensure that its financial statements comply with the
Companies Act 2006. They are responsible for such
internal control as they determine necessary to
enable the preparation of financial statements that
are free from material misstatement, whether due
to fraud or error, and have general responsibility
for taking such steps as are reasonably open to
them to safeguard the assets of the Group and to
prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors
are also responsible for preparing the Strategic
report, Directors’ report, Section 172 statement,
Directors’ Remuneration report and Corporate
Governance statement that comply with that law
and those regulations.
The Directors are responsible for the maintenance
and integrity of the corporate and financial
information on the Company’s website. Legislation
in the UK governing the preparation and
dissemination of financial statements may differ
from legislation in other jurisdictions.
In accordance with Disclosure Guidance and
Transparency Rule (‘DTR’) 4.1.16R, the financial
statements will form part of the annual financial
report prepared under DTR 4.1.17R and 4.1.18R. The
auditor’s report on these financial statements
provides no assurance over whether the annual
financial report has been prepared in accordance
with those requirements.
The Statement of Directors’ Responsibilities has
been approved by the Board of Directors and is
signed on their behalf by:
Chief Executive Officer
19 March 2025
Chief Financial Officer
19 March 2025
Responsibility Statement of the Directors in
respect of the annual financial report
We confirm that to the best of our knowledge:
– the financial statements, prepared in accordance
with the applicable set of accounting standards,
give a true and fair view of the assets, liabilities,
financial position and profit or loss of the
Company and the undertakings included in the
consolidation taken as a whole; and
– the Strategic report includes a fair review of the
development and performance of the business
and the position of the Company and the
undertakings included in the consolidation taken
as a whole, together with a description of the
principal risks and uncertainties that they face.
Wickes Group Plc Annual Report and Accounts 2024121
Strategic report Other informationFinancial statements
Governance
Independent Auditor’s report
To the members of Wickes
Group Plc
1. Our opinion is unmodified
We have audited the financial statements of
Wickes Group Plc (“the Company”) for the 52 week
period ended 28 December 2024 (“2024”) which
comprise the Consolidated income statement
and other comprehensive income, Consolidated
and Company balance sheet, Consolidated
and Company statement of changes in equity,
Consolidated cash flow statement and the related
notes, including the accounting policies in note 2 to
the Group financial statements and note C2 to the
parent Company financial statements.
In our opinion:
– the financial statements give a true and fair
view of the state of the Group’s and of the parent
Company’s affairs as at 28 December 2024 and
of the Group’s profit for the 52 week period then
ended;
– the Group financial statements have been
properly prepared in accordance with UK-
adopted international accounting standards;
– the parent Company financial statements have
been properly prepared in accordance with UK
accounting standards, including FRS 102 The
Financial Reporting Standard applicable in the
UK and Republic of Ireland; and
– the financial statements have been prepared
in accordance with the requirements of the
Companies Act 2006.
Overview
Materiality:
Group financial statements as a whole
£2.0m (2023: £2.4m)
4.6% (2023: 4.6%) of adjusted profit before tax
Key audit matters vs 2023
Recurring risks Recoverability of store assets
Design & Installation revenue recognition
Parent company Recoverability of parent Company’s investment in
subsidiary
Basis for opinion
We conducted our audit in accordance with
International Standards on Auditing (UK) (“ISAs
(UK)”) and applicable law. Our responsibilities are
described below. We believe that the audit evidence
we have obtained is a sufficient and appropriate
basis for our opinion. Our audit opinion is
consistent with our report to the audit committee.
We were first appointed as auditor by the directors
on 6 March 2020 prior to the parent Company
becoming a Public Interest Entity. The period of
total uninterrupted engagement is for the four
financial years ended 28 December 2024 as a
Public Interest Entity, and six financial years in
total. Prior to that we were also auditor to the
Group’s main trading subsidiary Wickes Building
Supplies Limited, but which, being unlisted, was not
a Public Interest Entity. We have fulfilled our ethical
responsibilities under, and we remain independent
of the Group in accordance with, UK ethical
requirements including the FRC Ethical Standard
as applied to listed public interest entities. No
non-audit services prohibited by that standard
wereprovided.
Wickes Group Plc Annual Report and Accounts 2024122 Strategic report Other informationGovernance Financial statements
Independent Auditor’s report continued
2. Key audit matters: our assessment of risks of material misstatement
Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the financial statements and include the most significant assessed risks of material misstatement
(whether or not due to fraud) identified by us, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. We
summarise below the key audit matters unchanged from 2023, in decreasing order of audit significance, in arriving at our audit opinion above, together with our key audit procedures to address those matters and, as
required for public interest entities, our results from those procedures. These matters were addressed, and our results are based on procedures undertaken, in the context of, and solely for the purpose of, our audit of the
financial statements as a whole, and in forming our opinion thereon, and consequently are incidental to that opinion, and we do not provide a separate opinion on these matters.
The risk Our response
Recoverability of store assets
Store assets carrying values
(£678.3 million, 2023:
£666.4 million) and net
impairment charge
(£16.8; 2023: net impairment
reversal of £1.0 million)
Refer to page 100 (Audit
Committee Report), page 138
(accounting policy) and page
147 (financial disclosures).
Forecast based assessment:
Given the current macroeconomic environment, there is an
increased risk of underperforming stores, or other performance
related impairment triggers which would require the Directors
to carry out an impairment assessment. Further, change in
forecast store performance for stores that have previously
been impaired may result in a trigger to reverse previous
impairments.
Each store is considered a CGU for the purposes of
impairment. Recoverability of store assets relies on a number
of assumptions, most notably forecast future cash flows
including the store revenue growth rate, gross margin, the
allocation of central costs and the discount rate, which all
involve a high degree of estimation uncertainty.
We performed an assessment of whether an understatement
of the store impairment charge, and overstatement of store
impairment reversals, identified through these procedures was
material.
Auditor judgement is required to assess whether the Directors’
estimate of an individual store’s recoverable amount falls
within an acceptable range.
The effect of these matters is that, as part of our risk
assessment, we determined that the carrying value of store
assets has a high degree of estimation uncertainty, with a
potential range of reasonable outcomes greater than our
materiality for the financial statements as a whole, and
possibly many times that amount. The financial statements
(note 16) disclose the sensitivity estimated by the Group.
We performed the tests below rather than seeking to rely on any of the Group’s controls because the nature of the
balance is such that we would expect to obtain audit evidence primarily through the detailed procedures described. Our
procedures included:
– Historical comparisons: We assessed the reasonableness of the forecasts by considering the historical accuracy of
previous forecasts and the results currently being achieved;
– Test of details: We independently recalculated the impairment outcomes, validated key inputs and assessed whether
the allocation of central costs to individual CGUs is complete and is deemed appropriate based on the nature of the
costs;
– Our sector experience: We assessed whether assumptions used, in particular those relating to forecast store
revenue growth rate and gross margin reflect our knowledge of the business and industry, including known or
probable changes in the business environment;
– Benchmarking assumptions: We challenged the key inputs used in the Group’s calculation of the discount rate by
comparing it to externally derived data, including available sources for comparable companies;
– Sensitivity analysis: We performed our own sensitivity analysis on the forecasts, including a reduction in assumed
growth rate, gross margin, the allocation of central costs, and discount rates;
– Assessing transparency: We assessed whether the Group’s disclosures regarding the sensitivity of the outcome of
the impairment assessment to changes in key assumptions appropriately reflects the risks inherent in the
recoverable amount of store assets.
Our results: We found the store assets carrying values, and the related impairment charges and reversals to be
acceptable (2023: acceptable).
Wickes Group Plc Annual Report and Accounts 2024123 Strategic report Other informationGovernance Financial statements
The risk Our response
Design & Installation revenue
recognition
Design & Installation
revenue (£326.5 million,
2023: £364.7 million)
Refer to page 100 (Audit
Committee Report), page 135
(accounting policy) and page
139 (financial disclosures).
Existence of Design & Installation revenue:
Professional standards require us to presume (unless rebutted)
that the fraud risk from revenue recognition is a significant risk.
In our view this risk is most prevalent in Design & Installation
revenue, and judgement exists as to whether performance
obligations (delivery and/or installation) have been satisfied.
We consider the risk to relate to the existence of Design &
Installation revenue recognised in respect of orders received in
the final 16 weeks of the period, based on our risk assessment
of the average time taken for the performance obligations on
orders to be satisfied.
The risk is specifically relating to the incentive for management
to manipulate the results in order to achieve performance
expectations, and the fraud risk factors specific to Wickes
indicate there may be an incentive to accelerate income
recognition in the current period.
We performed the detailed tests below rather than seeking to rely on any of the Group’s controls because our
knowledge of the design of these controls indicated that we would not be able to obtain the required evidence to
support reliance on controls. Our procedures included:
– Test of details: We performed an analysis of the order data and compared this to our expectation of:
– the monthly order profile;
– the revenue and deferral profile of orders; and
– the revenue profile by order date;
We corroborated any outliers from this testing.
– Tests of details: We carried out sample testing of revenue recognised on Design & Installation orders received in the
period we determined to relate to our significant risk, to assess whether they satisfied the criteria for recognising
revenue in the financial period, including agreeing to delivery and/or installation documentation, where applicable.
Our results: We considered the amount of Design & Installation revenue recognised in the financial year, to be
acceptable (2023: acceptable).
Recoverability of parent
Company’s investment in
subsidiary
Investment in subsidiary
carrying value (£556.8 million,
2023: £603.4 million) and
impairment charge
(£49.3; 2023: £nil)
Refer to page 100 (Audit
Committee Report), page 162
(accounting policy) and page
163 (financial disclosures).
Forecast based assessment:
The carrying amount of the parent Company’s investment in its
subsidiary is significant and at risk of irrecoverability due to the
current macroeconomic environment. The estimated
recoverable amount of this balance is subjective due to the
inherent uncertainty in forecasting trading conditions and cash
flows used in the budgets. In addition to this, the market
capitalisation of the group is significantly below the carrying
value of the investment.
The effect of these matters is that, as part of our risk
assessment, we determined that the recoverable amount of the
cost of investment in the subsidiary has a high degree of
estimation uncertainty, with a potential range of reasonable
outcomes greater than our materiality for the financial
statements as a whole, and possibly many times that amount.
The financial statements (note C6) disclose the sensitivity
estimated by the Company.
We performed the tests below rather than seeking to rely on any of the Group’s controls because the nature of the
balance is such that we would expect to obtain audit evidence primarily through the detailed procedures described. Our
procedures included:
Benchmarking assumptions: We challenged the assumptions used in the cash flows included in the discounted cash
flow calculation, including forecast revenue growth rate and gross margin based on our knowledge of the Group and
the markets in which it operates;
Historical comparisons: We assessed the reasonableness of the cash flow forecasts by considering the historical
accuracy of the previous forecasts;
Benchmarking assumptions: We challenged the key inputs used in the Group’s calculation of the discount rate by
comparing it to externally derived data, including available sources for comparable companies;
Sensitivity analysis: We performed our own sensitivity analysis on the forecasts, including a reduction in assumed
revenue growth, gross margin, growth rate in the terminal value, and discount rates;
Our sector experience: We evaluated the current level of trading, including identifying any indications of a downturn in
activity, by examining the post financial year end management accounts, considering our knowledge of the Group and
the market, and external expectations of future financial performance;
Comparing valuations: We obtained and corroborated explanations regarding significant differences between market
capitalisation and the carrying value of the investment; and
Assessing transparency: We assessed whether the parent Company’s disclosures regarding the sensitivity of the
outcome of the impairment assessment to changes in key assumptions appropriately reflects the risks inherent in the
recoverable amount of investment in subsidiary.
Our results: We found the balance of the Company’s investments in its subsidiary and the related impairment charge to
be acceptable (2023: acceptable).
Independent Auditor’s report continued
2. Key audit matters: our assessment of risks of material misstatement continued
Wickes Group Plc Annual Report and Accounts 2024124 Strategic report Other informationGovernance Financial statements
Independent Auditor’s report continued
Overview of the scope of our audit
This year, we applied the revised group auditing
standard in our audit of the consolidated financial
statements. The revised standard changes
how an auditor approaches the identification of
components, and how the audit procedures are
planned and executed across components.
In particular, the definition of a component has
changed, shifting the focus from how the entity
prepares financial information to how we, as the
group auditor, plan to perform audit procedures
to address group risks of material misstatement
(“RMMs”). Similarly, the group auditor has an
increased role in designing the audit procedures
as well as making decisions on where these
procedures are performed (centrally and/or at
component level) and how these procedures are
executed and supervised. As a result, we assess
scoping and coverage in a different way and
comparisons to prior period coverage figures
are not meaningful. In this report we provide an
indication of scope coverage on the new basis.
We performed risk assessment procedures to
determine which of the Group’s components are
likely to include risks of material misstatement
to the Group financial statements and which
procedures to perform at these components to
address those risks.
In total, we identified 6 components, having
considered our evaluation of the Group’s
operational structure, the Group’s legal structure,
the existence of common information systems, the
existence of common risk profile across entities
and other audit specific factors and our ability to
perform audit procedures centrally.
Of those, we identified 2 quantitatively significant
components which contained the largest
percentages of either total revenue or total assets
of the Group, for which we performed audit
procedures.
We also identified 1 component as requiring special
audit consideration, owing to Group risk relating to
treasury residing in the component.
Accordingly, the audit procedures on 3 components
including the audit of the parent Company
were completed by the Group Auditor, who also
performed procedures on those items excluded
from adjusted profit before tax.
We set the component materialities, ranging from
£1m to £1.9m, having regard to the mix of size and
risk profile of the Group across the components.
Our audit procedures covered 99% of Group
revenue. We performed audit procedures in relation
to components that accounted for 99% of Group
adjusted profit before tax and 99% of Group total
assets.
For the remaining components for which we
performed no audit procedures, no component
represented more than 1% of Group total revenue,
Group adjusted before tax or Group total assets. We
performed analysis at an aggregated Group level
to re-examine our assessment that there is not a
reasonable possibility of a material misstatement
in these components.
Adjusted PBT
Group adjusted profit before tax
£43.6m
(2023: £52.0m)
Group materiality
Group materiality
£2.0m
(2023: £2.4m)
£2.0m
Whole financial
statements materiality
(2023: £2.4m)
£1.3m
Whole financial statements
performance materiality
(2023: £1.6m)
£1.9m
Range of materiality at
3 components (£1.0m-£1.9m)
(2023: £1.0m to £2.3m at 3 components)
£0.1m
Misstatements reported to the
audit committee
(2023: £0.12m)
3. Our application of materiality and an overview of
the scope of our audit
Our application of materiality
Materiality for the Group financial statements as a
whole was set at £2.0m (2023: £2.4m), determined
with reference to a benchmark of Group profit
before tax, normalised to exclude adjusting items
of £20.4m (2023: £10.9m) as disclosed in note 9, of
which it represents 4.6% (2023: 4.6%). We adjusted
for these items because they do not represent the
continuing operations of the Group.
Materiality for the parent Company financial
statements as a whole was set at £1.9m (2023:
£2.3m), determined with reference to a benchmark
of Company total assets, of which it represents
0.3% (2023: 0.4%).
In line with our audit methodology, our procedures
on individual account balances and disclosures
were performed to a lower threshold, performance
materiality, so as to reduce to an acceptable level
the risk that individually immaterial misstatements
in individual account balances add up to a material
amount across the financial statements as a whole.
Performance materiality was set at 65% (2023:
65%) of materiality for the financial statements
as a whole, which equates to £1.3m (2023: £1.6m)
for the Group and £1.2m (2023: £1.5m) for the
parent Company. We applied this percentage in our
determination of performance materiality based on
the level of identified misstatements and control
deficiencies during the prior period.
We agreed to report to the Audit Committee any
corrected or uncorrected identified misstatements
exceeding £0.1m (2023: £0.12m), in addition to other
identified misstatements that warranted reporting
on qualitative grounds.
Wickes Group Plc Annual Report and Accounts 2024125 Strategic report Other informationGovernance Financial statements
We performed audit procedures in relation to
components that accounted for the following
percentages of Group adjusted profit before
taxand Group total assets:
Our audit procedures covered the following
percentage of Group revenue:
Group revenue
99%
Group total assets
99%
Group adjusted
profit before tax
99%
Independent Auditor’s report continued
For all other areas of the audit, except for inventory,
we took a predominantly substantive approach
considering the efficiency and effectiveness
of approaches to gaining the appropriate audit
evidence.
Given we did not rely upon controls in these areas,
we performed additional substantive testing to
respond to certain risks identified. This included
direct manual testing over the completeness
and reliability of data used in our data-orientated
approach over testing journals, and retail revenue.
For inventory, we tested the operating effectiveness
of and were able to rely on the Group’s inventory
cycle count controls and therefore were able to
reduce the extent of our substantive procedures in
this area.
4. The impact of climate change on our audit
We considered the impacts of climate change on
the financial statements as part of our planning of
the Group audit, including enquiries of the Directors
to understand the extent of the potential impact
of climate change risk on the Group’s financial
statements and the Group’s preparedness for this.
The key areas of our consideration included the
Group’s plan to be a net zero business by 2040, and
to decarbonise various parts of the business.
We did not consider that any specific areas of the
financial statements were materially affected by
assumptions or commitments made in relation to
climate change.
There was no significant impact of this on our key
audit matters.
We also read the disclosure of climate related
information in the front half of the annual report
and considered consistency with the financial
statements and our audit knowledge. We have
not been engaged to provide assurance over the
accuracy of these disclosures.
5. Going concern
The Directors have prepared the financial
statements on the going concern basis as they do
not intend to liquidate the Group or the Company
or to cease their operations, and as they have
concluded that the Group’s and the Company’s
financial position means that this is realistic. They
have also concluded that there are no material
uncertainties that could have cast significant doubt
over their ability to continue as a going concern
for at least a year from the date of approval of the
financial statements (“the going concern period”).
We used our knowledge of the Group, its industry,
and the general economic environment to identify
the inherent risks to its business model and
analysed how those risks might affect the Group’s
and parent Company’s financial resources or ability
to continue operations over the going concern
period. The risk that we considered most likely to
adversely affect the Group’s and parent Company’s
available financial resources over this period was
the impact on the demand for the Group’s products
which may impact Group performance for the 2025
period end.
We also considered less predictable but realistic
second order impacts, such as the current
macroeconomic environment and the erosion of
customer confidence, which could result in a rapid
reduction of available financial resources.
We considered whether these risks could plausibly
affect the liquidity in the going concern period
by comparing severe, but plausible downside
scenarios that could arise from these risks
individually and collectively against the level of
available financial resources indicated by the
Group’s financial forecasts.
We considered whether the going concern
disclosure in note 1 to the financial statements
gives a full and accurate description of the Directors’
assessment of going concern, including the
identified risks, and related sensitivities.
Impact of controls on our group audit
We identified the central finance operating system
to be the main IT system relevant to our audit. We
used our IT auditors to assist us in obtaining an
understanding of this IT system.
In our previous audit we identified IT control
deficiencies in respect of this system. In the current
period, as part of obtaining an understanding of
the IT system, we identified that these deficiencies
had not been fully remediated, and therefore we
were not able to rely on general IT controls for
this system in our audit. As a result, we expanded
the scope of our substantive testing. As we
were not able to rely on automated controls on
journal entries, our work to respond to the risk of
management override of controls considered both
automated and manual journals.
In relation to some key transactional areas,
including Design & Installation revenue (as set out
in our Key Audit Matter in section 2 of our report)
and Retail revenue, we took a fully substantive
approach as we were unable to rely on manual
controls in these areas.
Wickes Group Plc Annual Report and Accounts 2024126 Strategic report Other informationGovernance Financial statements
Independent Auditor’s report continued
6. Fraud and breaches of laws and regulations –
ability to detect
Identifying and responding to risks of material
misstatement due to fraud
To identify risks of material misstatement due
to fraud (“fraud risks”) we assessed events or
conditions that could indicate an incentive or
pressure to commit fraud or provide an opportunity
to commit fraud. Our risk assessment procedures
included:
– Enquiring of the Directors and Audit Committee
as to the Group’s high-level policies and
procedures to prevent and detect fraud, including
the internal audit function, as well as whether
they have knowledge of any actual, suspected or
alleged fraud.
– Reading Board and Audit Committee minutes.
– Considering remuneration incentive schemes
and performance targets for management
(including Directors) including the profit target
for management remuneration.
– Using analytical procedures to identify any
unusual or unexpected relationships.
We communicated identified fraud risks throughout
the audit team and remained alert to any indications
of fraud throughout the audit.
As required by auditing standards, and taking into
account possible pressures to meet profit targets,
we perform procedures to address the risk of
management override of controls and the risk of
fraudulent revenue recognition, in particular:
– the risk that Group management may be in
a position to make inappropriate accounting
entries;
– the risk of bias in accounting estimates; and
– the risk that Design & Installation revenue is
overstated through recording revenues in the
wrong period in order to increase the likelihood
of management meeting profit targets for the
period.
We did not identify any additional fraud risks.
Further detail in respect of the Design & Installation
revenue risk is set out in the key audit matter
disclosures in section 2 of this report. We also
performed procedures including:
– Identifying journal entries and other adjustments
to test based on risk criteria and comparing the
identified entries to supporting documentation.
These included those posted by certain
Executive Directors and unusual account
pairings.
– Evaluate the business purpose of significant
unusual transactions.
– Assessing whether the judgements made in
making accounting estimates are indicative of a
potential bias.
Identifying and responding to risks of material
misstatement due to non-compliance with laws
and regulations
We identified areas of laws and regulations that
could reasonably be expected to have a material
effect on the financial statements from our
general commercial and sector experience, and
through discussion with the Directors and other
management (as required by auditing standards)
and discussed with the Directors and other
management, policies and procedures regarding
compliance with laws and regulations.
As the Group is regulated, our assessment of risks
involved gaining an understanding of the control
environment including the entity’s procedures for
complying with regulatory requirements.
We communicated identified laws and regulations
throughout our team and remained alert to any
indications of non-compliance throughout the
audit. The potential effect of these laws and
regulations on the financial statements varies
considerably.
Firstly, the Group is subject to laws and regulations
that directly affect the financial statements
including financial reporting legislation (including
related companies legislation), distributable profits
legislation, and taxation legislation, consumer
rights act, corporate governance code, FCA listing
rules and we assessed the extent of compliance
with these laws and regulations as part of our
procedures on the related financial statement
items.
Secondly, the Group is subject to many other
laws and regulations where the consequences of
non-compliance could have a material effect on
amounts or disclosures in the financial statements,
for instance through the imposition of fines or
litigation or the loss of the Group’s license to
operate. We identified the following areas as those
most likely to have such an effect: GDPR and UK
data protection act, health and safety, fraud and
antibribery, marketing and advertising regulations,
employment law, anti-competition legislation,
Modern slavery and human rights regulations,
market abuse regulations, consumer credit law, and
certain aspects of company legislation recognising
the financial and regulated nature of the Group’s
activities and its legal form. Auditing standards
limit the required audit procedures to identify
non-compliance with these laws and regulations to
enquiry of the Directors and other management and
inspection of regulatory and legal correspondence,
if any. Therefore if a breach of operational
regulations is not disclosed to us or evident from
relevant correspondence, an audit will not detect
that breach.
Our conclusions based on this work:
– we consider that the Directors’ use of the going
concern basis of accounting in the preparation of
the financial statements is appropriate;
– we have not identified, and concur with the
Directors’ assessment that there is not, a
material uncertainty related to events or
conditions that, individually or collectively, may
cast significant doubt on the Group’s or parent
Company’s ability to continue as a going concern
for the going concern period;
– we have nothing material to add or draw
attention to in relation to the Directors’ statement
in note 1 to the financial statements on the use
of the going concern basis of accounting with no
material uncertainties that may cast significant
doubt over the Group and parent Company’s use
of that basis for the going concern period, and
we found the going concern disclosure in note 1
to be acceptable; and
– the related statement under the UK Listing Rules
set out on page 77 is materially consistent
with the financial statements and our audit
knowledge.
However, as we cannot predict all future events or
conditions and as subsequent events may result in
outcomes that are inconsistent with judgements
that were reasonable at the time they were made,
the above conclusions are not a guarantee that the
Group or the Company will continue in operation.
Wickes Group Plc Annual Report and Accounts 2024127 Strategic report Other informationGovernance Financial statements
Context of the ability of the audit to detect fraud or
breaches of law or regulation
Owing to the inherent limitations of an audit,
there is an unavoidable risk that we may not have
detected some material misstatements in the
financial statements, even though we have properly
planned and performed our audit in accordance
with auditing standards. For example, the further
removed non-compliance with laws and regulations
is from the events and transactions reflected in the
financial statements, the less likely the inherently
limited procedures required by auditing standards
would identify it.
In addition, as with any audit, there remained a
higher risk of non-detection of fraud, as these may
involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal
controls. Our audit procedures are designed
to detect material misstatement. We are not
responsible for preventing non-compliance or fraud
and cannot be expected to detect non-compliance
with all laws and regulations.
7. We have nothing to report on the other
information in the Annual Report & Accounts
The directors are responsible for the other
information presented in the Annual Report
together with the financial statements. Our opinion
on the financial statements does not cover the
other information and, accordingly, we do not
express an audit opinion or, except as explicitly
stated below, any form of assurance conclusion
thereon.
Our responsibility is to read the other information
and, in doing so, consider whether, based on our
financial statements audit work, the information
therein is materially misstated or inconsistent with
the financial statements or our audit knowledge.
Based solely on that work we have not identified
material misstatements in the other information.
Strategic report and directors’ report
Based solely on our work on the other information:
– we have not identified material misstatements in
the strategic report and the directors’ report;
– in our opinion the information given in those
reports for the financial year is consistent with
the financial statements; and
– in our opinion those reports have been prepared
in accordance with the Companies Act 2006.
Directors’ remuneration report
In our opinion the part of the Directors’
Remuneration Report to be audited has been
properly prepared in accordance with the
Companies Act 2006.
Disclosures of emerging and principal risks and
longer-term viability
We are required to perform procedures to identify
whether there is a material inconsistency between
the directors’ disclosures in respect of emerging
and principal risks and the viability statement, and
the financial statements and our audit knowledge.
Based on those procedures, we have nothing
material to add or draw attention to in relation to:
– the directors’ confirmation within the viability
statement that they have carried out a robust
assessment of the emerging and principal risks
facing the Group, including those that would
threaten its business model, future performance,
solvency and liquidity;
– the Principal risks and uncertainties disclosures
describing these risks and how emerging risks
are identified, and explaining how they are being
managed and mitigated; and
– the directors’ explanation in the viability
statement of how they have assessed the
prospects of the Group, over what period they
have done so and why they considered that
period to be appropriate, and their statement as
to whether they have a reasonable expectation
that the Group will be able to continue in
operation and meet its liabilities as they fall due
over the period of their assessment, including
any related disclosures drawing attention to any
necessary qualification or assumptions.
We are also required to review the viability
statement, set out on page 76 under the UK Listing
Rules. Based on the above procedures, we have
concluded that the above disclosures are materially
consistent with the financial statements and our
audit knowledge.
Our work is limited to assessing these matters in
the context of only the knowledge acquired during
our financial statements audit. As we cannot
predict all future events or conditions and as
subsequent events may result in outcomes that are
inconsistent with judgements that were reasonable
at the time they were made, the absence of
anything to report on these statements is not a
guarantee as to the Group’s and parent Company’s
longer-term viability.
Corporate governance disclosures
We are required to perform procedures to identify
whether there is a material inconsistency between
the directors’ corporate governance disclosures
and the financial statements and our audit
knowledge.
Based on those procedures, we have concluded
that each of the following is materially consistent
with the financial statements and our audit
knowledge:
– the directors’ statement that they consider that
the annual report and financial statements taken
as a whole is fair, balanced and understandable,
and provides the information necessary for
shareholders to assess the Group’s position and
performance, business model and strategy;
– the section of the annual report describing the
work of the Audit Committee, including the
significant issues that the audit committee
considered in relation to the financial statements,
and how these issues were addressed; and
– the section of the annual report that describes
the review of the effectiveness of the Group’s risk
management and internal control systems.
We are required to review the part of the Corporate
Governance Statement relating to the Group’s
compliance with the provisions of the UK Corporate
Governance Code specified by the UK Listing Rules
for our review. We have nothing to report in this
respect.
8. We have nothing to report on the other matters
on which we are required to report by exception
Under the Companies Act 2006, we are required to
report to you if, in our opinion:
– adequate accounting records have not been kept
by the parent Company, or returns adequate for
our audit have not been received from branches
not visited by us; or
– the parent Company financial statements and
the part of the Directors’ Remuneration Report
to be audited are not in agreement with the
accounting records and returns; or
– certain disclosures of directors’ remuneration
specified by law are not made; or
– we have not received all the information and
explanations we require for our audit.
We have nothing to report in these respects.
Independent Auditor’s report continued
Wickes Group Plc Annual Report and Accounts 2024128 Strategic report Other informationGovernance Financial statements
9. Respective responsibilities
Directors’ responsibilities
As explained more fully in their statement set
out on page 121, the directors are responsible
for: the preparation of the financial statements
including being satisfied that they give a true
and fair view; such internal control as they
determine is necessary to enable the preparation
of financial statements that are free from material
misstatement, whether due to fraud or error;
assessing the Group and parent Company’s ability
to continue as a going concern, disclosing, as
applicable, matters related to going concern; and
using the going concern basis of accounting unless
they either intend to liquidate the Group or the
parent Company or to cease operations, or have
norealistic alternative but to do so.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance
about whether the financial statements as a whole
are free from material misstatement, whether due
to fraud or error, and to issue our opinion in an
auditor’s report. Reasonable assurance is a high
level of assurance, but does not guarantee that
an audit conducted in accordance with ISAs (UK)
will always detect a material misstatement when
it exists. Misstatements can arise from fraud or
error and are considered material if, individually or
in aggregate, they could reasonably be expected to
influence the economic decisions of users taken on
the basis of the financial statements.
A fuller description of our responsibilities is
provided on the FRC’s website at www.frc.org.uk/
auditorsresponsibilities.
The Company is required to include these financial
statements in an annual financial report prepared
under Disclosure Guidance and Transparency Rule
4.1.17R and 4.1.18R. This auditor’s report provides
no assurance over whether the annual financial
report has been prepared in accordance with those
requirements.
10. The purpose of our audit work and to whom
weowe our responsibilities
This report is made solely to the Company’s
members, as a body, in accordance with Chapter
3 of Part 16 of the Companies Act 2006. Our audit
work has been undertaken so that we might state
to the Company’s members those matters we are
required to state to them in an auditor’s report and
for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility
to anyone other than the Company and the
Company’s members, as a body, for our audit work,
for this report, or for the opinions we have formed.
Andrew Cawthray
Senior Statutory Auditor
for and on behalf of KPMG LLP , Statutory Auditor
Chartered Accountants
One Snowhill
Snow Hill Queensway
Birmingham
B4 6GH
19 March 2025
Independent Auditor’s report continued
Wickes Group Plc Annual Report and Accounts 2024129 Strategic report Other informationGovernance Financial statements
Consolidated Income Statement and Other Comprehensive Income
| 52 weeks ended | 52 weeks ended | ||
| 28 December | 30 December | ||
(£m) | Notes | 2024 | 2023 |
Revenue | 5 | ||
Cost of sales | ( | ( | |
Gross profit | |||
Selling costs | ( | ( | |
Administrative expenses | ( | ( | |
Operating profit | 6 | ||
Net finance costs | 7 | ( | ( |
Profit before tax | |||
Tax | 10 | ( | ( |
Profit for the period and total comprehensive income | |||
| Attributable to: | |||
Owners of the parent | |||
Non-controlling interest | |||
Profit for the period and total comprehensive income | |||
| Earnings per share | |||
Basic | 11 | ||
Diluted | 11 | ||
Adjusted results (1) | |||
Adjusted gross profit | 9 | ||
Adjusted operating profit | 9 | ||
Adjusted profit before tax | 9 | ||
Adjusted profit after tax | 9 | ||
Adjusted basic earnings per share | 11 | ||
Adjusted diluted earnings per share | 11 |
(1) Defined in the summary of accounting policies (note 2)
Wickes Group Plc Annual Report and Accounts 2024130 Strategic report Other informationGovernance Financial statements
| As at | As at | ||
| 30 December | |||
(£m) | Notes | 2023 | |
| Assets | |||
| Non-current assets | |||
Goodwill | 13 | ||
Other intangible assets | 13 | ||
Property, plant and equipment | 14 | ||
Right-of-use assets | 15 | ||
Derivative financial instruments | 30 | ||
Deferred tax asset | 17 | ||
Total non-current assets | |||
| Current assets | |||
Inventories | 19 | ||
Trade and other receivables | 20 | ||
Derivative financial instruments | 30 | ||
Cash and cash equivalents | 21 | ||
Total current assets | |||
Total assets |
| As at | As at | ||
| 28 December | 30 December | ||
(£m) | Notes | 2024 | 2023 |
| Equity and Liabilities | |||
| Capital and reserves | |||
Issued share capital | 22 | ||
Capital redemption reserve | 22 | ||
EBT share reserve | 22 | ( | ( |
Other reserves | 22 | ( | ( |
Retained earnings | |||
Equity attributable to owners of the parent | |||
Non-controlling interest | |||
Total equity | |||
| Non-current liabilities | |||
Lease liabilities | 15, 24 | ||
Long-term provisions | 25 | ||
Total non-current liabilities | |||
| Current liabilities | |||
Lease liabilities | 15, 24 | ||
Trade and other payables | 26 | ||
Corporation tax | |||
Derivative financial instruments | 30 | ||
Short-term provisions | 25 | ||
Total current liabilities | |||
Total liabilities | |||
Total equity and liabilities |
Wickes Group Plc Annual Report and Accounts 2024131 Strategic report Other informationGovernance Financial statements
Consolidated Statement of Changes in Equity
| Capital | |||||||
| Issued share | redemption | EBT Share | Other | Retained | Total | ||
(£m) | Notes | capital | reserve | reserve | reserves | earnings | equity |
At 31 December 2022 | ( | ( | |||||
Profit for the period and other comprehensive income | |||||||
Dividends paid | 27 | ( | ( | ||||
Share buyback and cancellation | 22 | ( | ( | ( | |||
Purchase of own shares | 22 | ( | ( | ||||
Equity-settled share-based payments | 28 | ||||||
Tax on equity-settled share-based payments | |||||||
Owners of parent | ( | ( | |||||
Retained earnings attributable to non-controlling interest | 12 | ||||||
At 30 December 2023 | ( | ( | |||||
Profit for the period and other comprehensive income | |||||||
Dividends paid | 27 | ( | ( | ||||
Share buyback and cancellation | 22 | ( | ( | ( | |||
Equity-settled share-based payments | 28 | ||||||
Tax on equity-settled share-based payments | |||||||
Owners of parent | ( | ( | |||||
Retained earnings attributable to non-controlling interest | 12 | ||||||
At | ( | ( |
Wickes Group Plc Annual Report and Accounts 2024132 Strategic report Other informationGovernance Financial statements
Consolidated Cash Flow Statement
| 52 weeks ended | 52 weeks ended | ||
| 28 December | 30 December | ||
(£m) | Notes | 2024 | 2023 |
| Cash flows from operating activities | |||
Operating profit | |||
| Adjustments for: | |||
Amortisation of other intangible assets | 13 | ||
Depreciation of property, plant and equipment | 14 | ||
Depreciation of right-of-use assets | 15 | ||
Impairment of property, plant and equipment | 16 | ||
Impairment of right-of-use assets | 16 | ||
Reversal of impairment of right-of-use assets | 16 | ( | ( |
Losses on terminations of leases | 6 | ||
Write-off of intangible assets | 6 | ||
Losses on disposal of other intangible assets | 6 | ||
Losses on disposal of property, plant and equipment | 6 | ||
Derivative fair value (gains)/losses | 9 | ( | |
Share-based payments | 28 | ||
Operating cash flows | |||
| Movements in working capital: | |||
Decrease in inventories | |||
Decrease in trade and other receivables | |||
Decrease in trade and other payables | ( | ( | |
(Decrease)/increase in provisions | ( | ||
Cash generated from operations | |||
Income taxes paid | ( | ( | |
Net cash inflow from operating activities |
| 52 weeks ended | 52 weeks ended | ||
| 28 December | 30 December | ||
(£m) | Notes | 2024 | 2023 |
| Cash flows from investing activities | |||
Purchases of property, plant and equipment | ( | ( | |
Development costs of computer software | ( | ( | |
Proceeds on disposal of property, plant and equipment | |||
Acquisition of business net of cash acquired | 12 | ( | |
Interest received | |||
Net cash outflow from investing activities | ( | ( | |
| Cash flows from financing activities | |||
Interest paid | ( | ( | |
Interest on lease liabilities | ( | ( | |
Payment of principal of lease liabilities | ( | ( | |
Lease incentives received | |||
Own shares purchased for share schemes | ( | ||
Share buyback | ( | ( | |
Dividends paid to equity holders of the parent | 27 | ( | ( |
Dividends paid to non-controlling interest | 27 | ( | |
Net cash outflow from financing activities | ( | ( | |
Net decrease in cash and cash equivalents | ( | ( | |
Cash and cash equivalents at the beginning of the period | |||
Cash and cash equivalents at the end of the period | 21 | ||
| Adjusting items | |||
Adjusting items paid included in the cash flow | 33 | ||
Total pre-tax Adjusting items | 9 |
Wickes Group Plc Annual Report and Accounts 2024133 Strategic report Other informationGovernance Financial statements
Notes to the consolidated financial statements
Wickes Group Plc Annual Report and Accounts 2024134 Strategic report Other informationGovernance Financial statements
Notes to the consolidated financial statements continued
2 Accounting Policies continued
Wickes Group Plc Annual Report and Accounts 2024135 Strategic report Other informationGovernance Financial statements
Notes to the consolidated financial statements conti nued
2 Accounting Policies continued
Wickes Group Plc Annual Report and Accounts 2024136 Strategic report Other informationGovernance Financial statements
2 Accounting Policies continued
Notes to the consolidated financial statements continued
Wickes Group Plc Annual Report and Accounts 2024137 Strategic report Other informationGovernance Financial statements
Notes to the consolidated financial statements conti nued
2 Accounting Policies continued
Wickes Group Plc Annual Report and Accounts 2024138 Strategic report Other informationGovernance Financial statements
2 Accounting Policies continued
| 52 weeks ended | 52 weeks ended | |
| 28 December | 30 December | |
| (£’000) | 2024 | 2023 |
| Fees payable to the Company’s auditor for audit services: | ||
Audit of the Company’s annual accounts | 100 | 100 |
Audit of the Company’s subsidiaries | 780 | 710 |
| Fees paid to the Company’s auditor for other services: | ||
Review of the interim statement | 80 | 80 |
960 | 890 |
| 52 weeks ended | 52 weeks ended | |
| Revenue | 28 December | 30 December |
| (£m) | 2024 | 2023 |
Retail (product revenue) | 1,212.3 | 1,189.1 |
Design & Installation (project revenue) | 326.5 | 364.7 |
1,538.8 | 1,553.8 |
Notes to the consolidated financial statements continued
Wickes Group Plc Annual Report and Accounts 2024139 Strategic report Other informationGovernance Financial statements
Notes to the consolidated financial statements conti nued
5 Revenue continued
| 52 weeks ended | 52 weeks ended | |
| Revenue reconciliation and like-for-like revenue | 28 December | 30 December |
| (£m) | 2024 | 2023 |
Revenue | 1,538.8 | 1,553.8 |
Network change | (21.4) | (7.8) |
Revenue generated by business acquired in the period (note 12) | (10.0) | – |
Revenue (like-for-like basis) | 1,507.4 | 1,546.0 |
Prior period revenue | 1,553.8 | 1,559.0 |
Prior period network change | (15.1) | (8.0) |
Prior period revenue (like-for-like basis) | 1,538.7 | 1,551.0 |
(Decrease) / increase arising on a like-for-like basis | (31.3) | (5.0) |
Like-for-like revenue (%) | (2.0)% | (0.3)% |
| 52 weeks ended | 52 weeks ended | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
Realised net foreign exchange gains recognised in cost of sales | (1.6) | (1.6) |
Derivative fair value losses/(gains) (note 9) | (1.5) | 3.1 |
Depreciation of property, plant and equipment (note 14) | 22.3 | 21.1 |
Depreciation of right-of-use assets (note 15) | 76.7 | 74.2 |
Amortisation of internally-generated intangible assets (note 13) | 6.6 | 6.6 |
Impairment of right of use assets (note 15 and 16) | 12.3 | 2.7 |
Reversal of impairment of right-of-use assets (note 15 and 16) | (1.3) | (3.7) |
Impairment of property, plant and equipment (note 14 and 16) | 5.8 | – |
Losses/(gains) on termination of leases | – | 0.1 |
Write-off of intangible assets | – | 1.5 |
Losses on disposal of other intangible assets | – | 0.3 |
Losses on disposal of property, plant and equipment | 0.3 | 2.6 |
Income from subleasing right-of-use assets (note 15) | (2.4) | (3.2) |
Staff costs (note 8) | 230.4 | 234.3 |
| 52 weeks ended | 52 weeks ended | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
| Finance income | ||
Interest receivable | 7.3 | 7.5 |
7.3 | 7.5 | |
| Finance costs | ||
Interest on lease liabilities (note 15) | (30.1) | (28.2) |
Amortisation of loan arrangement fees | (0.3) | (0.3) |
Commitment fee on revolving credit facility (RCF) | (0.7) | (0.7) |
Revolving credit facility (RCF) amendment costs | (0.3) | – |
Other interest | – | (0.1) |
(31.4) | (29.3) | |
Net finance costs | (24.1) | (21.8) |
Wickes Group Plc Annual Report and Accounts 2024140 Strategic report Other informationGovernance Financial statements
| 52 weeks ended | 52 weeks ended | |
| 28 December | 30 December | |
| (No.) | 2024 | 2023 |
Administration | 591 | 555 |
Stores and distribution | 7,183 | 7, 364 |
7,919 |
| 52 weeks ended | 52 weeks ended | |
| 28 December | 30 December | |
| (No.) | 2024 | 2023 |
Administration | 583 | 547 |
Stores and distribution | 5,531 | 5,659 |
6,114 | 6,206 |
| 52 weeks ended | 52 weeks ended | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
Wages and salaries | 205.5 | 204.9 |
Social security costs | 17.1 | 18.3 |
Other pension costs (defined contribution plans) | 5.4 | 5.2 |
Share-based payments (equity-settled) | 4.0 | 5.9 |
232.0 | 234.3 |
9 Reconciliation of alternative profit measures
As described in note 2, adjusted profit measures are an alternative performance measure used by the Board
to monitor the operating performance of the Group. Adjusting items are those items of income and
expenditure that, by reference to the Group, are material in size or unusual in nature or incidence and that in
the judgement of the Directors should be disclosed separately to ensure both that the reader has a proper
understanding of the Group’s financial performance and that there is comparability of financial
performance between periods.
Items of income or expense that are considered by the Directors for designation as adjusting items include,
but are not limited to, significant restructurings, incremental costs relating to corporate transactions,
significant write downs or impairments (and reversals) of current and non-current assets, the effect of
changes in corporation tax rates on deferred tax balances, net unrealised gains and losses on
remeasurement of foreign exchange derivatives held at fair value, and in the previous period the costs of
separating the business from the former parent company Travis Perkins Plc’s IT systems.
| 52 weeks ended 28 December 2024 | ||||
| Operating | Profit before | Profit after | ||
| (£m) | Gross profit | profit | tax | tax |
Statutory performance measures | 566.6 | 47.3 | 23.2 | 18.4 |
Derivative fair value gains | (1.5) | (1.5) | (1.5) | (1.5) |
Property, plant and equipment impairment charge | – | 5.8 | 5.8 | 5.8 |
Right-of-use asset impairment charge | – | 12.3 | 12.3 | 12.3 |
Reversal of impairment of right-of-use asset recognised in prior periods | – | (1.3) | (1.3) | (1.3) |
Restructuring costs | – | 4.0 | 4.0 | 4.0 |
Solar Fast acquisition costs | – | 0.8 | 0.8 | 0.8 |
Revolving credit facility (RCF) amendment costs | – | – | 0.3 | 0.3 |
Tax on adjusting items | – | – | – | (4.9) |
Total adjustments to statutory performance measures | (1.5) | 20.1 | 20.4 | 15.5 |
Adjusted performance measures | 565.1 | 67.4 | 43.6 | 33.9 |
| 52 weeks ended 30 December 2023 | ||||
| Operating | Profit before | Profit after | ||
| (£m) | Gross profit | profit | tax | tax |
Statutory performance measures | 565.0 | 62.9 | 41.1 | 29.8 |
Derivative fair value losses | 3.1 | 3.1 | 3.1 | 3.1 |
Right-of-use asset impairment charge | – | 2.7 | 2.7 | 2.7 |
Reversal of impairment of right-of-use asset recognised in prior periods | – | (3.7) | (3.7) | (3.7) |
IT separation project costs | – | 8.8 | 8.8 | 8.8 |
Tax on adjusting items | – | – | – | (2.6) |
Total adjustments to statutory performance measures | 3.1 | 10.9 | 10.9 | 8.3 |
Adjusted performance measures | 568.1 | 73.8 | 52.0 | 38.1 |
Notes to the consolidated financial statements continued
Wickes Group Plc Annual Report and Accounts 2024141 Strategic report Other informationGovernance Financial statements
| Notes to the consolidated financial statements conti nued | |
| 9 Reconciliation of alternative profit measures continued | |
| 52 weeks ended | 52 weeks ended | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
| Current tax | ||
UK corporation tax expense | 12.3 | 10.4 |
UK corporation tax adjustments in respect of prior periods | (2.2) | 0.1 |
Total current tax charge | 10.1 | 10.5 |
| Deferred tax | ||
Deferred tax movement in period | (5.7) | (0.4) |
Effect of change in tax rate | (0.1) | – |
Adjustments in respect of prior periods | 0.5 | 1.2 |
Total deferred tax charge | (5.3) | 0.8 |
Total tax charge | 4.8 | 11.3 |
| 52 weeks ended | 52 weeks ended | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
Profit before taxation | 23.2 | 41.1 |
Tax at the standard corporation tax rate | 5.9 | 9.7 |
| Effects of: | ||
Depreciation of non-qualifying property | 0.4 | 0.9 |
Tax effect of non-taxable income / non-deductible expenses | – | (1.2) |
Adjustments to prior period | (1.7) | 1.3 |
Effect of share based payments | 0.2 | 1.1 |
Other | – | (0.4) |
Impact of super deduction | – | (0.1) |
Total tax charge | 4.8 | 11.3 |
Wickes Group Plc Annual Report and Accounts 2024142 Strategic report Other informationGovernance Financial statements
11 Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by
the weighted average number of ordinary shares outstanding during the 52 week period ended
28 December 2024.
| 52 weeks ended | 52 weeks ended | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
Profit attributable to the owners of the Parent | 18.1 | 29.8 |
| (No.) | ||
Weighted average number of ordinary shares | 245,621,601 | 258,667,102 |
Adjustment for weighted average number of ordinary shares held in EBT | (4,861,137) | (6,163,934) |
Weighted average number of ordinary shares in issue | 240,760,464 | 252,503,168 |
Basic earnings per share (in pence per share) | 7.7p | 11.8p |
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to
include all dilutive potential ordinary shares arising from share options.
| 52 weeks ended | 52 weeks ended | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
Profit attributable to the owners of the Parent | 18.1 | 29.8 |
| (No.) | ||
Weighted average number of ordinary shares in issue | 240,760,464 | 252,503,168 |
Diluted effect of share options on potential ordinary shares | 3,714,321 | 2,804,387 |
Diluted weighted average number of ordinary shares in issue | 244,474,785 | 255,307,555 |
Diluted earnings per share (in pence per share) | 7.5p | 11.7p |
The Directors believe that EPS excluding Adjusting items (Adjusted EPS) reflects the underlying
performance of the business before the impact of unusual or one off events and assists in providing the
reader with a consistent view of the trading performance of the Group.
Reconciliation of profit after taxation to profit after taxation excluding Adjusting items (Adjusted profit):
| 52 weeks ended | 52 weeks ended | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
Profit attributable to the owners of the parent from continuing operations | 18.1 | 29.8 |
Adjusting items before tax | 20.4 | 10.9 |
Tax on adjusting items | (4.9) | (2.6) |
Adjusting items after tax (note 9) | 15.5 | 8.3 |
Adjusted profit attributable to the owners of the parent | 33.6 | 38.1 |
Weighted average number of ordinary shares in issue | 240,760,464 | 252,503,168 |
Weighted average number of dilutive ordinary shares in issue | 244,474,785 | 255,307,555 |
Adjusted basic earnings per share (in pence per share) | 14.1p | 15.1p |
Adjusted diluted earnings per share (in pence per share) | 13.9p | 14.9p |
12 Acquisition of Gasfast Limited (T/A Solar Fast)
On 21 May 2024, the Group completed the acquisition of a 51% controlling interest in Gasfast Limited
(Gasfast), the parent company of leading solar installations company Solar Fast (Solar Fast). Taking control
of Gasfast will enable the group to expand its offering into the fast-growing market for home energy
solutions, initially with solar and gas boilers and, in time, air source heat pumps and other services.
The group acquired the 51% equity stake from the Solar Fast founders based on a valuation for 100% of the
Business of 7x EBITDA delivered in calendar year 2024, with a minimum valuation for 100% of the Business
of £10.0m and a maximum of £36.0m (excluding adjustments for cash, working capital and debt).
The initial aggregate consideration for acquiring the 51% controlling interest amounted to £7.6m,
representing £5.1m for the equity shares, less a £0.2m negative working capital adjustment, plus £2.7m for
acquired cash, of which £2.5m cash was repaid by dividend post completion.
Since acquisition, Gasfast has contributed revenue of £10.0m and profit of £0.3m to the Group’s results.
Had the acquisition occurred at the start of the year, management estimates that consolidated revenue
would have been £16.7m, and consolidated profit for the year would have been £0.8m. In determining these
amounts, management has assumed that the fair value adjustments, determined provisionally, that arose
on the date of acquisition would have been the same if the acquisition had occurred at the start of the year.
Contingent Consideration
Total consideration is based on the higher of £10.0m or 7x EBITDA achieved in 2024, subject to a maximum
of £36.0m, as described above. As 7x EBITDA was lower than £10m, no further consideration was payable.
Notes to the consolidated financial statements continued
Wickes Group Plc Annual Report and Accounts 2024143 Strategic report Other informationGovernance Financial statements
Notes to the consolidated financial statements conti nued
12 Acquisition of Gasfast Limited (T/A Solar Fast) continued
£m | Fair values |
Software | 0.1 |
Brand | 0.7 |
Property, plant and equipment | 0.2 |
Inventories | 0.7 |
Trade and other receivables | 0.6 |
Cash and cash equivalents | 5.3 |
Trade and other payables | (0.7) |
Deferred tax liability | (0.2) |
Total identifiable net assets acquired | 6.7 |
| Consideration | |
Enterprise value of 51% shareholding | 5.1 |
Acquired cash/net working capital adjustment (1) | 2.5 |
Total consideration | 7.6 |
Acquired assets (51%) | (3.4) |
Goodwill | 4.2 |
Measurement of fair values
The valuation techniques used for measuring the fair value of material assets acquired were as follows.
| Leasehold improvements, | Given the nature of these assets, a depreciated replacement cost approach |
| plant and equipment | has been taken, aligning to the groups capitalisation and depreciation policies. |
Intangible assets | A relief from royalty method was applied to those revenues that Solar Fast is |
| expected to generate independently over a 2 year period. The period selected | |
| and royalty rate applied reflect the relative immaturity of the Solar Fast | |
| business. | |
Inventories | The carrying value of these assets is considered to represent fair value, |
| reflecting the estimated selling price, less estimated costs of completion and | |
| sale, and a reasonable profit margin based on the effort required to complete | |
| and sell the inventories. | |
Trade receivables | Trade receivables, representing amounts due from retail customers, totalled |
| £0.4m. The carrying value of these assets is considered to represent fair value, | |
| and is stated after providing for £0.1m, which was estimated to be | |
| uncollectable at the acquisition date. |
Goodwill
Goodwill arising from the acquisition reflects Solar Fast’s established operations and assembled workforce
which will allow the Group to enter a new market quickly, with lower execution risk, as well as to allow the
Group to scale quickly in a segment considered to have a significant near term opportunity. Given the
closeness of the acquisition date, the tax treatment of goodwill has not yet been determined and will be
confirmed by its inclusion in the annual financial statements.
Wickes Group Plc Annual Report and Accounts 2024144 Strategic report Other informationGovernance Financial statements
12 Acquisition of Gasfast Limited (T/A Solar Fast) continued
Measurement of non-controlling interest
For the purposes of the Group’s consolidated balance sheet, the Group has elected to measure the 49% non-
controlling interest, which at the acquisition date amounted to £3.2m as the proportionate share of Solar
Fast’s identifiable net assets.
Option to acquire the Non-Controlling Interest
The Group has an option to purchase the remaining 49% of the issued share capital of the Business. This
call only option may be exercised during the five years by the Group following completion, in tranches of not
less than 10% of the issued share capital, and is based on a valuation of 6x last twelve months EBITDA at
the time.
The EBITDA multiple pricing of the option is considered by the Directors to be at fair market value, and
therefore is not considered to have any intrinsic value at the date of acquisition or at the reporting period.
Agreements are in place which would reduce the purchase price of the non-controlling interest by 25% in
the event that the employee shareholders were to leave the business over the option period. Given the
Group has no contractual obligation nor obligation through economic compulsion to exercise the option
and there is no expectation in practice that the leaver provisions will be called upon, the potential discount
is not considered to represent a remuneration expense.
(£m) | Goodwill | Software | Total |
| Cost or valuation | |||
At 31 December 2022 | 8.4 | 37.3 | 45.7 |
Additions | – | 6.1 | 6.1 |
Write-offs | – | (1.5) | (1.5) |
Disposals | – | (0.6) | (0.6) |
At 30 December 2023 | 8.4 | 41.3 | 49.7 |
Additions | 4.2 | 2.3 | 6.5 |
Write-offs | – | – | – |
Disposals | – | – | – |
At 28 December 2024 | 12.6 | 43.6 | 56.2 |
| Amortisation | |||
At 31 December 2022 | – | 20.7 | 20.7 |
Charged in the period | – | 6.6 | 6.6 |
Disposals | – | (0.3) | (0.3) |
At 30 December 2023 | – | 27.0 | 27.0 |
Charged in the period | – | 6.6 | 6.6 |
Disposals | – | – | – |
At 28 December 2024 | – | 33.6 | 33.6 |
| Net book value | |||
At 28 December 2024 | 12.6 | 10.0 | 22.6 |
At 30 December 2023 | 8.4 | 14.3 | 22.7 |
Notes to the consolidated financial statements continued
Wickes Group Plc Annual Report and Accounts 2024145 Strategic report Other informationGovernance Financial statements
Notes to the consolidated financial statements conti nued
| Land and | Leasehold | Plant and | ||
| (£m) | buildings | improvements | equipment | Total |
| Cost | ||||
At 31 December 2022 | 6.1 | 133.4 | 186.9 | 326.4 |
Additions | – | 17.2 | 14.9 | 32.1 |
Disposals | – | (3.0) | (6.2) | (9.2) |
Impairments | – | – | – | – |
At 30 December 2023 | 6.1 | 147.6 | 195.6 | 349.3 |
Additions | – | 13.4 | 11.2 | 24.6 |
Disposals | (6.1) | (3.0) | ( 7.9) | (17.0) |
Impairments | – | (5.8) | – | (5.8) |
At 28 December 2024 | – | 152.2 | 198.9 | 351.1 |
| Accumulated depreciation | ||||
At 31 December 2022 | 0.1 | 62.6 | 148.8 | 211.5 |
Charged in the period | 0.1 | 8.0 | 13.0 | 21.1 |
Disposals | – | (1.4) | (5.1) | (6.5) |
At 30 December 2023 | 0.2 | 69.2 | 156.7 | 226.1 |
Charged in the period | 0.1 | 12.6 | 9.6 | 22.3 |
Disposals | (0.3) | (2.6) | ( 7.7) | (10.6) |
At 28 December 2024 | – | 79.2 | 158.6 | 237.8 |
| Net book value | ||||
At 28 December 2024 | – | 73.0 | 40.3 | 113.3 |
At 30 December 2023 | 5.9 | 78.4 | 38.9 | 123.2 |
| Net carrying value | Land and | Plant and | |
| (£m) | buildings | equipment | Total |
At 31 December 2022 | 530.2 | 12.2 | 542.4 |
Additions | 11.6 | 10.6 | 22.2 |
Modifications | 45.9 | 0.1 | 46.0 |
Terminations | (0.2) | (0.1) | (0.3) |
Depreciation | (67.8) | (6.4) | (74.2) |
Impairments | (2.7) | – | (2.7) |
Reversal of previous impairments | 3.7 | – | 3.7 |
At 30 December 2023 | 520.7 | 16.4 | 537.1 |
Additions | 38.1 | 22.8 | 60.9 |
Modifications | 53.0 | – | 53.0 |
Terminations | – | (0.8) | (0.8) |
Depreciation | (67.6) | (9.1) | (76.7) |
Impairments | (12.3) | – | (12.3) |
Reversal of previous impairments | 1.3 | – | 1.3 |
At 28 December 2024 | 533.2 | 29.3 | 562.5 |
Wickes Group Plc Annual Report and Accounts 2024146 Strategic report Other informationGovernance Financial statements
15 Right-of-use assets continued
| As at | As at | |
| Lease liabilities | 28 December | 30 December |
| (£m) | 2024 | 2023 |
| Maturity analysis – contractual undiscounted cash flow | ||
Less than one year | 112.3 | 109.7 |
One to two years | 111.1 | 107.4 |
Two to five years | 285.4 | 406.1 |
Five to ten years | 253.7 | 155.3 |
More than ten years | 105.7 | 49.0 |
Total undiscounted lease liabilities | 868.2 | 827.5 |
| Lease liabilities included in the balance sheet | ||
Current | 80.4 | 79.8 |
Non-current | 624.9 | 596.0 |
705.3 | 675.8 |
| 52 weeks ended | 52 weeks ended | |
| Amounts recognised in the income statement | 28 December | 30 December |
| (£m) | 2024 | 2023 |
Interest expense on lease liabilities | 30.1 | 28.2 |
Expenses related to short-term leases | 0.3 | 0.1 |
Expenses related to low-value assets | 0.8 | – |
Depreciation | 76.7 | 74.2 |
Net impairment charge/(reversal) | 15.7 | (1.0) |
| As at | As at | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
Within one year | 3.4 | 2.3 |
One to five years | 10.6 | 5.9 |
After five years | 14.2 | 2.4 |
Total | 28.2 | 10.6 |
Notes to the consolidated financial statements continued
Wickes Group Plc Annual Report and Accounts 2024147 Strategic report Other informationGovernance Financial statements
Notes to the consolidated financial statements conti nued
16 Impairment testing continued
2024 | 2023 | |
Pre-tax discount rate | 13.4% | 13.7% |
Revenue growth rate | 4% - 7% | 2% – 7% |
Gross margin | 40% - 46% | 36% – 48% |
Central cost allocation | 61.2% | 61.1% |
| Decrease/(increase) in | |
| (£m) | net impairment |
Store revenue increases/(decreases) by 2% | £7.5m – £(9.9)m |
Gross margin increases/(decreases) by 1% | £8.8m - £(12.6)m |
Percentage of central costs allocated decreases/(increases) by 10% | £5.3m - £(6.3)m |
Discount rate decreases/(increases) by 100 basis points | £3.8m - £(4.0)m |
Wickes Group Plc Annual Report and Accounts 2024148 Strategic report Other informationGovernance Financial statements
| Capital | Share-based | |||||
Tax losses | Provisions | Allowance | payments | Leases | Total | |
At 31 December 2022 | – | – | (8.5) | 0.2 | 31.0 | 22.7 |
| (Charge)/credit to the Income | ||||||
statement | (0.4) | – | (1.4) | 1.1 | 1.0 | 0.3 |
Charge to equity | – | – | – | 1.2 | – | 1.2 |
Prior period adjustment | 0.4 | 1.5 | (0.2) | – | (2.9) | (1.2) |
Change in tax rates | – | – | (0.1) | – | 0.1 | – |
| At 30 December 2023 | – | 1.5 | (10.2) | 2.5 | 29.2 | 23.0 |
| (Charge)/credit to the Income | ||||||
statement | (1.8) | 0.2 | 0.8 | 0.1 | 6.4 | 5.7 |
Credit to equity | – | – | – | 1.5 | – | 1.5 |
Prior period adjustment | 1.7 | (0.7) | 1.7 | (1.7) | (1.5) | (0.5) |
Change in tax rates | 0.1 | – | 0.1 | (0.1) | – | 0.1 |
At 28 December 2024 | – | 1.0 | (7.6) | 2.3 | 34.1 | 29.8 |
Disclosed within non-current assets | – | 1.0 | (7.6) | 2.3 | 34.1 | 29.8 |
| Incorporated in England and Wales and registered at | |||
Vision House, 19 Colonial Way, Watford, WD24 4JL | Principal activity | % interest held | Class of share |
Wickes Group Holdings Limited | Holding company | 100% | Ordinary |
Wickes Building Supplies Limited* | Home improvement retailer | 100% | Ordinary |
Gasfast Limited* | Solar installations | 51% | Ordinary |
Wickes Finance Limited* | Dormant | 100% | Ordinary |
Wickes Holdings Limited* | Dormant | 100% | Ordinary |
| As at | As at | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
Inventories | 192.9 | 195.5 |
| 52 weeks ended | 52 weeks ended | |
| 28 December | 30 December | |
| 2024 | 2023 | |
| Movement in stock provisions | ||
Opening provision | 3.7 | 5.0 |
Provision utilisation | (11.9) | (14.1) |
Provision increased | 11.9 | 12.8 |
Closing provision | 3.7 | 3.7 |
| As at | As at | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
Trade receivables | 31.1 | 33.4 |
Allowance for expected credit losses | (0.9) | (1.0) |
30.2 | 32.4 | |
Other receivables | 25.1 | 26.4 |
Prepayments and accrued income | 15.3 | 15.3 |
Total current trade and other receivables | 70.6 | 74.1 |
Notes to the consolidated financial statements continued
Wickes Group Plc Annual Report and Accounts 2024149 Strategic report Other informationGovernance Financial statements
Notes to the consolidated financial statements conti nued
20 Trade and other receivables continued
| More than | ||||||
Saturday 28 December 2024 | Current | 1-30 days | 31-60 days | 61-120 days | 120 days | Total |
Expected loss rate | 2.9% | - | - | - | - | 2.9% |
| Carrying amount of trade | ||||||
receivables (£m) | 31.1 | - | - | - | - | 31.1 |
Loss allowance (£m) | (0.9) | - | - | - | - | (0.9) |
| More than | ||||||
Saturday 30 December 2023 | Current | 1-30 days | 31-60 days | 61-120 days | 120 days | Total |
Expected loss rate | 1.5% | – | – | 100.0% | 80.0% | 3.0% |
| Carrying amount of trade | ||||||
receivables (£m) | 32.5 | 0.1 | 0.2 | 0.1 | 0.5 | 33.4 |
Loss allowance (£m) | (0.5) | – | – | (0.1) | (0.4) | (1.0) |
| As at | As at | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
At the beginning of the period | 1.0 | 1.3 |
Provided in the period | 0.4 | 0.2 |
Released during the period | (0.5) | (0.5) |
At the end of the period | 0.9 | 1.0 |
21 Cash and cash equivalents
| As at | As at | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
Cash at Bank | 4.4 | 6.0 |
Short-term deposits | 81.9 | 91.5 |
86.3 | 97.5 |
Cash and cash equivalents comprise cash balances, short-term deposits and other short term highly liquid
investments (including money market funds) with maturities not exceeding three months from the date of
acquisition placed with investment grade counterparties which are subject to an insignificant risk of
change in value.
22 Capital and reserves
| 10 pence ordinary shares | ||
| The Group and Company | Shares | £m |
| Authorised, issued and fully paid | ||
At 31 December 2022 | 259,637,998 | 26.0 |
Shares cancelled | (7,512,623) | (0.8) |
At 30 December 2023 | 252,125,375 | 25.2 |
Shares cancelled | (10,059,076) | (1.0) |
At 28 December 2024 | 242,066,299 | 24.2 |
Wickes Group Plc Annual Report and Accounts 2024150 Strategic report Other informationGovernance Financial statements
22 Capital and reserves continued
| As at | As at | |
| 28 December | 30 December | |
| (number of shares) | 2024 | 2023 |
At the beginning of the period | 5,918,098 | 6,818,863 |
Own shares purchased for share schemes | - | 170,000 |
Shares released to participants | (1,139,348) | (1,070,765) |
At the end of the period | 4,778,750 | 5,918,098 |
| As at | As at | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
| Undrawn facilities: | ||
4-year committed revolving credit facility (expires March 2028) | 80.0 | 80.0 |
80.0 | 80.0 |
24 Movement in lease liability net debt
| Cash and cash | |||
| (£m) | equivalents | Lease liability | Total |
At 31 December 2022 | 99.5 | (691.3) | (591.8) |
Decrease in cash and cash equivalents | (2.0) | – | (2.0) |
Repayment of lease liabilities | – | 112.5 | 112.5 |
Discount unwind on lease liability | – | (28.2) | (28.2) |
Lease additions | – | (22.2) | (22.2) |
Lease modifications | – | (46.0) | (46.0) |
Lease incentives received | – | (0.8) | (0.8) |
Lease terminations | – | 0.2 | 0.2 |
At 30 December 2023 | 97.5 | (675.8) | (578.3) |
Decrease in cash and cash equivalents | (11.2) | – | (11.2) |
Repayment of lease liabilities | – | 114.4 | 114.4 |
Discount unwind on lease liability | – | (30.1) | (30.1) |
Lease additions | – | (60.7) | (60.7) |
Lease modifications | – | (53.0) | (53.0) |
Lease incentives received | – | (0.9) | (0.9) |
Lease terminations | – | 0.8 | 0.8 |
At 28 December 2024 | 86.3 | (705.3) | (619.0) |
Notes to the consolidated financial statements continued
Wickes Group Plc Annual Report and Accounts 2024151 Strategic report Other informationGovernance Financial statements
Notes to the consolidated financial statements conti nued
24 Movement in net debt continued
| As at | As at | |
| Balances | 28 December | 30 December |
| (£m) | 2024 | 2023 |
Cash and cash equivalents | 86.3 | 97.5 |
Current lease liabilities | (80.4) | (79.8) |
Non-current lease liabilities | (624.9) | (596.0) |
Net debt | (619.0) | (578.3) |
(£m) | Property | Warranty | Insurance | Total |
At 31 December 2022 | 2.1 | 2.9 | 5.9 | 10.9 |
Charge to income statement | 1.7 | 2.8 | 1.0 | 5.5 |
Utilisation | – | (2.4) | (1.4) | (3.8) |
At 30 December 2023 | 3.8 | 3.3 | 5.5 | 12.6 |
Charge to income statement | 0.2 | 3.5 | 1.2 | 4.9 |
Utilisation | (2.1) | (2.5) | (1.8) | (6.4) |
At 28 December 2024 | 1.9 | 4.3 | 4.9 | 11.1 |
| As at | As at | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
Current | 9.7 | 10.3 |
Non-current | 1.4 | 2.3 |
11.1 | 12.6 |
| As at | As at | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
Trade payables | 120.7 | 119.4 |
Social security and other taxes | 16.9 | 11.6 |
Other payables | 17.3 | 17.0 |
Deferred income | 26.2 | 33.2 |
Accrued expenses | 31.5 | 37.9 |
Trade and other payables | 212.6 | 219.1 |
| As at | As at | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
| Amounts recognised in the financial statements as distributions to equity | ||
| shareholders are shown below: | ||
| – final dividend for the 52 weeks ended 30 December 2023 of 7.3 pence (52 | ||
weeks ended 31 December 2022: 7.3 pence) | 17.6 | 18.3 |
| – interim dividend for the 52 weeks ended 28 December 2024 of 3.6 pence | ||
(52 weeks ended 30 December 2023: 3.6 pence) | 8.5 | 9.1 |
Total dividend | 26.1 | 27.4 |
Wickes Group Plc Annual Report and Accounts 2024152 Strategic report Other informationGovernance Financial statements
| 52 weeks ended | 52 weeks ended | |
| 28 December | 30 December | |
| Charge (£m) | 2024 | 2023 |
Long Term Incentive Plan | 2.8 | 3.8 |
Transition Awards | – | 0.3 |
Save As You Earn (SAYE) | 0.9 | 1.2 |
Free Shares | 0.3 | 0.6 |
4.0 | 5.9 |
| As at | As at | |
| 28 December | 30 December | |
| Number of options (thousands) | 2024 | 2023 |
Long Term Incentive Plan | 8,254 | 6,359 |
Transition Awards | – | 100 |
Save As You Earn (SAYE) | 11,080 | 10,768 |
Free Shares | 348 | 488 |
19,682 | 17,715 |
A summary of the main features of the schemes are detailed below:
| Number of | Scheme | ||||||
Scheme | Scheme name | Grant date | Vesting date | options granted | Vesting criteria | Eligibility | type |
RSP | 31/03/2023 | 31/03/2025 | 827,045 | A | |||
31/03/2023 | 31/03/2024 | 711,237 | performance | ||||
| underpin | |||||||
LTIP 24 | 30/09/2024 | 30/09/2027 | 23,902 | EPS (60%), | |||
27/03/2024 | 27/03/2027 | 3,366,432 | TSR (30%) & | ||||
| ESG (10%) | Executive | ||||||
| targets | Directors, | ||||||
LTIP 23 | 25/09/2023 | 25/09/2026 | 29,735 | EPS (60%), | designated | ||
| Long Term | TSR (30%) & | senior | Nil-cost | ||||
| Incentive | 31/03/2023 | 31/03/2026 | 3,448,605 | ESG (10%) | managers | options | |
| Plan (LTIP) | targets | ||||||
| LTIP 22 | 28/09/2022 | 28/09/2025 | 666,396 | EPS (70%) & | |||
31/03/2022 | 31/03/2025 | 1,998,542 | TSR (30%) | ||||
| targets | |||||||
LTIP 21 | 28/09/2021 | 28/09/2024 | 1,795,194 | ||||
| Buyout | 28/09/2022 | 9/9/2023 & | 148,114 | n/a | Mark | ||
| Award | 25/03/2024 | George, | |||||
| CFO | |||||||
28/09/2021 | 28/04/2022 | 1,616,863 | A | Executive | Nil-cost | ||
| Transition | & | performance | Directors, | options | |||
| Awards | 28/04/2023 | underpin for | designated | ||||
| Executive | senior | ||||||
| Directors | managers | ||||||
| Save As You | SAYE 23 | 17/10/2023 | 17/10/2026 | 2,543,884 | Continued | All | SAYE |
| Earn (SAYE) | SAYE 22 | 18/10/2022 | 18/10/2025 | 9,475,353 | saving for 3 | Employees | options |
| years | |||||||
SAYE 21 | 19/10/2021 | 19/10/2024 | 5,433,646 | ||||
Free Shares | 28/06/2021 | 28/06/2024 | 881,940 | n/a | All | Nil-cost | |
| Employees | options |
In addition to the scheme specific vesting criteria detailed above, for each scheme vesting is ordinarily
dependent on the continued employment of recipients. Further features of the individual schemes are
detailed below:
Notes to the consolidated financial statements continued
Wickes Group Plc Annual Report and Accounts 2024153 Strategic report Other informationGovernance Financial statements
Notes to the consolidated financial statements conti nued
28 Share-based payments continued
Long Term Incentive Plan
The Long Term Incentive Plan (LTIP) 21, LTIP 22, LTIP 23 and LTIP 24 awards are made at the discretion of
the Remuneration Committee, with vesting subject to market and non-market performance criteria
measured over a period of three years. The criteria are set by the Remuneration Committee, and are aligned
with the long-term strategic objectives of the Group and shareholder value creation.
The Buy-out award is in respect of an award granted to Mark George on his appointment as CFO, following
the decision to buy-out some of the incentive awards forfeited by him from his previous employer,
The Gym Group.
The Group granted RSP options with the intention of replacing the majority of the existing LTIP 21 and LTIP
22 awards.
In accordance with IFRS 2, if an award is granted as a replacement for a pre-existing award then
modification accounting is applied, whereby the incremental fair value of the RSP over the LTIP, determined
at the date of RSP grant, is spread over the vesting period of the RSP.
The charge in the period for LTIP includes an accrual of £0.7m (period ended 30 December 2023: £0.8m) for
the Group’s Deferred Share Bonus plan in respect of the bonus payable in shares for the period ended
28 December 2024.
Save As You Earn
The Save As You Earn (SAYE) scheme is open to all Wickes Group employees. A maximum monthly
contribution of £500 is permitted under the option scheme. Upon vesting, the options will remain
exercisable for 6 months.
Free Shares
Free Shares are free Wickes Shares which were allocated to all full-time and part-time employees at
demerger and had a market value of £300 or £150 respectively.
| 52 weeks ended 28 December 2024 | ||
| LTIP (nil cost | ||
| The Group and Company: | options) | SAYE |
Share price at grant date (pence) | 150.4 | 163.6 |
Option exercise price (pence) | – | 140.0 |
Option life (years) | 2.3 | 3.0 |
Expected dividends as a dividend yield (%) | n/a | 7.2% |
Risk free interest rate (%) | n/a | 3.9% |
Volatility (%) | n/a | 31.0% |
| 52 weeks ended 30 December 2023 | ||
| LTIP (nil cost | ||
| The Group and Company: | options) | SAYE |
Share price at grant date (pence) | 135.3 | 133.6 |
Option exercise price (pence) | – | 116.0 |
Option life (years) | 2.6 | 3.0 |
Expected dividends as a dividend yield (%) | n/a | 8.0% |
Risk free interest rate (%) | n/a | 4.6% |
Volatility (%) | n/a | 33.3% |
Wickes Group Plc Annual Report and Accounts 2024154 Strategic report Other informationGovernance Financial statements
28 Share-based payments continued
| Exercise price | Share options | Fair value for the | ||
Grant date - scheme | Expiry date | (pence) | (thousands) | Group (£m) |
15/10/2024 – Save As You Earn plan | 15/04/2028 | 140.0 | 2,244 | 0.3 |
30/09/2024 – Long Term Incentive Plan | 30/09/2034 | – | 24 | – |
27/03/2024 – Long Term Incentive Plan | 27/03/2034 | – | 3,366 | 2.5 |
17/10/2023 – Save As You Earn plan | 17/04/2027 | 116.0 | 2,544 | 0.5 |
25/09/2023 – Long Term Incentive Plan | 25/09/2033 | – | 30 | – |
31/03/2023 – Long Term Incentive Plan | 31/03/2033 | – | 3,449 | 2.4 |
31/03/2023 – Restricted Stock Plan | 31/03/2033 | – | 1,538 | 2.1 |
52 weeks ended 28 December 2024 | 52 weeks ended 30 December 2023 | |||||
| Weighted | Weighted | |||||
| average | Number of | average | Number of | |||
| exercise | Number of | nil price | exercise | Number of | nil price | |
| price | options | options | price | options | options | |
| (pence) | (thousands) | (thousands) | (pence) | (thousands) | (thousands) | |
| Outstanding at the beginning | ||||||
of the period | 70 | 10,769 | 6,948 | 75 | 10,727 | 5,845 |
Granted during the period | 56 | 2,244 | 3,390 | 39 | 2,544 | 5,017 |
Exercised during the period | 9 | (99) | (967) | 8 | (67) | (855) |
Forfeited during the period | 104 | (1,834) | (320) | 111 | (2,435) | (246) |
Cancelled during the period | – | – | (449) | – | – | (2,813) |
Outstanding at the end of the period | 67 | 11,080 | 8,602 | 70 | 10,769 | 6,948 |
Exercisable at the end of the period | – | 708 | 348 | – | – | 100 |
Details of the share options outstanding at 28 December 2024 are shown below:
52 weeks ended 28 December 2024 | 52 weeks ended 30 December 2023 | |||||
| Transition | SAYE and | Transition | SAYE and | |||
| LTIP | Awards | Free Shares | LTIP | Awards | Free Shares | |
Range of exercise price (pence) | – | – | nil–196 | – | – | nil–196 |
| Weighted average exercise price | ||||||
(pence) | – | – | 115 | – | – | 110 |
Number of shares (thousands) | 8,254 | – | 11,428 | 6,359 | 100 | 11,256 |
| Weighted average expected remaining | ||||||
life (years) | 1.5 | – | 1.3 | 1.7 | – | 1.9 |
| Weighted average contractual | ||||||
remaining life (years) | 8.6 | – | 1.7 | 9.0 | 7.8 | 2.4 |
| As at | As at | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
Contracted but not provided for in the accounts | 9.3 | 12.6 |
Notes to the consolidated financial statements continued
Wickes Group Plc Annual Report and Accounts 2024155 Strategic report Other informationGovernance Financial statements
Notes to the consolidated financial statements conti nued
| As at | As at | ||
| 28 December | 30 December | ||
(£m) | Note | 2024 | 2023 |
| Financial assets: | |||
Cash and cash equivalents | 21 | 86.3 | 97.5 |
Trade and other receivables at amortised cost | 20 | 55.3 | 58.8 |
141.6 | 156.3 | ||
| Financial Liabilities | |||
Trade and other payables at amortised cost | 26 | 138.1 | 136.4 |
Lease liabilities | 24 | 705.3 | 675.8 |
843.4 | 812.2 |
| As at | As at | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
| Included in assets | ||
| Level 2 | ||
Foreign currency forward contracts at fair value through profit and loss | 0.9 | – |
| Included in liabilities | ||
| Level 2 | ||
Foreign currency forward contracts at fair value through profit and loss | – | (0.7) |
0.9 | (0.7) |
Wickes Group Plc Annual Report and Accounts 2024156 Strategic report Other informationGovernance Financial statements
30 Financial instruments continued
| Maturity analysis | ||||||
| Between one | ||||||
| Carrying | Contractual | Within one | and five | More than | ||
| (£m) | Note | amount | cash flows | year | years | five years |
| At 28 December 2024 | ||||||
| Trade and other payables | ||||||
at amortised cost | 26 | 138.1 | 138.1 | 138.1 | – | – |
Lease liabilities | 15 | 705.3 | 868.2 | 112.3 | 396.5 | 359.4 |
843.4 | 1,006.3 | 250.4 | 396.5 | 359.4 | ||
| At 30 December 2023 | ||||||
| Trade and other payables | ||||||
at amortised cost | 26 | 136.4 | 136.4 | 136.4 | – | – |
Lease liabilities | 15 | 675.8 | 827.5 | 109.7 | 513.5 | 204.3 |
812.2 | 963.9 | 246.1 | 513.5 | 204.3 |
| 52 weeks ended | 52 weeks ended | |
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
Salaries and other short-term employee benefits | 2.2 | 2.2 |
Post-employment benefits | 0.1 | 0.1 |
Share-based payments | 1.0 | 1.1 |
3.3 | 3.4 |
Notes to the consolidated financial statements continued
Wickes Group Plc Annual Report and Accounts 2024157 Strategic report Other informationGovernance Financial statements
Notes to the consolidated financial statements conti nued
33 Alternative Performance Measures
Stock turn
Stock turn is defined as the cost of goods sold divided by the average of year start and year end inventory. It
is a measure of how effective we are in converting our stock into sales.
Stock turn is calculated as follows:
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
Cost of goods sold | 844.4 | 857.8 |
Opening stock | 195.5 | 201.6 |
Closing stock | 192.9 | 195.5 |
Average stock | 194.2 | 198.6 |
Cost of goods sold divided by average stock | 4.3 | 4.3 |
Like-for-like sales
The use of like-for-like (LFL) sales and why they are useful is discussed in detail in note 5. Additionally,
further LFL calculations, which are useful for the same reason, are calculated as follows:
Like-for-like sales – Retail and Design & Installation
Like-for-like sales are further broken down into Retail and Design & Installation related sales to enable
further visibility of the relative performance of the two areas.
| 52 weeks ended | |
| Like-for-like sales - Retail | 28 December |
| (£m) | 2024 |
Revenue | 1,212.3 |
Network change | (13.7) |
Revenue (like-for-like basis) | 1,198.6 |
Prior period revenue | 1,189.1 |
Prior period network change | (8.8) |
Prior period revenue (like-for-like basis) | 1,180.3 |
Increase arising on a like-for-like basis | 18.3 |
Like-for-like revenue (%) | 1.5% |
| 52 weeks ended | |
| Like-for-like sales - Design & Installation | 28 December |
| (£m) | 2024 |
Revenue | 326.5 |
Network change | (7.7) |
Revenue generated by business acquired in the period | (10.0) |
Revenue (like-for-like basis) | 308.8 |
Prior period revenue | 364.7 |
Prior period network change | (6.3) |
Prior period revenue (like-for-like basis) | 358.4 |
Decrease arising on a like-for-like basis | (49.6) |
Like-for-like revenue (%) | (13.9)% |
Free cash flow
The use of free cash flow and why it is useful is discussed on page 24. It is calculated as follows:
| 28 December | 30 December | |
| (£m) | 2024 | 2023 |
Cash generated from operations | 170.6 | 179.6 |
Add back cash impact of adjusting items | 4.9 | 10.4 |
Adjusted cash inflow from operating activities | 175.5 | 190.0 |
Less: payment of principal of lease liabilities, net of lease incentives received | (83.4) | (83.5) |
Less: interest on lease liabilities | (30.1) | (28.2) |
Less: purchases of property, plant and equipment, and development costs of computer software | (26.1) | (38.2) |
Less: income taxes paid | (8.6) | (0.3) |
Add: proceeds on disposal of property, plant and equipment | 6.3 | 0.1 |
Less: sale and leaseback transaction | (7.4) | – |
Add: interest received | 7.4 | 7.2 |
Less: interest paid | (1.4) | (1.0) |
Free cash flow | 32.2 | 46.1 |
Wickes Group Plc Annual Report and Accounts 2024158 Strategic report Other informationGovernance Financial statements
33 Alternative Performance Measures continued
IFRS 16 net debt leverage
IFRS 16 net debt leverage is the ratio of our net debt balance to our adjusted EBITDA (as calculated above).
This enables us to assess whether the profit we generate will be sufficient to pay our debt obligations.
| As at | |
| 28 December | |
| (£m) | 2024 |
Adjusted operating profit | 67.4 |
Add back depreciation of property, plant and equipment | 22.3 |
Add back depreciation of right-of-use assets | 76.7 |
Add back amortisation | 6.6 |
Adjusted EBITDA | 173.0 |
| 28 December | |
| (£m) | 2024 |
Net debt | 619.0 |
Adjusted EBITDA | 173.0 |
Leverage ratio | 3.6 |
Revenue presentational change FY 2025
Currently, sales of Wickes Lifestyle Kitchens which include a design element are classified as Design &
| Installation revenue, whereas self-serve purchases of the Wickes Lifestyle Kitchen range are classified as |
| Retail. From the start of FY 2025, the Group is changing the presentation of the two revenue streams |
currently within its operating segment from ‘Retail’ and ‘Design & Installation’, to ‘Retail’ and ‘Design &
Installation Ranges’ respectively.
This is to align the presentation with how revenue streams will be monitored internally from FY 2025, and to
bring all kitchen and bathroom sales into one reported revenue category, Design & Installation Ranges.
Given how customer projects increasingly include products from different ranges within Kitchens and
Bathrooms, principally Bespoke and Lifestyle, the historical distinction between the two is becoming less
relevant. Note, Design & Installation Ranges will continue to include the sale of solar panels.
Details are provided in the Financial Review on pages 26-29.
Notes to the consolidated financial statements continued
Wickes Group Plc Annual Report and Accounts 2024159 Strategic report Other informationGovernance Financial statements
Company Balance Sheet
(£m) Notes
As at
28 December
2024
As at
30 December
2023
Assets
Non-current assets
Investment C6 556.8 603.4
Total non-current assets 556.8 603.4
Current assets
Other receivables C8 – 15.1
Total current assets – 15.1
Total assets 556.8 618.5
Equity and Liabilities
Capital and reserves
Issued share capital 22 24.2 25.2
Capital redemption reserve 1.8 0.8
EBT share reserve 22 (0.5) (0.7)
Retained earnings 530.7 593.2
Total equity 556.2 618.5
Current liabilities
Other payables C8 0.6 –
Total current liabilities 0.6 –
Total liabilities 0.6 –
Total equity and liabilities 556.8 618.5
The loss attributable to the owners of the Company for the period ended 28 December 2024 was £24 .6 m (30 December 2023: profit of £5 3.5 m).
The company’s financial statements of Wickes Group Plc, registered number 12189061, were approved by the Board of Directors on 19 March 2025 and signed on its behalf by:
David Wood Mark George
Chief Executive Officer Chief Financial Officer
Wickes Group Plc Annual Report and Accounts 2024160 Strategic report Other informationGovernance Financial statements
Company Statement of Changes in Equity
(£m)
Issued share
capital
Capital
redemption
reserve
EBT share
reserve
Retained
earnings
Total
equity
At 31 December 2022 26.0 – (0.7) 571.8 597.1
Profit for the period and other comprehensive income – – – 53.5 53.5
Dividends Paid – – – (27.4) (27.4)
Share buyback and cancellation (0.8) 0.8 – (10.1) (10.1)
Purchase of own shares – – (0.2) – (0.2)
Equity-settled share-based payments – – 0.2 5.4 5.6
At 30 December 2023 25.2 0.8 (0.7) 593.2 618.5
Loss for the period and other comprehensive income – – – (24.6) (24.6)
Dividends paid – – – (26.1) (26.1)
Share buyback and cancellation (1.0) 1.0 – (15.1) (15.1)
Purchase of own shares – – – – –
Equity-settled share-based payments – – 0.2 3.3 3.5
At 28 December 2024 24.2 1.8 (0.5) 530.7 556.2
Wickes Group Plc Annual Report and Accounts 2024161 Strategic report Other informationGovernance Financial statements
Notes to the Company financial statements
This section contains the notes to the Company financial
statements. The issued share capital and EBT share reserves are
consistent with the Wickes Group Plc Group Consolidated financial
statements. Refer to note 22 of the Group financial statements.
C1 Basis of preparation
The financial statements have been prepared in accordance with Financial Reporting Standard 102 (“FRS
102”) in conformity with the Companies Act 2006 and on an historical cost basis. The financial statements
are presented in pounds sterling and all values are rounded to the nearest million pounds (£0.1m), except
when otherwise indicated.
See note 1 for general information about the Company.
The Company has used the exemption granted under s408 of the Companies Act 2006 that allows for the
non-disclosure of the income statement of the Parent Company.
As the consolidated financial statements of the Group headed by the Company are prepared in accordance
with International Financial Reporting Standards as adopted by the UK and include the disclosures
equivalent to those required by FRS 102, the Company has also taken the exemptions available in respect of
the following disclosures:
– Cash Flow Statement and related notes
– Key Management Personnel compensation
– Certain disclosures required by FRS 102.26 Share Based Payments
– Certain disclosures required by FRS 102.11 Basic Financial Instruments in respect of financial
instruments not falling within the fair value accounting rules of Paragraph 36(4) of Schedule 1
The Company did not have items to be reported as other comprehensive income; therefore, no statement of
comprehensive income was prepared.
C2 Significant accounting policies in this section
Financial instruments
Financial assets and financial liabilities are recognised when the Company becomes a party to the
contractual provisions of the instrument. Financial liabilities and equity instruments are classified
according to the substance of the contractual arrangements entered into. An equity instrument is any
contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.
Investment in subsidiaries
The Company’s investments in subsidiaries are carried at cost less provisions resulting from impairment.
Investments are assessed for indicators of impairment at each balance sheet date. If there is objective
evidence of impairment, an impairment loss is recognised in operating profit in the profit or loss as a charge
to administrative expenses.
In testing for impairment, the carrying value of the investment is compared to its recoverable amount, being
its value-in-use.
Where indicators exist for a decrease in a previously recognised impairment loss, the prior impairment loss
is tested to determine whether a reversal is required. An impairment loss is reversed on an individual
impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount
higher than the carrying value had no impairment been recognised.
Share-based payments
The financial effect of awards by the Company of options over its equity shares to employees of subsidiary
undertakings is recognised by the Company in its individual financial statements as an increase in its
investment in subsidiaries with a credit to equity equivalent to the cost in subsidiary undertakings. The
subsidiary, in turn, will recognise the cost in its income statement with a credit to equity to reflect the
deemed capital contribution from the Company.
C3 Key estimates and assumptions in this section
Impairment testing of investments in subsidiaries
The Company’s investments in subsidiaries have been tested for impairment by comparison against the
underlying value of the subsidiaries’ assets based on a value-in-use calculation. The value in use
calculation requires estimation of future cash flows expected to arise from the subsidiary discounted at a
suitable discount rate in order to calculate present value. The significant estimates relate to the Group’s
profitability over the Five-Year Plan period, the longer term growth rate, and the discount rate used.
C4 Staff costs and Directors’ remuneration
The Company had no employees during the year, except for the Directors. The information on compensation
for the Directors, being considered as the key management personnel of the Company, is disclosed in note
31.
C5 Auditor’s remuneration
Amounts receivable by the Company’s auditor and its associates in respect of services to the Company and
its associates, other than the audit of the Company’s financial statements, have not been disclosed as the
information is required instead to be disclosed on a consolidated basis in the Group consolidated financial
statements.
Wickes Group Plc Annual Report and Accounts 2024162 Strategic report Other informationGovernance Financial statements
C6 Investment in subsidiaries
(£m)
Subsidiary
undertakings
Cost
At 31 December 2022 893.0
Additions - share based payments 4.5
At 30 December 2023 897.5
Additions - share based payments 2.7
At 28 December 2024 900.2
Impairment
At 31 December 2022 (294.1)
Impairment –
At 30 December 2023 (294.1)
Impairment (49.3)
At 28 December 2024 (343.4)
Net book value
At 28 December 2024 556.8
At 30 December 2023 603.4
Details of the Company’s subsidiaries at the balance sheet date are in note 18 to the Group consolidated
financial statements. In accordance with accounting standards the Company’s investments must have an
impairment review if there is an indicator of impairment. The recoverable amount of an asset is the greater
of its value in use and its fair value less cost to sell: the value in use of the investment is derived from the
Group’s Five-Year Plan on a pre-IFRS 16 basis and management believe that this represents a higher value
than a potential fair value valuation.
Key Assumptions
The estimation of future cash flows is derived from the Board approved Five-Year Plan, consistent with the
basis discussed in note 16 to the Group consolidated financial statements. The key assumptions
underpinning the value in use model include revenue growth, gross margin, discount rate, and long term
growth rate.
2024 2023
Pre-tax discount rate 16.2% 15.8%
Revenue growth rate 4% - 7% 2% - 7%
Gross Margin 41.0%-41.4% 42.2% – 42.3%
Long term growth rate 3.5% 3.5%
Management determined the values assigned to these financial assumptions consistently with the basis
discussed in note 16 to the Group consolidated financial statements.
In light of the challenges of performing Value in Use calculations in respect of an Equity Investment on a
post-IFRS 16 basis, both the 2023 and 2024 impairment reviews were performed on a pre-IFRS 16 basis.
The discount rate disclosed is therefore higher than that disclosed in note 16 of the Group consolidated
financial statements (as a pre-IFRS 16 discount rate does not incorporate the cost of debt and lease
liabilities).
In the 52 weeks ended 28 December 2024, the Group acquired a 51% holding in Solar Fast (note 12 of the
Group consolidated financial statements). The value in use calculation therefore includes a value related to
Solar Fast. No reasonably possible change in assumptions would result in a materially different outcome
for the value in use relating to Solar Fast. As such, no key assumptions nor sensitivities specific to Solar
Fast have been disclosed.
Impairment
An impairment review was therefore performed, with an impairment charge of £49.3m recognised in the
period ended 28 December 2024 (30 December 2023: £nil impairment charge). The impairment reflects the
weakening of the UK macro-economic environment and economic outlook in 2024, with an impact on the
retail sector as a whole.
Impairment sensitivities
A sensitivity analysis was performed using changes in assumptions applied to the value in use calculation
that management consider to be reasonably possible. It is possible that a material movement in the
impairment charge would have been identified in the impairment review if the key assumptions were
changed in the value in use calculations. The impact on impairment from these reasonably possible
changes in assumptions, with all other assumptions remaining the same, are shown below.
Assumption
Change in impairment
charge
Pre-tax discount rate increases or decreases by 0.5% £(21.6)m - £24.0m
Revenue increases or decreases by 2% £57.3m - £(57.3)m
Gross margin increases or decreases by 1% £135.3m - £(135.3)m
Long term growth rate increases or decreases by 0.5% £16.9m - £(15.2)m
C7 Capital management and financial instruments
The capital structure of the Company comprises issued capital, reserves and retained earnings as
disclosed in the Company statement of changes in equity totalling £556.2m as at 28 December 2024
(30 December 2023: £618.5m).
Credit risk
As at 28 December 2024, the Company had short-term receivables of £nil (30 December 2023: £15.1) owed
by subsidiary undertakings, which are repayable on demand and bear no interest. The Directors do not
perceive that the recovery of this debt poses any significant risk to the Company given its size in relation to
theCompany’s net assets.
Notes to the Company financial statements continued
Wickes Group Plc Annual Report and Accounts 2024163 Strategic report Other informationGovernance Financial statements
Notes to the Company financial statements continued
C7 Capital management and financial instruments continued
Liquidity risk
The Company finances its activities through its investments in subsidiary undertakings.
The Company anticipates that its funding sources will be sufficient to meet its anticipated future
administrative expenses and dividend obligations as they become due over the next 12 months.
Market risk
As at 28 December 2024, the Company had short-term payables of £0.6m (30 December 2023: £nil) owed to
subsidiary undertakings, which are repayable on demand and bear no interest.
Distributable reserves
The distributable reserves of the Company approximate to the accumulated profits, under Reporting
Standard FRS 102, after deducting equity settled share based payments and investments in own shares,
resulting in distributable reserves of £517.5m (30 December 2023: £582.5m). When required the Company
can receive dividends from its subsidiaries to further increase the distributable reserves.
In the 52 weeks ended 28 December 2024, the Company received £28.0m of dividends from its subsidiaries
(52 weeks ended 30 December 2023: £57.0m) to pay to its equity shareholders of the Parent.
C8 Related party transactions
The Company’s subsidiaries are listed in note 18 of the Group consolidated financial statements. The
following table provides the Company’s balances that are outstanding with subsidiary companies at the
balance sheet date:
(£m)
As at
28 December
2024
As at
30 December
2023
Amounts owed (to)/from subsidiary undertakings
– Wickes Building Supplies Limited (0.6) 15.1
(0.6) 15.1
The amounts outstanding are unsecured and repayable on demand.
The following table provides the Company’s transactions with subsidiary companies recorded in profit for
the year:
(£m)
52 weeks ended
28 December
2024
52 weeks ended
30 December
2023
Amounts invoiced by subsidiaries (2.4) (2.4)
Dividend received from subsidiaries 28.0 57.0
25.6 54.6
Amounts invoiced to/by subsidiaries relate to general corporate purposes.
Directors’ remuneration
The remuneration of the Directors of the Company is set out below. Further information about the
remuneration of individual Directors is provided in the audited part of the Directors’ Remuneration report on
page 110.
(£m)
52 weeks ended
28 December
2024
52 weeks ended
30 December
2023
Salaries and other short term benefits* 2.2 2.2
Post-employment benefits* 0.1 0.1
Share-based payments* 1.0 1.1
3.3 3.4
* Emoluments and share-based payment charges for the Executive Directors are borne by a subsidiary company, Wickes Building Supplies
Limited, and recharged to Wickes Group Plc. Please refer to note 28 of the Group consolidated financial statements.
Directors’ interests in share-based payment schemes
Refer to note 28 to the Group consolidated financial statements for further details of the main features of
the schemes relating to share options held by the Executive Directors and Senior Management Team.
Other transactions
During the period, the Company did not make any purchases in the ordinary course of business from an
entity under common control.
C9 Events after the reporting period
Revolving credit facility
After the year end the Group completed an extension of its credit facility, lengthening the term by a further
year to March 2029. Total commitments on the facility remain at £80m, as well as retaining the £20m
accordion.
EBT share purchase programme
After the year end the Group recommended Equiniti Trust (Jersey) Limited, in its capacity as trustee of the
Wickes Employee Benefit Trust, purchases 7.1m ordinary shared of the Company in the market.
Share buyback programme
The Company has approved a new £20m share buyback programme, following the successful completion
of the £25m buyback in September 2024. The Company is planning to start the share buyback in April 2025.
Wickes Group Plc Annual Report and Accounts 2024164 Strategic report Other informationGovernance Financial statements
Shareholder information
Managing your shares
The Company’s share register is managed by our registrar, MUFG. Shareholders can manage
their shareholdings online through the MUFG Shareholder portal at www.wickes-shares.com.
You will need your investor code to register – this can be found on your share certificate.
The benefit of managing your shareholding online include the ability to:
View your holding
balance and get an
indicative valuation
Cast your proxy vote
online
View movements
on your holdings
Elect to receive
Shareholder
communications
electronically
View dividend payments
you have received
Update your address
Register and change
bank mandate
instructions for
dividends to
be paid
Access a wide range of
Shareholder information
including the ability
to download
Shareholder forms
Shareholder communications
We encourage our Shareholders to view Shareholder communications, including the Annual Report and
Accounts, electronically in order to minimise our impact on the environment and reduce costs. If you
currently receive communications in paper form and would like to switch to electronic communications,
you can do this by visiting the MUFG Shareholder portal at www.wickes-shares.com or by contacting
MUFG.
Financial calendar
The key events in our financial year will be posted on our website at www.wickesplc.co.uk.
Annual General Meeting
The AGM is an important event that gives us an opportunity to engage with our Shareholders. Our 2025
AGM is scheduled to be held on 8 May 2025 at 9.00am. Details about the meeting and how to participate
will be available in the Notice of Meeting which will be posted on our website at www.wickesplc.co.uk.
Dividends
An interim dividend of 3.6 pence per ordinary share was paid on 8 November 2024. Shareholders will be
asked to approve a final dividend for the financial year ended 28 December 2024 at the AGM. If approved,
adividend of 7.3 pence per ordinary share will be paid on 6 June 2025 to Shareholders on the register on
therecord date of 25 April 2025.
Paperless dividends
In line with market practice, we moved to the payment of cash dividends through direct payment to
Shareholder bank accounts in 2022. This means that you can only receive payment of dividends by bank
transfer and a dividend confirmation for each dividend will be available electronically at www.wickes-
shares.com. If you previously received your dividends by cheque you will need to register your bank details
with MUFG via the Shareholder portal www.signalshares.com or by contacting MUFG (contact details
under ‘Managing your shares’). Any unclaimed dividends will automatically be released into your bank
account once your bank details have been registered with MUFG.
Dividend Reinvestment Plan
You can choose to have any cash dividends paid reinvested in further Wickes shares through the Dividend
Reinvestment Plan (terms and conditions apply). You can join the Dividend Reinvestment Plan via the
MUFG Shareholder portal www.wickes-shares.com or contact MUFG for details.
Shareholder security
If you receive any unsolicited phone calls or correspondence concerning investment matters you should
get the name of the person and organisation and check that they are properly authorised by the FCA – visit
https://register.fca.org.uk/s/. If you think something is not right, report it to the FCA by calling the FCA
consumer helpline on 0800 111 6768 (freephone) – open Monday to Friday 8.00am-6.00pm and Saturday
9.00am-1.00pm. More detailed information can be found on the FCA website www.fca.org.uk/scamsmart.
Website publication
The Annual Report and Accounts 2024 will be available to view and download on the Company’s website at
www.wickesplc.co.uk. We also publish on the website a machine-readable version of the annual accounts
using the single electronic reporting format (ESEF) as required under Disclosure Guidance and
Transparency Rule 4.1.14R and in accordance with the ESEF Regulation. The ESEF format of the accounts
has not been audited.
Useful contacts
Registered office address: Investor Relations
Wickes Group Plc investorrelations@wickes.co.uk
Vision House
19 Colonial Way Corporate brokers
Watford Investec
WD24 4JL Peel Hunt
United Kingdom
Company number Legal advisor
12189061 Slaughter and May
Registrar Independent auditor
MUFG Corporate Markets KPMG LLP
Central Square
29 Wellington Street
Leeds
LS1 4DL
Shareholder portal: www.wickes-shares.com
Tel: +44 (0)371 664 0300
1
Email: shareholderenquiries@cm.mpms.mufg.com
1 Calls are charged at the standard geographic rate and will vary by provider. Calls outside the UK will be charged at the applicable
international rate. Lines are open between 9.00am-5.30pm, Monday to Friday excluding public holidays in England and Wales.
Wickes Group Plc Annual Report and Accounts 2024165 Strategic report Governance Other informationFinancial statements
Glossary
Adjusted EBITDA Earnings before Interest, Tax, Depreciation and
Amortisation and before adjusting items
AGM Annual General Meeting
AI Artificial intelligence
APMs Alternative profit measures
AQR Audit quality review
ARC Audit and Risk Committee
ASHP Air source heat pump
BNPL Buy Now Pay Later
BRC British Retail Consortium
CAGR Compound Annual Growth Rate
CBAM Carbon Border Adjustment Mechanism
CDP formerly Carbon Disclosure Project
CEO Chief Executive Officer
CFO Chief Financial Officer
CGU Cash generating unit
CSAT Customer Satisfaction
DABP Deferred annual bonus plan
DC Design Consultant
D&I Design & Installation
Dividend Cover The ratio of dividends paid and proposed in relation to
the financial period against
adjusted earnings per share
DIY Do-it-yourself
DRR Directors’ Remuneration report
DTR Disclosure Guidance and Transparency Rules
EBITDA Earnings Before Interest Tax Depreciation and
Amortisation
EBT Employee Benefit Trust
EDRA/GHIN European DIY Retail Association / Global Home
Improvement Network
EMS Environmental Management System
EPS Earnings per share
ESG Environmental, Social, Governance
ESMA European Securities and Markets Authority
ESOS Energy Savings Opportunities Scheme
EV Electric vehicle
EVP Employee value proposition
FCA Financial Conduct Authority
FCF Free cash flow
FLAG Forest, Land and Agriculture GHG emissions
FRC Financial Reporting Council
FRS Financial Reporting Standard
FSC Forest Stewardship Council
FTE Full-time equivalent
FVOCI Fair value through other comprehensive income
FVTPL Fair value through profit or loss
GFR Goods for resale
GHG Greenhouse gas
GNFR Goods not for resale
H&S Health and safety
HGV Heavy goods vehicle
IAS International Accounting Standards
I&D Inclusion and diversity
IFRS International Financial Reporting Standards
IPCC Intergovernmental Panel on Climate Change
IRS Incident reporting system
ISSB International Sustainability Standards Board
KBA Kitchen and Bathroom Adviser
KPI Key performance indicator
LED Light-emitting diode
LFL Like-for-like
LTIP Long Term Incentive Plan
MME Missions Motivation Engine
MSCI formerly Morgan Stanley Capital International
NED Non-executive Director
NZE Net Zero Emissions
Order Book Orders that have been placed but not yet delivered: a
measure of secured future revenue
PBT Profit before tax
PEFC Programme for the Endorsement of Forest Certification
PIE Public Interest Entity
Plc Public limited company
PV Photovoltaic
RBC Responsible Business Committee
RCF Revolving Credit Facility
RCP Representative Concentration Pathway
REACH Registration, Evaluation, Authorisation and Restriction
of Chemicals
Returns to
shareholders
Sum of dividends paid and proposed in relation to the
financial period, plus the consideration paid for shares
as part of the share buyback programme
RIDDOR Reporting of Injuries, Diseases and Dangerous
Occurrences Regulations
RMI Repairs, Maintenance and Improvement
SaaS Software as a Service
Sales density Sales per square foot
SASB Sustainability Accounting Standards Board
SAYE Save As You Earn
SBT Science-based targets
SBTi Science Based Targets initiative
SDG Sustainable Development Goals
SECR Streamlined Energy and Carbon Reporting
SID Senior Independent Director
SIP Share Incentive Plan
SKU Stock Keeping Unit
SORA Supplier Online Risk Assessment
SVHC Substance of very high concern
TCFD Task Force on Climate-related Financial Disclosures
TSR Total Shareholder Return
UGC User Generated Content
VOC Volatile organic compound
WBCSD World Business Council for Sustainable Development
WRI World Resources Institute
Wickes Group Plc Annual Report and Accounts 2024166 Strategic report Governance Other informationFinancial statements
© Wickes Group Plc
Vision House
19 Colonial Way
Watford
United Kingdom
WD24 4JL
wickesplc.co.uk