The group reported solid overall revenue growth of 4.4% to £3.3bn with like-for-like growth of 4.2%. Adjusted operating profit before taxation was £167m, up 4.6%.
Adjusting items include an impairment of £246m against the goodwill in Wickes given the challenging DIY market, and reorganisation costs in the P&H and Wickes businesses.
“Our trade focused businesses in General Merchanting, Contracts, Toolstation and Plumbing & Heating achieved good sales growth despite experiencing a volatile first half,” said John Carter, group CEO.
“These businesses exited the period with encouraging momentum and, supported by a continued focus on cost, they remain on track to deliver modest profit growth for the full year.”
He said the consumer-focused business, Wickes, had a far more challenging period as weaker consumer spending trends, combined with a difficult competitive environment, held back profitability.
The Wickes team is executing a significant cost reduction programme. Good trading performance in the trade focused businesses in General Merchanting, Plumbing & Heating, Contracts and Toolstation.
Challenging UK DIY market negatively impacting sales and profitability in Wickes, with significant cost reduction plans underway.
An adjusted operating profits decline of 5.8% primarily reflects sales mix, with weaker kitchen and bathroom showroom sales in Wickes, and higher operating costs in general merchanting.
