Equity Analysis /
United Kingdom

GB : Consumer Discretionary - overall - Disrupting in a digital age

    Adam Tomlinson
    Adam Tomlinson

    Analyst - Consumer Discretionary

    Contributors
    Charlie Campbell
    Wayne Brown
    CGS-CIMB
    20 April 2021
    Published by

    Wickes’ has transformed into a digitally-led, integrated product and services business, consistently outperforming its markets. It is uniquely positioned and well-balanced, and management now has the freedom to invest behind its multiple growth levers. On prudent assumptions, we still forecast a robust 7.5% FY20-23E PBT CAGR, with upside risk driven by RMI momentum and self-help. Alongide a growing material net cash position and solid dividend, the market should begin to appreciate Wickes’ high quality.