Market's view on Wickes Group P.
Published on April 2024
- There is disappointment expressed over a recent drop in share price, marked at 7.3p.
- A stock watcher has made a small profit alongside enjoying dividends, indicating a satisfactory personal outcome despite market conditions.
- Concerns are shared about narrow profit margins within the sector, which could make the company vulnerable.
- There’s a reference to a forward valuation of 240p based on previous earnings, suggesting some watchers see potential value.
- Critique of Wickes’ performance post-demerger, with a recommendation shift from Wickes to Victorian Plumbing due to better growth rates and margins.
- Wickes faces downgraded profit guidance by Panmure due to persistent cost pressures, with new expectations set at £43.6 million PBT, down from £47 million.
- Positive remarks on another company maintaining dividends, increasing net profit margins, and showing strong cash positions in a challenging economic climate.
- Discussion on the impact of phasing out gas boilers and how it affects new building specifications.
- Mention of a share buyback programme with an average purchase price of 135.5p and plans to buy back more shares with a remaining budget of £12.5 million.
- Speculation about the timing of interest rate cuts possibly affecting the market later in the year.
- Observations on specific share price movements and trading volumes indicating significant market activity.