Wickes posted better-than-expected annual profits as it revealed it had acquired solar installations business Solar Fast.
The DIY retailer purchased 51% of the issued share capital of Gas Fast Limited, the parent company of Solar Fast for £5.1m.
Wickes will also have the option to purchase the remaining 49% stake in the company over the next five years.
It said the purchase, which was subject to FCA approval, would help it expand into the “fast-growing market” for home energy solutions.
Wickes CEO David Wood said: “This acquisition enables us to rapidly accelerate our design & installation growth lever, capitalising on our expertise in installing major home improvement projects.”
The group’s adjusted pre-tax profits hit £52m for the year, which surpassed market expectations but were down from £75.4m a year earlier.
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Revenue in 2023 was unchanged on the year before, coming in at £1.6bn with the strongest performance seen in interior paint, decorative accessories and flooring, although it noted cost of living pressures had impacted revenues.
Wickes noted that it had offset the impact of inflation through strong productivity gains of £22m.
The business said retail sales over the first 11 weeks of 2024 were in line with last year, but that the consumer environment for larger purchases continued to be challenging.
It added that while it maintained good cost control and had productivity plans in place for 2024, these would not fully offset its cost headwinds from the rises in National Minimum Wage and business rates.
Looking forward, it said shoppers are more likely to put money into savings, rather than larger projects like a new kitchen or bathroom.
Wood added: “This has been another year of strong progress for Wickes. Our robust trading performance, targeted investment programme and disciplined cost control have delivered profits ahead of expectations.”
In January, Wickes said it expected its full-year profits to come in at the top end of its guidance thanks to a “robust” sales performance against a challenging market backdrop.
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