Wickes & Toolstation parent company profits plummet 67%

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The parent company of DIY chain Wickes has posted a 67 per cent plunge in full-year profits due to the cost of branch closures and its struggling plumbing and heating business.

Travis Perkins, which also owns Toolstation, lost £57 million from costs incurred from its plan to shut more than 30 branches, putting 600 jobs in jeopardy leading to an overhaul of its supply chain.

However, this fee was nothing compared to Travis Perkins‘ heating, plumbing and tile businesses, which racked up a £235 million impairment charge.

The company, which employs 28,000 staff, had initially warned over job losses and branch closures in October.


READ MORE: 600 staff affected by plans to close 30 Travis Perkins branches


While Travis Perkins‘ retail chains Wickes and Toolstation are not affected by the overhaul, the job losses will be felt at its trade brands Benchmarx, plumbing and heating businesses BSS and PTS and the eponymous Travis Perkins. 

In its full-year report released today, Travis Perkins‘ underlying earnings dropped by 21.7 per cent to £36 million in its heating and plumbing division, but its Wickes and Toolstation division saw underlying operating profits go up by 6.3 per cent to £101 million.

Chief executive John Carter blamed the “sharp decline” in the value of the sterling since the Brexit vote for his company‘s financial performance.

“[It] has created cost pressures on imported goods and materials and the expectations for secondary housing market transactions and growth in the repair, maintenance and improvement market have weakened,” he said.

He added: “Any significant reduction in consumer confidence may have a more pronounced impact on big-ticket purchases such as kitchens and bathrooms which make up around 10% of the group’s sales.”

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2 COMMENTS

  1. If you want my humble opinion, the reason for the decline in these business is the total and utter lack of customer care. Wickes fail consistently at any form of customer service, and lie consistently to their customers, blaming their suppliers for their failures to supply or perform. being in the middle of a disastrous kitchen/utility room fit. The reviews on line that are god awful seem to be the way that Wickes work. lies, subterfuge and general uncaring attitude seem to be the norm. The best companies are the ones that care, until you change to that ethos, you will continue to suffer a decline.

  2. Totally agree i ordered kitchen for wickes, the designer got the measurement wrong with meant i had to change the plan and order different size cupboard during the tradesmen fitting the new kitchen, i phoned customer service and was told by customer service i would have to wait between 4 and 6 weeks for this to be delivered really!! That’s how appalling there customer is, I cannot put my kitchen build on hold for 6 weeks total shambles .

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