Travis Perkins moves forward with plan to demerge Wickes
Travis Perkins has said it is making progress with plans to demerge Wickes as it looks ahead to the DIY retailer’s listing on the the main market of the London Stock Exchange.
After completing the vast majority of work for the demerger, the group put the process on hold in March last year to enable it to focus on managing the impact of the Covid-19 pandemic and maximising liquidity across the group.
In a statement today, Travis Perkins chief executive Nick Roberts said: “I am very pleased that we have reached a significant milestone in the process to demerge Wickes from the Travis Perkins Group. It is testament to the strength of both the group and Wickes operating models that we are back on track to complete the demerger despite the pandemic.
“The demerger is an important step towards simplifying the group and enabling Travis Perkins to focus on its trade customers. The separation will allow both businesses to allocate capital to drive growth and further enhance their market leading positions.”
Giving an update on current trading, Travis Perkins said the strong core sales seen at Wickes in the second half of 2020 have continued into the current financial year, although ‘do-it-‘for-me’ orders were around 50% lower year-on-year through the winter sale period due to Covid-19 related showroom closures.
David Wood, chief executive of Wickes, said: “We are able to provide customers with everything they need to achieve their home improvement plans and we are well placed to capitalise on the exciting growth opportunities we see in our markets while creating long-term value for all our stakeholders. The current year has started well and we are confident in continuing to deliver sales growth ahead of the market for the full year.”
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