// Wickes energy bill is set to rise over £7 million next year
// The DIY retailer said its cost base would be hit by rising utility bills
Wickes has warned its energy bill is set to rise over £7 million next year due to “uncertainties” around operating cost inflation and consumer confidence.
The DIY retailer said its cost base would be hit by rising utility bills once its energy contract ends in March next year.
Wickes is expecting to be hit with the additional £7.5 million bill – which would represent around 10% of its forecast pre-tax profit this year – “if energy costs were to remain at the current price cap for businesses”.
Government support for businesses on energy bills is set to be reviewed in April.
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The retailer has seen its like-for-like sales rise by 2.6% during the 13 weeks to October 1. Its core retail sales were flat year on year but ‘do it for me’ sales rose 12.2% thanks to “an elevated order book” of home improvement projects.
However, Wickes warned cautioned that the number of ‘do it for me’ orders placed during its third quarter was down year on year, since “customers are taking longer to commit to big-ticket projects”.
The retailer expects its adjusted pre-tax profit to be between £72 million and £82 million.
Wickes chief executive David Wood said: “This has been a period of further progress across all parts of the business, with customers and tradespeople continuing to come to Wickes on the strength of our value, availability and service.
“While we are watchful of external headwinds, we are continuing to focus on our growth levers and on maintaining rigorous control of our costs. Our uniquely balanced business model leaves us well placed to continue to outperform the market.”
