// Travis Perkins has submitted its Wickes demerger circular and prospectus to the FCA for approval
// It expects Wickes shares to be admitted to trading on the London Stock Exchange
// Travis Perkins has long said the demerger will allow it to focus on construction trade sales
Travis Perkins has said it reached a “significant milestone” in the proposed demerger of Wickes after maximising liquidity across the business amid Covid-19 and recommencing the demerger process.
The group has submitted its demerger circular and prospectus to the Financial Conduct Authority (FCA) for approval, and it expects Wickes shares to be admitted to trading on the Premium listing segment of the London Stock Exchange.
The group first announced the intention to demerge Wickes in July 2019.
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Travis Perkins has long said the demerger will allow it to focus on construction trade sales and ensure “faster decision making”.
On March 20 last year, the group revealed that it had placed the process on hold in order to focus on managing through the Covid-19 pandemic.
The firm has appointed three independent non-executive directors, Mark Clare, Sonita Alleyne and Michael Iddon, to the board of Wickes in addition to chairman Christopher Rogers.
“The move is a significant milestone and 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,” Travis Perkins chief executive Nick Roberts said.
“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.”
Wickes chief executive David Wood said: “This is a key milestone on our journey to listing on the London Stock Exchange as a standalone business in what will be a transformational moment for Wickes.”
Last year, Wickes recorded revenue of £1.3 billion, with five per cent like-for-like growth, and adjusted operating profit of £82 million.
Digital customers almost doubled and click-and-collect orders were up 450 per cent for the year, whilst home-delivered sales rocketed 120 per cent.
Performance was driven by the core business of trade and DIY but was offset by restrictions on showroom openings in the ‘do-it-for-me’ category.
These trends have continued into the current financial year, with costs also remaining high because of Covid-19 safety measures.
Wickes expects to deliver sales growth ahead of its markets for the full year.