Helping the
nation feel
house proud
Wickes Group Plc Annual Report & Accounts 2021
53 weeks ending 1 January 2022
Who we are
We are a digitally-led, service-enabled
Why we are different
We have a highly distinctive proposition,
and underpinned by our uniquely balanced
business, with revenues split between our
three customer propositions: Local Trade,
Do-it-for-me and DIY Retail
Welcome
to our first
Annual Report.
CONTENTS
1Wickes Group Plc Annual Report and Accounts 2021
RESPONSIBLE BUSINESS PAGE 28
We have launched our Responsible
STRATEGIC REPORT
Highlights 02
Our business at a glance 03
Chairman’s statement 04
06
Our investment case 10
Market review 11
Business model 14
16
26
28
49
50
Financial review 54
Risk management overview 57
Principal risks and uncertainties 60
Viability statement 65
GOVERNANCE
Chairman’s introduction to Governance 67
68
69
Board leadership and company purpose 70
72
Composition, succession and evaluation 75
Nominations Committee report 75
Audit and Risk Committee report 78
Responsible Business Committee report 82
83
87
Annual Report on Remuneration 91
99
102
FINANCIAL STATEMENTS
Independent Auditor’s report to the members
103
Consolidated income statement and other
comprehensive income 110
Consolidated balance sheet 111
112
113
114
Company balance sheet 156
157
158
OTHER INFORMATION
162
Glossary 163
164
What’s
inside
this
report:
CEO REVIEW PAGE 6
STRATEGY IN ACTION PAGE 19
STRATEGY IN ACTION PAGE 17
Mastering our trade
GOVERNANCE PAGE 67
Being transparent and accountable
S
A
F
E
T
Y
&
W
E
L
L
B
E
I
N
G
S
U
P
P
L
Y
C
H
A
I
N
A
N
D
R
E
S
P
O
N
S
I
B
L
E
S
O
U
R
C
I
N
G
S
T
R
O
N
G
G
O
V
E
R
N
A
N
C
E
People
EnvironmentHomes
Highlights
ESG
For more information, please see pages 28-48
New Responsible
Business Strategy
Following our demerger we established our
Responsible Business Committee, chaired by
Non-executive Director, Sonita Alleyne, and
launched a new Responsible Business Strategy
that we call ‘Built to Last’, focused on three pillars
– People, Environment, Home.
People
We were recognised in the 2022 Financial Times
Diversity Leaders in Europe report for a second year
running, ranking as No. 2 in the top 10 retailers in the
UK and in the top 20 of overall UK companies.
Environment
99.8%
of all timber FSC or PEFC certified
Home
We have set new targets to reduce packaging
across our business:
– By 2023, we will eliminate all unnecessary packaging.
– By 2025, all of our packaging will be easy to
recycle, reuse or compost.
– By 2025, 50% of all of our packaging materials
2 Wickes Group Plc Annual Report and Accounts 2021
FINANCIAL
REVENUE (£M)
2020: £1,346.9M
£1,534.9m
ADJUSTED PBT (£M)
1
2020: £49.5M
£85.0m
STATUTORY PBT (£M)
2020: £28.9M
£65.4m
2021 1,534.9
2020
2019
2018
1,199.6
1,292.4
1,346.9
20 21 85.0
20 20
20 19
20 18
41.4
62.3
49.5
20 21 65.4
20 20
20 19
20 18
22.1
22.7
28.9
NET DEBT (£M)
2020: £783.5M
£618.7m
ADJUSTED BASIC EARNINGS PER
SHARE (P)
2
2020: 16.1P
27.2p
STATUTORY BASIC EARNINGS PER
SHARE (P)
2
2020: 10.4P
23.3p
20 21 618.7
20 20
20 19
20 18
879.0
829.6
783.5
20 21 27.2
20 20
20 19
20 18
13.2
20.0
16.1
20 21 23.3
20 20
20 19
20 18
5.9
5.1
10.4
LFL SALES GROWTH
3
2020: 5.0%
13.0%
TRADEPRO ACCOUNTS (K)
2020: 553k
634k
STORES IN NEW FORMAT %
2020: 61%
65%
2021 13.0
2020
2019
2018
(4.4)
8.8
5.0
20 21 634k
20 20
20 19
20 18
418k
509k
553k
20 21 65
20 20
20 19
20 18
51
57
61
For more information, please see pages 26-27
Digitally-led
With two thirds of sales coming through digital
channels, we have made significant enhancements
to our digital proposition to improve the customer
experience. These include introducing an online
showroom tour as part of our Do-it-for-me (DIFM)
virtual journey, a new DIY app, the launch of a digital
picking app for colleagues to help them pick
products for Click & Collect and Home Delivery
orders, and the ongoing development of our
Missions Motivation Engine, which will use data
and meet their home improvement needs.
Innovation
Along with digital innovation, we launched
innovative new product ranges, highly successful
new bathroom and kitchen ranges, and a
home-office proposition, swiftly responding
Strong return
oninvestments
We refitted ten stores to our new format with
Collect fulfilment stores to create 50,000 sq ft
Keeping people safe
As an essential retailer, we kept our stores open
throughout 2021, with the exception of our
showrooms which were closed during lockdowns.
and customers safe by implementing stringent
pandemic-secure measures. We promoted our
Let’s Care For Each Other campaign to make it
STRATEGIC
For more information, please see pages 16-25
1 Refer to the Income Statement on page 110 and note 9 on page 125
2 Refer to note 11 on pages 128-129
3 Refer to note 5 on page 121
Strategic report Governance Financial statements Shareholder information
S
A
F
E
T
Y
&
W
E
L
L
B
E
I
N
G
S
U
P
P
L
Y
C
H
A
I
N
A
N
D
R
E
S
P
O
N
S
I
B
L
E
S
O
U
R
C
I
N
G
S
T
R
O
N
G
G
O
V
E
R
N
A
N
C
E
People
EnvironmentHomes
At a glance
OUR
WINNING
BEHAVIOURS
Winning
Humility Can do spirit
Authentic
Being
at your best
OUR VISION
A Wickes project
OUR PURPOSE
To help the nation
OUR MISSION
To be the partner
Improvers and
OUR WINNING BEHAVIOURS
Our business is powered by highly engaged teams,
who operate around a simple, yet deeply held set of
beliefs we call our Winning Behaviours.
£26.5bn
SIZE OF UK HOME
IMPROVEMENT MARKET
8,200+
COLLEAGUES
232
STORES, WITH 151
REFITTED
c.5m
DIGITAL CUSTOMERS
2/3
OF SALES COME THROUGH
OUR DIGITAL CHANNELS
98%
OF SALES TOUCH THE STORES
DIY
From our curated range to bringing
you the right quality products at
the right prices, we can help you to
tackle your project, providing
advice, guidance and knowledge:
Do-it-for-me
From concept to completion, plus
all the finishing touches, we can
help you with your project every
step of the way:
Local Trade
From trade-trusted brands to
always being 10% cheaper, we can
save you time and money when
you shop with TradePro:
SUPPORTED BY AN EFFICIENT AND INTEGRATED MODEL
Curated
Digitally-led Distinctive
Simple,
clear pricing
For more information, please see pages 28-48
Our commitment to
growing responsibly
Our Responsible Business Strategy supports
A uniquely balanced business
3Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
4 Wickes Group Plc Annual Report and Accounts 2021
A Wickes project
ineveryhome
Chairman’s statement
Christopher Rogers
CHAIRMAN
The demerger was thoughtfully executed and well
planned, and David has built a strong team to lead
the next chapter of Wickes’ growth. It is a business
with a very clear and distinctive position in the
market which, with its newly found independence,
can be even more agile and responsive to the
ever-changing needs of its customers.
2021 will be remembered as a year when the world
continued to grapple with the impact of the
were able to continue to welcome customers to our
232 stores, for the first quarter of the year our
Do-it-for-me showrooms remained closed. As people
their desire to create a safe, comfortable and
functional living space generated increased demand
for home improvement and our purpose – to help the
nation feel house proud – has never been more
Wickes’ special culture has come into its own during
the pandemic, as colleagues have lived and breathed
our behaviours, demonstrating their kindness and
compassion in supporting customers and colleagues.
hard work, caring and commitment during this time
Performance
We achieved a strong performance in 2021, with
1
and an
increase in adjusted pre-tax profits of 71.7% to
£85.0m, along with good progress across our
non-financial key performance indicators.
Our balanced business model, which spans Local
Trade, Do-it-for-me (DIFM) and DIY, has served us
particularly well during the pandemic, enabling us
shopping habits arising out of lockdowns and
Wickes is emerging from the pandemic as a
innovative new products and services, and more
agile ways of working that enable us to adapt
As a new Board we are excited
by the growth prospects for
this fantastic business and
passionate about ensuring
that, as we grow, we do so
responsibly and in a way that
benefits all our stakeholders.
Christopher Rogers
CHAIRMAN
1 Refer to note 5 on page 121
Strategic report Governance Financial statements Shareholder information
Growing responsibly
As we grow, it’s imperative that we do so responsibly,
reducing our impact on the environment, helping
and making a positive difference to our colleagues,
our partners and our communities.
On pages 28-48, we have laid out our environmental,
social and governance (ESG) focus areas and goals,
which our Board level Responsible Business
Committee, chaired by Non-executive Director,
Sonita Alleyne, will champion and oversee.
You can read first hand all the great work that
plastic packaging and waste, to support local
colleagues can truly feel at home. We were especially
pleased to be listed for two years running in the
Financial Times European Diversity Leaders survey,
ranking as a top 10 UK retailer for inclusion and
diversity (I&D).
Of course, there is so much more for us to do, and
forward our ESG agenda and set ambitious goals
that will bring meaningful change.
Maiden dividend
Reflecting our strong performance and confidence
a final dividend of 8.8 pence per share. This takes
Board
As a newly listed business, in 2021 we established
the Wickes Group Plc Board and we have assembled
a bench of experienced independent Non-executive
Directors, with relevant skills and qualifications who
are focused on creating value over the medium term
for all our stakeholders.
Celebrating 50 years and a bright future
As we enter 2022, Wickes has another milestone
The past 50 years have seen phenomenal change to
the way people use and experience their homes and,
at Wickes, we are very proud to have played our
small part in the history of home improvement.
As we build on our strengths as a digitally-led,
service-enabled business, we look forward to helping
shape future decades of home improvement and
continuing to help the nation feel house proud.
Christopher Rogers
Chairman
24 March 2022
Brief history of
Wickes in the UK
1987
Wickes is floated on the
London Stock Exchange
2006
Wickes.co.uk launches
as a transactional
website
2016
Wickes first Inclusion
established
2022
Wickes celebrates 50
years of helping the nation
feel house proud
1972
First UK Wickes
Manchester
1995
Wickes opens its
100th store in the UK
2005
Travis Perkins Group Plc
acquires Wickes
2009
Wickes launches its
installation service
2015
First new format
Wickes store opens
2017
Wickes launches
TradePro
2021
Wickes demerges from
Travis Perkins Group Plc
to list on the London
Stock Exchange
To celebrate the demerger, every
colleague was granted shares in
the Company.
Christopher Rogers
CHAIRMAN
5Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
6 Wickes Group Plc Annual Report and Accounts 2021
We’re here to help the
nation feel house proud
David Wood
CHIEF EXECUTIVE OFFICER
2021 was an important year in Wickes’ history,
pleasure to report our first set of annual results.
It has been a year of excellent growth and our
performance is testament to the resilience and
relationships, our uniquely balanced business model
and our market leading customer proposition. I am
tremendously proud of all our colleagues who have
truly embodied our Winning Behaviours as they
continue to deliver our purpose – to help the nation
feel house proud. I would like to take this opportunity
to sincerely thank them all for their tireless
dedication, commitment and support.
Looking ahead, we expect to continue outperforming
the market and are well-placed to capitalise on the
ongoing requirement for home improvement, namely
an ageing housing stock, favourable consumer
trends, and the increased focus on insulating and
retrofitting homes. While we recognise the pressure
that consumers will be facing in 2022, we have the
right model, a strong pipeline and order book, and
remain very confident in our outlook and of making
further progress in the current year driven by a
material increase in Do-it-for-me revenues.
Wickes has performed strongly in 2021 supported
Two thirds of our sales were driven from digital
channels, as we have both retained those customers
acquired during the pandemic, and continued to
grow the base further.
Our performance in the financial year has been
business – providing market-leading products
Whichever way customers want to improve
Market
The appetite to invest in home improvement
services on projects such as a kitchen or bathroom
installation. We believe the market has all the right
attributes for long-term sustainable growth,
underpinned by the UK’s ageing housing stock,
market and the increased focus on climate change
and the importance of retrofitting homes. These all
support project work and investment in the home.
Despite the easing of the pandemic restrictions,
hybrid working patterns are likely to result in more
fuelling further desire to renovate and refurbish.
We have also seen increased appetite from rental
tenants to invest in their properties, and interest from
continue to indicate strong growth opportunities
Our strategy is delivering
strong growth and return on
investment. The results we
are seeing, plus these strong
returns, give us confidence to
accelerate our investments to
David Wood
CHIEF EXECUTIVE OFFICER
Strategic report Governance Financial statements Shareholder information
More recently, we believe that any volatility in
to prioritise improved insulation for their property,
and to examine alternative forms of heating.
In summary, we believe that there is much more
balanced business model and proposition means
that it is well-positioned irrespective of how a
customer chooses to complete their home
improvement project.
Ukraine
Wickes is greatly saddened by the invasion
those people impacted by this tragic conflict and
colleagues in the UK. In addition, we are making
Ukraine, and offering our customers the opportunity
to add a 50p donation to their purchases. From a
business perspective, Wickes has no operations in
Ukraine or Russia, and minimal supply chain
exposure to the region.
Operational progress
In a year which continued to be impacted by the
pandemic, we made further operational progress
and were pleased to see a further increase in
customer numbers and an improvement in our
1
retailer through the pandemic restrictions in the first
closed until 12 April. Despite this, demand in Core
remained very strong over this period, with Wickes
teams performing well in ensuring product
During this financial year, both our store and
distribution environments handled record levels of
throughput, driving strong operational leverage in
challenging circumstances by continuing to develop
and refine working practices whilst delivering
improvement in customer satisfaction measures.
Investment and innovations in this area included new
During the year we also reconfigured 50 of our
highest-volume Home Delivery and Click and
store ranges or compromising the store format.
Many of these initiatives are now being rolled out
across the business.
While in the first half we continued to invest in areas
such as cleaning, social distancing and marshalling,
pandemic-related costs started to unwind in the
second half of the year.
As the financial year progressed, as expected like for
strong comparatives, although still increased by
a highly inflationary environment. Working closely
with our suppliers, and with our strategy of
maintaining cash gross margin (as opposed to
percentage), our relative price position remained
strong during the year. In addition to providing
customers with the best possible value, it gives us
opportunities to drive further market share gains.
The estimated level of price inflation for the full year
was 7%, compared with 3% in the first half.
Availability challenges in certain categories have
been widely discussed. Whilst we are not immune to
these challenges, our strong supplier relationships,
curated range and operational agility have served
products they need through this period.
DIFM orders strengthened over the course of the
financial year, especially from the second quarter
onwards. However, our ability to convert this
increase in orders into delivered sales was hampered
in the final quarter of the financial year by the onset
of the new Covid variant Omicron, which affected
both availability of installation teams and the ability
and willingness of customers to have tradesmen in
their homes. Together with the elevated pipeline of
orders from earlier in the year, our year end order
Despite this disruption, we have continued to offer
customers excellent service levels, and have retained
Customer Service in challenging circumstances.
We continue to grow our installer network with
around 700 new installation teams approved in the
year, taking the total to over 2,600 and strengthening
the capacity and quality of our installation capability.
Additionally, we continue to progress our Installer
Apprenticeship Programme with the initial cohort
completing their training in the first half of the year.
Growth levers
In 2022 and beyond, we see further significant
revenue and margin opportunities from our growth
levers. The performance of refitted stores has been
excellent, and we will be accelerating the pace of
refits as well as examining opportunities for stores
business, and we will be looking to drive sales per
account through both basket size and frequency,
offered. Our DIFM installer base continues to grow,
and this year we plan to test, learn and roll out new
installation services such as joinery and landscaping
to increase our scale and reach. All these will be
supported by our strong digital presence in all areas
of the business.
Store refits and new openings
During the financial year there were 10 refits
strategy to continually improve the quality of the
one closure (Chichester).
We now have 151 stores trading in the new format,
with refitted stores continuing to deliver strong sales
uplifts and investment returns. For the stores
outperformance was over 25%, with DIFM again
Autonomy/IT separation
progress
Following the decision by the Board of
Travis Perkins plc to progress the demerger
of Wickes, a TSA (transitional service
agreement) was established to manage an
effective and successful separation of the
two businesses. The IT separation
programme was fully re-mobilised during
the year, having been considerably reduced
in scope in 2020. We are currently on track
to complete separation of the IT
infrastructure away from Travis Perkins
within two years of the demerger, with a
cost of around £30m in 2022-23.
All aspects of the programme will continue
to be overseen by the Wickes Executive and
PLC Board who monitor delivery and
mitigate any operational risk arising.
1 Source: GfK GB PoS data, sourced from GfK DIY Category
Reporting December 2021
7Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
8 Wickes Group Plc Annual Report and Accounts 2021
continued
showing a particularly strong uplift, delivering strong
returns on investment. Our refitted stores now
generate sales per square foot of £260 versus £198
for heritage stores.
The excellent performance of new format stores has
two implications for our store estate. Firstly, we will
look to accelerate the pace of refits over the next few
years, completing the programme within five years
compared with the previous plan of seven years, with
12-15 refits annually and each costing c£1m.
Secondly, our ability to drive higher sales densities
and value enhancing returns through new format
stores, plus changes in the competitive landscape,
creates an opportunity to enter new catchment
areas. As such, we now believe there is scope to
open up to 20 new stores over the next five years,
although this pipeline will take time to build.
Winning for Trade
Our Local Trade offer is based on creating efficiency
and simplicity for our customers, who turn to us
knowing that they get market-leading value on the
products that matter and a brand which they know
their own customers trust. With a 10% discount on
fulfilment model, we save our TradePro customers
time and money.
We have continued to grow our TradePro membership,
enrolling over 80,000 new Local Trade customers,
bringing total membership at the financial year end
to over 630,000. Our Local Trade customers indicate
that they have a strong pipeline of work and this has
translated into increased transactions and spend,
with demand remaining strong even against tougher
second half comparatives.
We continued to evolve our digital capability during
the year, with more personalisation introduced in
promotional offers and give early visibility of these
offers to drive loyalty. We continue to develop our
Mission Motivation Engine (MME), with an initial
focus on Local Trade. The MME incorporates internal
and external data to help us identify which missions
personalised communication across all channels.
In addition, our new digital picking capability in
stores enables prioritisation of the trade customer
orders to ensure we can better deliver on the need
Looking ahead, we see major opportunities to drive
our TradePro business. In addition to our target of
1 million members and measures to drive order
frequency, we will be focusing further on how
This could involve improving personalisation,
broadening the proposition and extending
Accelerating DIFM
We believe digital development and product
innovation has underpinned our success in DIFM
remained an area of focus and investment during
showroom journey and virtual tour functionality
customers and take them through the design and
sales process entirely remotely, supported by our
experienced design consultants. The proportion
to grow strongly over the year, and we expect
We have made additional investment in product
innovation in line with changing customer demands
and needs, including a major refresh of the kitchen
range, a completely new bathroom range together
with a standalone home office proposition, all of
which are indicating encouraging levels of interest
from customers. The home office proposition
notably demonstrates our agility to respond to
changing consumer behaviour and leverages our
existing design and installation capability. Our new
kitchen and bathroom ranges were progressively
introduced into our showroom displays, and this
We also took our new bathroom range above the
We continue to see high attachment rates of
projects, confirming the opportunity to grow
adjacent categories and increase overall project
spend. Digital development has delivered improved
imaging, features and pricing illustrations for DIFM
projects, together with new video content supporting
flooring and tiling.
As outlined above, we continue to make further
progress in extending the range of DIFM projects
offered. In addition to adjacent categories, we have
identified opportunities over the medium term to
deepen and broaden our proposition in the overall
kitchen market.
Digital developments
We are further developing our digital offer to
enhance the customer experience. This is
underpinned by our Missions Motivation Engine,
identifying opportunities to drive better customer
and commercial outcomes by engaging earlier
In DIFM, we have expanded our very successful
kitchen digital experience to include bathrooms,
the growth in DIFM service categories.
We are increasing the appeal of the TradePro
scheme by creating a loyalty proposition stronger
than a simple discount scheme. There is more
personalisation, targeted events, and additional
services for our most loyal customers.
Our DIY app launched successfully in the fourth
quarter of 2021, and conversion rates are already
double that of other devices. We continue to develop
payment options and improving the accessibility
Our performance in the year has been
driven by the benefits of having a
uniquely balanced business – providing
market-leading products and services
across Local Trade, DIFM and DIY.
Whichever way customers want to
improve their homes, we are there for
them with everything they require to
complete their project.
Strategic report Governance Financial statements Shareholder information
DIY category wins
Our highly curated range continues to work well,
supporting strong levels of Core sales growth
with extended ranges available through our in-store
online terminals (OLI), our website and our new
consumer app.
As part of our strategy to capture market share
completed in garden maintenance and decorating
areas, as well as flooring, timber & sheet materials
and doors, delivering strong sales growth and
improved stock turn, with an in-store SKU range
reduction supported by an extended range online.
We also introduced innovative new products such
Responsible Business Strategy
At the point of demerger, we laid out our ambition
three pillars of People, Environment, and Homes,
supported by strong governance, safety and
wellbeing, and responsible sourcing. This strategy is
the framework on which all of our ESG targets and
disclosures will be built. Our Responsible Business
Committee, chaired by Non-executive Director
strategy, supported by the newly formed Responsible
Business Working Group.
People – In the year, we continued to strengthen
We have grown our LGBT+ allies, delivered disability
smart training, extended the number of mental
health first aiders, and seen over 380 managers
programme. Store management diversity continues
to improve, with over 67% of stores having at least
one female in the leadership team. We also launched
a partnership with Peppy Health, supporting our
colleagues with menopause and fertility services.
Wickes continues to focus on supporting young
people across our communities. We have launched
programme. We have now raised over £1m for
which supported over 50 charity partners and
schools across four regions, this programme is
Environment – This year we have been working
We have completed our first carbon footprinting
exercise for our Scope 1, 2, and 3 emissions, as
testing new low-carbon technologies for future use
in our estate, including electric air source heat
pumps for our stores, and electric vans for our
distribution centres. We have also invested in a
carbon guidance for refits and new stores.
Homes – We continue to improve our products
portal for launch this year, that will consolidate all of
our packaging data into a single database to allow
for improved visibility and management.
In order to better understand our customers needs
when it comes to sustainable products, we have
hosted several customer closeness sessions to
understand how we can support customers with
sustainable home improvement. We have also
offering of responsibly sourced and energy
We have been working hard to integrate
environmental and social considerations into
assessment. We continue our Sedex membership
(Supplier Ethical Data Exchange), one of the world’s
leading ethical trade membership organisations, and
will continue to ensure all factories supplying Wickes
branded products undergo a periodic ethical audit
using the SMETA format (Sedex Members Ethical
chains have been mapped to ensure products
multipurpose compost and have been working
We operate in a growing market with strong
fundamentals and our uniquely balanced business,
with revenues split between our three customer
propositions of Local Trade, Do-it-for-me and DIY,
offers the best exposure to the fastest growing
sectors in the market. Throughout 2021, we have
continued to capitalise on our distinctive proposition,
while at the same time adapting, transforming and
innovating and critically, accelerating the key
strategic growth levers that underpin and ensure
David Wood
Chief Executive Officer
24 March 2022
We continue to strengthen our six
inclusion and diversity colleague
networks who are passionate about
creating a workplace culture where
everyone can feel at home.
As a result of their outstanding work we
have grown our LGBT+ allies, delivered
disability smart training, extended our
mental health first aiders, and seen over
380 managers taking part in our Race,
Ethnicity and Identity programme.
We also launched a partnership with
Peppy Health, supporting our colleagues
and their families with menopause and
fertility services.
9Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
L
o
c
a
l
T
r
a
d
e
D
I
Y
D
I
F
M
10 Wickes Group Plc Annual Report and Accounts 2021
Our investment case
We are a successful, growing, cash generative and profitable
home improvement business, with a compelling investment case.
Distinctive and hard-to-
replicate customer
proposition
Understanding the customer is at
the heart of what we do:
– For Local Trade, we offer trusted
brands and always 10% cheaper,
saving customers time and money
through our simple digital
– For DIFM customers, we help with
their home improvement project from
concept to completion, providing
inspiration, advice and quality
installation with a guarantee.
– For DIY customers, we offer a curated
range with the right quality of products
at the right prices, providing advice,
guidance and knowledge to help them
tackle their DIY project.
Strong cash generation
– Our business is ordinarily cash
generative with a neutral working
capital position
– We operate with sector leading
stock-turn, reflecting our curated
range, operational agility and strong
supplier relationships
– We have established a capital
allocation framework that enables
investment in the business for growth
and a 40% ordinary dividend on
adjusted post tax profit
– There is potential opportunity to return
any surplus cash to shareholders.
Proven levers
for growth
– We have been growing at twice the
market rate despite opening no net
new space, and have plans to continue
to grow and take market share. Our key
growth drivers are:
– Digital capability – continued
development of a seamless offer.
– Winning for Trade – TradePro growth
– Accelerating DIFM – natural growth
extensions, broadening the
proposition.
– DIY category wins – getting our fair
share in underweight categories.
– Store investment – high return on
investment refits, exploit new space.
– Enhanced store service model –
laying the foundations for
– Delivering exceptional customer
experience through engaged
colleagues, a winning culture
Low-cost and efficient
operating model
– Our model is to drive growth and
– All three customer propositions of
Local Trade, Do-it-for-me and DIY Retail
are underpinned by the same products,
creating operational efficiency.
– We have the right-sized store estate
with the average store at 28,000 sq ft
of rentable internal space.
– Our stores hold an average 9,500 lines,
so we can swiftly flex to fulfil greater
choice for customers with a broader
range online and through our online
in-store terminals (OLI).
–
98% of sales touch the stores.
Uniquely balanced
business
– Revenues are split between three
customer propositions – Local Trade,
Do-it-for-me and DIY Retail. This,
importantly, gives us greater
sectors in the market.
– It also provides us with greater
resilience to consumer trends.
This has been especially true during
the pandemic, as customer shopping
habits and behaviours have been
heavily influenced by lockdowns and
subsequent easing of restrictions.
– As a result of our unique business model
we do not face any specific competitors,
but a wider competitive set within a large
and growing £26.5bn UK home
improvement market.
TradePro – 10% discount
10%
98%
of sales are touched by
our stores
please see pages 16-25
£26.5bn
UK home improvement market
Strategic report Governance Financial statements Shareholder information
MARKET OVERVIEW
Wickes operates in a
structuralgrowth market
£26.5bn
2021
£29bn
2024/25
UK home improvement
market forecast to grow from
The Wickes Group operates in the UK retail market for home repair, maintenance and improvement
products and services, with a specific focus on home improvement projects undertaken either
directly by the homeowner or occupier, or with the assistance of a Local Trade professional or DIFM
service provider.
We support customers, however they decide to undertake
their home improvement plans, through three tailored
customer propositions: DIY Local Trade Do-it-for-me
The pandemic has had a dramatic impact on the home improvement
market as government lockdowns have enforced the need for people
to stay at home. This has fuelled a desire for people to improve their
living space, and in many cases to repurpose their home, so it can fulfil
other functions such as a home office, a gym or a classroom.
The pandemic severely disrupted customer behaviour during the
course of 2020 and early 2021, with lower levels of demand for local
trade and DIFM service providers who were unable to access
people’s homes during lockdowns. Conversely, as people had more
time on their hands they turned to DIY to improve their living spaces,
and this part of the home improvement market flourished during the
pandemic. As restrictions have eased and people have resumed
more normal routines, the demand for Local Trade and Do-it-for-me
services has ramped up, and our most recent market research
suggests that these high levels of demand are set to continue.
During this period of intense and rapid change, our uniquely balanced
business model has come to the fore. We have benefited from our
differentiated customer proposition that spans the three distinct
home improvement routes, and with positive consumer trends and
robust structural fundamentals, we are well positioned to capture
£25bn
2020
£26.5bn
2021
2024/2025
£29bn
DIFM
DIY
LOCAL
TRADE
14%
43%
43%
DIY
15%
43%
42%
+6
%
+8.6%
+4.2%
+6.9%
CAGR
+2.5%
CAGR
DIFM
DIY
Local
Trade
Market growth is underpinned by robust
fundamentals:
Ageing housing stock
The majority of the 29 million private homes in the UK are
more than 50 years old. This generates a significant and
growing need for repair, maintenance and upgrading.
Property transactions
Residential housing transactions are significantly higher,
helped by the stamp duty holiday. Major renovations tend
will be a strong pipeline of activity.
High savings rate
One of the consequences of the pandemic has been a
substantial increase in the amount of savings on deposit as
people had less opportunity to spend their disposable
income due to lockdown restrictions. While restrictions have
lifted, continued high rates of savings indicate the potential
for pent-up demand on major home improvement projects.
In recent months, we have also started to see evidence
home improvement project spend.
Move to energy efficient housing
40% of the UK’s carbon emissions come from the
residential sector* and to achieve the government’s net
Market growth despite lower
consumer confidence
The UK home improvement market has been
* source: www.theccc.org.uk
11Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
12 Wickes Group Plc Annual Report and Accounts 2021
MARKET DRIVER
Desire for better homes
The desire to improve our homes and gardens is not new. However, the
pandemic has fuelled this desire as people have had to spend more
time at home and wanted to repurpose their homes to fulfil a number of
different functions.
pandemic has introduced a new wave of younger DIYers. What’s more,
it’s no longer only home owners who are looking to improve their
homes – rental tenants are now increasingly doing so.
OUR APPROACH
– Typically, a customer has three possible routes to undertake their
home improvement project – Local Trade, DIFM and DIY. We ensure
to get everything they need from Wickes.
– We have a clear set of growth levers (see page 16) to evolve and
enhance our proposition through product and service innovation, as
we look to achieve our purpose – to help the nation feel house proud.
–
model (see page 23), which we have designed to ensure the best
propositions.
MARKET DRIVER
Declining DIY skills
While the pandemic has encouraged more people to have a go at DIY,
there remain home improvement projects that involve high skills, costs
and effort, such as a loft conversion, which require a local tradesperson
to handle. In an environment of declining skills, and scarcity of time to
manage local tradespeople, customers are looking for a simple
634k
TradePro members
3 out of 4
home improvers expect to spend the same
– 24 months than they did in the last year
continued
OUR APPROACH
– Local Trade represents one third of our business, and our industry
leading digital TradePro scheme is designed to save local tradespeople
page 17). We are recruiting new Local Trade customers to the scheme
–
trustworthy support across the design and installation process, and
post-completion assurance on the quality of the work. We continue to
extend our DIFM services beyond kitchen and bathroom installations
– We continue to grow our strong base of trusted, quality installers,
giving us significant competitive advantage.
Strategic report Governance Financial statements Shareholder information
MARKET DRIVER
Omnichannel retailing provides a seamless
Customers expect a seamless shopping experience across all channels
and touchpoints, regardless of whether they browse on a website, walk
a surge in demand for Home Delivery and Click & Collect services.
OUR APPROACH
– These customer expectations require advanced, integrated digital
capabilities, including convenient and flexible fulfilment choices, such
as scheduled Home Delivery and Click & Collect options, alongside
the services and expertise of our colleagues in our stores.
– Our digitally-led, service-enabled business model means clicks and
– Throughout 2021 Home Delivery participation has remained at a
MARKET DRIVER
Within the home improvement market, digital is increasingly the primary
source of information and inspiration for customers embarking on a
OUR APPROACH
– We are investing heavily in our digital capabilities and marketing
channels, to ensure we can offer the digital inspiration and shopping
– The launch of our virtual showroom journey in late 2020 transformed
the way our Do-it-for-me customers can create their perfect new
kitchen or bathroom, and we continue to make enhancements to this
online service.
– We know that content rich digital customer journeys are critical to
engaging and converting customers, and typically we experience 20%
higher average order volumes when a customer engages
MARKET DRIVER
Customers are looking for hassle-free shopping experiences that can
make their lives easier. With busy lifestyles, they have high expectations
that retailers will provide a choice of products that offer value and
quality, are readily available and convenient to buy.
OUR APPROACH
– Our strategy is to focus on a highly curated range of products in store,
supported by a more extensive online offering. These curated ranges
and right-sized store formats ensure customers have convenient access
knowledgeable store teams. By holding fewer product lines in store, we
can ensure good availability of the most popular products.
– We offer simple, clear pricing by presenting the customer with the
curated range of Wickes own brand and third party branded products
at exceptional value.
– Customers can use our in-store online terminal, OLI, or visit wickes.co.
uk to research and order from an extended range of products and
services, and organise timely and flexible Home Delivery or Click &
Collect from across our store network.
c.9,500
products in store, c.8,000 products online
79%
of trade professionals feel optimistic about
their work over the next 1 – 2 years*
* source: Wickes quantative survey November 2021
13Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
14 Wickes Group Plc Annual Report and Accounts 2021
Business model
Our foundations
Our people
8,200+ highly engaged
colleagues who are
passionate about delivering
our purpose – to help the
nation feel house proud
Our culture
An inclusive and diverse
modern workplace where
colleagues can ‘feel at home’
and perform to the best of
their ability
Our brand
For 50 years the Wickes brand
has been synonymous with
home improvement in the UK
Our physical estate
232 stores across the UK,
working in harmony with our
digital offer to provide an
integrated and seamless
shopping experience for
Our digital capability
We maximise our digital
capability to gain greater
customer insight and loyalty,
drive operational efficiencies
and create a seamless
shopping experience
Our product supply
Strong relationships with our
suppliers ensuring we offer
quality products at the right
price and industry leading
availability. We are committed
to protecting the environment
and ensure natural materials
such as wood are sourced
responsibly
We have a unique framework to win in the home improvement marketplace
With our unique and differentiated customer proposition of Local Trade, DIFM and DIY we can support
customers however they decide to undertake their home improvement plans.
Underpinned by our Winning Behaviours, sound corporate governance and responsible business practices
Local Trade
From trade-trusted brands to always
being 10% cheaper, we can save you
time and money when you shop
Do-it-for-me (DIFM)
From concept to completion, plus all
the finishing touches, we can help you
with your project every step of the way
DIY
From our curated range to bringing
right prices, we can help you to tackle
your project providing advice,
Delivering brilliant customer experience through engaged colleagues,
a winning culture and growing responsibility
PURPOSE
To help the nation
feel house proud
Curated product
ranges
Digitally-led Distinctive service
model providing
inspiration, service
and fulfilment
Low-cost,
right-sized physical
estate
Simple, clear pricing
offering value to
customers
Foundation Enabler Customer proposition
Our strong sales densities
and curated ranges result in
industry leading stockturn at
more than 5x, which helps
drive cash conversion
Two thirds of sales come via
digital channels but 98% of
sales touch the store
We save customers time
value, excellent service and
availability. Our different
customer propositions shop
and service levels
Our stores are located on retail
parks with, on average, 28,000
sq ft of rentable internal space.
This enables operational
efficiencies, and is convenient
We reinvest our buying and
efficiency gains back into the
customer proposition, so we
can sell more, buy for less
and maintain our great
Strategic report Governance Financial statements Shareholder information
We are focused on creating future value
through our strategic growth levers:
Winning for Trade
Accelerating DIFM
Natural category extensions, broadening
DIY category wins
Getting our fair share in
underweight categories
Digital capability
Continued development
of a seamless offer
Store investment
exploit new space
Enhanced store service model
Laying the foundations for the future
Delivering exceptional customer experience
through engaged colleagues, a winning
culture and growing responsibility
Colleagues
80%
employee engagement
We provide a great place to work where
colleagues are supported to build their
skills and careers. To celebrate our
demerger every colleague was granted
shares in the Company
Shareholders
10.9p
maiden dividend
We create long term and sustainable
value by growing the business
responsibly and increasing our
enabling strong returns
Customers
5m
online customers
We help our customers create their
perfect home and feel house proud,
however they choose to undertake their
home improvement project
Suppliers
99.8%
timber FSC or PEFC certified
With our track record of market share
gains we deliver additional volume to
our suppliers and work closely with
them to target areas of product growth,
as well as supporting them to develop
their responsible sourcing practices
Communities
£1m
raised for YoungMinds
We have pledged to raise £2 million by
the end of 2022 for our chosen charity,
YoungMinds, and are supporting
hundreds of local community projects
around the UK
Environment
97%
of kitchen and bathroom waste recycled
We are working hard to ensure that
our business has a positive impact
on the environment, both today and
in the future
The value we are creating for all our stakeholders
Underpinned by our Winning Behaviours, sound corporate governance and responsible business practices
15Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
16 Wickes Group Plc Annual Report and Accounts 2021
Strategy
Strategic
overview
We have a clear framework
growth levers
OUR MISSION
To be the partner of choice for
Home Improvers and Local Trade
OUR PURPOSE
To help the nation
feel house proud
Growth levers
OUR VISION
A Wickes project
in every home
Winning for Trade
Accelerating DIFM
DIY category wins
Store investment
Digital capability
Enhanced store service model
CUSTOMER PROPOSITIONFOUNDATIONS
Strategic report Governance
Strategy in action
Mastering our trade
Local
Trade
Duane
From trade-trusted brands
toalways being 10% cheaper,
we can save our Local Trade
customers time and money
when they shop with TradePro.
What next for Local Trade?
For more information, please see
TradePro customers are our most
630,000+
registered TradePro members
17Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance
18 Wickes Group Plc Annual Report and Accounts 2021
Growth levers
Winning for Trade
across the store
Accelerating DIFM
STRATEGIC FOCUS WHAT WE ACHIEVED OPPORTUNITIES RISKS
–
–
–
–
–
–
–
–
–
PRIMARY PRINCIPAL RISK
FOCUS:
–
–
ENABLED BY US ALSO
MANAGING PRINCIPAL
RISKS RELATING TO:
–
–
–
STRATEGIC FOCUS WHAT WE ACHIEVED OPPORTUNITIES RISKS
–
–
–
–
–
–
–
–
–
–
–
–
– The enforced closure of our
–
PRIMARY PRINCIPAL
RISK FOCUS:
–
–
ENABLED BY US ALSO
MANAGING PRINCIPAL
RISKS RELATING TO:
–
–
–
HIGHLIGHTS
15%
increase in TradePro members
HIGHLIGHTS
>26,000
installations completed
2,600+
installer teams
34
Installer Apprenticeships
Strategic report Governance
Making time for you
DIFM
RosieLiam and Olive
Nathan
What next for DIFM?
In 2021 our team of 620 in-
house design consultants and
2,600+ Wickes-approved
installer teams completed
>26,000 installations.
DIFM virtual journey
We inspire, offer advice, and act
as one partner to manage a
customer’s project
For more information, please see
19Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance
20 Wickes Group Plc Annual Report and Accounts 2021
Growth levers
DIY category wins
Digital capability
our customers
STRATEGIC FOCUS WHAT WE ACHIEVED OPPORTUNITIES RISKS
–
–
–
–
–
–
–
–
–
planned to spend the same or more on
–
–
PRIMARY PRINCIPAL
RISK FOCUS:
–
–
ENABLED BY US ALSO
MANAGING PRINCIPAL
RISKS RELATING TO:
–
–
–
STRATEGIC FOCUS WHAT WE ACHIEVED OPPORTUNITIES RISKS
–
–
–
–
–
–
–
–
–
–
–
–
–
–
PRIMARY PRINCIPAL
RISK FOCUS:
–
–
ENABLED BY US ALSO
MANAGING PRINCIPAL
RISKS RELATING TO:
–
–
–
HIGHLIGHTS
HIGHLIGHTS
c.15%
SKU reduction following range reviews
c.5m
digital customers
2/3
of sales come through our digital channels
Strategy
Strategic report Governance
Helping you Do-it-yourself
DIY
What next for DIY?
9,500
products in store
8,000+
products online
For more information, please see
We offer a broad range of
categories for ‘light trade’ to
‘heavy trade’ including a stable of
trusted Wickes-branded items that
Nick and Joel
21Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance
22 Wickes Group Plc Annual Report and Accounts 2021
Growth levers
Store investment
Enhanced store
service model
areas of the store
STRATEGIC FOCUS WHAT WE ACHIEVED OPPORTUNITIES RISKS
–
–
–
–
–
–
–
–
–
–
PRIMARY PRINCIPAL
RISK FOCUS:
–
–
ENABLED BY US ALSO
MANAGING PRINCIPAL RISKS
RELATING TO:
–
–
–
STRATEGIC FOCUS WHAT WE ACHIEVED OPPORTUNITIES RISKS
–
–
–
–
–
–
– Roll out the enhanced 4C model
–
PRIMARY PRINCIPAL
–
–
ENABLED BY US ALSO
MANAGING PRINCIPAL RISKS
RELATING TO:
–
–
HIGHLIGHTS
10
store refits
31%
average sales increase per sq ft for new format stores compared to heritage stores
HIGHLIGHTS
71%
of colleagues completed 4C training
Strategy
Strategic report Governance
Our stores are an integral part of
the Wickes customer proposition.
The hub of home improvement
Unique
4C model
Do-it-for-me
Order Fulfilment
Self Serve
Assisted Selling
Footfall dynamics allow for
business across allparts of
theday. In the mornings it
ismore about Local Trade; in
the afternoon we see a big
push on DIY; and in the
evening, after work, itisDIFM.
What’s next for our enhanced store
service model?
For more information, please see
23Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance
24 Wickes Group Plc Annual Report and Accounts 2021
Growth levers
Delivering
exceptional
customer
experience
through engaged
colleagues, a
winning culture
and growing
responsibly
STRATEGIC FOCUS WHAT WE ACHIEVED OPPORTUNITIES RISKS
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
PRIMARY PRINCIPAL
–
–
–
ENABLED BY US ALSO
MANAGING PRINCIPAL
–
–
HIGHLIGHTS
73%
Retention rate
80%
Employee engagement score See ‘Responsible Business’ section for ESG KPIs
Strategy
Strategic report Governance
A great place to work
A winning
culture
Michael, Chandrakant, Madaline
and Brennan
At Wickes our winning culture is
built on a foundation of personal
responsibility,
8,200+
colleagues
What next for our winning
culture?
We have a simple but deeply
held set of beliefs we call our
Winning Behaviours:
We rolled out a new
O U R
WINNING
BEHAVIOURS
Winning
Humility Can do spirit
Authentic
Being
at your best
For more information, please see
25Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance
26 Wickes Group Plc Annual Report and Accounts 2021
KPIs
Key performance indicators
Growth levers key:
1
WINNING FOR TRADE
3
DIY CATEGORY WINS
5
DIGITAL CAPABILITY
2
ACCELERATING DIFM
4
STORE INVESTMENT
6
ENHANCED STORE SERVICE MODEL
1 Refer to note 9 on pages 125-126 2 Refer to the APM on page 164
Financial
LFL sales growth Core
2018
14.2
18.8
(2.2)
6.5
2019 20212020
LFL sales growth DIFM
2018
8.5
(27.8)
(8.7)
14.1
2019 20212020
Adjusted PBT
1
20 18
85.0
49.5
41.4
62.3
20 19 20 2120 20
Reported PBT
20 18 20 19 20 2120 20
65.4
28.9
22.1
22.7
Net debt
20 18
618.7
783.5
879.0
829.6
20 19 20 2120 20
DESCRIPTION
A measure of underlying sales growth of
products to Local Trade and DIY customers
DESCRIPTION
A measurement of underlying sales growth
DESCRIPTION
DESCRIPTION
Pre-tax profit in the financial year on
DESCRIPTION
DEFINITION
The sales performance of Core goods sales to
Local Trade and DIY customers in stores which
DEFINITION
one year
DEFINITION
although statutory pretax profit is also important
DEFINITION
DEFINITION
plus year end net cash
LINK TO GROWTH LEVERS
LINK TO GROWTH LEVERS
LINK TO GROWTH LEVERS
investing in future growth
LINK TO GROWTH LEVERS
Pre-tax profit is a key measure of the efficiency
future growth
LINK TO GROWTH LEVERS
1
3
4
5
6 2
4
5
6 1
2
3
4
5
6 1
2
3
4
5
6 1
2
3
4
5
6
REMUNERATION LINKAGE
REMUNERATION LINKAGE
REMUNERATION LINKAGE
REMUNERATION LINKAGE
Linkage is via profit and free cash
TARGET
sales growth vs our peer group
TARGET
sales growth vs our peer group
TARGET
dependent on market and competitive conditions
TARGET
2
Strategic report Governance Shareholder information
Growth levers key:
1
WINNING FOR TRADE
3
DIY CATEGORY WINS
5
DIGITAL CAPABILITY
2
ACCELERATING DIFM
4
STORE INVESTMENT
6
ENHANCED STORE SERVICE MODEL
1 Refer to note 18 on page 138
Operational Non-financial
Stock turn
1
20 18
5.1
4.9
4.3
4.5
20 19 20 2120 20
TradePro accounts
634k
553k
418k
509k
20 18 20 19 20 2120 20
Digital sales progression
20 18
65.1%
61.7%
NA
20 19 20 2120 20
NA
Proportion of stores
in new format
20 18
65%
61%
51%
57%
20 19 20 2120 20
Carbon emissions
(tonnes)
2018
NANA NA
2019 20212020
2,346,057
Leadership group
diversity
20 18
65.4%
64.6%
63.6%
20 19 202120 20
67.4%
DESCRIPTION
A measure of how efficient we are in
converting our stock into sales
DESCRIPTION
DESCRIPTION
This measures how successfully we are
engaging with our increasingly digital
DESCRIPTION
DESCRIPTION
We are acutely aware of our impact on the
environment and this measure covers
transportation and our wider supply chain
DESCRIPTION
DEFINITION
Cost of goods sold excluding installation
and financial year end inventory
DEFINITION
Year-on-year account growth across the
DEFINITION
orders
DEFINITION
stores
DEFINITION
Pole
DEFINITION
The proportion of stores that have at least
LINK TO GROWTH LEVERS
LINK TO GROWTH LEVERS
Servicing trade customers is central to our
pricing and convenience
LINK TO GROWTH LEVERS
LINK TO GROWTH LEVERS
LINK TO GROWTH LEVERS
into our profit and loss statement
LINK TO GROWTH LEVERS
A diverse workforce at all levels is good
1
3
6 1
3
4
5 1
2
5
6 4
REMUNERATION LINKAGE
REMUNERATION LINKAGE
REMUNERATION LINKAGE
Linkage is via the impact on sales and profit
REMUNERATION LINKAGE
Linkage is via stronger short and medium
REMUNERATION LINKAGE
REMUNERATION LINKAGE
TARGET
although this is dependent on trading
TARGET
We aim to have one million TradePro
accounts which would ensure sales here
continue to grow faster than the
TARGET
We would expect our digital participation to
digital demands
TARGET
We plan to have all stores in the new format
within five years
TARGET
Targets in 2022
TARGET
Over the long term the aspiration is to
across all our store leadership teams
27Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Shareholder information
28 Wickes Group Plc Annual Report and Accounts 2021
Responsible
Business Snapshot
Leader in diversity
We have been recognised in the Financial
Times Diversity Leaders in Europe report
Increasing our
I&D network
We have increased our I&D
networks to six, launching
colleagues, and how they
Partnering
with Peppy
We launched an award winning partnership
Carbon reduction
electric heating, upgraded building controls
Packaging targets
We have three new packaging targets aimed at
reducing our absolute packaging use,
Strong governance
We have built strong
governance through our
Responsible Business
Committee and Working
Group, and we have
strengthened our supply
chain governance, with a
new Responsible Sourcing
Talking to our
customers
We are working with our customers to understand what products
and services they need to help decarbonise their homes and live
Climate action
We are committed to
supporting the British
Retail Consortium's
Climate Action Roadmap
which sets out pathways
to achieve net zero carbon
emissions across
operations and supply
2040
Net Zero
Supporting
YoungMinds
We have already raised
over £1m for our charity
partner YoungMinds to
help support its ambition
for no young person to
£2m
pledge for our
charity partner
Strategic report Governance Financial statements Shareholder information
Responsible Business
Strong commitment to
growing responsibly
Our role in society
We see our role as much more than just a home
and operate in hundreds of communities across the
Our strategy for Responsible Business
Governance
Committee informed of their developments and
Priorities for the year ahead
Sonita Alleyne
CHAIR OF THE RESPONSIBLE
BUSINESS COMMITTEE
Diversity Leaders report
Responsible business governance
Supplier ESG forum
Forward Focus Network
colleague development and customer
29Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
SAFETY & WELLBEING
culture is centred around commitment
and care and we make it our priority to
ensure that everyone who works and
STRONG GOVERNANCE
strong governance, and our Responsible
Through our Responsible Business
Committee and Working Group, we
30 Wickes Group Plc Annual Report and Accounts 2021
S
A
F
E
T
Y
&
W
E
L
L
B
E
I
N
G
S
U
P
P
L
Y
C
H
A
I
N
A
N
D
R
E
S
P
O
N
S
I
B
L
E
S
O
U
R
C
I
N
G
S
T
R
O
N
G
G
O
V
E
R
N
A
N
C
E
People
Environment
Home
Responsible Business
Our Responsible
Business Strategy
Built to Last
Strategy supports a diverse and
generation and homes fit for a
What is Responsible
Business at Wickes?
Homes
Focus our products, services
and installations to support
sustainable homes that
Products
Services
Installations
Environment
Decarbonise our sites,
transport and operations,
environment
Carbon
Waste
Water
People
Grow a diverse and inclusive
business that supports the
customers and communities
Colleagues
Customers
Communities
SUPPLY CHAIN AND
RESPONSIBLE SOURCING
Responsible sourcing underpins our
From the materials used to make our
and transported, everything we do is
Strategic report Governance Financial statements Shareholder information
How are we helping customers understand
more about the products they are buying?
products and simplifying language on product
information and providing more images
Leroy Pugliese
What does Responsible Business
products and services front and centre of the
Owen Anderson
Head of Sustainability
Responsible Business
Q&A with our Responsible
Business Working Group
What has been the most memorable
achievement in our Community
programme?
donate products to community organisations
that are important to them has been massively
can support has given our teams a real sense of
Helena Keane
Community Manager
What are the key elements to a responsible
sourcing strategy?
conditions that benefit everyone in the supply
colleagues the confidence and assurance
John Grant
Head of Responsible Sourcing and Quality
What needs to change about the products
sustainable lives?
inform customers about energy conservation
customers and offering them more sustainable
choices on the home improvement projects they
Teresa Paul
Head of Commercial
Do you think a transition to electric heavy
or do you see other technologies
contributing to our decarbonisation?
Mark Wheeler
Fleet Manager
What are your ambitions for next year?
on polystyrene in a bid to remove it completely
Victoria Ellis
Tom Major
Head of Facilities
What plans do we have to be a more
representative business in the future?
influential leadership roles; and to ensure a
early careers colleagues to secure a diverse
Claira Singh
How does safety fit into our Responsible
Business plans?
desire for learning and continuous
Liz Davidson
Head of Health and Safety
31Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
–
32 Wickes Group Plc Annual Report and Accounts 2021
Responsible Business
People
Goals
Grow a diverse and inclusive business, that
customers and communities
–
–
–
Targets
–
– Raise £2 million for YoungMinds by the
–
– Offer and support 200 early career places
Feel at home
Colleagues
Our people have created a driving force for change
strengthening the voice of our colleagues from
Winning HumilityCan do
spirit
Authentic Being at
your best
more than double the amount of paid absence and
genders and at least one person from an
committing to share our learnings and data to
As at
Turnover Year %
Total leavers
Full time
As at
Gender % Female %
4
Executive
Board 5 3
Senior
managers 45
All other
colleagues
Strategic report Governance Financial statements Shareholder information
Responsible Business
SUPPORTING OUR LOCAL COMMUNITIES
We are passionate about our local
INSTALLATION APPRENTICESHIP
gap and helps maintain the future supply of
completed his apprenticeship and launched
SUPPORTING YOUNG PEOPLE’S MENTAL HEALTH
charity partner YoungMinds to fight for young
Customers
to supporting our customers in store and online
gender neutral facilities alongside standard binary
Communities
Our focus on early careers is an important part of
permanently and are enjoying the success of the
Like any good project, we know there’s
always more to be done. We’ve laid
– Set industry leading targets around ethnicity
and gender
–
practices to deliver our goals
33Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
34 Wickes Group Plc Annual Report and Accounts 2021
Governance Financial statements Shareholder information
Everyone home safe
and well every single day
safety culture are a fundamental part
culture is based on commitment and
single day
1
Accountability – OPERATIONS
Responsible for the implementation
2
Oversight – STAY SAFE TEAM
Responsible for the development of
management performance and reports
3
Assurance – INTERNAL/
INDEPENDENT AUDIT
Responsible for the independent
Responding to the pandemic
As an essential business our stores have remained
safety measures:
–
– personal hygiene and cleaning arrangements
–
closure of non essential areas
–
–
retail ShopKind campaign aimed at reducing the rising
Colleague wellbeing
commitment and engaging our colleagues in the
job specific training and reference material on our
to learn from them and put steps in place to prevent
In 2022 we will focus on:
registers and safety improvement plans
communication strategy to support better
colleague engagement and embed our
safety culture
colleague Mental Health First Aiders
programme and providing support and
PEPPY BENEFIT
app is also available to all colleagues to support
–
–
–
–
–
We pride ourselves on maintaining good
Strategic report Governance Financial statements Shareholder information
Responsible Business
Colleague Voice
We are enabled by our
highly engaged colleagues
and winning culture.
regularly is fundamental to improving our
Colleague
Voice
Purpose
Held annually and gives a cross section of
topics including remuneration
How our Board engages directly
‘Ask the Exec’
roadshow
Purpose
How our Board engages directly
Colleague
engagement survey
Purpose
simultaneously on a range of subjects and to
How our Board engages directly
Inclusion and diversity
listeningsessions
Purpose
Gain an in depth understanding of the
challenges and issues faced by minority
groups and provide an opportunity to be
How our Board engages directly
Check-in
surveys
Purpose
How our Board engages directly
Listening initiatives conducted
to engage with our colleagues
are to ensure that Colleague Voice reflects the
35Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
36 Wickes Group Plc Annual Report and Accounts 2021
Culture
OVERALL COLLEAGUE FEEDBACK OUTCOME
Strategy and
purpose
OVERALL COLLEAGUE FEEDBACK STORES SUPPORT CENTRE DISTRIBUTION CENTRE OUTCOME
Colleagues have a clear understanding of our
Strategy supported by regular CEO communication
and feel that our balanced customer proposition
Colleagues understand
purpose and feel that it
about our Responsible
Management understands
joining our virtual business
briefings managers are able
to receive a broader picture
Share our Responsible
our internal communication
Inclusion and
diversity
OVERALL COLLEAGUE FEEDBACK STORES SUPPORT CENTRE DISTRIBUTION CENTRE OUTCOME
focus on hiring different
people for different jobs
more diversity come
through our application
Colleagues appreciate the
Colleagues feel part of a
management grade and
have a balance of genders
and at least one person
from an underrepresented
ethnic minority at the
Safety and
wellbeing
OVERALL COLLEAGUE FEEDBACK OUTCOME
Strategic report Governance Financial statements Shareholder information
Workplace
flexibility
OVERALL COLLEAGUE FEEDBACK STORES SUPPORT CENTRE DISTRIBUTION CENTRE OUTCOME
have revolutionised our
to be even more family
friendly and to support
Colleagues feel a better
We hold three shifts over
Comments fed into the
Development
and training
OVERALL COLLEAGUE FEEDBACK STORES SUPPORT CENTRE DISTRIBUTION CENTRE OUTCOME
Colleagues recognise that our culture of personal
development and opportunities are given to try
Colleagues appreciate the
feel that career paths
understand more about
Colleagues appreciate the
opportunities available to
them such as driving
courses and the
opportunity to transfer to
Communication
OVERALL COLLEAGUE FEEDBACK STORES SUPPORT CENTRE DISTRIBUTION CENTRE OUTCOME
Especially during the pandemic the communication
the communication is very
effective up to a manager
Colleagues feel that there is
a regular drumbeat of
blend of virtual methods
Colleagues feel that
communications are
effective as email is not
the internal communications
Pay and benefits
OVERALL COLLEAGUE FEEDBACK STORES SUPPORT CENTRE DISTRIBUTION CENTRE OUTCOME
Colleagues value our colleague discounts and
appreciated that in more senior roles the variable
Colleagues value and
understand Gainshare – our
to see continued
increased pay as a result
Addressed concerns from
Responsible Business
37Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
38 Wickes Group Plc Annual Report and Accounts 2021
Responsible Business
Environment
Protecting the environment
Climate change is one of the challenges of our
o
Our Environment pillar sets out our ambition to
Carbon
2
2
2
e and are
charging infrastructure for these vehicles is still in
have electric vehicle chargers at our Support Centre
Waste
Our ambition is to ensure everything that can be
Water
Goals
Decarbonise our sites, transport and operations,
–
–
–
Targets
–
–
– Set targets to increase our operational
99.8%
approved suppliers
Strategic report Governance Financial statements Shareholder information
CASE STUDY – ELECTRIFYING OUR BUSINESS
system in the form of an air source heat pump
an additional three stores to trial this
capacity of the van to better understand its
capabilities and integration into our delivery
landlords and transportation partners to
Engagement
We have been hosting introductions to sustainability
in the business at our departmental monthly
Disclosure
We fully support responsible disclosure as this helps
We have completed our first full year of greenhouse
scenario analysis and a focus on timber and
We have also included in this report a Sustainability
Governance
British Retail Consortium Climate Action Roadmap
1.
decisions
2.
3.
4. Sourcing sustainably
5.
carbon lifestyles
Chemicals
legislation to reduce the impact of substances of
targets. This has seen us consolidate our
Science Based Targets in 2022.
–
–
–
in both our operations and supply chain
that are supplied to us that contain any substances
products that contain restricted substances or
39Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
40 Wickes Group Plc Annual Report and Accounts 2021
Greenhouse gas and Streamlined Energy and
Carbon Reporting
2021 Greenhouse gas emissions
2
e
Scope 1
2
5
Scope 3 Other
Emissions overview
Assurance
2021 Streamlined Energy and Carbon Reporting (SECR)
Group / UK 2021
2
e)
Annual energy use (GWh)
2
5
Methodology
We have improved our methodologies for commuting and transportation by using mileage data rather than
Energy efficiency measures
Some of our energy efficiency measures this year include
–
– Upgrading our heating controls
–
–
Responsible Business Environment continued
Strategic report Governance Financial statements Shareholder information
Sustainability Accounting Standards Board
BUILDING PRODUCTS & FURNISHINGS
ACCOUNTING METRIC CATEGORY
UNIT OF
MEASURE
CODIFIED
METRIC CODE RESPONSE
ENERGY MANAGEMENT IN RETAIL AND DISTRIBUTION
(1) Total energy consumed
(2) Percentage grid electricity
(3) Percentage renewable
Quantitative
MANAGEMENT OF CHEMICALS IN PRODUCTS
associated with chemicals in products
analysis
compound (VOC) emissions and content standards
Quantitative
by revenue
PRODUCT LIFE CYCLE ENVIRONMENTAL IMPACTS
analysis
Quantitative
WOOD SUPPLY CHAIN MANAGEMENT
(3) Percentage by standard
(5) Percentage by standard
Quantitative
ACTIVITY METRIC
ACCOUNTING METRIC CATEGORY
UNIT OF
MEASURE
CODIFIED
METRIC CODE RESPONSE
ENERGY MANAGEMENT IN RETAIL AND DISTRIBUTION
Annual production Quantitative
Quantitative
41Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
42 Wickes Group Plc Annual Report and Accounts 2021
Task Force on Climate-Related
Financial Disclosures (TCFD)
Responsible Business Environment continued
Governance
Strategy and monitor performance in relation to
Climate issues are also managed and progress
responsibilities at management levels across the
beginning to integrate climate issues into long term
continues to develop relevant climate metrics and
Strategic report Governance Financial statements Shareholder information
Strategy
and opportunities on business strategy and financial planning;
We are also planning to further assess impacts of climate
Risk Management
Metrics and targets
emissions reduction roadmap to be defined in 2022 using our
have an ESG metric as part of their bonus targets (see
43Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
44 Wickes Group Plc Annual Report and Accounts 2021
Responsible Business Environment continued
Scenario analysis
Climate scenario analysis is an essential tool for us to better
on assessing the impacts of climate change on our timber
High physical impact scenario (4
o
C)
both species in these regions across the medium (2030) and
for Eucalyptus and Scots pine are not projected to undergo
loss of eucalyptus trees; and projected increases in
Rapid transition scenario (<2
o
C)
1
2
We assessed the potential impacts to the
Products and services for the low carbon transition
3
With the majority of emissions from
focus of current and future policies is on decarbonising
gas boiler ranges and capitalising on the significant
projected rise in demand for heat pumps in the medium
Carbon pricing and policy risk in the supply chain
2
e in
2
2
e by 2030 and
2
Decarbonising the fleet
7
Whilst electric vehicles
of uncertainty regarding the most suitable technology for
opportunities related to decarbonising our HGV fleet: it may
be possible to use a higher biofuel blend or hydrotreated
as much as possible in the medium term (pending
technology developments related to electrification of HGVs)
and monitoring developments related to hydrogen in the
Decarbonising the estate
emissions from commercial buildings planned for
disclosures under the Energy Savings Opportunity Scheme
Government and includes international aviation and shipping
High
Moderate
Low
Uncertain
TOP SPECIES-SPECIFIC CLIMATIC HAZARDS, ORDERED FROM HIGHEST
TO LOWEST VULNERABILITY
EUCALYPTUS
SCOTS PINE
KEY
RISK LEVEL
change from
the current
baseline under
2030
2030
Forest fires
Drought
Drought
Forest fires
Frost
Storm / heavy
wind
Extreme
precipitation
Winter storms /
heavy wind
Increase in
extreme and mean
temperatures
Extreme
temperatures /
heatwaves
Strategic report Governance Financial statements Shareholder information
Products and
services for the
low-carbon
transition
SHORT TERM HORIZON (0-2 YEARS) MEDIUM TERM HORIZON (2030) LONG TERM HORIZON (2050)
–
–
pumps across the UK
–
–
and appliances and smart controls
–
–
pumps across the UK
–
monitoring of UK government decision on the role of
–
microgeneration
–
Carbon pricing
and policy risk in
the supply chain
SHORT TERM HORIZON (0-2 YEARS) MEDIUM TERM HORIZON (2030) LONG TERM HORIZON (2050)
–
–
–
–
Decarbonising
transport, with a
focus on the HGV
fleet
SHORT TERM HORIZON (0-2 YEARS) MEDIUM TERM HORIZON (2030) LONG TERM HORIZON (2050)
–
–
–
–
developments for electric HGVs
–
developments related to hydrogen fuel cells for HGVs
–
developments for electric HGVs
–
developments related to hydrogen fuel cells for HGVs
Decarbonising
the estate
SHORT TERM HORIZON (0-2 YEARS) MEDIUM TERM HORIZON (2030) LONG TERM HORIZON (2050)
– –
planned around 2027 and 2030
–
leases
–
45Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
46 Wickes Group Plc Annual Report and Accounts 2021
Homes
Homes for the future
Products
responsibly sourced and support sustainable homes
All our timber products are responsibly sourced and
We need to do more to support sustainable homes in
Services
Goals
Focus our products, services and installations
to support sustainable homes that everyone can
–
and services to customers
–
and increase the use of recyclable materials
– Reduce the impact of our installations
Targets
–
our business by 2023
–
–
We have committed to eliminating all
Responsible Business
CASE STUDY – GIFT CARDS
Wickes launched our social housing decorating scheme in
2011, aimed at helping social housing and local authority
tenants improve their homes by providing Home
products to improve their homes in their own taste and
empowers tenants to invest in their homes. It provides
Wickes stores, and tenants are given decorating tips and
advice via a bespoke Decorating Card Welcome Pack, as
well as access to Wickes' 'How to' guides.
Strategic report Governance Financial statements Shareholder information
PROMOTING ENERGY EFFICIENCY
have created project guides on our customer
preparation and installation guides and smart
We have spent 2021 speaking with our
customers to better understand their
views on sustainability and climate
change, and what they expect to need
– What products are affordable and effective in
home decarbonisation
–
–
energy efficient products and technologies
Packaging
Engaging with customers
for retailers to play a far greater role in educating and
Installations
CURTAIN POLE PACKAGING
All curtain poles and blinds typically have been supplied in
plastic packaging. We tasked our suppliers during
cardboard and supported the packaging change with an
to make this positive packaging material change
47Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
our commercial team to focus our efforts on
Responsible timber sourcing
Our timber is sourced nationally and
sustainable forests that are accredited under
Some of our timber is milled locally in the
All of the mills in our supply chain are FSC or
We also conduct regular timber inspection to
ensure products reach customers in the best
Sourcing Forestry Milling
Stores and homes
48 Wickes Group Plc Annual Report and Accounts 2021
Responsible sourcing
The foundation of our ResponsibleBusiness Strategy
Responsible Business
The foundation of our strategy
Our business is built on the foundation of a
majority of our impact as a business is in the indirect
Wickes Supplier Manual
Responsible Sourcing Policy
Timber Policy
each product that enters our supply chain to comply
Environment Policy
We set out our commitment to becoming a sustainable
leads monitor compliance and report regularly to the
Strategic report Governance Financial statements Shareholder information
Non-financial information statement
Environmental matters
Strategic report: Environment
Employees Section 172 statement: colleagues
77
Human rights
Our Modern Slavery statement and our approach to protecting
Social matters Section 172 statement
Anti-corruption and
anti-bribery
Principal risks and impact
Business model
49Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
S172 statement
Section 172
Our Directors are aware of their responsibilities and
take them seriously. The Board has put a structured
governance framework in place with scheduled
Board meetings and clear policies and authority
levels to control the decision making process.
Our Strategy, supported by our Responsible Business
Strategy which is overseen by our Board level
Responsible Business Committee, is built on insight
gained from our stakeholders. Detailed budgets,
forecasts and reports are reviewed by the Board to
enable it to monitor the Company’s performance to
ensure it is tracking as expected or that mitigating
steps are taken.
As a new Board of a newly listed Company, the
Directors were mindful that focus on ensuring the
business maintained stability and met performance
expectations during the transition from being part of
a large Group to a standalone business listed on the
London Stock Exchange, needed to be a priority in
our first year. Since the Company’s listing on 28 April
2021, the Board has focused on overseeing the
continued development of the robust control
framework that is required by a standalone business
and monitoring progress with the delivery of the
Strategy set out at the Capital Markets Day prior
Engaging with stakeholders
The Board places great emphasis on the
consideration of stakeholders in its thinking and
discussion and has taken time this year to gain a full
understanding of our different stakeholder groups
one-to-one meetings; listening groups; and
presentations and discussions around stakeholder
feedback and insight. In order to fulfil its duties, the
Board takes care to have regard to the likely
consequences on all stakeholders of the decisions
and actions which it takes. Such considerations
ensure the business is making decisions with a
longer term view in mind and with the sustainable
success of the business at its core.
The various needs and views of our stakeholders are
considered by colleagues and leaders throughout the
business which helps us make good decisions at all
levels. By understanding each stakeholder group, the
business and the Board can ensure that they are
taking all views into account and reaching
conclusions that will benefit the Company as a
whole. Where possible and relevant, decisions are
carefully discussed with affected groups to ensure
they are fully understood and supported when taken.
Details of our key stakeholders and how we engage
with them are set out in the following table.
Section 172 imposes a duty on directors to act in a
way that they consider, in good faith, would be most
likely to promote the success of the company for the
benefit of its members as a whole. Our stakeholders
have an important role to play in the success of our
business and throughout our Strategic report you
can see how our decisions and actions have been
influenced by our stakeholders.
In this section we describe how the Board
has factored stakeholder considerations
into decision making.
50 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
Stakeholder Priorities How we engage
COLLEAGUES
Our colleagues want a great place to work where
everyone feels at home and can bring their true
authentic self to work. They want to work for a
business that prioritises the health and wellbeing
and an environment where colleagues feel recognised
and rewarded for the work they do.
individually and as a team.
The Board ensures its understanding of colleague interests through many forums including a regular review of talent and succession, reward and
benefits and safety and wellbeing reports, along with listening to colleague views.
in our communications with colleagues include business updates, new products and services, health and wellbeing, inclusivity programmes,
development programmes, pay and benefits, and charity activities. The Board receives regular reports about what is important to our colleagues
and one of our Non-executive Directors, Sonita Alleyne, takes the lead on ensuring colleague views are heard by the Board and taken into
consideration in Board decision making.
CUSTOMERS
sustainable products which have been ethically
excellent service and for all our colleagues and
suppliers to be treated fairly.
With our vision of a Wickes project in every home and our mission to be the partner of choice for home improvers and Local Trade, customers are
at the heart of our business.
We have a diverse customer base across our three business areas - Local Trade, DIFM and DIY and we spend considerable time analysing
customer trends and reviewing customer feedback, including from customer listening groups and surveys, to understand their needs and views
and to listen to how we can improve our offer and service. Our senior management team meets monthly to review customer insights and discuss
the customer proposition in depth. Outputs are reported to the Board at every meeting and Board members also attend customer listening groups
from time to time.
SUPPLIERS AND
LANDLORDS
Our suppliers want to be treated fairly and with
successful and reliable tenants and to understand
Suppliers and landlords welcome our collaborative
approach and want to develop long term partnerships
based on trust to build capability together and create
The Board places great importance on ensuring suppliers are treated fairly and we build strong relationships with our suppliers and landlords
great platform for our suppliers and landlords to grow with us.
development, health and safety, sustainability and payment practices.
Engagement with landlords is conducted via the property team on a day-to-day basis and with formal quarterly meetings. Discussions focus on
leasing arrangements and extensions, ESG initiatives, energy data sharing and reporting and early stage green lease clauses. The Board receives
an annual update on property and landlord matters.
SHAREHOLDERS
Our Shareholders want to work with us to achieve
Our Shareholders are key to the long term success of the business and we value their input and views. We aim to secure long term sustainable
growth and returns by delivering our strategy.
We engage with our Shareholders in a number of ways including one-to-one and group meetings with Board Directors and
senior management, store visits, roadshows, regulatory reports, market announcements and presentations, and at our Annual General Meeting.
COMMUNITIES
Our communities want us to be a responsible
employer that operates ethically and brings
We engage with the communities in which we operate to build trust and understand the local issues that are important to them. In consultation
with our colleagues we select one main charity partner (currently YoungMinds) to work with across the business and we also support local
charitable activities at a site level to raise awareness and funds and support community projects.
GOVERNMENT
AND REGULATORS
The government and regulators want us to operate
in a safe and ethical way and comply with laws
future policy.
We engage through a range of industry consultations, forums, meetings and conferences to communicate our views to policy makers relevant to
updates on legal and regulatory developments.
51Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
S172 factor More information Page ref
a) The likely consequences
of any decision in the
long term
Strategy and Business Model
Principal Risks and Uncertainties
Performance review
6-9
b) The interests of the
company’s employees
People Strategy
Responsible Business
Section 172
Principal Risks and Uncertainties
Board Leadership and Company Purpose
Directors’ report
Directors’ Remuneration report
32-37
50-53
70-71
99-101
83-98
c) The need to foster the
company’s business
relationships with
suppliers, customers
and others
Strategy
Responsible Business
Section 172
Principal Risks and Uncertainties
Board Leadership and Company Purpose
Responsible Business Committee report
16-25
50-53
70-71
82
d) The impact of the
company’s operations
on the community and
the environment
Section 172
Responsible Business
TCFD disclosure
Responsible Business Committee report
50-53
82
e) The desirability of the
company maintaining
a reputation for high
standards of business
conduct
Strategy and Business Model
Responsible Business
Responsible Business Committee report
Board Leadership and Company Purpose
Division of responsibilities
Whistleblowing
82
70-71
72
71
f) The need to act fairly
as between members
of the company
Section 172
Board activities
Shareholder information and AGM
50-53
162
S172 duties
Examples of how the Directors have undertaken their Section 172 duties and have had regard for these
matters when making decisions is included throughout this Annual Report:
The Board ensures that it receives quality information, including views from stakeholders, to inform decision
making. The main activities of the Board during the year are set out on page 74.
Consideration of stakeholder views in decision making is supported by:
Board information
Detailed reporting ensures that the Board is kept informed of stakeholder views, insights and key performance indicators and any
developing trends.
– The Board receives reports on stakeholder views and insight, survey outcomes and feedback from stakeholder groups.
– Directors are invited to attend listening groups with customers.
– The designated Non-executive Director for the Colleague Voice attends listening groups, reviews colleague feedback and insight, and
reports to the Board.
– The Board, and in particular the Chairman and Chair of the Remuneration Committee, actively seek engagement with shareholders.
– Board papers include stakeholder views where relevant to the matter under consideration.
Board discussion
Board discussions ensure that stakeholder views are understood and considered.
– Information including the views and feedback from stakeholders is reviewed and discussed by the Board.
– The Board scrutinises the information provided to it and seeks additional information or assurance as appropriate.
– The Chairman ensures that all matters considered by the Board are thoroughly debated and all Directors’ views are heard.
– Our culture helps to ensure that there is proper consideration of the potential impact of decisions.
Board decision
The Board’s skills and experience, quality information and thorough discussion of matters ensures effective and informed decision making.
–
– Outcomes of decisions are monitored.
–
Board skills and experience
The experience and training of its members allows the Board to challenge and evaluate the impact and effectiveness of its decisions in the
context of the environment in which the business operates and the views of its stakeholders.
– All Directors were selected in light of their experience and expertise, and the contribution they could make to the long term success of
the business.
– All Directors received a tailored induction in 2021 which included training on Directors’ Duties including Section 172 responsibilities and
regulatory obligations as a listed business.
– The Board is kept updated on any developments in regulations and best practice.
Section 172 continued
52 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
Admission to
the Official List
Context
Wickes demerged from the Travis Perkins Group
successful delivery of this corporate transaction and
appropriately to operate not only through the transitional
Colleagues
The Board was mindful of the potentially unsettling
nature the demerger could have on colleagues and
was keen to ensure that colleagues felt engaged
participated in the employee share schemes
provided by our parent company before the
demerger, which fell away following the demerger.
The impact on colleagues was modelled and
considered in the design of our own employee
previous share schemes showed that the SAYE plan
was popular but the partnership shares plan was
the higher risk and limited tax benefits of the plan.
The Board was also particularly keen to ensure
colleagues would feel positive about the demerger
business. The alignment of colleagues’ interests
employed on the date of the listing should be made.
More information about this can be found in the
Directors’ Remuneration report on page 96.
Effective communication about the impact on
colleagues’ previous share plans and the new plans
that they would have access to was a key part of
meeting colleague expectations and to ensure
colleagues were kept fully informed and supportive
targeted communication channels which reach each
and every part of the business and these were utilised
effectively, with additional communications across all
channels informing colleagues of the progress made
and what it would mean for them in relation to both
their old share plans and their new share plans.
More information on how we engage with colleagues
is set out on page 100 of the Directors’ report.
Shareholders
Shareholders were supportive of the demerger as it
would allow the two separated businesses to pursue
their own strategy and approach to capital allocation
appropriate to their own markets. On demerger,
Wickes inherited the same share register as its
previous parent company.
The Board adopted a robust governance framework
other best practice to provide existing and potential
Shareholders assurance that it would uphold the
highest standard of governance. It also ensured a
transparent engagement process with Shareholders
including holding a Capital Markets Day ahead of
meetings were held with Shareholders throughout
the process to ensure Shareholders were kept
informed and could raise any questions and share
their views. The business strategy was continually
reviewed and the communications about strategy,
performance and governance continually refined
Following the demerger there was significant change
Shareholder investment strategies. The Board ensured
that changes in the share register were closely
monitored and focus was given to engaging with
existing, new and potential Shareholders to ensure our
strategy and performance were clearly understood.
Suppliers
Prior to the demerger the business shared a number
of suppliers with its parent company and there was
The Board placed great importance on giving
suppliers assurance that their businesses would not
be adversely affected by the demerger. It was also an
opportunity to develop supplier relationships more
deeply for the benefit of both parties and a number
of significant new contracts were considered and
approved by the Board as required by its reserved
matters in its governance framework.
Regulators
The listing resulted in the business operating in
Board had to ensure the business was both prepared
and resourced to meet. The Board adopted a robust
Governance Code and other best practice to provide
assurance that it would uphold the highest standard
of governance. Significant focus was given to
ensuring that new roles required to fulfil the new
obligations were created and filled with talented
colleagues and to assess and approve required
policies, procedures, controls and documentation
Customers
Our customers were least affected by the demerger
as the changes had little impact on day-to-day
operations which were already operating to good
governance and ethical standards. The Board was
careful to ensure that the work to effect the listing
business and that good practices were maintained.
Summary of
material issues
Ensuring no impact on
customer experience
Ensuring compliance with
listed company regulations
Colleague share
participation
Investor confidence
Maintaining strong supplier
relationships
Delivering high standards
of governance
Resourcing roles required
for a listed business
Maintaining
practices during
Case study
53Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
54 Wickes Group Plc Annual Report and Accounts 2021
Financial review
Our performance is a reflection of a balanced and
resilient business model which is underpinned by
Revenue for the 53 weeks to 1 January 2022 was
£1534.9m, an increase of 14.0% on the prior year.
Core sales increased by 15.1% to £1234.7m, with DIFM
up by 9.4% to £300.2m. Excluding the impact of the 53rd
week and a modest reduction in space, comparable
period like for like (LFL) sales increased by 13.0%.
LFL sales growth
1
2018
13.0
5.0
(4.4)
8.8
2019 20212020
Julie Wirth
CHIEF FINANCIAL OFFICER
Core LFL revenue grew by 14.2% for the full year and
35.7% on a two-year basis, with growth delivered
across a broad range of categories supported by
both DIY and local trade customers.
Commodity cost inflation accelerated into the
second half, and cash cost increases were
successfully passed on to customers over the
period, whilst maintaining our competitive price
position. Retail price inflation for the full year was
around 7%.
LFL sales growth Core
2018
14.2
18.8
(2.2)
6.5
2019 20212020
In the first half, LFL of 36.2% was driven by strong DIY
and local trade transaction growth where we
continued to build share in a buoyant home
improvement market. In the second half, LFL declined
by -4.4% against tougher comparatives from the prior
year, with the two-year growth remaining strong at
26.7% and holding up well into the fourth quarter.
Second half performance was notably supported by
buoyant local trade activity with our trade customers
continuing to see a healthy pipeline of work.
1 Refer to note 5 on page 121
The period ending 1 January
2022 reflects an excellent
financial performance with
ongoing disruption from
Strategic report Governance Financial statements Shareholder information
Within DIFM both the ordered and delivered sales
profile was variable, reflecting the impact of Covid
lockdown and supply chain disruption on the current
of 2021, with showrooms closed through to mid April
which included our key winter sale trading period.
Customer interaction was supported by our newly
developed virtual showroom journey, however, this
could not fully compensate for showroom closures.
comparatives and the year finished strongly.
LFL sales growth DIFM
2018
8.5
(27.8)(8.7)
14.1
2019 20212020
Delivered DIFM LFL revenue grew by 8.5% for the full
year. Bathroom sales were particularly buoyant
following a full range change towards the end of 2020
and installation participation continues to expand.
first period of full lockdown in 2020. Performance in
the second half was impacted by supply chain
challenges, including shortages of materials and
project completion delays. Much of this was linked to
self-isolation among supplier workforces, installers
and customers. Lead times extended from an average
of 6-8 weeks to more than double in certain periods
and locations, although we remained in a strong
competitive position across the market. As a result of
these extended lead times, our carry forward order
book was more than double that of two years ago at
well over £100m and this will support delivered DIFM
sales in 2022.
Gross Profit
Gross profit for the full year was £568.5m (37.0% of
revenue), up 11.7% on last year at £509.1m (37.8% of
revenue), an 80 basis point decline in gross profit rate.
As anticipated, the gross profit margin reduction was
impacted primarily by inflation, a return to more
normalised trading activity, product and customer mix.
through to customers on a cash recovery basis whilst
maintaining a competitive price position, negatively
impacted the gross profit margin %, accelerating into
the second half. TradePro participation continued to
grow, driving sales at a proportionately lower level of
margin and within DIFM, bathrooms and installations
performed strongly. From a fulfilment perspective,
distribution supported the recovery of stock in the
second half with less opportunity to generate
operational leverage compared to the first half of the
financial year. Home delivery participation remains
broadly consistent year on year – with self service
growing and click & collect reducing.
Adjusted operating profit was £116.3m, up from
£81.6m in 2020. The figures for both financial years
do not include any government support, as the benefit
initially taken in the first half of 2020 was repaid in the
operating profit margin was 7.6%, ahead of the 6.1%
reported in 2020 and 7.4% in 2019. This strong
underlying profit performance is driven by Core sales
growth together with operational cost leverage,
partially offset by the reduction in gross profit margin.
The cost to sales ratio improved by 230bp, with selling
costs benefiting from operational cost leverage and
reduced Covid-related costs through our store
portfolio, partially offset by higher administrative
costs. Administration costs include £6m of
incremental PLC costs as anticipated at demerger,
additional marketing costs of £8m which returned to
more normalised activity following a temporary
reduction in 2020, and bonus of £7m which reflects
recognition across the business linked to the strong
profit performance. As expected, the 53rd week had
minimal impact on profitability.
Adjusted PBT
2018 2019 20212020
85.0
49.5
41.4
62.3
Net finance costs
Full year finance costs were £31.3m, reduced from
£32.1m in 2020 principally reflecting lower interest on
lease liabilities.
Adjusted profit before tax
After finance costs adjusted profit before tax for 2021
was £85.0m, a 71.7% increase on the £49.5m reported
for the prior year.
2
Pre-tax adjusting item charges for the full year were
£19.6m, broadly in line with 2020 and primarily relate
to demerger and IT separation costs. Demerger costs
were £5.3m, slightly lower than anticipated at the half
year and predominantly relate to professional fees.
IT separation costs to migrate systems away from the
Travis Perkins infrastructure were £14.2m in the year,
slightly lower than anticipated due to later mobilisation
of activity. We estimate remaining investment of c
£30m over 2022/23 which will enable the business to
step away from the transitional services agreement in
place with Travis Perkins.
Tax on adjusting items of £9.9m includes an adjusting
credit of £6.7m arising from the increase in the rate of
UK corporation tax effective from 1 April 2023 from
19% to 25%. The legislation enacting this rate increase
was substantively enacted in H1 2021. The rate
change recognised at 26 December 2020 (£2.4m)
represents the increase in the rate of UK corporation
tax effective from 1 April 2020 from 17% to 19%.
2 Refers to note on 9 page 125
55Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
56 Wickes Group Plc Annual Report and Accounts 2021
Profit before tax
Profit before tax was £65.4m compared with £28.9m
in the prior year. This improvement in performance
was primarily driven by the strong trading results
outlined above.
Tax
Tax for the period is charged on profit before tax,
based on the forecast effective tax rate for the full
financial year. The underlying effective tax rate
(before adjusting items) for the 53 weeks ended
1 January 2022 is 19.4% (52 weeks ended
26 December 2020 18.0%).
Capital investment in the financial year totalled
£26.5m, comprising £13.0m of investment in our
store estate, £5.4m supporting DIFM range review
activity, £6.1m of investment in our IT/Digital
capability together with £2.0m of maintenance
than expected due to later timing of projects.
For FY2022, we expect capex to be around £45m,
reflecting a step up in refit and new store activity.
Cash / Net debt
Year end net cash was £123.4m, this compares with
the prior financial year at £6.5m and the prospectus
pro-forma position of £125.0m. As indicated at the
interim results, the cash position moderated from the
half year at £204.2m. This reflects normal working
capital cycles in the business including the impact of
week 53, second half weighting of investment and IT
separation costs, dividend payments together with a
significant rebuild of inventory.
The inventory position strengthened to £188.2m
compared with the prior year at £138.3m and 2019 at
£150.4m. This reflects a combination of stock re-build
following Covid supply chain disruption and inflation,
together with investment to assure strong availability
as we move into our key Spring 2022 trading season.
Stock turn³
20 18 20 19 20 2120 20
5.1
4.9
4.3
4.5
Lease liabilities were £742.1m compared to £790.0m
in the prior year primarily reflecting the profile of
property leases with fewer renewals in the near term.
Net debt reduced to £618.7m compared to the prior
year of £783.5m and the prospectus pro-forma
EBITDA)
4
was 2.8x in 2021.
In line with an enhanced payout ratio of 40%, a final
dividend of 8.8p is proposed in respect of the 53 weeks
ending 1 January 2022, taking the full year dividend to
10.9p. In line with an enhanced payout ratio of 40%,
shareholders on the register at the close of business
Shareholders in the UK may elect to reinvest their
dividend in the Dividend Reinvestment Plan (DRIP).
The last date for receipt of DRIP elections and
revocations will be 16 May 2022.
Financial review continued
3 Refer to the APM on page 164
4 Refer to the APM on page 164
Wickes is a cash generative business with modest
ongoing maintenance capital expenditure
requirements. With strong market fundamentals and
a number of proven levers to deliver growth, our
strong cash flow allows the flexibility to support
growth through disciplined investment including store
refits, new stores, digital development and range
reviews, alongside providing an attractive return for
shareholders. Investment also continues in the short
term to support the IT separation from Travis Perkins.
Wickes remains committed to retaining a strong
balance sheet, and this includes an acknowledgement
that we carry a significant level of leasehold debt and
the need to fund seasonal working capital. Having
reviewed our capital requirements over the medium
term, we intend to operate with lease adjusted net
debt / Adjusted EBITDA
4
of consistently less than
working capital.
Alongside maintaining a strong balance sheet,
returning growth levers to support our continued
market outperformance. We will balance that
investment with an enhanced dividend payout ratio
one third typically paid as an interim dividend.
Where the business generates cash in excess of that
needed to maintain a strong balance sheet, fund
investment for growth and once the ordinary dividend
has been met, the Board may conclude that it has
surplus cash. Were this to arise, there is currently a
preference to return this surplus cash to shareholders
via share buybacks or special dividends.
Julie Wirth
24 March 2022
Alongside maintaining a strong
balance sheet, we intend to
invest our cash flow behind
our high returning growth
Strategic report Governance Financial statements Shareholder information
Risk management overview
At Wickes, we know that understanding and
managing our risks across the business is critical
diverse and we need to have appropriate tools and
mechanisms in place to help us to identify risks
before they occur. We understand we need to identify
root causes to minimise the potential likelihood
We are embedding risk management as an integral
part of business operations, ensuring that we have
arrangements in place for the identification and
management of risk and that these arrangements
are efficient and robust.
mitigate the potential risks to achieving our business
plan objectives and therefore the Corporate Risk
Register is directly linked to Wickes’ Strategic
Business Plan.
2020 and 2021 have seen the pandemic impact
addressed, pandemic-related risks through the
application of our risk management framework to
ensure that we safeguard our customers, colleagues
and operations as far as possible. As an essential
business, we have been able to maintain a strong
financial position despite these pressures and, in
some aspects, dealing with the effect of the
pandemic has become woven into business as usual
across the Company. As we look towards the next
year, though the overall health threat posed by the
pandemic is reducing as vaccinations become more
widely available, its impact is likely to continue to
affect our operations and those of our partners and
suppliers. Therefore, the pandemic remains a risk
factor the impact of which, including the impact of
our ability.
Task Force on Climate-related Financial
Discolsures
As the UK becomes the first country in the world to
mandate the Task Force on Climate-related Financial
Disclosures (TCFD), we have been taking appropriate
steps to ensure we are prepared as a business and
have an appropriately aligned disclosure strategy
being developed in readiness. We understand it will
help reshape our business and, very importantly,
sustainability-related financial disclosures.
The strategy we have planned is built on a
governance structure that will review the transitional
and physical risks and opportunities of climate
change, and identify the right means to address
those risk and opportunities. This will be supported
through the Responsible Business Working Group
and Responsible Business Committee, which
oversees environmental, social and governance
matters at Wickes.
We know that our colleagues, customers, suppliers,
investors, communities and regulators are becoming
increasingly climate conscious. TCFD assurance
provides a clear message of our intent, commitment
and confidence to these key stakeholders.
pages 42-45.
The Board has established processes for identifying
emerging risks, and horizon scanning for risks
Emerging and potential changes to Wickes’ risk
profile are identified through the Company’s risk
management processes, and through direct
feedback from management, including changing
operating conditions, market, and consumer trends.
In respect of emerging risk, the Board is aware of
structural changes in our markets where working
practices are changing, including the trend towards
an increase in flexible working. This trend has been
greatly accelerated by the pandemic and working
habits and trends may not fully revert to their
pre-pandemic position.
To mitigate the risk to the business of changes
offering and evolving our strategy to meet the needs
of our customers while continuing to create long
term value. We are focused on innovation and have
invested in technology, our supply chain and our
ability to scale solutions that take advantage of
emerging trends in the home improvement sector,
and to ensure we continue to satisfy our existing
We perceive climate change as an emerging risk
operations and our supply chains. In turn, this could
affect the availability of some of our products, and
potentially may lead to cost inflation. To mitigate this
risk, we will focus on evaluating our exposure to
climate change and will seek to identify potential
future issues early so that our sourcing and
operations can be adjusted and adapted
appropriately. We will continue to work to reduce
customers to decarbonise their homes.
Risk appetite
To support the operation of an effective risk
management process, the level of risk that the
organisation is willing to hold in the pursuit of its
objectives must be determined. This level of risk is
known as risk appetite, and is typically set for individual
risks or risk categories. The Board, with the support of
the Audit and Risk Committee, has reviewed the
corporate risk register and defined the level of risk
appetite for each risk type. Risk appetite provides
management with a view on the level of risk the Board
deems acceptable, and therefore helps to focus
resources and management time where needed.
Risk management overview
57Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
58 Wickes Group Plc Annual Report and Accounts 2021
five-point model. Integrated across the three lines of
defence, the risk management process has been
designed to ensure that appropriate oversight is
applied throughout the process, while ensuring that
assurance is provided to those tasked with
oversight responsibility. Risk identification,
assessment, mitigation and monitoring processes
take place from both a top down and a bottom up
perspective to ensure that a comprehensive and
complete view of organisational risk is captured,
managed and monitored. Each of the five points
following pages.
We have a formal risk management process, part
principal risks (highlighted on page 60). The Board
has overall responsibility for risk management and
oversight of the system of internal controls. Risks are
reviewed by risk owners on an ongoing basis and are
assessed to identify and document corresponding
mitigating actions. Risk updates form an integral part
of periodic management reviews and are reviewed
by other members of the Company’s senior
leadership team and the Audit and Risk Committee.
The Board sets the risk appetite and monitors and
reviews its application and ongoing relevance.
Top down
Bottom up
Oversight,
identification.
assessment and
mitigation of risk
across the
Company
Identification,
assessment and
mitigation of risk
across key
functional areas
Board oversight
Risk management process
Defines organisational
Code of Business Ethics
Develops vision and
strategy
Sets risk appetite and
tolerance
Monitors the nature and
extent of principal risk
exposure
Continuous
Improvement
Audit and Risk CommitteeExecutive Board Internal audit
Represents all key functions and
teams of Wickes. Maintains policies
and programmes, monitoring risk
exposure, mitigation and internal
controls, and manages business
risk on a day-to-day basis
Reviews the design and
implementation of Wickes’ risk
management and internal control
programmes
Supports the Board in monitoring
risk exposure vs. risk appetite
Supports Wickes in identifying risk
landscape and gaps in legal
compliance recommending
mitigating actions
Facilitates the maintenance of the
corporate risk register and monitors
progress in mitigation of each risk
Reviews and tests the effectiveness
of internal controls and provides
assurance
Risk Identification
and Assessment
Risk Mitigation Risk Monitoring
and Reporting
Lines of defence
2ND LINE1S T LINE 3RD LINE
The three lines of defence model
was designed to provide a
blueprint of how effective
governance, risk management
and internal control processes
work together.
The first line of defence is
responsible for operating systems
of risk management and control,
the second line oversees the
activities of the first line, with the
third line providing independent
assurance that the first and
second lines are operating as
intended. Together, the three lines
provide assurance to governance
structures that risks are being
managed effectively.
Risk
governance
Continuous
improvement
Risk
identification
and assessment
Risk
monitoring
and reporting
Risk
mitigation
Risk management overview continued
Reviews the outputs of the
risk management process,
identifies improvements
and supports the further
embedding of effective risk
management processes
within the business
Identifies and owns
relevant risks assigning
responsibilities at
operational/
functional level
Ensures internal control
systems are embedded
across the business
Ensures mitigating actions
are monitored and
implemented. Escalates risk
identified at operational or
grass roots level to
Executive, Audit and Risk
Committee and the Board
Strategic report Governance Financial statements Shareholder information
Risk identification and assessment
Risk identification exercises are carried out formally
twice a year, with individual members of the
Executive Board, functional leads and through the
Executive Risk Committee; however, any new or
emerging risks are incorporated within the risk
register by the Executive Board, if required, monthly.
The Audit and Risk Committee and the Board review
key risks at each meeting and provide insight into
types of risk identification activities which we use
Risk mitigation is the primary means through which
the potential impact and the likelihood of risks is
reduced. Risk owners are required to document the
controls in place to manage the risk.
Where applicable, second-line functions (including
compliance teams) regularly review the application
of controls to ensure that they are being applied
consistently. Through the delivery of its annual
independent review of the design and effectiveness
of controls across our key risks. Internal audit,
reporting to the Audit and Risk Committee, provides
management approach, internal control framework
and governance arrangements.
Corporate level risks are collated and recorded within
the corporate risk register. To provide sufficient
detail to support their effective management, around
50 risks are currently being tracked and monitored
by the Executive Board. To facilitate review and
monitoring, the corporate risk register has been
developed to allow different views of risk to be
created. In addition to the regular review of all key
risks by the Executive Board, periodic reviews of risk
themes and risks that lie outside of current appetite
levels are undertaken throughout the year.
METHOD DESCRIPTION
Questionnaires and checklists
Collection of information to recognise the most
significant risks.
Workshops and brainstorming
Accumulation of ideas and discussion of the
organisational context and internal processes
expectations or key dependencies.
Inspections and audits
Physical inspections of premises and activities
and procedures.
Flowcharts and dependency analysis
Identification of critical components that are key
SWOT and Political, Economic, Social,
Technological, Legal and Environmental
Technological, Legal and Environmental
Both Gross risk (prior to any mitigations) and Net risk
(when taking into account the mitigation activities in
place) are assessed for impact and likelihood using
between 1 and 25, which is used to prioritise
Prospectus risks: Risks recorded in the Prospectus
created for listing purposes in 2021, and where
applicable post listing, have been incorporated into
the Wickes’ risk management framework to ensure
that they are included in the ongoing assessment
and monitoring risk.
59Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
60 Wickes Group Plc Annual Report and Accounts 2021
Principal risks and uncertainties
Principal risks and uncertainties
to support the business in identifying and managing
its key risks at the corporate, strategic and operational
levels. By virtue of their nature, these risks reflect, and
are encompassed by Wickes’ principal risks and
uncertainties, providing a means to review principal
risk areas on a contributory risk level. This granularity
enables greater insight and ultimately assurance that
Wickes’ principal risks and uncertainties are well
understood and are being effectively managed.
Principal risks identified are:
Autonomy Finance and Treasury
Customer Service and
Experience
Cyber Security and Data People, Culture
Climate and ESG Reputation and
The Board, supported by the Audit and Risk Committee,
assessment of the emerging and principal risks facing the
group, including those that would threaten its business
model, future performance, solvency or liquidity.
and impact for Wickes’ principal risks, and the
movement of risks across the period under review.
A more detailed assessment of each principal risk is
provided over the next few pages.
Risk map
Principal risks themes
1. Autonomy
2. Customer Service and Experience
3. Cyber Security and Data
4. Climate and ESG
5. Finance and Treasury
7. People, Culture and Safety
8. Reputation and Brand Integrity
This risk map is designed to show the relative
exposure of each principal risk theme rather than
establish the absolute level of impact and
likelihood for each risk. The assessment on
whether the risk has increased, decreased or
remains stable has been made on the basis of
the net risk exposure to Wickes.
Risk key
Risk movement key
Likelihood
Impact
Lower Higher
Lower Higher
8
6
3
2
7
4
1
5
Risk stable
Stable
Risk decreased
Decreasing
Risk increased
Increasing
Strategic report Governance Financial statements Shareholder information
Description
Prior to demerger, Wickes was reliant on back office systems designed and
managed by the Travis Perkins Group. A key aspect of the demerger has been
the transition to Wickes systems; however, there are other aspects covered
under the autonomy programme, which are required to ensure that Wickes can
continue to operate and thrive as a standalone entity.
Failure to optimise the outcome of this transition may have a negative
consequence on several aspects of back office operations.
Mitigations Progress in 2021
The decision to demerge from Travis Perkins and to list as
an independent entity were fully linked from the outset.
A detailed transition strategy, programme and individual
project level plans were approved by the Executive Board
and the Board prior to separation.
Progress against the programme and individual plans
continues to be a key focus for the Board and the
Executive Board. The delivery of these plans is
underpinned through the application of a sound project
management methodology and is closely monitored.
We are currently on track to deliver against the original
timeframes set. As we move towards the implementation
of replacement systems and processes, the level of
remaining risk will naturally reduce.
Multiple workstreams are
progressing well against
their respective plans. It is
anticipated that as individual
projects within the
programme are completed,
the magnitude of remaining
risk will naturally decrease
and once the programme is
completed, this risk will no
longer be applicable.
Description
customer service and a positive customer experience that results in customers
coming back to Wickes.
Failure to maintain high standards of customer service and experience may
impact sales.
Mitigations Progress in 2021
Customer Closeness programme, our seven customer
personas, our customer satisfaction programme and our
rich understanding of data which fuels our Mission
Motivation Engine.
Daily and weekly customer surveys gather feedback on
customer experiences with Wickes. We also collect
customers’ views on their experience through our digital
platform, store channels and through our Click & Collect
and fed into functional ownership so that we can tackle
the root cause of any issues found. This approach has
delivered year-on-year customer experience benefits.
All customer contact is captured and profiled to increase
our understanding of why customers contact us; through
this process, we are able to identify and fix the root cause
of issues rather than addressing symptoms. All complaints
are treated seriously and individually, and the customer
contact process and root cause approach has helped us
achieve an 80% Good or Excellent satisfaction rating when
looking at customer complaints resolution.
We also measure and report customer satisfaction at every
stage of the Do-it-for-me customer journey, helping us to
drive continuous improvement by targeting those parts
Putting our customers first is
a key area of ongoing focus
for Wickes, with efforts being
applied to maintaining
excellent levels of customer
service and a consistent
customer experience despite
the impact of external
factors including supply
chain disruption, Brexit
Risk
Autonomy
Executive
responsibility:
Information
Trend:
Risk
Customer
Service and
Experience
Executive
responsibility:
Trend:
61Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
62 Wickes Group Plc Annual Report and Accounts 2021
Description
Excellent IT and accurate data that resides within systems are fundamental
requirements for any successful business. Ensuring that the systems and the
data we hold are safe, managed and used appropriately is a key focus.
Failure to do so not only reduces the level of trust customers will have in us
protecting the information we hold, but there may also be impacts on operations
(e.g. availability of IT systems) and/or regulatory consequences including fines.
Mitigations Progress in 2021
As a digitally-led, service-enabled home improvement
business, maintaining a secure IT domain and protecting
data to the highest standards is fundamental in ensuring
levels of trust remain high in Wickes.
Strong IT partner control and approval processes
underpin a cyber secure approach with our partners.
Industry standard IT system security, monitoring and
automated response mechanisms help to prevent, detect
and mitigate unauthorised activity. These systems are
regularly tested to ensure that they continue to provide
protection from known and potential threat vectors.
design’ ethos to safeguard the data we hold to the highest
standards. A programme of training and communication
on data protection helps to ensure our colleagues are fully
equipped to prevent data security incidents.
Autonomy has provided an
opportunity to further refine
our approach to cyber
security and data protection,
with progress continuing to
take place according to
approved plans.
The IT team has identified
and responded effectively to
cyber threats as they have
emerged over the year,
including the highly
publicised vulnerabilities
which were successfully
managed with no impact
Description
Managing finances in an effective and sustainable manner is key to our long
growth levers, operational capability, and digital and IT innovation across all
that we do.
Failure to effectively manage our financial position sustainably may result
term liabilities.
Mitigations Progress in 2021
Knowing, understanding and managing our financial
position is one of the core elements in helping Wickes to
meet its short and long term liabilities while ensuring that
we are able to invest in our colleagues, stores, and in
innovating our products and services.
Detailed sensitivity modelling conducted as part of the
demerger process and as part of the financial viability
assessment (as presented on page 65) has been designed
to support the understanding of our financial position and
its sensitivities to internal and external stressors.
Robust budgeting, forecasting and management reporting
cycles, supported by policies and procedures, provide
accurate management information from which the
decisions. In part, this information is derived from accurate
and timely ongoing cash flow monitoring and reporting,
including performance on a store-by-store basis.
A revolving credit facility of £80 million with four providers
allows additional liquidity should it be required.
The underlying metrics
identify that despite the
uncertainty in trading
conditions as a result of the
pandemic, the impact of
Brexit and global supply
Wickes has seen overall
growth during 2021.
Margins have been
maintained, and
Risk
Cyber Security
and Data
Executive
responsibility:
and Company
Secretary, and Chief
Information
Trend:
Risk
Finance and
Treasury
Executive
responsibility:
Trend:
Principal risks and uncertainties continued
Strategic report Governance Financial statements Shareholder information
Description
citizen to support a positive impact on the environment and the communities in
which we operate while ensuring that our governance mechanisms are sound
and effective; and (ii) ensuring that we anticipate and manage the strategic,
operational and reputational impact of climate change.
Mitigations Progress in 2021
Protecting the environment and our climate, and
supporting our customers to do the same has become an
of environmentally friendly products available in stores
For the products we supply, the way these products are
sourced and produced can have a major impact on the
environment. We have worked with our suppliers to
increase the percentage of sustainably sourced timber
As a business, we have also taken steps to reduce our own
impact on the environment, recycling plastic and cardboard
packaging at our Northampton distribution centre with
separate cardboard recycling skips at stores that can
accommodate them. We have an ongoing programme of
improvements to reduce energy consumption across our
estate, including investment in green energy solutions and
water management processes to help reduce carbon
emissions and wastewater.
Governance Code. Further details of our approach to
governance can be found on pages 67-68.
Social
We support our colleagues in community engagement
activities, and in 2020 embarked on a partnership with
Further details of our charity and community work can
2021 has seen Wickes focus
on establishing a strategy that
addresses all relevant ESG
issues, as well as ensuring our
data is strong enough to set
meaningful targets.
We have now launched our
Responsible Business
Strategy, established a base
year of data across all
scopes of our emissions,
and will be looking to set
Science Based Targets in
2022 to solidify our
commitment. This will
complement our People
Strategy and I&D networks,
which support our
customers, colleagues
The Responsible Business
Committee has been
established to oversee ESG
the Responsible Business
Working Group, made up of
colleagues from every part
of the organisation.
Description
Effective operations support us in our drive to be the home improvement
tradespeople or works with Wickes directly to achieve their home
Failure to manage our operations effectively will impact our ability to provide
the right level of customer help, the right volume of stock to support their needs
or a timely connection to our installation teams, reducing the high quality of
customer experience we strive to deliver.
Mitigations Progress in 2021
2021 has been challenging for many businesses.
However, throughout this period, our strong relationships
with suppliers mean that we have navigated inflationary
pressures and raw material constraints well. We continue
to provide customers with the products and services they
need at the best possible value with excellent product
availability across our range.
We have invested in our stores and services, introducing
initiatives including Park & Collect, and in-store digital
picking, and developed in-store fulfilment space to
support multi channel sales. The stocking model adopted
means that we are able to fulfil most customer orders the
availability is supported through regular inventory
2021 has provided several
significant challenges to
maintaining effective
operations. With the majority
of these being outside of
Wickes’ direct control
(including the impact of the
pandemic and global supply
issues) the mitigations in
place have worked to reduce
the impact on our
operations, enabling us to
maintain an excellent level
product range.
Risk
Climate
andESG
Executive
responsibility:
Executive Board
Trend:
Risk
Operations
Executive
responsibility:
Trend:
63Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
64 Wickes Group Plc Annual Report and Accounts 2021
Description
Wickes successful and providing the best service possible to our customers.
Failure to support our colleagues effectively and in the right way may impact
our ability to meet our strategic objectives.
Maintaining the safety of our colleagues and customers in store and during
installations in their homes is a key priority.
Mitigations Progress in 2021
People
At Wickes, we actively promote inclusion and diversity in the
workplace, focusing our strategy around the four pillars of
Awareness, Education, Policy and Practice to embed
effective approaches in all that we do. To support the
wellbeing of our colleagues, we have implemented a
surveys and formal and informal check-ins with colleagues.
We have also rolled out a colleague assistance programme
Farmer programme, with a signed charter defining how we
support and respond to mental health challenges.
Culture
We have a well-embedded set of values and leadership
behaviours that are hardwired into people processes,
ensuring a consistent messaging and approach throughout
Wickes, from what we do to how we engage with
customers, suppliers and colleagues.
Health and safety
The safety of our colleagues and customers is our top
priority. Health and safety training is provided to new
colleagues during their induction, and regular refresher
training is provided to ensure that awareness of this key
topic remains high. Regular store health and safety audits
are conducted to ensure that our operations remain as
safe as possible.
It is part of our vision to
workforce that feels at
home, and ensure inclusion
and diversity are a key part
in us achieving our vision.
We’re pleased to have been
recognised in the Financial
Times; Diversity Leaders in
Europe report, being ranked
as No. 2 in the top 10
retailers in the UK; in the top
20 of overall UK companies;
and 65th out of 850
European businesses.
An ongoing programme of
health and safety awareness
conducted throughout 2021
has improved performance
in our health and safety
health and safety review
programme has been
re-established as pandemic
restrictions have eased.
Description
Maintaining and growing our reputation and brand underpins our long term
strategic aims.
Failure to do so may prevent us from achieving our strategic objectives.
Mitigations Progress in 2021
factors in ensuring that we are able to achieve our
strategic aims, and to maintain and grow our position in
the home improvement market.
Multiple strands contribute to our approach in this area
and include significant investment in training our
colleagues to ensure the highest levels of consistent
customer service are maintained in whichever channel
our customers choose to engage with us.
We work closely with our suppliers to deliver high-quality
products that provide value for money, with extensive
product testing protocols to ensure our quality
expectations are met, together with a customer alert and
recall process through the Wickes website, if required.
Preparation ahead of the
demerger helped to ensure
that there was minimal
disruption to operations and
customer service as a result
of separation from the Travis
Perkins Group and therefore
minimal impact on our
reputation and brand.
As a standalone entity,
Wickes has greater control
over the execution of its
strategy, centred on our
strong brand, a distinctive
and hard to replicate
customer proposition, a
uniquely balanced business
and a low-cost and efficient
operating model.
Risk
People, Culture
and Safety
Executive
responsibility:
Executive Board
Trend:
Risk
Reputation and
Brand Integrity
Executive
responsibility:
Executive Board
Trend:
Principal risks and uncertainties continued
Strategic report Governance Financial statements Shareholder information
Viability statement
The UK Corporate Governance Code requires
companies to state whether they have a reasonable
expectation that the company will be able to
continue in operation and meet its liabilities as
Several scenarios have been modelled to support
our viability statement, which assess the impact
Assessment period
The Directors’ assessment of viability has been
made over a five-year period. This is considered
appropriate as it is consistent with the period over
which the Group considers its principal risks and
aligns with the Company’s Five-Year Plan which is
regularly presented to the Board, which covers
Assessment of prospects
This viability statement should be read in
conjunction with the description of the Group’s
business model and strategy, which are set out
The Directors assess the Group’s prospects on a
regular basis and in particular progress against the
strategic objectives set out in its Five-Year Plan.
The Plan delivers forecasts of the Group’s financial
performance, including cash flows, and allows the
Directors to assess the Group’s liquidity position and
adequacy of funding. Sensitivity analysis of the main
assumptions underlying the plans is also carried out.
The plans are approved by the Directors and financial
budgets and KPIs are subsequently used to monitor
performance in the Board’s monthly review of the
Group’s results.
In its assessment of the Group’s prospects, the
– the progress of the Group’s demerger from Travis
Perkins and the impact of any delays that might be
experienced as we continue to separate our
systems and processes. We are progressing well
against the plan across multiple workstreams and
anticipate that this will continue to the point of
completion of separation;
–
business was classified as an essential retailer
and continued to trade during lockdowns, while
our Do-it-for-me showrooms were required to
lockdowns, we anticipate this would be repeated;
– uncertain trading conditions and expectations of
the future economic environment. There remains
a lot of uncertainty over macroeconomic risks
brought about by the pandemic, Brexit and global
supply chain issues; despite the impact of these
uncertainties in the current year, the Group has
seen overall growth in 2021 and margins have
been maintained. Economic uncertainties have
continued after the year end with the invasion
sourced from the Ukraine; and
– the Group’s financial position. Despite the
challenges of the past year, both from the
demerger and separation process and the
challenges in the wider economic environment,
the Company has reported a strong set of results
and positive cash flows. We have shown that
Wickes is resilient as a standalone entity and we
remain confident that our Five-Year Plan shows
strong sustainable growth.
The scenarios for assessing the viability of the
Company were identified by considering the potential
impact of individual principal risks and potential
combinations (as shown in the table on page 66).
All eight principal risks have been used in the
modelling. These risks combine to represent
plausible scenarios covering a range of different
operational and financial impacts on the business.
The ongoing impact of the current pandemic and the
potential of future pandemics have been carefully
considered and are reflected in several of these
scenarios. In total, five severe but plausible individual
scenario, which combines all of the individual
scenarios to model a worst-case hypothetical
situation (as these could theoretically all run
together, with different impacts on our business).
None of the scenarios modelled were found to have
an impact on the long term viability of the Company
over the assessment period. The modelling showed
we are in a strong position to withstand each of the
individual scenarios. The collective scenario is more
however, even in this scenario the Group maintains
breaches are noted the model does not assume
Viability statement
Having assessed the current position, principal risks
and prospects of the Company, and taking into
account the assumptions above, the Directors
confirm they have a reasonable expectation that the
company will be able to continue in operation and
meet its liabilities as they fall due over the five-year
assessment period.
Viability statement and going concern
65Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
66 Wickes Group Plc Annual Report and Accounts 2021
Scenario modelled Link to principal risks
Scenario 1
REDUCED CUSTOMER CONFIDENCE AND LOWER SPENDING
Reduced customer confidence and lower spending, either through external economic factors or through loss of customer confidence in Wickes as a brand. The budgeted
ASSUMPTIONS
Sales decline by 6% in 2022, followed by growth percentages in line with the five-year plan but from a lower starting point.
No change to margin and administrative costs.
Scenario 2
INABILITY TO DELIVER AUTONOMY PROJECT TO BUDGET OR TO TIME
The ongoing autonomy project requires significant further investment over a longer time period than currently budgeted to enable the business to meet its strategic
targets. Significant further cost is spent on the project up to the deadline of final separation of the remaining functions from Travis Perkins in April 2023.
Sufficient additional cost is invested into the project that there is no impact on sales or margin.
ASSUMPTIONS
Separation costs are increased by 20% each month over the current budgeted lifespan of the project, and the lifespan of the project is increased by another three months.
No changes to sales or margin.
Scenario 3
OPERATIONAL SHOCK
A significant external disruption (e.g. a cyber attack or a disease outbreak) requires the business to shut down fully for a short period of time, returning to budget within
two months as soon as the effects of the disruption have been addressed.
ASSUMPTIONS
Zero revenue for two weeks, returning to budget within two months.
reductions during a shutdown would be offset by increased costs required to mitigate the potential losses.
Scenario 4
FURTHER PANDEMIC LOCKDOWNS
Further the pandemic lockdowns are experienced for two months in autumn 2022 and three months in spring 2023. Consistent with our experience in previous
business and continues to trade in line with budget.
ASSUMPTIONS
No change to margin percentage.
Scenario 5
SUPPLY CHAIN AND COST MANAGEMENT DIFFICULTY
Costs to obtain and distribute goods are impacted by internal factors (operational efficiency, people factors) or external factors (Brexit, cost implications of ESG, ongoing the
pandemic outbreaks having an impact on the availability of goods and the costs of delivery).
The business is able to maintain revenue levels but is required to increase the cost base to do so.
ASSUMPTIONS
No change to sales.
Margin rate reduced by 1%.
Customer delivery costs increased by 5%.
Scenario 6
A COMBINATION OF SCENARIOS 1 – 5 AS SET OUT ABOVE
This is seen as a worst-case scenario and the likelihood of occurrence is highly severe but plausible.
As above
The Group’s business activities, together with the
factors likely to affect its future development,
performance and position are set out in the Strategic
report, including the principal risks of the Group set
out on pages 60-64. The financial position of the
Group, its cash flows, liquidity position and
borrowing facilities are described in the Financial
review on pages 54-56. The Directors have
considered the above and how they may impact
going concern as well as modelling of a severe but
plausible scenario which assesses the impact on the
Group’s liquidity headroom of a reduction in sales
and margin percentage, and of further pandemic
lockdowns through the end of 2022 and early 2023.
As a result of this review, the Directors have a
reasonable expectation that the Company has
adequate resources to continue in operational
existence for the selected going concern period
basis of accounting in preparing the annual
Furthermore, based on the Group’s strong
performance, prospects and liquidity position, the
Directors do not consider going concern to be a
critical accounting judgement. Further detail in
relation to the use of the going concern assumption
and the scenarios modelled by the Directors are
detailed in note 1 to the Group financial statements.
The Strategic Report has been approved by
David Wood
24 March 2022
Julie Wirth
24 March 2022
Viability statement and going concern continued
Strategic report Governance Financial statements Shareholder information
Being transparent
andaccountable
Introduction to Governance
Dear Shareholder,
I am pleased to present to you, on behalf of the Board,
our Corporate Governance report for the financial year
ended 1 January 2022.
Establishing a robust governance structure to
support the Board’s effective leadership of the
Company was a priority for me as Wickes started
company. Creating value for shareholders and
ensuring the long term sustainable success of
controls that are aligned with a clear strategy,
purpose and culture.
Wickes has a unique and special culture which
leadership and guidance is key to ensuring the culture
now operates in. The Directors were attracted to
this is maintained is a priority for the Board.
As a newly listed business, 2021 saw the
establishment of the first Wickes Group Plc Board
skills and qualifications who each bring different and
welcome strengths and perspectives to the
boardroom. In a relatively short time the Board has
established a transparent and open approach to
and senior leadership teams. Constructive debate and
participation are encouraged and all views are listened
to and considered carefully.
The Board Committees (which you can read more
about in the pages that follow) have established
themselves well and are providing the necessary
assurances to the Board. The addition of the
Responsible Business Committee is an important
bedrock to oversee the development of our
Responsible Business Strategy and help establish
Wickes as a leader in environmental and social
matters, and demonstrates the importance we
environments within which we operate.
I am immensely proud of my Wickes colleagues and
do’ spirit, embracing and supporting the immense
stepping up to the unprecedented challenges of
Christopher Rogers
Chairman
24 March 2022
“I am honoured to be the first to chair this
fantastic Company with its unique and
special culture as we navigate our newly
found independence.”
Christopher Rogers
CHAIRMAN
Colleagues, customers, investors and society are
environmental, social and governance
matters. Our ambition is to meet these high standards
and we will demonstrate this through our focus
Listening to our stakeholders keeps us focused on
In this section
P69 Board of Directors
P70 Board leadership and company purpose
P74 Board activities for the year
P75 Nominations Committee report
P78 Audit and Risk Committee report
P82 Responsible Business Committee report
P83 Directors’ Remuneration report
P99 Directors’ report
67Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
Code Principles Supporting information Page
Board Leadership and Company Purpose
A. A successful company is led by an effective and entrepreneurial board, whose role is to
promote the long-term sustainable success of the company, generating value for
shareholders and contributing to wider society.
B. The board should establish the company’s purpose, values and strategy, and satisfy
itself that these and its culture are aligned. All directors must act with integrity, lead by
C. The board should ensure that the necessary resources are in place for the company to
establish a framework of prudent and effective controls, which enable risk to be
assessed and managed.
D. In order for the company to meet its responsibilities to shareholders and stakeholders,
from, these parties.
E. The board should ensure that workforce policies and practices are consistent with the
company’s values and support its long-term sustainable success. The workforce
should be able to raise any matters of concern.
Board leadership and company purpose
Business model
Strategic report
Risk management
Stakeholder engagement (S.172)
Responsible Business Committee report
Workforce information
Whistleblowing
70-71
14-15
2-66
57-64
50-53
82
100-101,
32-37
71
Division of Responsibilities
F. The chair leads the board and is responsible for its overall effectiveness in directing
tenure and promote a culture of openness and debate. In addition, the chair facilitates
directors, and ensures that directors receive accurate, timely and clear information.
G.
small group of individuals dominates the board’s decision-making. There should be a
leadership of the company’s business.
H.
responsibilities. They should provide constructive challenge, strategic guidance,
I. The board, supported by the company secretary, should ensure that it has the policies,
processes, information, time and resources it needs in order to function effectively
Board of Directors
Division of responsibilities
Nominations Committee report
69
72
75-77
Composition, Succession and Evaluation
J.
procedure, and an effective succession plan should be maintained for board and
senior management. Both appointments and succession plans should be based on
gender, social and ethnic backgrounds, cognitive and personal strengths.
K.
knowledge. Consideration should be given to the length of service of the board as a
whole and membership regularly refreshed.
L. Annual evaluation of the board should consider its composition, diversity and how
demonstrate whether each director continues to contribute effectively.
Board of Directors
Composition, succession and evaluation
section of Corporate Governance report
Nominations Committee report
69
75-77
75-77
Audit, Risk & Internal Control
M. The board should establish formal and transparent policies and procedures to ensure
satisfy itself on the integrity of financial and narrative statements.
N. The board should present a fair, balanced and understandable assessment of the
company’s position and prospects.
O. The board should establish procedures to manage risk, oversee the internal control
Audit and Risk Committee report
Principal risks and uncertainties
Directors’ report
Statement of Directors’ Responsibilities
78-81
60-64
99-101
102
Remuneration
P. Remuneration policies and practices should be designed to support strategy and
company purpose and values, and be clearly linked to the successful delivery of the
company’s long-term strategy.
Q.
and determining director and senior management remuneration should be established.
No director should be involved in deciding their own remuneration outcome.
R.
remuneration outcomes, taking account of company and individual performance,
Remuneration Committee report
Directors’ Remuneration report
Remuneration Policy
83-98
87-90
91-98
Compliance with the UK Corporate Governance Code 2018
Governance underpins every aspect of the Board’s considerations and decision making.
The Company has applied the Financial Reporting Council’s (FRC) UK Corporate Governance Code 2018 (the
on how we have applied each of the Principles of the Code. Details of how we have complied with the Provisions of
the Code can be found throughout this Corporate Governance report, the Strategic report and Committee reports.
and understandable and provides the information necessary for shareholders to assess the Company’s
position and performance, business model and strategy.
68 Wickes Group Plc Annual Report and Accounts 2021
Being transparent and accountable continued
Strategic report Governance Financial statements Shareholder information
Christopher Rogers
NON-EXECUTIVE CHAIRMAN
PRONOUN: HE / HIM
N
R
RB
D
APPOINTMENT DATE
23 March 2021
NATIONALITY
British
KEY STRENGTHS
Leadership; strategy and commercial
acumen; financial acumen; governance,
compliance and regulatory; operations;
retailing; M&A and corporate transactions;
SKILLS AND EXPERIENCE
of Sanderson Design Group Plc (formerly Walker
Kerry Group. He also continues to be a
the completion of the sale of the business
year. From September 2013 Christopher served
until the demerger of Wickes from the Travis
Perkins Group in April 2021.
number of senior roles in and directorships of
public companies. From 2005 to 2016 he was an
Group Finance Director from 2005 to 2012 and
as Global Managing Director of Costa Coffee
from 2012 to 2016. He was Group Finance
Director of Woolworths Group Plc and Chairman
of the Woolworths Entertainment businesses
from 2001 to 2005. Prior to that, Christopher held
senior roles in both the finance and commercial
functions of Comet Group Plc and Kingfisher Plc.
Mike Iddon
INDEPENDENT
NON-EXECUTIVE DIRECTOR
PRONOUN: HE / HIM
N
R
A
RB
APPOINTMENT DATE
23 March 2021
NATIONALITY
British
KEY STRENGTHS
Financial acumen; leadership; strategy and
commercial acumen; risk management;
governance, compliance and regulatory; change
management; retailing; M&A and corporate
SKILLS AND EXPERIENCE
finance roles throughout his career and has
been the Chief Financial Officer of Pets at
Home Group Plc since 2016.
Mike was previously the Chief Financial
Officer of New Look from 2014 to 2016
finance roles over 13 years for Tesco Plc both
in the UK and overseas. These roles included
Finance Director and Chief Financial Officer
of Tesco Homeplus (South Korea). Mike has
also held senior roles with Kingfisher Plc
Accountant and a graduate of the Harvard
Advanced Management Programme.
Sonita Alleyne
INDEPENDENT
NON-EXECUTIVE DIRECTOR
PRONOUN: SHE / HER
N
R
A
RB
APPOINTMENT DATE
23 March 2021
NATIONALITY
British
KEY STRENGTHS
Leadership; strategy and commercial
acumen; M&A and corporate transactions;
governance, compliance and regulatory; risk
management; digital/technology strategy
and governance; sustainability; change
SKILLS AND EXPERIENCE
public sector boards. She is a board member
of The Cultural Capital Fund and recently
Freelands Foundation. She is the Master of
Jesus College, Cambridge.
Previously Sonita was Chair of the BBFC’s
Management Committee and the Radio
Sector Skills Council and a board member
of the Department for Culture, Media and
Sport. Sonita was also a board member of the
London Legacy Development Corporation, a
governor of the Museum of London and a
board member of the National Employment
Panel and the London Skills and Employment
Board. In addition, she held membership of
the Court of Governors at the University of the
Arts London.
Mark Clare
SENIOR INDEPENDENT
NON-EXECUTIVE DIRECTOR
PRONOUN: HE / HIM
N
R
A
RB
D
APPOINTMENT DATE
23 March 2021
NATIONALITY
British and Irish
KEY STRENGTHS
Leadership; strategy and commercial
acumen; financial acumen; risk
management; governance, compliance and
regulatory; operations; health and safety;
M&A and corporate transactions
SKILLS AND EXPERIENCE
and construction sectors, particularly in
customer facing businesses and has served
on a number of public listed company
remuneration committees. He is currently the
Chairman of Grainger Plc; the Senior
Independent Director at United Utilities Group
Plc (not seeking reappointment at their 2022
Marinas Holdings Ltd. Previously Mark was
the Senior Independent Director at Ladbroke’s
Coral Group Plc from 2016 until 2018; and
Chair at BAA Plc from 2001 until 2006.
2006 until 2015; Managing Director of
Centrica’s retail subsidiary British Gas from
2002 to 2006; and CFO of Centrica Plc from
1997 to 2002. He also served as a trustee of
the Energy Savings Trust, the Green Building
Council and BRE. Mark is a qualified
accountant.
Julie Wirth
CHIEF FINANCIAL OFFICER
PRONOUN: SHE / HER
D
APPOINTMENT DATE
23 March 2021
(Joined Wickes as CFO on 1 January 2019)
NATIONALITY
British
KEY STRENGTHS
Financial acumen; risk management;
leadership; strategy and commercial
acumen; governance, compliance and
regulatory; operations; change management;
retailing; M&A and corporate transactions
SKILLS AND EXPERIENCE
January 2019 having held board and senior
finance roles at group and divisional level in
the retail sector. This included 20 years at
Home Retail Group Plc, five years
Countrywide Farmers Plc, with responsibility
across finance, IT, legal and secretariat, and
change management.
David Wood
CHIEF EXECUTIVE OFFICER
PRONOUN: HE / HIM
D
APPOINTMENT DATE
23 March 2021
(Joined Wickes as CEO on 28 May 2019)
NATIONALITY
British
KEY STRENGTHS
Leadership; strategy and commercial
acumen; brand building and marketing;
operations; change management; retailing;
SKILLS AND EXPERIENCE
With almost 30 years in the retail and
consumer sector, David is a highly
Europe and North America, having spent the
and Mondelez.
David served as Commercial Director on the
Board of Tesco Hungary from 2010 to 2012
and between 2012 and 2015 he served on
the UK Operating Board of Tesco Plc as Chief
Marketing Officer and Group Managing
Director. More recently David was Group
President of Kmart Holding Corp from 2015
to 2017, followed by a brief tenure as CEO of
Mothercare Plc in 2018. David is currently
Group Ltd.
Committee membership key:
CHAIR OF COMMITTEE
N
NOMINATIONS COMMITTEE
R
REMUNERATION COMMITTEE
A
AUDIT AND RISK COMMITTEE
RB
RESPONSIBLE BUSINESS COMMITTEE
D
DISCLOSURE COMMITTEE
Driving our values
Board of Directors
69Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
70 Wickes Group Plc Annual Report and Accounts 2021
Board leadership
and company purpose
Governance report
Role of the Board
The Board is responsible for promoting the long term
sustainable success of the Company, generating value
for shareholders and contributing to wider society. It has
ultimate responsibility for the direction and governance
of the Company taking into account the opportunities
and risks to the future success of the business.
As a newly listed business, 2021 saw the establishment
of the Wickes Group Plc Board and we have appointed
on creating value over the medium term for all our
for this fantastic business and passionate about
ensuring that, as we grow, we do so responsibly and in a
way that benefits all our stakeholders. We have a clear
framework to win, which is guided by our vision, mission
The Board sets the strategy to align with our purpose
and ensures that the business is resourced appropriately
to deliver the strategy through a culture that drives the
behaviours we want to see.
Our purpose is at the core of the Board’s discussion and
decision making and strategic matters are discussed at
every meeting. In addition, an off-site strategy day was
held in the latter part of 2021 to review and develop our
and 14-15 respectively. The opportunities and risks to
the future success of the business are carefully
considered. Key opportunities are set out in the
Strategic report on pages 2-66 and principal risks
control framework, which enables risk to be assessed
and managed and reviews the effectiveness of this on
framework of internal controls on page 81.
The Board has implemented a governance framework
and delegation of authority policy to ensure that an
appropriate level of oversight is given to material
matters. It has adopted a formal schedule of matters
reserved to it which sets out the significant matters of
focus for the Board due to their strategic, financial or
reputational importance. The schedule is available
on page 74. In line with the Code the Board places
significant importance on the appropriate governance
of the Company, discharging its responsibilities not
Committees of the Board - the Audit and Risk
Committee; Nominations Committee; Remuneration
Committee and Responsible Business Committee.
pages 78-81, 75-77, 83-98 and 82 respectively.
A special culture
Our aim to continue developing our digitally-led,
service-enabled proposition across Local Trade,
through engaged colleagues, a winning culture and
about our growth levers on pages 16-25.
Wickes has a unique and special culture. Our business is
powered by highly engaged teams, who operate around
a simple, yet deeply held set of beliefs we call our
about our Winning Behaviours on page 25. Our winning
culture is built on a foundation of personal responsibility
where anyone, no matter who they are or where they are
from, can feel at home.
O U R
WINNING
BEHAVIOURS
Winning
Humility Can do spirit
Authentic
Being
at your best
OUR MISSION
To be the partner of choice for
Home Improvers and Local Trade
OUR PURPOSE
To help the nation
feel house proud
Growth levers
OUR VISION
A Wickes project
in every home
Winning for Trade
TradePro growth
Accelerating DIFM
DIY category wins
Getting our fair share in underweight categories
a winning culture and growing responsibility
Store investment
High return on investment
Digital capability
Continued development of a seamless offer
Enhanced store service model
Laying the foundations for future growth
CUSTOMER PROPOSITIONFOUNDATIONS
Strategic report Governance Financial statements Shareholder information
The Board is responsible for ensuring the Company’s
culture drives the desired behaviours and achieves
this through setting the right tone from the top,
culture throughout the business.
Our Code of Business Ethics sets out the standards
colleagues receive training on this annually. It sets
the tone in terms of responsible business behaviour
and legal compliance and directs colleagues to
Company policies and guidance.
The Board monitors the business culture in a range
of ways. It held meetings at a number of stores and
distribution centres in addition to our Support Centre
during the year which enabled it to monitor culture
Directors are encouraged to visit sites individually
took place during the year. The Board welcomes
The Board also regularly receives briefings from
management including feedback from colleague
listening groups and colleague communities,
turnover; reward; recruitment; and whistleblowing
through the Responsible Business Committee; the
Remuneration Committee and at Board meetings.
Stakeholder engagement
The Board recognises the importance of listening
and receives insights through engagement with
stakeholders which it uses to inform decision
making. The Board and management have a
programme of active engagement with and encourage
participation from the Company’s stakeholders.
The Board places particular importance on
understanding the views of colleagues and
are fully considered in the Board’s decision making.
Sonita Alleyne undertook a number of additional
activities during the year to support this aim
including hosting a colleague listening group;
discussing the results of colleague surveys with the
integrating informal colleague engagement at visits
to operational sites. More activity is scheduled to
take place in 2022. Through the role as Chair of the
Responsible Business Committee, Sonita has also
received reports and had detailed discussions with
senior management on colleague recruitment,
training and progression; reward; and inclusion
Understanding customers is at the heart of everything
we do. The Board uses customer listening groups,
surveys and data analysis to understand customer views
and act on what is most important to deliver the best
meeting is dedicated to the customer proposition.
The Board places great importance on ensuring
suppliers are treated fairly. This is a key aspect
trusted partnerships with our suppliers. It enables
provide feedback through day-to-day contact with
product teams, our risk assessment surveys and our
twice- yearly supplier forums.
During the year, the Chairman met with a number of
the Board and key governance matters. The Chair
Shareholders on a number of occasions following
Company’s approach to wider workforce pay and the
use of ESG metrics in incentive plans as well as the
vote at the Company’s Annual General Meeting (AGM).
The Company’s approach to the investment and
Directors’ Remuneration report.
Members of the Board, senior management and the
investor relations team hold regular meetings with
analysts to understand their views and policies, which
are reported to the Board. In addition to individual
meetings, investor roadshows, store tours and a
Capital Markets Day were held during the year.
The Board encourages Shareholder attendance and
participation at the Company’s AGM at which
pandemic restrictions the AGM will be held as a
physical meeting in 2022 to enable shareholders
participation we will provide webcasting with a
facility for questions to be raised at the meeting.
More information on how we consider the views and
interests of stakeholders is set out on pages 50-53.
Actions from previous voting outcomes
At the General Meeting of Travis Perkins Plc held
shareholders of Travis Perkins in relation to the
proposed demerger of Wickes. In response to the
voting outcome on Resolution 3, approval of Wickes’
share plans, an update to the statement made by Travis
months after the vote. As required by the Code, the
Board has reported on the actions taken as a result
Policies and procedures
The Board has approved a suite of policies, including
our Code of Business Ethics, which establish a robust
system of control and oversight in matters of ethics
and compliance. This is supported by mandatory
training for all colleagues, appropriate to their role.
operation of these policies and related procedures
and ensures they are embedded across the business.
oversight and receive reports on compliance with
policies and procedures at least once a year.
Conflicts of interest
All Directors are required to raise any actual or potential
conflicts of interest for consideration and if appropriate,
authorisation. At every meeting Directors are asked
whether there are any new potential conflicts of interest
to declare in relation to the matters on the agenda,
from related discussion and decision making.
To date no such instance has occurred. The Board
keeps a register of authorised conflicts of interest
and this is reviewed annually. The Company has a
Conflicts of Interest Policy and all colleagues receive
online mandatory annual training in this area.
Whistleblowing
The Company has a Whistleblowing Policy which is
widely promoted and accessible to all. Colleagues and
others are encouraged and empowered to speak
openly and raise any concerns through management
or directly to the Board. Should colleagues or third
parties feel the need to raise concerns which cannot be
management, the Company has implemented a third
party anonymous whistleblowing platform and
telephone line through which concerns can be raised
included in our monthly colleague communications.
All reports are investigated thoroughly and appropriate
actions taken. The Board monitors the operation of the
whistleblowing arrangements and receives reports
annually on notable outcomes and learnings.
Director concerns
Should a Director have concerns about the operation
of the Board or the management of the Company,
these concerns would be discussed by the Board.
If any concerns remained unresolved they would be
recorded in the Board minutes. No such concerns
were raised during the year.
71Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
72 Wickes Group Plc Annual Report and Accounts 2021
Division of
responsibilities
Governance report
More information can be found on pages [X] to
The Chairman
The Chairman’s principal responsibility is the leadership of the
Board and ensuring its effectiveness. The Chairman encourages
a culture of openness and communication between members of
the Board, ensures all Directors contribute to discussions and
promotes constructive debate. The Chairman ensures that
Directors receive the accurate and clear information in a timely
manner to enable them to make informed contributions and to
support good decision making by the Board.
The Senior Independent Director (SID)
The Senior Independent Director provides a sounding board for
the Chairman and serves as an intermediary for the other
directors and shareholders should this be required.
The Board
The Board is responsible the for overall leadership of the
business, setting its purpose, values and strategy and providing
a framework of strong governance and effective controls.
Audit and Risk Committee
Nominations Committee
Reviews the composition and skills of the Board and leads the
oversees the processes for succession planning and the
development of a diverse pipeline.
Remuneration Committee
Determines the remuneration policy and packages for the
having regard to workforce remuneration and related policies
and the alignment of incentives and rewards with culture.
Responsible Business Committee
Oversees and monitors performance in relation to environmental,
social and governance matters relevant to the Company as a
responsible corporate citizen.
More information can be found on pages 78-81
More information can be found on pages 83-98
More information can be found on page 82
Committees of the Board
Executive Board
Oversees the day-to-day management of the business including all matters not contained within the Matters Reserved to the Board and its
The responsibilities of the Chairman, CEO, Senior Independent Officer, Board and its Committees have been approved by the Board, are
set out in writing and are available on the Company’s website www.wickesplc.co.uk
The Board has also established a Disclosure Committee which oversees the Company’s compliance with its disclosure obligations in
line with the UK Market Abuse Regulation and Listing Rules. This includes consideration of potentially market sensitive information and
the timing and review of such related disclosures. The Committee is convened only when a full Board meeting or an authorised
sub-committee meeting of the Board is not possible.
An effective and robust corporate governance framework is vital to a successful and sustainable business
and there is a clear and effective division of responsibilities between the Board, its Committees and
operational management, which is a key foundation of the Company’s strong governance.
More information can be found on pages 75-77
Non-executive Directors (NEDs)
Directors to account.
The Chief Executive Officer (CEO)
The CEO is responsible for implementing the strategy and for
managing the day-to-day operations of the business. The CEO
ensures appropriate delegation of responsibilities to the
implemented. The CEO plays a key role in devising strategies for
review by the Board and is responsible for updating the Board
on operations of the business.
The Chief Financial Officer (CFO)
The CFO is responsible for managing the Group’s financial
affairs and supporting the CEO in the implementation and
Company’s relationships with the investment community.
General Counsel and Company Secretary
The General Counsel and Company Secretary is responsible for
advising the Board on all governance, compliance and legal
matters. The General Counsel and Company Secretary supports
ensure that they have access to the necessary resources and
information to operate as a Board effectively and efficiently.
Strategic report Governance Financial statements Shareholder information
Meetings of the Board
and its Committees
Governance report
Independence
The Board ensures that at least half of its members,
Directors.
The Chair of the Board was assessed to be
independent on appointment. The key reasons for this
determination were that, although the Chairman served
parent company prior to its demerger, he was never
employed by the Wickes Group and stepped down from
the parent company board at the point of demerger.
The Chairman has no cross-directorships so is unable
to dominate decision making by the Board and has
Relationships and circumstances which could affect
the independence of any Director are reviewed annually
Meetings
The Board normally has eight formal meetings
scheduled each year and an annual off-site strategy
day. Additional meetings are held to consider time-
sensitive matters as required. From listing on 28 April
meetings and a strategy day.
Agenda items are structured to ensure appropriate time
is spent on key areas of focus for the Board and that it
has sufficient time to properly consider and reach
decisions. A programme of work and priorities is
agreed with the Board each year which forms the
matters and matters of particular concern or interest
incorporated as required. The activities carried out
The Board values the opportunity to meet colleagues
from across the business and regularly holds meetings
at stores and distribution centres. During the year,
meetings were held at the recently refitted Dunstable
store and the Store Delivery Centre and the Board
received presentations from colleagues at those sites
specific to their areas of the business.
Board meeting and at other times as required.
The Chairman and the Chairs of each Committee
Chairman) meet from time to time and specifically on
an annual basis to assess the Chairman’s performance.
The number of times the Board and its Committees
met during the year is set out above. Directors are
meetings. All meetings were held in person and there
was full attendance by all members at all meetings
during the year.
In the event of a Director being unable to attend a Board or
Committee meeting, a process has been agreed for the
Chair of the respective meeting to discuss the matters
proposed with the Director concerned in advance, seeking
their support and feedback accordingly. The Chair will
then represent those views at the meeting.
25.7%
Governance and
stakeholder matters
21.2%
Strategy
25.9%
Operations
27.2%
Financial performance and risk
33.33%
Executive Directors:
Julie Wirth,
David Wood
16.67%
Chairman:
Christopher Rogers
50%
Independent NEDs:
Sonita Alleyne,
Mark Clare (SID),
Mike Iddon
External appointments
Before appointment to the Board, all Directors are required
estimated associated time commitment. The competing
demands on candidates’ time are carefully considered in
the selection process. Appointment letters set out the
are set out in the biographical details on page 69.
Policy and process in place for the consideration and,
appointments to ensure that each Director continues to
appointments were made during the year.
Governance support
All Directors have direct access to the General Counsel
and Company Secretary for advice on governance
matters. Directors may also seek independent
furtherance of their duties and there is an Independent
Professional Advice Policy in place which sets out the
procedure. No such requests were made during the year.
Board activities Board independence
Formal meetings of the Board and its Committees from the Company’s listing on 28 April 2021 to 1 January 2022*
Plc Board
Audit and Risk
Committee
Nominations
Committee
Remuneration
Committee
Responsible
Business
Committee
Christopher Rogers 6/6 n/a 2/2 4/4 3/3
David Wood 6/6 n/a n/a n/a n/a
Julie Wirth 6/6 n/a n/a n/a n/a
Mark Clare 6/6 3/3 2/2 4/4 3/3
Sonita Alleyne 6/6 3/3 2/2 4/4 3/3
Mike Iddon 6/6 3/3 2/2 4/4 3/3
Note: Christopher Rogers attends all Audit and Risk Committee meetings. David Wood attends all Audit and Risk and Responsible Business
Committee meetings and attends Nominations and Remuneration Committee meetings as required. Julie Wirth attends all Audit and Risk
Committee meetings and Remuneration Committee meetings as required
* Two Board meetings and a Remuneration Committee meeting were held after the Directors were appointed to the Company but before the Company was
listed. There was full attendance at these meetings. Alan Williams and Robin Miller (on behalf of TP Directors Limited) attended the Board meeting on
23 March 2021 and the resignations of Alan Williams and TP Directors Limited as Directors of the Company were accepted at that meeting
73Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
Stakeholder key:
COLLEAGUES
CUSTOMERS
SUPPLIERS AND LANDLORDS
SHAREHOLDERS
COMMUNITIES
GOVERNMENT AND REGULATORS
74 Wickes Group Plc Annual Report and Accounts 2021
Business performance Financial performance Governance
KEY ACTIVITIES
CEO report
The CEO led discussions at each meeting of the Board covering all aspects of
performance and progress on key initiatives including market developments;
colleague feedback and engagement; customer insight; marketing initiatives;
commercial and supplier activity; supply chain and availability challenges;
Safety updates
The Board considered reports on safety performance at every meeting along
with deep dives at two of its meetings to evaluate progress and provide
insight and challenge.
KEY ACTIVITIES
CFO report
The CFO led discussions at every meeting on financial performance including
risks and opportunities and the financial impacts of the pandemic.
Results
Following recommendations from the Audit and Risk Committee, the Board
reviewed and approved the half year results announcement and
presentations.
Budget and financial plans
The Board considered performance against the 2021 budget and the budget
Investor relations
The Board received updates on investor relations activities and plans and
feedback from investor engagement at every meeting.
Treasury and tax
KEY ACTIVITIES
Policies and statements
The Board approved updates to Group policies including the Gifts &
Hospitality Policy and Health & Safety Policy and approved the Group’s
Modern Slavery Statement.
Reports and updates
The Board received reports on regulatory compliance and progress updates
on the actions arising from the Financial Position and Prospects Procedures
(FPPP) work carried out as part of the process for admission.
Board evaluation
The Board reviewed and discussed the findings from its performance
evaluation and agreed actions to improve the effectiveness of the Board and
Planning
The Board reviewed the forward schedule of activities at every meeting and
discussed options for future operational site visits.
Risk
Strategy Material contracts & arrangements
KEY ACTIVITIES
Risk appetite
The Board received and discussed the results of surveys undertaken on risk
appetite and set the Group’s risk appetite.
Risk management
The Board considered its approach to risk management and agreed that the
oversight of this would be delegated to the Audit and Risk Committee.
KEY ACTIVITIES
Strategic deep dives
Board member to provide the Board with an in-depth knowledge of the operations,
strategy and plans for key areas of the business for review and challenge including:
customer insight and digital transformation; technology; store operations;
commercial; property; distribution; and early careers programmes.
Strategy review
The Board spent a day off-site reviewing and updating the strategy for
KEY ACTIVITIES
In line with the Matters Reserved to the Board, the Board reviewed and
approved two goods for resale contracts during the year which were material
due to their size and strategic importance; the purchase of a freehold
property; and the Group’s insurance programme.
At every meeting the Board reviewed the progress made to stand up the
Company’s own systems to replace those provided by the Travis Perkins Plc Group
under a Transitional Services Agreement for a period following the demerger.
Board activities for the yearended 1 January 2022
Governance report
and listing of the Company. At this meeting the Board approved appointments of the Directors and Company Secretary; arrangements in connection with the demerger
and listing; and required regulatory, legal and compliance policies and documents.
Strategic report Governance Financial statements Shareholder information
Nominations Committeereport
Board composition, succession
and evaluation
evaluation in the Nominations Committee report below.
Dear Shareholder,
I am pleased to present the Nominations Committee
report for the financial year ended 1 January 2022.
The demerger and listing of the business as a
standalone company has provided an opportunity to
set it up in the right way and the Board has sought to
and diversity from the start.
Review to drive improvements in diversity at all levels
and we are proud that in 2021 we met the target of
target of at least one director of colour on our Board.
Gender diversity has moved on in our business but
more still needs to be done to achieve better balance
and inclusion for female colleagues, under-
represented ethnic minorities, disabled colleagues
focus as we continue to drive diversity through our
talent pipeline.
As a Board comprising newly appointed Directors,
the Committee’s focus in this first year has been on
the medium to long term and ensuring plans are in
place to appropriately resource ongoing capability
requirements as a standalone business as deep
listing falls away.
Following her significant contribution to the
successful transition to a standalone listed
announce that Mark George has been selected
will be crucial as we continue to grow our business
and we look forward to welcoming him to Wickes.
Christopher Rogers
Chairman
24 March 2022
Committee composition
The Committee membership comprises the
and skills of Directors are set out in the biographies
attendance on page 73.
Role of the Committee
The Committee’s role is to lead the process for
appointments and ensure orderly succession plans
are in place for both Board and senior management
roles; and to oversee the development of a diverse
pipeline for succession. The Committee reviews
ensures an appropriate combination.
The responsibilities of the Committee are set out
“Inclusion and diversity, in its widest
sense, is at the forefront of our succession
planning in order to engage and retain the
highest quality talent who will drive the
business forward.”
Committee members
Christopher Rogers, Chairman and Committee Chair
Mark Clare,
Sonita Alleyne,
Mike Iddon,
Christopher Rogers
CHAIRMAN
Directors Appointment date
Tenure
(at 1 January 2022)
Christopher Rogers Chairman 23 March 2021 9 months
Mark Clare
Senior Independent Director
23 March 2021 9 months
Sonita Alleyne 23 March 2021 9 months
Mike Iddon 23 March 2021 9 months
David Wood 23 March 2021 9 months
Julie Wirth Chief Financial Officer (CFO) 23 March 2021 9 months
80%
Succession planning
12%
Board composition and skills
8%
Governance
Board composition
The Board recognises the importance of having
complementary and diverse skills and backgrounds
within its composition, enabling rich and effective
discussions and decision making. During the year,
the Committee reviewed the Board composition
its Committees have the skills needed to deliver the
Company’s strategy.
75Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
76 Wickes Group Plc Annual Report and Accounts 2021
Nominations Committee report continued
All Directors were appointed on 23 March 2021
Company and have remained in their roles
throughout the year.
Appointments, induction and development
The process for recruiting these first Directors
involved setting rigorous criteria for each of the roles,
both in terms of technical capabilities and cultural
and style attributes. As the Board was being formed
for the first time, significant focus was also given to
getting the right balance on the Board as a whole
and this was one of the key criteria.
The CEO and CFO were already working in the
January 2019 respectively and they, along with the
Chairman, Christopher Rogers, were selected for
their roles on the Board by Travis Perkins Plc, our
parent company at the time. The appointment
Directors was led by the Chairman and supported
Open advertising was not used. Korn Ferry, which
has no connection to Wickes or any of its Directors,
assisted in the search and candidates were
considered against the requirements for each
Following a rigorous process, Sonita Alleyne, Mark
Clare and Mike Iddon were selected.
tailored to their individual needs, designed to facilitate
understanding of their obligations as Directors of a
employed by the business and their induction focused
on the additional requirements for leading a listed
standalone business.
The Committee also played an important role
Officer. A search process was undertaken assisted
and Chief People Officer who reviewed and
interviewed a short list of candidates, before
selecting the successful candidate. With the
has no other connection with the Company or its
individual Directors. The Committee provided
guidance to and received reports from the Chief
People Officer on the progress of the recruitment for
this role and the Remuneration Committee approved
the remuneration arrangements.
Succession planning
The Board recognises that effective succession
delivering our strategy. The Board is also committed
to recognising and developing talent within
management levels across the business, creating
opportunities to develop current and future leaders.
During the year the Committee reviewed in detail,
leadership roles in the short, medium and long term.
The Committee is focused on ensuring there is a
robust pipeline of talent and that these high-potential
colleagues are developed and supported to prepare
them for leadership roles. Diversity of gender, social
and ethnic backgrounds, cognitive and personal
strengths were considered carefully to ensure the
pipeline is strengthened with appropriate skills and
perspectives. Areas for development for succession
candidates to key leadership roles have been identified
and opportunities for them to present to and engage
with the Board have been identified and planned for
future meetings. The Board believes that succession
plans will result in a continuously robust leadership
structure that can achieve the Company’s purpose and
ensure its long term sustainable success.
During the year, our CFO, Julie Wirth, announced her
Following a thorough and robust process, a
the business in the summer of 2022. Details of the
process in relation to this appointment will be set out
in our 2022 Annual Report and Accounts.
Director succession and induction process
Our approach is designed to ensure a thorough and inclusive process.
Search
Long list
The agency produces a long list of candidates from a wide range of backgrounds and industries.
Short list
The Committee considers a long list and agrees a short list of candidates.
Assessment
The candidates are assessed against the specification including by interview with Board members.
Appointment
The Nominations Committee recommends the preferred candidate to the Board and
Induction
The Chairman and General Counsel and Company Secretary agree a detailed induction
Strategic report Governance Financial statements Shareholder information
on strategic oversight, Board dynamics, Board
information, Board composition, risk management
and controls and stakeholder engagement.
It was acknowledged that it was early days since the
Company’s listing in April 2021 but overall there was a
high level of satisfaction with the effectiveness of the
Board and its Committees. Key actions were agreed
as follows:
– The forward agenda would be updated to
incorporate priority topics identified in the strategy
meeting and to include more focus on areas
highlighted by the Board of significant interest
– Management would review papers with a view to
making them more concise.
– The frequency of Board meetings would be
maintained at the current level but this would be
completed a full annual cycle.
– Additional training would be arranged for Board
members with a focus on ESG and digital topics.
The evaluation concluded that as a newly formed
Board, the structure was effective and no changes
were currently required to its composition.
consideration of why their contribution is and
continues to be important to the Company’s long
term sustainable success, Directors are approved
by the Board for election or re-election annually by
shareholders at the Company’s AGM. Directors do
not participate in discussions involving their own
reappointment.
The Chairman reviewed the performance of individual
Directors taking into account feedback from the other
development needs with each Director. The Senior
Independent Director reviewed the performance of
the Chairman in consultation with the other Directors
and provided the Chairman with feedback. The Board
effectively to the Board and all Directors will submit
themselves for election at the forthcoming AGM.
the business replacing Julie Wirth in the summer of
2022, the female representation on the Board will fall
below target. The Board is committed to having diverse
leadership and the Nominations Committee will be
reviewing Board composition during 2022 and will set
out a plan to increase the diversity of the Board.
five male members representing a gender split of
The Board places great importance on fostering
representative of the communities in which we
operate and this is supported by the Company’s
Inclusion and Diversity Policy. The Board,
receive regular updates on the progress of inclusion
and diversity initiatives and feedback from colleagues
to monitor progress towards our aim of ensuring all
colleagues have an opportunity to get on and feel at
Company’s approach to inclusion and diversity on
page 32.
Board evaluation
The Code requires the Board to undertake a
formal and rigorous annual evaluation of its own
performance and that of its Committees and
individual Directors. The evaluation should be
As the whole Board was appointed in March 2021, it
evaluation process this year and greater value is
The Board undertook the evaluation of its own
performance and that of its Committees and
individual Directors. The Chairman led the internal
evaluation, supported by the General Counsel and
Company Secretary, using a questionnaire to capture
the views of each Director. The evaluation was
structured to bring about debate on relevant issues
and identify potential improvements and focused
41.5%
Female
58.5%
Male
37.5%
Female
62.5%
Male
12.5%
Other Ethnic Group
87.5%
White British
33.3%
Female
66.7%
Male
16.7%
Black - Caribbean
83.3%
White British
Plc Board
Gender identity and ethnicity
Executive Board
Gender identity and ethnicity
Direct reports of the Executive Board
Gender identity
not participate in discussions concerning their own
succession plans. Given the short tenure of the
held in the year.
Inclusion and diversity
The Board believes an inclusive culture is a key driver of
business success. It is committed to having inclusive
and diverse leadership which provides a range of
perspectives, insights and the challenge needed to
support good decision making. The Board strongly
supports diversity in its broadest sense in
Board membership reflects a range of skills,
facilitates a broad evaluation of matters considered by
the Board and contributes to a culture of collaborative
and constructive discussion.
As at the financial year ended 1 January 2022, the
and the balance of gender on the Board met the
77Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
78 Wickes Group Plc Annual Report and Accounts 2021
Committee members
Mike Iddon, Committee Chair and Independent
Mark Clare,
Sonita Alleyne,
Mike Iddon
AUDIT AND RISK COMMITTEE CHAIR
Dear Shareholder,
I am delighted to present the Company’s Audit
ended 1 January 2022.
In its first year of operation from the listing of the
Company in April 2021, the Committee met three times
and has had the rare opportunity to create from the
challenge, open discussion and transparent reporting.
Early disclosure and discussion of potential issues was
agreed to be the best approach, allowing the
Committee to challenge and support management and
work collaboratively to reach the optimum results.
prospectus and the Financial Position and Prospects
Procedures (FPPP) action plan that was produced as
a result enabled the Committee to understand the
strengths and weaknesses and review mitigating
factors put in place to give the Board assurance that
the business’s internal controls and risk
management frameworks are sufficiently robust.
The work undertaken throughout the year on the
development of internal processes and controls was
a specific priority for the Committee. The demerger
process identified a number of control
improvements and significant progress has
still needs to be done to achieve a fully effective
control environment to reduce the reliance on
compensatory procedures.
The establishment of the Group’s Risk Register was
discussed, challenged and developed and as a result
the progress made in this regard has been pleasing.
We will continue to develop and refine our approach
to risk throughout the coming year, mindful of the
ever changing landscape of risk and opportunities.
The Committee spent significant time assessing the
accounting policies and procedures adopted by
management and particular attention was given to
the calculation of impairments on store related
assets. The Committee also spent time ensuring that
impairment policies were acceptable and
appropriate, with assurance from both internal and
Committee in the pages that follow.
Much progress has been made to strengthen controls,
with many improvements implemented during the
year. However, there is more work to be done and this
area will remain a key priority for the Committee in
2022, particularly in light of the implementation of a
new finance system which will result in more effective
and efficient monitoring and reporting. In addition, the
Committee will continue to monitor and challenge the
successful completion by the required deadline in
2023. I am confident that the transparent and
collaborative ways of working that have been
established this year will stand us in good stead for
Mike Iddon
Audit and Risk Committee Chair
24 March 2022
Committee composition
The Committee membership comprises three
the Committee Chair having recent and relevant
competence in the retail sector. Details of the
Role of the Committee
The main roles and responsibilities of the Committee
are set out in the Committee Terms of Reference
which are available on the Company’s website at
www.wickesplc.co.uk and include the following:
– Monitoring the integrity of the financial statements;
formal announcements and reviewing significant
– Advising the Board on whether the Annual
Report and Accounts, taken as a whole, is fair
balanced and understandable
– Reviewing the Company’s internal financial
controls and internal control and risk
management systems
– Monitoring and reviewing annually the
effectiveness of the internal audit function
– Making recommendations to the Board regarding
the appointment, reappointment and removal of the
and terms of engagement of the same
– Reviewing and monitoring the independence
–
– Developing and implementing policy on the
Audit, risk and internal control
“The Committee made transparency and
openness its bedrock at the outset. An
effective Committee can only operate
on full disclosure and constructive
relationships between all stakeholders.”
Audit and Risk Committee report
Strategic report Governance Financial statements Shareholder information
Operation of the Committee
The Committee Chair meets with the internal and
each Committee meeting to discuss any relevant
matters. The Committee receives reports and updates
meetings; along with reports on any non-audit services
provided and how these meet our Non-audit fees
Policy. The Committee Chair meets with both the
meetings in preparation and to discuss any areas
Proportion of time spent by the Committee
17.5%
Controls
13.8%
Internal Audit
6.3%
Governance
17.5%
Risk
15.0%
Finance Reporting
30.0%
External Audit
Work of the Committee
In its first year of operation the Committee focused on
oversight and review of the establishment of the Risk
risks; and a detailed review and assurance process in
relation to the first set of half year financial results and
The Committee reviewed the half year financial
results in detail along with the accounting policies
adopted and alternative performance measures
employed (you can find more detail on these in
auditors was key in this process and the Committee
was able to take assurance that procedures
Oversight of the planning and preparation of the year
end financial statements was also undertaken in the
latter part of the year to ensure the Company was well
placed to report in a timely manner. Once again, input
from both sets of auditors was invaluable in fostering a
constructive and transparent approach and highlighting
Risk appetite was ascertained early on in the process
and this enabled the Board to take assurance from
the actions being taken for any risks falling outside
of appetite. More information on risk management
can be found on the following pages and the
principal risks and uncertainties for the Group
The Committee monitored the internal audit plan and
process, ensuring that management had the required
resources to fully support and engage with the
internal audit teams and to carry out any follow
discussed and assurances from management sought
where audits might prove challenging against other
demands. The Committee received reports for each
internal audit undertaken, reviewing the findings and
actions identified. The Committee ensured that
Another area of focus for the Committee was the
undertaken as part of the listing process. The
of actions and was therefore able to provide the
The process of separation from Travis Perkins
a large number of areas of the Group’s day-to-
A number of functions are still performed by or
dependent on Travis Perkins’ systems and the
There are a number of factors that could impact the
process could impact both the Group’s short term
profitability and longer term successful trading as
During the year management regularly reported on
identified and the steps taken to resolve those issues.
The Committee reviewed and discussed the
information presented about its impact on the costs
incurred to enact the separation and the accounting
treatment of these costs, particularly relating to
from the information it had received and its discussions
for and disclosure of separation costs is appropriate.
The Committee also viewed progress reports on
areas of the day-to-day operations of the business
that had previously been accounted for by Travis
Perkins and were therefore particularly impacted by
the separation, including Accounts Payable and
Rebates. The Committee concluded that the areas
impacted by the demerger had been appropriately
addressed and that sufficient controls had been put
in place and procedures performed to ensure that
the balances affected are reasonably stated in the
financial statements.
In addition to those reports mentioned above and
Committee received reports on the financial controls
framework; the procedures in place to prevent and
manage fraud; and regularly monitored contractor
and consultancy spend.
Significant audit issues considered during the year
year ended 1 January 2022 that were considered by the
Committee. This is not a complete list of all accounting
issues, estimates and policies, but includes those
which the Committee believes are the most significant.
In reaching its conclusions, set out in more detail below,
sought clarification where necessary. It reviewed and
discussed internal audit reports in respect of the matters
under consideration and the Committee also received a
to arrive at the conclusions set out in their audit report
on pages 103 to 109 and had the opportunity to discuss
it with them in depth.
79Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
80 Wickes Group Plc Annual Report and Accounts 2021
Area: The carrying value of non-current assets
Issue and nature of judgement
The Group balance sheet contains £604.6 million
possible impairment. They do so by comparing the
present value of future cash flows for each cash
generating unit (CGU) with the carrying value of
assets. CGUs are determined to be individual stores:
all stores’ profitability is considered when
considering which stores show indicators of
impairment, and full impairment analysis performed
on those stores that are considered to show
In addition, the Company balance sheet contains
£770.8 million of investments. The Directors
compare the net present values of future cash flows
from each investment to the carrying value of the
The calculations undertaken to help arrive at a
conclusion incorporate a consideration of the risks
associated with each CGU and are based upon
forecasts of their long term future cash flows, which
The cash flow forecasts used for impairment
considerations are prepared taking into
consideration the historic financial performance, the
and approved by the Board of Directors annually.
Factors considered and conclusions reached
Management presented the Committee with papers
setting out the results of the work performed, the
methodology used, the assumptions made and the
how the cash flow and discount rate calculations were
prepared, how individual stores were determined to be
potentially impaired, the key assumptions and
After reviewing these papers and obtaining further
that management’s final position, after appropriate
challenge and review, reached a balanced and
reasonable conclusion regarding the impairment charge
Area: Revenue recognition in respect of Do It For
Me (DIFM) revenue
The Group recognised £300.2m of revenue in the
financial year in respect of DIFM revenue, and carried
deferred DIFM revenue as a liability on its balance
sheet where orders had been paid in advance but
either fully or partially undelivered at the period end.
This revenue represents a large number of individual
transactions and the recognition of revenue is driven
from a number of different systems, including the
product delivery system and the ordering system in
addition to the data automatically posted into the
finance system, with each system showing some
timing differences on the point of completion of
individual orders. Management therefore maintain a
separate order book to track the revenue that should
actually be recognised in the period.
Factors considered and conclusion reached
Management performed a significant amount of
analysis and reconciliation to compare revenue
recognised by each system, determine how the
timing differences arise and propose appropriate
Management reported to the Committee on the
and presented final papers to the Committee setting
to the reported revenue reached.
The Committee reviewed and discussed the
information presented and also received a report
arrive at the conclusions set out in their audit report
and discussed the process with them.
After reviewing these papers and obtaining further
concluded that the process of review and
resulted in an accurate revenue and deferred revenue
number being reported in the financial statements.
External audit
The Company’s auditor at the date of this report
28 May 2021 by the Board. Resolutions will be
proposed at the AGM to reappoint KPMG LLP as the
Company’s auditor and to authorise the Audit & Risk
Committee to set the auditor’s remuneration.
KPMG LLP was appointed under a competitive audit
tender whilst the Company was part of Travis Perkins
Plc Group in 2015. The Company became a public
interest entity (PIE) in April 2021 as a result of the
demerger from Travis Perkins Plc. Therefore, under
Audit Services for Large Companies Market
Investigation (Mandatory Use of Competitive Tender
Processes and Audit & Risk Committee
complies with the Companies Act 2006 which
requires a tender for PIEs after ten years.
Auditor rotation is required 20 years from the date of
the Company becoming a PIE and therefore this will
be due in 2041. The Committee currently has no plans
to undertake a tender earlier than 2025, but will keep
this under review.
The Committee considered the performance,
effectiveness and independence of KPMG LLP at its
first meeting (taking into consideration the previous
Group) and established that whilst the firm was also
involved in audits for the former parent company, the
Company’s Audit Partner was not the registered
auditor of the former parent company and would
have no involvement or connection going forward.
The relatively new relationship with the Audit Partner
at the firm and the short time for which the firm
would have been working specifically with the
would safeguard the independence of the auditor,
provision (more detail on which is provided below).
The Committee and the Board concluded that it
would be in the best interests of the Company to
continue with KPMG LLP as auditor since the
knowledge of the business would be invaluable in
ensuring an effective and robust audit.
The Company is in compliance with the requirements
of the CMA order.
Non-audit services
The Committee reviewed and approved the Policy
designed to ensure the ongoing independence and
permitted and prohibited services for which it may be
engaged. Approval limits and a cap on allowable
non-audit fees were also set out and the Committee
received reports and monitored these fees at each of its
meetings. For the financial year ended 1 January 2022
the total fees for non-audit services provided by the
paid to the auditor in relation to Reporting Accountant
services in respect of the demerger of the Group, which
were agreed by Travis Perkins prior to separation, have
ratio when assessing the Company’s compliance with
page 120 of the notes to the financial statements.
Audit and Risk Committee report continued
Strategic report Governance Financial statements Shareholder information
Internal audit
to independent review and challenge, specifically
through the work of an internal audit function.
Historically, internal independent assurance was
provided by Travis Perkins Plc’s internal audit
function. Since the demerger from Travis Perkins
and to assist the business in a seamless transition,
BDO LLP has provided internal audit services to the
Group in accordance with an annually agreed
Internal Audit Charter and Internal Audit Plan.
The Committee reviews the Internal Audit Plan at least
annually and considers whether it is aligned to the key
risks of the Group, providing the Committee with
sufficient assurance for it to discharge its responsibilities.
The Committee is also responsible for making
recommendations on the appointment, reappointment
and removal of the internal audit provider, as well as
determining if an outsourced model provides the best
mechanism for the business to obtain independent
assurance on the design and operational effectiveness
of internal control, governance and risk processes. It is
the Committee’s current assessment that an outsourced
internal audit approach provides the best strategic fit
for the business’s current assurance requirements.
The outsourced internal audit function undertakes audit
work in relation to our accounting and support office
functions, including testing of general IT controls as
defined within the annual plan. The Committee is
responsible for ensuring the scope of internal audit work
is appropriate and that findings are considered and
actioned appropriately. The Committee receives regular
updates from internal audit throughout the year on the
status of work and the findings arising. The
scope of the internal audit work undertaken is designed
to provide coverage of our key controls on a rotational
basis and be complementary to management’s
auditor. In addition, through considering the key controls
across the principal financial cycles, the work of internal
audit provides the Committee with an independent view
on the adequacy and effectiveness of internal controls.
The Committee will formally assess the effectiveness
of internal audit annually and will seek to satisfy itself
function is appropriate for the Group. This assessment
will involve both Committee members and members
the Committee. This assessment will include a
overall level of fees; the quality of the risk assurance
the broader sources of risk assurance.
Risk management and internal control
Risks are managed at Group level or within the business
on an ongoing basis. Details of risks faced by the Group
are maintained in Group risk registers. Key risks are
regularly collated and reviewed by management and the
Board to assess the potential impact and likelihood of
occurrence, after taking into account key controls and
mitigating factors, as well as interdependencies.
Additional mitigating actions are put in place as required
to manage risks to an acceptable level.
The Group’s approach to risk management began to be
developed as an independent entity on demerger in April
2021 and will continue to be refined throughout 2022.
The principal risks and uncertainties are set out on pages
60 to 64, together with information on how those risks are
mitigated and how emerging risks are assessed.
The 2020 audit and demerger process identified a
number of control improvements that would enable the
business to support the transition to listed status and
strengthen the overall control environment.
The Committee acknowledges that the control
and confirms that while significant steps have been
taken in the year, there remains work to be done to
present a fully effective control environment to reduce
the reliance on compensatory procedures.
Since the inception of the Committee, a series of
documents have been presented setting out the
improvements being made to internal controls, the
deficiencies identified, and the steps being taken to
address these.
These documents include:
– The Remediation Plan prepared by management
and BDO as part of the FPPP review at demerger,
and the steps taken to improve the control
environment in response to these findings
Internal audit reports on:
– Supplier Contracts and Supplier Management
– Revenue Recognition
– Inventory Management
These form part of an ongoing internal audit
programme supported by our appointed partner BDO.
– Data analysis advisory reports on areas of control
focus in the business, most significantly in relation
to Goods Received Not Invoiced
–
Committee
All issues from the original 2021 Remediation Plan
have been addressed. Management have reported to
the Committee regularly on progress made against
these findings and are also drafting a follow up 2022
Remediation Plan to address control improvements
management’s own review of the control environment.
Key areas in the 2022 remediation plan where
control improvement will be a focus include:
– The end to end process around revenue
recognition for Do-it-for-me, including the
automated postings into the finance system from
other operational systems in the business
– The controls and processes around impairment
– The end to end process around accounts payable,
including Goods in Transit and Goods Received
Not Invoiced
– The reconciliation of finance debtors and follow
The replacement of the finance system as part of the
IT separation activity, together with a number of
other operational IT systems across the business,
provide a further opportunity to continue to improve,
strengthen and embed processes and controls
around all key business cycles.
The Committee concluded that the control
procedures and reviews, worked effectively during
the year, while noting that the control environment
will continue to evolve and improve.
81Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
82 Wickes Group Plc Annual Report and Accounts 2021
Responsible Business Committee
Dear Shareholder,
I am proud to present the Responsible Business
Committee’s report for the financial year ended
1 January 2022.
I was personally delighted to be invited to chair this
Committee which, being set up from the start of the
demonstrates the importance the Company places
on ESG (environmental, social and governance)
matters and how serious it is about taking a
leadership position in this area. It has been
particularly pleasing to see the commitment and
motivation for change and continued development
that colleagues and leaders throughout the business
have demonstrated.
Being a responsible business encompasses
everything we do. Wickes has a passion for people,
inclusion and diversity, and for taking responsibility
for its impact on the communities and environments
in which it operates. Underpinning this is the
recognition that all actions must be taken with
consideration; and be measurable and demonstrable
in order to ascertain the level of success.
Understanding our baseline and the development of
our Responsible Business Strategy has been the
main focus for the Committee throughout the year
and this prompted the reconsideration of the
Committee’s name and the title of the strategy itself.
Whilst the Committee started its life as the ESG
Committee, it was felt that given the breadth of work
across the business and in order to better describe
the motivation behind that work, both the strategy
and the Committee should be renamed.
More information on our Responsible Business
Strategy and work is set out on pages 28 to 48.
Wickes is committed to making a positive impact
and the Committee plays a key role in setting the
ambition and monitoring progress against our
Responsible Business Strategy. In the short time
since demerging and becoming a standalone listed
company we have achieved a great deal and I look
forward with anticipation and optimism for what we
can achieve in 2022.
Sonita Alleyne
Responsible Business Committee Chair
24 March 2022
Responsible Business Committee
Responsible Business Committee
“Wickes passionately believes in the
positive impact we can have to help
create a diverse and inclusive society, an
generation, and homes that are fit for a
sustainable future for everyone.”
Committee members
Sonita Alleyne, Committee Chair and Independent
Christopher Rogers, Chairman
Mark Clare,
Mike Iddon,
Sonita Alleyne
COMMITTEE CHAIR
Committee composition
The Committee membership comprises the
Role of the Committee
The Committee’s role and responsibilities are set
and include:
– overseeing the Group’s conduct with regard to its
ESG obligations as a responsible corporate citizen
– reviewing and approving the strategy for managing
the Group’s ESG responsibilities in such a way to
build trust and confidence
– reviewing and monitoring the Company’s climate
change disclosures
– monitoring performance and reviewing progress
of the Responsible Business Strategy against
agreed performance measures
– reviewing and approving the creation of appropriate
policies and supporting measures to protect the
Group’s reputation
– monitoring the Group’s engagement with its
stakeholders
Proportion of time spent by the Committee
10%
Governance
90%
Strategy
Work of the Committee
The Committee took the time at its first meeting to
from an ESG perspective and to gauge the ambition
and capabilities of the Company. Much work was
already underway to address environmental and
social issues but this needed to be brought under one
strategy to maintain focus, enable prioritisation of key
deliverables and create sustainable long term success
and value for the business and its stakeholders.
The Committee discusses stakeholders’ views on
ESG at each meeting. Whilst investors are looking for
sustainability and value creation, colleagues want
matters and is committed to reducing its impact
sustainably and buy products and services that have
less impact on the environment, whilst maintaining
quality and value. Suppliers want long term
partnerships to give stability and growth opportunities.
The collation of measurable data was a key priority
and one which the Committee will continue to focus
on into 2022. Getting robust data helps us to fully
understand what needs to be done in our own
business and our supply chains which will help
The Committee monitored the development
understand the challenges and opportunities in
these areas.
During the year, the Committee approved the
Company’s Environment Policy and this will be
updated further in 2022 to reflect our evolving
Responsible Business Strategy.
The Committee was tasked with developing ESG
incentives and it spent considerable time ensuring
on and would enable challenging and measurable
targets to be set in the future. More information on
these targets is set out in the Directors’ Remuneration
report on pages 83 to 98.
More information on our Responsible Business
Strategy and work is set out on pages 28 to 48.
Strategic report Governance Financial statements Shareholder information
Chair’s statement
Remuneration report
Dear Shareholder,
I am pleased to present the 2022 Directors’
Remuneration report for Wickes Group Plc, our
Designing our remuneration policy
Prior to the demerger of Wickes from Travis Perkins in
determine the most appropriate executive remuneration
account UK market practice and governance norms, our
plan measures and targets (see page 86), and as such
Rewards and benefits across the Group in 2021
The Group continued to protect and support colleagues
Mark Clare
COMMITTEE CHAIR
Committee members
Mark Clare, Senior Independent Non-executive
Christopher Rogers, Chairman
Sonita Alleyne, Independent Non-executive
Director
Mike Iddon, Independent Non-executive Director
Quick links to key
sections
87
91 Annual Report on Remuneration
96 Director remuneration in the context
98
The Group delivered strong financial
99%
OF ELIGIBLE COLLEAGUES RECEIVED AN ANNUAL
BONUS UNDER THE 2021 CENTRAL PLAN (BONUS
PAYOUT: 100% OF MAX)
£3.9m
PAID TO OUR STORE-BASED COLLEAGUES IN 2021
UNDER THE MONTHLY GAINSHARE INCENTIVE
882k
FREE SHARES AWARDED TO COLLEAGUES IN JULY
8,145
COLLEAGUES AWARDED £50 RETAIL VOUCHERS
£1m
RAISED FOR YOUNG MINDS.
Community in 2021
regional and national groups, including schools and
83Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
Executive Remuneration in 2021
Annual bonus outturn
2021 annual bonus ESG measures
Profit
79% of max
90% of max
100% of max
0 % of max
Cash TotalESG
Creation and
approval of the
inclusion and
diversity strategy
Establish a
consistent and
accurate people
data set
Creation and
approval of the
environment
strategy
Establish a
consistent and
accurate
environmental
84 Wickes Group Plc Annual Report and Accounts 2021
Chair’s statement continued
Group performance highlights for 2021
Group delivered strong financial performance in
14.0%
REVENUE GROWTH COMPARED
WITH 2020 (2020: 1,346.9M)
£116.3m
ADJUSTED OPERATING PROFIT
(2020: £81.6M)
£618.7m*
NET DEBT (2020: £783.5M)
27.2p
ADJUSTED BASIC EARNINGS PER SHARE (2020: 16.1P)
We recorded strong customer retention levels and
As part of the demerger and transition to an
c.5m
DIGITAL CUSTOMERS
630k+
TRADE PRO MEMBERS
(OVER 80,000 NEW MEMBERS IN 2021)
Shareholder experience in 2021
Reflecting our strong performance and confidence in
Strategic report Governance Financial statements Shareholder information
Executive Remuneration in 2021
Our approach to remuneration in 2021
Elements of pay Fixed pay Annual bonus LTIP Shareholding guidelines
Policy elements
and timeframe
period
period
actual holding at
cessation and
Implementation
for FY22
from 1 April 2022
upon joining)
Maximum LTIP:
LTIP and Transitional Award grants
2021 LTIP award
30
%
Relative TSR
70
%
Earnings Growth
Management changes
Mark Clare
85Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
86 Wickes Group Plc Annual Report and Accounts 2021
Key Performance Indicator Measure
Annual Bonus
scheme
Long Term
Incentive
Profit
Profit Before Tax (adjusted)*
Earnings growth
Cash
Share price growth Total Shareholder Return (relative)
ESG objectives People
Our remuneration philosophy
recognise that due to the nature of the role of our
a higher performance related element and greater
Alignment between the remuneration
policy and Wickes strategy
alignment
Provide competitive,
transparent and
fair
of short and long
term financial
objectives,
Support the
to risk, ensuring that
any are identified
and mitigated
Align the interests
of employees and
Shareholders through
We aim to set pay at a market
competitive level
across the business, and fairly
recognise and reward colleagues
for their individual contribution
incentive plan
Bonuses for senior leadership are
based on profit and cash – two of
Wickes’ key financial performance
indicators
Our incentives are based on realistic
but stretching performance targets
Wickes SAYE enables all colleagues
to participate in our success
(
Strategic report Governance Financial statements Shareholder information
Directors’ Remuneration Policy
Executive Director Remuneration Policy Table
Base salary
Purpose and alignment to business strategy Opportunity
To provide fixed remuneration that will attract and retain the
executive talent required to execute our strategy.
There is no maximum salary, or maximum salary increase level.
Salary increases will generally be in line with increases awarded to
the wider workforce. However, as with all employees, the Committee
may make increases above this level in specific circumstances such
as; stepped or one-off increases to bring a recently appointed
executive’s salary up to targeted / market levels; an increase in the
scope or responsibilities of the role; an increase to the size/
complexity of the business; increases in market pay levels.
Base salary levels are reviewed in the context of the potential value
of the total remuneration package.
Operation Performance measurement
Salary levels are generally reviewed annually with any increases
typically taking effect from 1 April. Base salary levels are reviewed
with reference to the skills, performance, and experience of the
executive and periodic review of the external market rate for similar
roles in companies of a similar size and complexity (including
sector peers and FTSE listed general industry peers).
Recent business and individual performance will be taken into
consideration when reviewing base salary levels.
Pension
Purpose and alignment to business strategy Opportunity
To enable executives to save for their retirement and to enhance
the market competitiveness of the total remuneration package.
The maximum pension provision will be in line with the maximum
rate available to the wider workforce, currently up to 10% of base
salary per annum.
Operation Performance measurement
Pension comprises a contribution into the Wickes Retirement
Savings Plan or a cash allowance in lieu of pension
contributions (or a mix of both).
N/A
Benefits
Purpose and alignment to business strategy Opportunity
To enable the executives to perform their role by providing
benefits that enhance their wellbeing.
There is no maximum benefits value. The value of benefits is equal
to the cost to the Company of providing benefits and may change
year on year based on the cost of the provider. However, the
Company will endeavour to select the best value benefits.
Operation Performance measurement
Benefits include family private medical, life assurance, income
protection, and company car or allowance. Other benefits,
including relocation allowances may be provided as appropriate.
There is no performance assessment when determining
Annual bonus
Purpose and alignment to business strategy Opportunity
To reward achievement of stretching annual performance targets
that are directly linked to delivery of the business strategy.
Deferral of one third of the bonus into Wickes Group shares
aligns Executive Directors with Shareholder interests over the
long term.
The maximum opportunity for the Chief Executive Officer is 140%
of salary and 120% of salary for other Executive Directors. For on
target bonus performance 50% of the maximum bonus will be
earned. For achievement of threshold performance 20% of the
maximum will be earned. There is a straight line payout between
these points.
Operation Performance measurement
A minimum of one third of the bonus earned is deferred into
Wickes Group shares for a period of three years. The remainder
of the bonus is delivered in cash.
The Committee may use its discretion to amend the bonus
payout level (see page 89).
Malus and clawback terms apply (see page 88).
Performance measures weightings and targets are set each year with
reference to the business strategy. Measures may include financial
and non financial goals, including personal objectives. The overall
bonus will be weighted with at least 70% set on financial performance.
Details of measures and weightings will typically be disclosed in
advance. Target ranges will be disclosed on a retrospective basis
alongside actual performance.
Long-term incentives
Purpose and alignment to business strategy Opportunity
To incentivise and reward long term Shareholder value creation.
Enables Executive Directors to build meaningful long term Wickes
Group shareholdings, and further align the interests of the
Executive Directors with Shareholders.
The maximum annual LTIP opportunity under the rules of the plan
is 200% of base salary.
The ongoing LTIP opportunity for the Chief Executive Officer is
175% of salary and for the Chief Financial Officer it is 150% of
salary. 20% of the maximum award will be earned for achievement
of threshold performance and 100% for maximum. There will be a
straight line payout between these points.
Operation Performance measurement
Performance is assessed over a minimum of three years.
The vested shares (net of tax and National Insurance) will be
held for a further two years, during which time they may not
ordinarily be sold.
The Committee may use its discretion to amend the LTIP
vesting level (see page 89).
Malus and clawback terms apply (see page 88).
Performance measures, weightings and targets are set each year with
reference to the business strategy.
Details of measures, weightings and targets will typically be disclosed
in advance.
This section sets out the proposed Directors’ Remuneration Policy for the Board.
87Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
88 Wickes Group Plc Annual Report and Accounts 2021
Employment shareholding guidelines and post-cessation shareholding guidelines
Purpose and alignment to business strategy Opportunity
To encourage Executive Directors to build meaningful
shareholdings and to align Executive Director interests with
those of Shareholders both during their service and for a
During their employment, Executive Directors are expected to
retain at least 50% of post tax shares acquired from Company
share plans to accumulate a shareholding in Wickes Group shares
of 200% of salary within 5 full years of this policy being approved.
Post-cessation of employment, Executive Directors are required to
hold the lower of 100% of their actual holding at cessation and
200% of salary for two years after leaving.
Operation Performance measurement
Shares directly owned by the Executive Directors and their
spouses or partners and shares that have vested and are not
subject to further conditions count towards the guideline.
Shares held under the Deferred Annual Bonus Plan (DABP) and
shares that have vested under the LTIP but are held within the
two year holding period count towards the guideline on a net
We expect Executive Directors, upon the exercise of options,
requirements within the Company’s nominee account.
N/A
Malus and clawback (applies to all awards made
under the Deferred Annual Bonus Plan (DABP)
the case:
Serious reputational damage to Wickes Group or
Differences between the policy for Directors
The remuneration provided to Group colleagues is
Notes to the Executive Directors’ Remuneration
Policy Table
Pre-existing remuneration arrangements
terms agreed at grant, including the Transitional
Minor changes
Performance measurement
targets and take into account a range of factors
Directors’ Remuneration Policy continued
Strategic report Governance Financial statements Shareholder information
Remuneration on recruitment
Director Service Contracts/ Letters of Appointment
includes 12 months notice of cessation from the
have letters of appointment that include a three
All employee share plans
Share award terms (applies to all awards made
under the DABP and LTIP)
appropriate to amend the performance condition
In the event of a variation of the share capital,
affects the market price of shares to a material
event of a material reduction in the share price in the
Remuneration Committee discretion
that the overall performance of the Group over the
relevant performance period is not considered
0
£500
£1,000
£1,500
£2,000
£2,500
£3,000
Minimum On-target Maximum Maximum with
share price
growth
Minimum On-target Maximum Maximum with
share price
growth
£571
£1,459
£2,170
£2,614
£424
£987
£1,437
£1,718
100% 39% 26% 22%
24%
33% 27%
37%
41%
51%
100% 43% 30% 25%
23%
31% 26%
34%
39%
49%
Chief Executive Officer
Remuneration (£,000)
Chief Financial Officer
Fixed remuneration
Annual bonus LTIP
Element Description
Fixed
Target
Maximum
Maximum + 50% share
price growth
Illustration of application of remuneration policy
different scenarios:
89Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
90 Wickes Group Plc Annual Report and Accounts 2021
Clarity Simplicity Risk
performance measures,
performance measures are
performance measures are
colleagues are encouraged
Predictability Proportionality Alignment to culture
internal and external factors to
level relative to the market and
this positioning is consistent
We have sought to design
Policy on payment for loss of office
Contractual salary and benefits
Good Leaver definition
Good leaver circumstances include death, ill-health,
Annual bonus (audited)
for the period served to cessation, the value is
dependent on an assessment of performance and
Long term incentives
Post-cessation shareholding
Statement of consideration of Shareholder views
Statement of consideration of employee views
Non-executive Director Remuneration Policy Table
Chairman and Non-executive Director
fees and benefits
Purpose and alignment to business strategy
To pay market competitive fees to attract and retain non-
Executive talent.
Operation
Non-executive Directors are paid a basic fee for their Board
membership. The Chairman of the Board is paid a separate fee.
Additional fees are paid to the Chair of each Board Committee
and the Senior Independent Director.
The Directors may also be paid expenses incurred in connection
with the discharge of their responsibilities as Directors of the
Company for example, travel, hotel, and subsistence costs in
relation to attendance of Board meetings.
Directors do not participate in any incentive or pension arrangements.
Opportunity
Fees are reviewed periodically. Any increases will be determined in
the context of salary increases awarded to the wider workforce.
Fees are set within the maximum level approved by Shareholders
in the Articles of Association.
Non-executive Director letters of appointment
Non-executive Director letters of appointment
Directors’ Remuneration Policy continued
Strategic report Governance Financial statements Shareholder information
Annual Report on Remuneration
Single total figure of remuneration (audited)
Director
Salary/
Fees
1,2
£’000
Benefits
1,3
£’000
Pension
1,4
£’000
Bonus
5
£’000
Long term
incentives
6
£’000
Total fixed
remuneration
£’000
Total variable
remuneration
£’000
Total 2021
remuneration
£’000
Total
2020
Executive Director
David Wood 10
Julie Wirth 261 28 268 600
Non-executive
Director
Christopher Rogers
0 0 0 0 0
Mark Clare
66 0 0 0 0 66 0 66
Sonita Alleyne
0 0 0 0 0
Mike Iddon
0 0 0 0 0
Total current
Directors 957 23 66 879 711 1046 1590 2636
Directors of the
Company prior
Alan Williams
1 0 0 0 0 0 0 1
TP Directors
¹¹ 0 0 0 0 0 0 0 0 0
Total 1 0 0 0 0 0 0 1
Annual bonus (audited)
Measure
Weighting %
of bonus Threshold On-target Maximum Actual
%
achievement
of bonus
Discretion or
adjustment to
targets?
Adjusted operating
profit* N
Cash Flow** N
ESG N
Total outturn
Objectives and weightings Outcome
Overall
outcome (% of
bonus)
accurate people data set to set
accurate environmental data
91Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
92 Wickes Group Plc Annual Report and Accounts 2021
Annual Report on Remuneration continued
Long term incentives
personal performance
Payments to past directors
Payments for loss of office
agreement to remain in role to help ensure a smooth handover and her intention not to return to an
Statement of Director shareholdings and share interests (audited)
Shares owned Awards over nil cost options – 2021
Director 31 Dec 2021
Date of
demerger Exercised
Vested but
not exercised
Unvested and
subject to
continued
employment
Unvested and
subject to
performance
Shareholding
requirement
Shareholding
as % of
salary*
Executive
Director
David Wood 0 0 0
Julie Wirth 0 0 0
Non-
executive
Director
Christopher
Rogers 0 0 0 0 - -
Mark Clare 0 0 0 0 - -
Sonita
Alleyne 0 0 0 0 0 - -
Mike Iddon 0 0 0 0 0 - -
Strategic report Governance Financial statements Shareholder information
Share awards made during the financial year (audited)
Director Type of award Plan name Date of grant
Number of
shares /
options
Award as
% of
salary Face value
Performance
period
1,2
Vesting
date
Holding
period
David
Wood
LTIP
David
Wood
Transitional
T2:
T1:
T2:
Julie
Wirth
LTIP
Julie
Wirth
Transitional
T2:
T1:
T2:
Performance conditions attached to Transitional Awards granted during 2021
personal performance
Performance conditions attached to long term incentive awards granted during 2021
Measure Weighting Threshold Maximum
Vesting at
threshold
Vesting at
maximum
Adjusted EPS in FY23
Relative TSR vs constituents of the
FTSE 250 (excluding investment
trusts) Median
Upper
93Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
94 Wickes Group Plc Annual Report and Accounts 2021
Annual Report on Remuneration continued
TSR performance graph and history of CEO pay
Wickes Total Shareholder Return vs FTSE 250 (exc. investment trusts)
60
70
80
90
100
110
120
Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021 Oct 2021 Nov 2021
Dec 2021
Wickes FTSE 250 (exc. investment trusts)
Value £
Director Year
Total single
figure of
remuneration
% of annual
bonus paid out
% of LTIP
vested*
David Wood 2021
underpin)
External appointments
1 and
2
Dilution limits
Implementation of Executive Remuneration policy in 2022
Remuneration arrangements for new CFO
Strategic report Governance Financial statements Shareholder information
Summary of remuneration implementation for 2022
Element Implementation details
Base salary
Annual bonus
LTIP
vesting)
Median Ranking Upper Quartile Ranking
Pension and
benefits
Implementation of Non-executive Director policy in 2022
Role Fee level per annum
Basic Non-executive Director
Board Chair
Senior Independent Director
Chair of a Committee
95Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
96 Wickes Group Plc Annual Report and Accounts 2021
Director remuneration in the context of colleague pay
Remuneration approach for the wider group
The approach to remuneration for our colleagues is
The Group continued to protect and support
colleagues over 2021 in the context of the
colleagues in our London stores in response to
and could share in the future success of the
GENDER PAY GAP
6.44%
Our Winning Behaviours
OUR
WINNING
BEHAVIOURS
Winning
Humility Can do spirit
Authentic
Being
at your best
Engagement with colleagues
When considering remuneration arrangements
conditions of colleagues at all levels throughout
The Board places great importance on listening to
designated Non-executive Director for representing
Strategic report Governance Financial statements Shareholder information
CEO to employee pay ratio
Year Method
25th percentile
pay ratio
50th percentile
pay ratio
75th percentile
pay ratio
2021 Approach B
2021 Total pay
and benefits
1
Relative importance of spend on pay
2021
£m
Total colleague cost
1
Total distributions to Shareholders
2
Total income taxes paid
3
Total capital expenditure
4
Percentage change in Directors’ and colleague remuneration
97Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
98 Wickes Group Plc Annual Report and Accounts 2021
Remuneration Committee
Committee activities
April
21
June
21
Sept
21
Dec
21
Advice to the Committee
Shareholder voting
Mark Clare
Strategic report Governance Financial statements Shareholder information
Directors’ report
The Directors present their report, together
with the audited financial accounts for
This report sets out information required
to be disclosed in the Directors’ report in
(the ‘Act’), the Financial Conduct
Articles of Association
Directors
Details of the Directors at the date of this report
The appointment and removal of Directors is
to promote good governance, all Directors shall retire
and those wishing to serve again will put themselves
forward for re-election at the Annual General
The powers and responsibilities of the Directors are
Directors’ interests
authorise and manage actual and potential conflicts
The interests of the Directors who served during the
details of Directors’ share options are set out in the
Directors’ indemnities
each of the Directors in respect of liabilities incurred
Share capital
The Articles contain provisions governing the
shareholder holds securities having special
There are no restrictions on voting rights or the
will not otherwise vote in respect of shares held in
Significant agreements – change of control
Director or officer that would provide compensation
Authorities
of a rights issue up to a further one third of the
the notice of that meeting and in line with the
Dividends
Ordinary shares £m
Paid interim dividend of 2.1 pence
Financial statements
continued
Major shareholders
of the following interests in voting rights pursuant to
the date of this report no notifications were received
Number
of shares
% of voting
rights
Management, Inc.
Jupiter Fund
Employment policies
environment and provide support to colleagues
values and support its long term sustainable
designed to support colleagues’ mental health and
treatment and opportunities in all aspects of
practices to ensure we cater for people with special
are given full and fair consideration throughout the
recruitment process and all candidates are
candidates with reasonable adjustments throughout
adjustments to ensure their colleagues can perform
Forum to help give advice on individual
with Disabilities and encourage colleagues to share
ensuring that all colleagues are empowered to
Career development and opportunities are available
The colleague and line manager are supported
policies have been designed to ensure we treat all
where to go for support and guidance is available to
Colleague engagement
communication and awards event which sets up our
You can find out more information on colleague
reward and engagement in the Directors’
Financial statements
Human Rights and Modern Slavery
Through our supplier audits we monitor human
and we are committed to helping prevent these
Board on an annual basis and published on the
Anti-bribery Policy
of interest, charitable donations); procedures (such as
conducting due diligence on suppliers); training all
assurance programmes to monitor the effectiveness
investigated and the Board receives reports at
Political Donations Policy
to either political groups or individual candidates, nor
unintentional breach of the relevant provisions
Events after the balance sheet date
Statement of disclosure to auditors
Each of the persons who is a Director at the date of
– so far as the Director is aware, there is no relevant
is unaware; and
–
This confirmation is given and should be interpreted in
Additional disclosures
114
141
155
146
Directors’ report
Business review
54-56,
26-27
Directors
Directors’ interests in shares
Corporate Governance statement
65-66
Financial instruments and financial
152-155
engagement
32-37,
suppliers) engagement
consumption
Financial statements
Statement of Directors’ Responsibilities
in respect of the Annual Report and financial statements
responsible for preparing the Annual
financial statements in accordance with
to prepare the Group financial statements in
accordance with international accounting standards
–
–
reasonable and prudent;
– for the Group financial statements, state whether
–
–
continue as a going concern, disclosing, as
applicable, matters related to going concern; and
– use the going concern basis of accounting unless
accounting records that are sufficient to show and
financial position and enable them to ensure
financial statements that are free from material
misstatement, whether due to fraud or error and
Group’s assets and to prevent and detect fraud and
Governance statement that complies with that law
Responsibility Statement of the Directors in
respect of the annual financial report
– the financial statements, prepared in accordance
with the applicable set of accounting standards,
give a true and fair view of the assets, liabilities,
financial position and profit or loss of the
–
development and performance of the business
Financial statements
Independent Auditor’s report
To the members of
1. Our opinion is unmodified
We have audited the financial statements of
Wickes Group Plc (“the Company”) for the 53
week period ended 1 January 2022 which
comprise the Consolidated income statement
and other comprehensive income, Consolidated
and Company balance sheet, Consolidated and
Company statement of changes in equity,
Consolidated cash flow statement, and the
related notes, including the accounting policies in
In our opinion:
– the financial statements give a true and fair
view of the state of the Group’s and of the
parent Company’s affairs as at 1 January 2022
and of the Group’s profit for the 53 week period
then ended;
– the Group financial statements have been
properly prepared in accordance with
international accounting standards in
conformity with the requirements of the
Companies Act 2006;
– the parent Company financial statements have
been properly prepared in accordance with UK
accounting standards, including FRS 102 The
Financial Reporting Standard applicable in the
UK and Republic of Ireland; and
– the financial statements have been prepared in
accordance with the requirements of the
Companies Act 2006 and, as regards the Group
financial statements, Article 4 of the IAS
Basis for opinion
We conducted our audit in accordance with
International Standards on Auditing (UK) (“ISAs
evidence we have obtained is a sufficient and
opinion is consistent with our report to the
We were first appointed as auditor by the
Directors on 6 March 2020 prior to the parent
The period of total uninterrupted engagement is
for one financial year ended 1 January 2022 as a
Public Interest Entity, and three financial years in
Group’s main trading subsidiary Wickes Building
Supplies Limited, but which, being unlisted, was
ethical responsibilities under, and we remain
independent of the Group in accordance with, UK
ethical requirements including the FRC Ethical
Standard as applied to listed Public Interest
Overview
Materiality:
Group financial statements as a whole
Coverage
Key audit matters vs 2020
New risks Store impairment
Completeness of Do It
For Me (“DIFM”)
revenue recognition
Parent Company Recoverability of parent
Company’s investment
in subsidiaries
103Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
104 Wickes Group Plc Annual Report and Accounts 2021
Independent Auditor’s report continued
2. Key audit matters: our assessment of risks of material misstatement
We summarise below the key audit matters, in decreasing order of audit significance, in arriving at our audit opinion above, together with our key audit procedures to address those matters and, as required for public
The risk Our response
Store impairment
Refer to page 80
(Audit Committee
report), page 119
(accounting policy)
and page 134
(financial
disclosures).
Risk based assessment:
assets values that are significant individually, and in
Further, three of these nine stores have previously been
impaired and are forecasting an improved store performance
These factors indicate a risk of material impairment, or
reversal of impairment, which will therefore require a store
reviews, most notably forecast future cash flows and growth
rates, and there is a risk that any impairment or reversal is
assess whether the Directors’ estimate of the forecast future
The financial statements (note 15) disclose the sensitivity
The effect of these matters is that, as part of our risk
assessment, we determined that the forecasted future cash
flows has a high degree of estimation uncertainty, with a
potential range of reasonable outcomes greater than our
We performed the detailed tests below rather than seeking to rely on any of the Group’s controls because our knowledge of the
– Risk Assessment:
completeness of the Group’s store impairment review;
– Historical comparisons:
previous forecasts and the results currently being achieved;
– Our sector experience:
– Benchmarking assumptions:
– Sensitivity analysis:
profitability and growth rates;
– Assessing indicators of impairment: We assessed indicators of impairment up to the balance sheet date for evidence that
would materially change the conclusion of the impairment reviews; and
– Assessing transparency:
Our results
–
Strategic report Governance Financial statements Shareholder information
The risk Our response
Completeness of
revenue recognition
Refer to page 80
(Audit Committee
report), page 116
(accounting policy)
and page 121
(financial
disclosures).
DIFM revenue and deferred income:
Professional standards require us to presume (unless
rebutted) that the fraud risk from revenue recognition is a
proportion of the DIFM revenue is deferred at the end of the
performance obligations (delivery and/or installation) have
We consider the risk to relate to the completeness of revenue
recognised in the financial year, on the basis that the fraud
risk factors specific to Wickes indicate there may be an
incentive to defer income recognition into the following
We performed the detailed tests below rather than seeking to rely on any of the Group’s controls because our knowledge of the
– Tests of details: We inspected the reconciliation of orders in the financial year, orders included in opening deferred income
and orders included in closing deferred income to DIFM revenue, on an individual order basis, to consider whether orders
have been appropriately accounted for in the financial year; and
– Accounting analysis:
– the monthly order profile;
– the revenue and deferral profile of orders; and
– the revenue profile by order date; and
– Tests of details: We carried out detailed sample testing of DIFM orders included in the deferred income balance (products
Our results
– The results of our testing were satisfactory and we considered the amount of DIFM revenue recognised in the financial year
Recoverability of
parent Company’s
investment
Refer to page 158
(accounting policy)
and page 159
(financial
disclosures).
Forecast based assessment:
The carrying amount of the parent Company’s investment in
its subsidiary (which effectively represents an investment in
the Wickes trading business) is significant and at risk of
irrecoverability as the net assets of the subsidiaries and the
market valuation of the Group are below the investment
The estimated recoverable amount of the investment
balance is based on a discounted future cash flow
The effect of these matters is that, as part of our risk
assessment, we determined that the recoverable amount of
the cost of the investment in its subsidiary has a high degree
of estimation uncertainty, with a potential range of
reasonable outcomes greater than our materiality for the
financial statements as a whole, and possibly many times
We performed the tests below rather than seeking to rely on any of the Group’s controls because the nature of the balance is
– Benchmarking assumptions: We challenged the assumptions used in the cash flows included in the discounted cash flow
– Historical comparisons: We assessed the reasonableness of the cash flow forecasts by considering the historical accuracy
of the previous forecasts;
– Benchmarking assumptions: We challenged the key inputs used in the Group’s calculation of the discount rate by
comparing it to externally derived data, including available sources for comparable companies;
– Sensitivity analysis: We performed our own sensitivity analysis on the forecasts, including a reduction in assumed store
profitability and growth rates;
– Our sector experience: We evaluated the current level of trading, including identifying any indications of a downturn in
activity, by examining the post financial year end management accounts, considering our knowledge of the Group and the
market, and external expectations of future financial performance; and
– Assessing transparency: We assessed the adequacy of the parent Company’s disclosures in respect of the investments
Our results
–
2. Key audit matters: our assessment of risks of material misstatement continued
105Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
106 Wickes Group Plc Annual Report and Accounts 2021
Independent Auditor’s report continued
3. Our application of materiality
Materiality for the group financial statements
reference to a benchmark of group profit before
statements for the comparative period materiality
determined with reference to a benchmark of
group profit before tax, normalised to exclude
Materiality for the parent company financial
determined with reference to a benchmark of
parent Company total assets, of which it
consolidated financial statements for which the
materiality for the financial statements as a whole
Wickes Building Supplies Limited is part of a
In line with our audit methodology, our
procedures on individual account balances and
disclosures were performed to a lower threshold,
performance materiality, so as to reduce to an
acceptable level the risk that individually
immaterial misstatements in individual account
balances add up to a material amount across
Performance materiality was set at 65%
statements as a whole, which equates to
We applied this percentage in our determination
of performance materiality based on the level of
identified misstatements, control deficiencies,
and the changes in the control environment
We agreed to report to the Audit Committee any
corrected or uncorrected identified
in addition to other identified misstatements that
scope of our work accounted for the percentages
For the residual components, we performed
examine our assessment that there were no
significant risks of material misstatement
The audit of all components, including the audit
of the parent Company were completed by the
Group engagement team, who also performed
procedures on those items excluded from
The scope of the audit work performed was
predominantly substantive as we placed limited
reliance upon the Group’s internal control over
Adjusted profit before tax
£85.0m (2020: £49.5m)
Group materiality
£3.4m (2020: £2.5m)
£3.4m
Whole financial statements materiality (2020: £2.5m)
£2.2m
Whole financial statements
performance materiality (2020: £1.88m)
£1.0m to £3.3m
Range of materiality at 2 components
(2020: £2.5m at 1 component)
£0.17m
Misstatements reported to the
audit committee (2020: £0.13m)
Group materiality
Adjusted PBT
Group revenue Group profit before tax
Full scope for group
audit purposes 2022
Full scope for group
audit purposes 2020
Residual components
Group total assets
Adjusted profit before tax
100%
(2020 100%)
100%
100%
100%
100%
100%
100%
100%
100%
100%
(2020 100%)
100%
(2020 100%)
100%
(2020 100%)
Strategic report Governance Financial statements Shareholder information
4. The impact of climate change
We considered the impacts of climate change on
the financial statements as part of our planning
management to understand the extent of the
potential impact of climate change risk on the
Group’s financial statements and the Group’s
consideration included the Group’s plan to be
We did not consider that any specific areas of the
financial statements were materially affected by
assumptions or commitments made in relation
There was no significant impact of this on our key
We also read the disclosure of climate related
information in the front half of the annual report
and considered consistency with the financial
In addition to this we held discussions with our
5. Going concern
The Directors have prepared the financial
statements on the going concern basis as they
Company or to cease their operations, and as they
have concluded that the Group’s and the parent
Company’s financial position means that this is
no material uncertainties that could have cast
significant doubt over their ability to continue
We used our knowledge of the Group, its industry,
and the general economic environment to identify
the inherent risks to its business model and
analysed how those risks might affect the Group’s
and parent Company’s financial resources or ability
to continue operations over the going concern
adversely affect the Group’s and parent Company’s
available financial resources over this period was
the ability of the Group to remain profitable and
deliver on the budgeted Group performance for
We also considered less predictable but realistic
second order impacts, such as the follow on
confidence, which could result in a rapid reduction
We considered whether these risks could plausibly
affect the liquidity in the going concern period by
comparing severe, but plausible downside
scenarios that could arise from these risks
individually and collectively against the level of
available financial resources indicated by the
We considered whether the going concern
disclosure in note 1 to the financial statements
gives a full and accurate description of the
Directors’ assessment of going concern, including
We also assessed the completeness of the going
– we consider that the Directors’ use of the going
concern basis of accounting in the preparation
of the financial statements is appropriate;
– we have not identified, and concur with the
Directors’ assessment that there is not, a
material uncertainty related to events or
conditions that, individually or collectively, may
cast significant doubt on the Group’s or parent
Company’s ability to continue as a going concern
for the going concern period; and
– we have nothing material to add or draw
attention to in relation to the Directors’ statement
in note 1 to the financial statements on the use
of the going concern basis of accounting with no
material uncertainties that may cast significant
doubt over the Group and parent Company’s use
of that basis for the going concern period, and
we found the going concern disclosure in note 1
to be acceptable; and
– the related statement under the Listing Rules set
out on page 66 is materially consistent with the
However, as we cannot predict all future events or
conditions and as subsequent events may result
that were reasonable at the time they were made,
the above conclusions are not a guarantee that
6. Fraud and breaches of laws and
regulations – ability to detect
Identifying and responding to risks of
material misstatement due to fraud
To identify risks of material misstatement due
– Enquiring of the Directors and Audit committee
the internal audit function, as well as whether
they have knowledge of any actual, suspected or
–
– Considering remuneration incentive schemes
and performance targets for management
(including Directors) including the profit target
– Using analytical procedures to identify any
– We communicated identified fraud risks
throughout the audit team and remained alert to
As required by auditing standards, and taking into
account possible pressures to meet profit targets,
we perform procedures to address the risk of
management override of controls and the risk of
– the risk that Group management may be in a
position to make inappropriate accounting
entries;
– the risk of bias in accounting estimates such as
store impairment; and
– the risk that DIFM revenue is understated
through recording revenues in the wrong period
as a result of the current financial year profit
Further detail in respect of the DIFM revenue risk
107Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
108 Wickes Group Plc Annual Report and Accounts 2021
Independent Auditor’s report continued
6. Fraud and breaches of laws and
regulations – ability to detect
continued
–
These included those posted by Executive
–
making accounting estimates are indicative
Identifying and responding to risks
compliance with laws and regulations
We identified areas of laws and regulations that
could reasonably be expected to have a material
effect on the financial statements from our general
commercial and sector experience, and through
discussion with the Directors and other
management (as required by auditing standards)
and discussed with the Directors and other
management, policies and procedures regarding
As the Group is regulated, our assessment of risks
involved gaining an understanding of the control
environment including the entity’s procedures
We communicated identified laws and regulations
throughout our team and remained alert to any
The potential effect of these laws and regulations
that directly affect the financial statements
including financial reporting legislation (including
related companies legislation), distributable profits
legislation, and taxation legislation, and we
assessed the extent of compliance with these laws
and regulations as part of our procedures on the
and regulations where the consequences of
amounts or disclosures in the financial statements,
for instance through the imposition of fines or
litigation or the loss of the Group’s license to
employment law, and certain aspects of company
legislation recognising the financial and regulated
Auditing standards limit the required audit
laws and regulations to enquiry of the Directors and
other management and inspection of regulatory
breach of operational regulations is not disclosed
to us or evident from relevant correspondence, an
Context of the ability of the audit to detect
fraud or breaches of law or regulation
is an unavoidable risk that we may not have
detected some material misstatements in the
financial statements, even though we have properly
planned and performed our audit in accordance
regulations is from the events and transactions
reflected in the financial statements, the less likely
the inherently limited procedures required by
In addition, as with any audit, there remained a
involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal
7. We have nothing to report on the
other information in the Annual
Report & Accounts
The Directors are responsible for the other
information presented in the Annual Report
on the financial statements does not cover the
other information and, accordingly, we do not
express an audit opinion or, except as explicitly
stated below, any form of assurance
and, in doing so, consider whether, based on our
financial statements audit work, the information
therein is materially misstated or inconsistent with
Based solely on that work we have not identified
Strategic report and Directors’ report
– we have not identified material misstatements in
the strategic report and the Directors’ report;
– in our opinion the information given in those
reports for the financial period is consistent with
the financial statements; and
– in our opinion those reports have been prepared
Directors’ Remuneration report
In our opinion the part of the Directors’
Remuneration report to be audited has been
properly prepared in accordance with the
Disclosures of emerging and principal risks
We are required to perform procedures to identify
whether there is a material inconsistency between
the Directors’ disclosures in respect of emerging
and principal risks and the viability statement, and
Based on those procedures, we have nothing
– the Directors’ confirmation on page 60 that they
have carried out a robust assessment of the
emerging and principal risks facing the Group,
including those that would threaten its business
model, future performance, solvency
– the Principal risks and uncertainties disclosures
describing these risks and how emerging risks
are identified, and explaining how they are being
managed and mitigated; and
– the Directors’ explanation in the viability
statement of how they have assessed the
prospects of the Group, over what period they
have done so and why they considered that
period to be appropriate, and their statement as
to whether they have a reasonable expectation
that the Group will be able to continue in
operation and meet its liabilities as they fall due
over the period of their assessment, including
any related disclosures drawing attention to any
Strategic report Governance Financial statements Shareholder information
7. We have nothing to report on the
other information in the Annual
Report & Accounts continued
We are also required to review the viability
statement, set out on page 65 under the Listing
concluded that the above disclosures are materially
consistent with the financial statements and our
the context of only the knowledge acquired during
predict all future events or conditions and as
subsequent events may result in outcomes that are
at the time they were made, the absence of
anything to report on these statements is not a
guarantee as to the Group’s and parent Company’s
Corporate governance disclosures
We are required to perform procedures to identify
whether there is a material inconsistency between
the Directors’ corporate governance disclosures
and the financial statements and our audit
Based on those procedures, we have concluded
that each of the following is materially consistent
with the financial statements and our audit
– the Directors’ statement that they consider that
the annual report and financial statements taken
as a whole is fair, balanced and understandable,
and provides the information necessary for
shareholders to assess the Group’s position and
performance, business model and strategy;
– the section of the annual report describing the
work of the Audit Committee, including the
significant issues that the audit committee
considered in relation to the financial
statements, and how these issues were
addressed; and
– the section of the annual report that describes
the review of the effectiveness of the Group’s risk
We are required to review the part of the Corporate
Governance Statement relating to the Group’s
compliance with the provisions of the UK Corporate
Governance Code specified by the Listing Rules
8. We have nothing to report on the
other matters on which we are
required to report by exception
Under the Companies Act 2006, we are required to
– adequate accounting records have not been kept
by the parent Company, or returns adequate for
our audit have not been received from branches
not visited by us; or
– the parent Company financial statements and
the part of the Directors’ Remuneration report
accounting records and returns; or
– certain disclosures of Directors’ remuneration
specified by law are not made; or
– we have not received all the information and
9. Respective responsibilities
Directors’ responsibilities
As explained more fully in their statement set out
preparation of the financial statements including
being satisfied that they give a true and fair view;
such internal control as they determine is
necessary to enable the preparation of financial
statements that are free from material
misstatement, whether due to fraud or error;
assessing the Group and parent Company’s ability
to continue as a going concern, disclosing, as
applicable, matters related to going concern; and
using the going concern basis of accounting unless
they either intend to liquidate the Group or the
parent Company or to cease operations, or have no
Auditor’s responsibilities
about whether the financial statements as a whole
are free from material misstatement, whether due
to fraud or error, and to issue our opinion in an
level of assurance, but does not guarantee that an
audit conducted in accordance with ISAs (UK) will
always detect a material misstatement when it
and are considered material if, individually or in
aggregate, they could reasonably be expected to
influence the economic decisions of users taken on
A fuller description of our responsibilities is
provided on the FRC’s website at
10. The purpose of our audit
This report is made solely to the Company’s
members, as a body, in accordance with Chapter 3
work has been undertaken so that we might state
to the Company’s members those matters we are
required to state to them in an auditor’s report and
permitted by law, we do not accept or assume
responsibility to anyone other than the Company
and the Company’s members, as a body, for our
audit work, for this report, or for the opinions we
Andrew Cawthray
(SeniorStatutory Auditor)
forandon behalf of KPMG LLP,
Statutory Auditor
CHARTERED ACCOUNTANTS
ONE SNOWHILL
SNOW HILL QUEENSWAY
BIRMINGHAM
B4 6GH
24 MARCH 2022
109Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
Consolidated income statement and other comprehensive income
53 weeks ended 1 January 2022 52 weeks ended 26 December 2020
(£m) Notes Adjusted
Adjusting
items
(note 9) Total Adjusted
Adjusting
items
(note 9) Total
Revenue 5 1,534.9 — 1,534.9 1,346.9 — 1,346.9
Cost of sales (966.4 ) — (966.4 ) (837.8 ) — (837.8 )
Gross profit 568.5 — 568.5 509.1 — 509.1
Selling costs (330.9 ) — (330.9 ) (323.5 ) — (323.5 )
Administrative expenses (121.3 ) (19.6 ) (140.9 ) (104.0 ) (20.6 ) (124.6 )
Operating profit 6 116.3 (19.6 ) 96.7 81.6 (20.6 ) 61.0
Finance costs 7 (31.3 ) — (31.3 ) (32.1 ) — (32.1 )
Profit before tax 85.0 (19.6 ) 65.4 49.5 (20.6 ) 28.9
Tax 10 (16.5 ) 9.9 (6.6 ) (8.9 ) 6.3 (2.6 )
Profit for the period and total comprehensive income 68.5 (9.7 ) 58.8 40.6 (14.3 ) 26.3
Profit for the period attributable to owners of the parent company 68.5 (9.7 ) 58.8 40.6 (14.3 ) 26.3
Earnings per share
Basic and diluted 11 23.3 p 10.4 p
Adjusted earnings per share
Basic 27.2 p 16.1 p
Diluted 11 27.1 p 16.1 p
There are no recognised gains and losses other than those included in the Income Statement above and therefore no separate Statement of Other Comprehensive Income has been presented.
110 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
Consolidated balance sheet
(£m) Notes
As at
1 January
2022
As at
26 December
2020
Assets
Goodwill 12 8.4 8.4
Other intangible assets 12 12.5 12.3
Property, plant and equipment 13 105.0 103.1
Right-of-use assets 14 604.6 654.2
Deferred tax asset 16 30.1 24.0
760.6 802.0
Current assets
Inventories 18 188.2 138.3
Trade and other receivables 20 84.0 261.6
Derivative financial instruments 30 0.7 –
Cash and cash equivalents 21 123.4 6.5
Total current assets 396.3 406.4
Total assets 1,156.9 1,208.4
(£m) Notes
As at
1 January
2022
As at
26 December
2020
Equity and Liabilities
Capital and reserves
Issued share capital 22 26.0 25.2
EBT share reserve 22 (0.8 ) –
Other reserve 22 (785.7 ) (785.7 )
Retained earnings 921.3 890.3
Total equity 160.8 129.8
Lease liabilities 23 660.7 712.8
Long-term provisions 25 1.2 0.3
661.9 713.1
Current liabilities
Lease liabilities 23 81.4 77.2
Trade and other payables 26 241.8 277.9
Short-term provisions 25 11.0 10.4
Total current liabilities 334.2 365.5
Total liabilities 996.1 1,078.6
Total equity and liabilities 1,156.9 1,208.4
The consolidated financial statements of Wickes Group Plc, registered number 12189061, were approved by the Board of Directors on
24 March 2022 and signed on its behalf by:
David Wood Julie Wirth
CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER
111Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
Consolidated statement of changes in equity
(£m) Notes
Issued
share
capital
Share
premium
account
EBT
Share
reserves
Other
reserves
Retained
earnings
Total
equity
At 28 December 2019 25.2 862.3 – (785.7 ) 176.8 278.6
Profit for the period and other comprehensive income – – – – 26.3 26.3
Share capital reduction 22 – (862.3 ) – – 862.3 –
Dividends paid 27 – – – – (176.8 ) (176.8 )
Equity-settled share-based payments 28 – – – – 1.7 1.7
At 26 December 2020 25.2 – – (785.7 ) 890.3 129.8
Profit for the period and other comprehensive income – – – – 58.8 58.8
Issue of share capital 22 0.8 – (0.8 ) – – –
IFRS 16 adoption adjustments – – – – 3.1 3.1
Dividends paid 27 – – – – (35.3 ) (35.3 )
Equity-settled share-based payments 28 – – – – 3.8 3.8
Tax on equity-settled share-based payments – – – – 0.6 0.6
At 1 January 2022 26.0 – (0.8 ) (785.7 ) 921.3 160.8
112 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
£m Notes
53 weeks
ended
1 January
2022
Restated*
52 weeks
ended
26 December
2020
Cash flows from investing activities
Purchases of property, plant and equipment (20.4 ) (17.2 )
Development costs of computer software (6.1 ) (2.9 )
Proceeds on disposal of property, plant and equipment 1.2 0.2
Interest received 0.1 –
Net repayments from/(cash advances to) Travis Perkins group 123.5 (134.4 )
Net cash inflow/(outflow) from investing activities 98.3 (154.3 )
Cash flows from financing activities
Payment of lease liabilities (77.5 ) (75.8 )
Dividends paid to equity holders of the Parent 27 (5.3 ) –
Net cash outflow from financing activities (82.8 ) (75.8 )
Net increase/(decrease) in cash and cash equivalents 116.9 (18.9 )
Cash and cash equivalents at the beginning of the period 6.5 25.4
Cash and cash equivalents at the end of the period 21 123.4 6.5
Adjusting items 9
Adjusting items paid included in the cash flow 17.9 12.7
19.6 20.6
* see Note 1 to the financial statements
£m Notes
53 weeks
ended
1 January
2022
Restated*
52 weeks
ended
26 December
2020
Cash flows from operating activities
Operating profit 96.7 61.0
Adjustments for:
12 5.2 4.5
13 19.1 21.3
14 78.1 77.3
15 0.2 –
15 5.1 12.1
15 (1.0 ) –
(1.6 ) (1.9 )
6 0.6 1.6
6 (2.0 ) -
28 3.8 1.7
Operating cash flows 204.2 177.6
Movements in working capital:
(49.9 ) 12.1
(7.4 ) 27.1
(0.7 ) 46.7
1.8 (2.9 )
Cash generated from operations 148.0 260.6
Interest paid (0.7 ) (0.1 )
Interest on lease liabilities (31.3 ) (32.0 )
Income taxes paid (14.6 ) (17.3 )
Net cash inflow from operating activities 101.4 211.2
113Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
1 General information and
Overview
The principal activity of the Group is the operation
Basis of accounting
The annual financial statements of the Group for
prepared in accordance with International Financial
Reporting Standards adopted pursuant to
European Union and in accordance with
international accounting standards in conformity
The current financial period is 53 weeks long,
whereas the comparative financial period is 52
The Company has elected to prepare its Parent
Company financial statements in accordance with
Financial Reporting Standard 102 “The Financial
Reporting Standard applicable in the UK and
Republic of Ireland”; these are presented on pages
Basis of preparation
The financial statements have been prepared
financial instruments including derivative
The comparative figures for the 52 weeks ended
26 December 2020 do not constitute statutory
statutory accounts were prepared in accordance
with Financial Reporting Standard (“FRS 102”)
issued by the Financial Reporting Council and the
Companies Act 2006 and were reported on by the
Company’s auditor and delivered to the registrar
accounts (i) was unqualified, (ii) did not include a
reference to any matters to which the auditor drew
attention by way of emphasis without qualifying the
report, and (iii) did not contain statements under
The Company was exempt by virtue of section 400
of the Companies Act 2006 from the requirement
financial statements for the 52 weeks ended
26 December 2020, in accordance with
international accounting standards in conformity
with the requirements of the Companies Act 2006,
which has been presented in the Wickes Group Plc
consolidated financial statements which have
statements as disclosed in the Company’s
Prospectus are available on the Wickes Group
Summary of impact of Group restructure and
listing of shares on the London Stock Exchange
Holdings Limited, Wickes Building Supplies Limited,
Wickes Finance Limited and Wickes Holdings
Limited) listed its shares on the London Stock
Exchange and was admitted to the premium
Prior to admission, the aforementioned entities
undertook a restructure in order to put in place the
share exchange, and Wickes Group Holdings
Limited acquired Wickes Building Supplies
parent company and intermediate parent company
for Wickes Building Supplies Limited and Wickes
The Capital Reorganisation falls outside the scope
accounted for using the principles of predecessor
accounting using the carrying amounts of assets
and liabilities included in the financial statements
economic substance of the transactions and
prepared as if the Group had been in existence
The share capital issued as consideration is
results in the creation of the other reserves in the
represent the difference between the carrying
values of the assets and liabilities of the parties to
the Capital Reorganisation, which are not required
the Company undertook a capital reduction and
Ahead of the date of demerger and in order to
establish an appropriate capital structure for the
received from Travis Perkins Plc, through repayment
intercompany receivables were settled through a
Plc settled the repayment of 2020 rates on behalf of
Going concern
Based on the Group’s liquidity position and cash
but plausible scenario, the Directors have a
reasonable expectation that the Company and the
Group have adequate resources to continue in
operational existence for the duration of the going
concern period, being the period ending 30 June
2023, and they continue to adopt the going concern
basis of accounting in preparing the consolidated
financial statements for the period ended
The Group’s business activities, together with the
factors likely to affect its future development,
performance and position are set out in the strategic
flows, liquidity position and borrowing facilities are
The principal risks and viability statement of the
114 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
1 General information and
continued
have considered these areas alongside the principal
The Directors do not consider going concern to be
that going concern is not a critical accounting
the strong performance, sales growth and positive
cashflow in 2021 despite the impacts of the
pandemic, Brexit, and global supply issues, and a
At 1 January 2022, the bank balance stood at
an available undrawn Revolving Credit Facility of a
expiry date being extended for a further year to
March 2025 after the year end, and is not forecast to
Considering whether the Group’s financial statements
can be prepared on a going concern basis, the
Directors have reviewed the Group’s business
activities together with factors likely to affect its
performance, financial position and access to
liquidity (including consideration of financial
performance, the Directors considered the risk of
higher business volatility arising from potential future
pandemic outbreaks and the potential negative
impact of the general economic environment driven
The Directors’ review also included a severe but
plausible scenario to assess the impact of a sales
decline over the entire going concern period as a
result of the general economic uncertainty, and a
resurgence of the pandemic in a comparable
manner to that seen in 2021, with the core business
continuing to be seen as an essential business, but
the Do It For Me showrooms being required to
plausible scenario assumes a sales reduction of 6%
from 2021, a margin reduction of 1%, and an
increase in customer delivery costs of 5%,
consistent with the impact of the pandemic seen in
the group retains a significant cash balance and
but plausible scenario does show a covenant
breach but, as it does not assume a requirement to
use the facility at any point, this does not indicate a
this scenario there are further cost cutting
measures that could be taken to assist with
covenant compliance if this was considered
necessary, including reducing bonuses and
Given current trading and expectations for the
business, the Directors believe that this scenario
reflects a severe but plausible outcome for the
wider economic uncertainty be more prolonged or
severe than currently forecast by the Directors under
this severe but plausible scenario, the Group would
need to implement additional operational or
The Directors have prepared cash flow forecasts,
including severe but plausible downside scenarios,
for a period of at least 15 months from the date of
These forecasts indicate that the Group is able to
however remain watchful of ongoing pandemic
impact and are aware that the Group is exposed to
a number of risks and uncertainties, which could
The Directors believe that the Group has the
flexibility to react to changing market conditions
financial performance and position, including
The downside scenarios tested, outlining the
impact of severe but plausible adverse scenarios
weakness, show that there is sufficient headroom
for liquidity purposes for at least the next
15 months from the date of approval of these
Consequently, the directors are confident that the
Group and parent company will have sufficient
funds to continue to meet its liabilities as they fall
due for at least 15 months from the date of
approval of the financial statements and therefore
have prepared the financial statements on a going
Prior year restatement
Following reconsideration in the current period,
26 December 2020 presented in the Wickes Group
Plc Prospectus has been restated to reclassify
certain cash flows within the cash flow statement
Cash advanced to Travis Perkins Plc group entities
had previously been presented as operating cash
In accordance with the requirements of IAS 7, these
net cash inflow from operating activities and net
cash outflow from investing activities have
There has been no change in the net increase/
(decrease) in cash and cash equivalents as a result
2 Accounting policies
Functional and presentational currency
The financial information is presented in Pounds
Sterling, the currency of the primary economic
All amounts in the financial statements have been
Transactions denominated in foreign currencies
assets and liabilities denominated in foreign
currencies are translated at the rate of exchange
arising on translation are recognised in the
Business segments
The operating segments are identified on the basis
of internal reports about components of the Group
be the Board, to assess performance and allocate
115Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
2 Accounting policies continued
2.1. Impact of new standards
The following standards and interpretations, which
have not yet been applied in these financial
Statements
Changes in Accounting Estimates and Errors
Amendments to References to Conceptual
Framework in IFRS Standards
16, IAS 17 and annual improvements on
various IFRS
Classification of liabilities, presentation of
financial statements
Interest Rate Benchmark Reform; amendments
to IFRS 9, IAS 39 and IFRS 7
Adoption of these standards in future periods is
2.2. Revenue
Revenue is recognised when the Group has satisfied
its performance obligations to the customer and
at the transaction price received or receivable less
an appropriate deduction for actual and expected
returns and represents amounts receivable for
goods and services provided in the normal course
Customers are entitled to return goods for a period
performance obligation and the Group is required
A refund liability and a corresponding asset in
inventory representing the right to recover products
customer returns is immaterial in the context of the
Services comprise kitchen and bathroom installations
and these are typically completed over a short period
separately from the sale of kitchen and bathroom
passes to the customer when the Group has fulfilled
all its obligations under the installation contract
and revenue from the installation of kitchens and
2.3. Inventories
Inventories, which consist of goods for resale, are
stated at the lower of average weighted cost and
materials and, where applicable, direct labour costs
and those overheads that have been incurred in
bringing the inventories to their present location
Cost of inventories
In determining the cost of inventories the Directors
have to make estimates to arrive at cost and net
of the wide range of products held in many locations
requires an assessment to be applied to determine
the likely saleability of the product and the potential
provisions for net realisable value the Directors take
into account the age, condition and quality of the
The Group does not consider that there is a
within the next financial period as a result of this
2.4. Adjusting items
expenditure that, by reference to the Group, are
statements to ensure both that the reader has an
understanding of the Group’s underlying trading
performance and the separate impact of one off or
unusual events in the year, and that there is
Items of income or expense that are considered
restructurings, significant write downs or
from the Travis Perkins Group’s IT systems, and
2.5. Tax
The tax expense represents the sum of the tax
Current tax
The tax currently payable is based on taxable profit
reported in the income statement because it excludes
items of income and expense that are taxable or
deductible in other periods and it further excludes
The Group’s liability for current tax is calculated using
tax rates that have been enacted or substantially
Deferred tax
Deferred tax is the tax expected to be payable or
recoverable on differences between the carrying
amounts of assets and liabilities in the financial
statements and the corresponding tax bases used
Deferred tax liabilities are generally recognised
tax assets are recognised to the extent that it
against which deductible temporary differences
recognised if the temporary difference arises from
goodwill or from the initial recognition of other
assets and liabilities in a transaction (other than
Deferred tax is calculated at the tax rates that are
expected to apply in the period when the liability
and rates that have been enacted or substantially
except when it relates to items charged or credited
directly to equity, in which case the deferred tax is
2.6. Goodwill and other intangible assets
Goodwill
Goodwill arising on acquisition represents the
(including intangible assets) of a business or a
intangible fixed assets obtained on acquisition
116 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
to benefit from the synergies of the combination and
Any impairment is recognised immediately in the
accordingly stated in the balance sheet at cost less
Software
The directly attributable costs incurred for the
development of computer software controlled by
and for use within the business are capitalised and
written off as an administrative expense over their
estimated useful life, which range from three years
Costs relating to research, maintenance and training
2.7. Property, plant and equipment
Property, plant and equipment is stated at cost or
deemed cost less accumulated depreciation and
Leasehold improvements – over the term of the
lease
Plant and equipment – three to 10 years
The residual value and useful life of assets are
The gain or loss arising on the disposal or retirement
of an asset is determined as the difference between
the sale proceeds net of expenses and the carrying
amount of the asset in the balance sheet and is
2.8. Supplier income
Supplier income comprises fixed price discounts
Fixed price discounts and volume rebates received
and receivable in respect of goods which have
been sold are initially deducted from the cost of
inventory and therefore reduce cost of sales in the
volume rebate has been earned remain in inventory
Supplier income receivable is netted off against
trade payables when there is a legally binding
arrangement in place and it is management’s
intention to do so, otherwise amounts are included
2.9. Financial receivables
The Group’s trade and other receivables at
The Group applies the IFRS 9 – Financial
Instruments simplified approach to measuring
the expected credit losses trade receivables have
been grouped based on shared credit risk
Trade receivables are written off when there
Indicators that there is no reasonable expectation
of recovery include the failure of a debtor to engage
in a repayment plan with the Group and the
2.10. Provisions
A provision is recognised in the balance sheet
obligation because of a past event, and it is probable
that an outflow of economic benefits will be required
required to settle the obligation at the balance
Should a provision ultimately prove to be
unnecessary then it is credited back into the
The Group’s stores operate from a significant
commitments for rates and other payments,
It is Group policy to insure itself using policies with
damage to assets, or due to employers or public
The insurance claims provision represents
management’s best estimate, based upon external
advice, of the value of outstanding claims against
2.11. Trade payables and liabilities
Trade and other payables principally comprise
amounts outstanding for trade purchases and
ongoing costs and are measured at amortised
amount of trade payables approximates to
2.12. Employee benefits – pensions
Payments to defined contribution retirement
benefit schemes are recognised as an expense
when employees have rendered services entitling
2.13. Equity
Equity instruments represent the ordinary share
capital of the Group and are recorded at the
proceeds received, net of directly attributable
A description of the nature and purpose of each
The share premium represents the amounts
above the nominal value received for shares sold
The other reserves represent the difference
between the carrying values of the assets and
liabilities of the parties to the Capital
Reorganisation, which are not required to be
Retained earnings represents cumulative results
2.14. Leases
IFRS 16 – Leases establishes principles for the
recognition, measurement, presentation and
that lessees and lessors provide relevant information
Identifying a lease
At inception of a contract, the Group assesses
is, or contains, a lease if it conveys the right to control
2 Accounting policies continued
117Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
where the Group has both the right to direct the
identified asset’s use and to obtain substantially
At inception or on reassessment of a contract that
contains a lease component, the Group allocates
For each lease or lease component, the Group follows
the lease accounting model as per IFRS 16 – Leases,
Recognition exceptions
The Group has elected to account for lease
over the lease term or another systematic basis for
(i) leases with a lease term of 12 months or less
and containing no purchase options – this
election is made by class of underlying asset;
and
(ii) leases where the underlying asset has a low
value when new – this election can be made on
lease recognition exemption and there are any
changes to the lease term or the lease is modified,
Lessee accounting
Upon lease commencement the Group recognises
Initial measurement
which comprises the initial amount of the lease
direct costs incurred and an estimate of costs
underlying asset or the site on which is located,
– Their carrying amount as if IFRS 16 – Leases
had been applied since the lease
commencement date, discounted by the lessees’
The Group has applied this methodology to the
–
payments relating to that lease recognised on
The lease liability is initially measured at the
present value of the lease payments payable over
the lease term, discounted at the rate implicit in the
cannot be readily determined, the Group uses the
Amounts expected to be payable by the lessee
in profit or loss in the period in which the event or
condition that triggers payment occurs, unless the
costs are included in the carrying amount of another
Subsequent measurement
After lease commencement, the Group
The lease liability is subsequently remeasured to
– the lease term (using a revised discount rate)
– the assessment of a purchase option (using
– the amounts expected to be payable under
residual value guarantees (using an unchanged
discount rate)
– future lease payments resulting from a change
payments (using an unchanged discount rate)
Lease modifications may also prompt
remeasurement of the lease liability unless
Depreciation
commencement date to the earlier of the end of the
use assets are determined on the same basis as
Lessor accounting
When the Group acts as a lessor, it determines at
lease inception whether each lease is a finance or
makes an overall assessment of whether the lease
transfers substantially all the risks and rewards
If this is the case, then the lease is a finance lease;
assessment, the Group considers certain indicators
The Group recognises operating lease payments as
finance income over the lease term of a finance
lease, based on a pattern reflecting a constant
2.15. Borrowings
Interest bearing bank loans and overdrafts and
other loans are recognised in the balance sheet
initially at fair value and subsequently at amortised
borrowing costs are recognised in the income
statement in accordance with the effective interest
2.16. Net debt
(being cash balances net of overdrafts) and the
amount of these assets and liabilities approximates
2.17. Financial instruments
Classification
The Group classifies its financial assets in the
118 Wickes Group Plc Annual Report and Accounts 2021
2 Accounting policies continued
Strategic report Governance Financial statements Shareholder information
continued
those to be measured subsequently at fair value
The classification depends on the business model
for managing the financial assets and the
For assets measured at fair value, gains and losses
For investments in equity instruments that are not
held for trading, this will depend on whether the
Group has made an irrevocable election at the time
of initial recognition to account for the equity
The Group reclassifies debt investments when and
only when its business model for managing those
Measurement
At initial recognition, the Group measures a
financial asset at its fair value plus, in the case of a
financial asset not at fair value through profit or
Transaction costs of financial assets carried at
Impairment
The Group assesses on a forward looking basis the
expected credit losses associated with its debt
The impairment methodology applied depends on
whether there has been a significant increase in credit
simplified approach permitted by IFRS 9 – Financial
Instruments, which requires expected lifetime losses to
2.18. Impairment
Impairment of tangible and intangible assets
The carrying amounts of the Group’s tangible and
intangible assets with a definite useful life are reviewed
at each balance sheet date to determine whether there
indication exists, the asset’s recoverable amount is
Where the asset does not generate cash flows that are
independent from other assets, the Group estimates
The recoverable amount of an asset is the greater of its
present value of the future cash flows that the asset is
present value of future cash flows is discounted using
assessments of the time value of money in relation to
the period of the investment and the risks specific to
Where the carrying value exceeds the recoverable
amount a provision for the impairment loss is
established with a charge being made to the
down no longer exist the write down is reversed in
the income statement up to the net book value that
the relevant asset would have had if it had not been
For intangible assets that have an indefinite useful
life the recoverable amount is estimated at each
Measuring recoverable amounts
assets with indefinite useful lives for impairment
annually or more frequently if there are indications
The recoverable amounts of the goodwill and other
assumptions for the value in use calculations are
those regarding the discount rates, growth rates and
payments are measured at fair value (excluding the
pricing model which is considered by management
The expected life used in the model has been
The scheme also provides employees with the
fair value at the date of the grant and expensed on
Prior to the demerger, the Group was part of a
reasonable allocation of the expense recognised
based on individual employees and where their
2.20. Post balance sheet events
These accounts reflect events only up to the date
on which the relevant underlying financial
2 Accounting policies continued
119Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
3 Critical accounting judgements and key sources of estimation uncertainty
4 Auditor’s remuneration
(£’000)
53 weeks
ended
1 January
2022
52 weeks
ended
26 December
2020
Fees payable to the Company's auditor for audit services:
100 –
665 180
Fees paid to the Company's auditor for other services:
575 250
Review of interim statement 70 –
1,410 430
120 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
5 Revenue
Revenue
(£m)
53 weeks
ended
1 January
2022
52 weeks
ended
26 December
2020
Core (product sales) 1,234.7 1,072.4
“Do It For Me” (project sales) 300.2 274.5
1,534.9 1,346.9
(£m)
53 weeks
ended
1 January
2022
52 weeks
ended 26
December
2020
2020 / 2019 revenue 1,346.9 1,292.4
Network change (4.8) (10.1)
2020 / 2019 like-for-like revenue 1,342.1 1,282.3
Like-for-like revenue 174.8 64.6
2021 / 2020 like-for-like revenue 1,516.9 1,346.9
Network change 0.4 –
Other movements 17.6 –
2021/ 2020 revenue 1,534.9 1,346.9
Like-for-like revenue (%) 13.0% 5.0%
121Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
6 Operating profit
(£m)
53 weeks
ended
1 January
2022
52 weeks
ended
26 December
2020
Net foreign exchange gains taken to cost of sales (2.0) -
Depreciation of property, plant and equipment (note 13) 19.1 21.3
Depreciation of right of use assets (note 14) 78.1 77.3
Amortisation of internally-generated intangible assets (note 12) 5.2 4.5
Lease payments made in respect of low value and short leases 1.2 1.3
Impairment of right-of-use assets (note 14 and 15) 5.1 12.1
Reversal of impairment of right-of-use assets (note 14 and 15) (1.0) –
Impairment of property, plant and equipment (note 13 and 15) 0.2 –
Gains on terminations of leases (1.6) (1.9)
Loss on disposal of property, plant and equipment 0.6 1.6
Income from subleasing right-of-use assets (note 14) (3.1) (3.8)
– (6.4)
– (32.6)
– (39.0)
– 39.0
Employee benefit expenses 217.9 199.1
122 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
7 Net finance costs
(£m)
53 weeks
ended
1 January
2022
52 weeks
ended
26 December
2020
Finance income
Net gains on remeasurement of derivatives at fair value 0.7 –
Interest receivable 0.1 –
0.8 –
Finance costs
Interest on lease liabilities (note 14) (31.3) (32.0)
Amortisation of loan arrangement fees (0.1) –
Commitment fee on revolving credit facilities (0.6) –
Other interest (0.1) (0.1)
(32.1) (32.1)
Net finance costs (31.3) (32.1)
123Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
8 Staff costs and employee benefit expense
Average number of persons employed by the Group (including directors) during the financial year
(No.)
53 weeks
ended
1 January
2022
52 weeks
ended
26 December
2020
Administration 443 368
Stores 7,995 7,613
8,438 7,981
(No.)
53 weeks
ended
1 January
2022
52 weeks
ended
26 December
2020
Administration 436 359
Stores 6,048 5,763
6,484 6,122
Aggregate payroll costs of these persons were as follows:
(£m)
53 weeks
ended
1 January
2022
52 weeks
ended
26 December
2020
Wages and salaries 194.8 181.8
Social security costs 15.5 11.6
Other pension costs (defined contribution plans) 3.8 4.0
Share-based payments (equity-settled) 3.8 1.7
217.9 199.1
124 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
9 Adjusting items
on the face of the financial statements to ensure both that the reader has an understanding of the Group’s underlying trading performance and the separate impact of one off or unusual events in the financial year, and
To enable a reader of the financial statements to obtain a fuller understanding of the underlying trading and to allow comparability between periods and give a better indication of potential future periods, the Directors
(£m)
53 weeks
ended
1 January
2022
52 weeks
ended
26 December
2020
Adjusting items – operating
Demerger related costs 5.3 0.6
Right-of-use asset impairment charge 1.1 10.2
Reversal of impairment of right-of-use assets recognised in prior financial years (1.0) –
IT separation project costs 14.2 7.6
Restructuring costs – 2.2
19.6 20.6
Adjusting items – tax
Tax on adjusting items (3.2) (3.9)
Adjusting items – deferred tax rate change (6.7) (2.4)
Total tax on Adjusting items (9.9) (6.3)
9.7 14.3
Demerger related costs
125Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
9 Adjusting items continued
IT separation project costs
standalone versions of already existing systems, of transferring data from Travis Perkins systems onto these standalone systems, of upgrading some older legacy systems to newer “software as a service” solutions,
Restructuring costs
Deferred tax rate change
126 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
10 Taxation
(£m)
53 weeks
ended
1 January
2022
52 weeks
ended
26 December
2020
Current tax
UK corporation tax expense 12.4 7.3
UK corporation tax adjustment to prior periods (0.1) 0.1
Total current tax charge 12.3 7.4
Deferred tax
Deferred tax movement in financial year 0.7 (2.0)
Effect of change in tax rate (6.7) (2.4)
Adjustments in respect of prior periods 0.3 (0.4)
Total deferred tax credit (5.7) (4.8)
Total tax charge 6.6 2.6
(£m)
53 weeks
ended
1 January
2022
52 weeks
ended
26 December
2020
Profit before taxation 65.4 28.9
Tax at the standard corporation tax rate 12.4 5.5
Effects of:
0.9 0.6
0.4 0.2
0.2 (0.3)
(0.2) –
(6.7) (2.4)
(0.4) (1.0)
Total tax charge 6.6 2.6
127Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
10 Taxation continued
11 Earnings per share
(£m)
53 weeks
ended
1 January
2022
52 weeks
ended
26 December
2020
Profit attributable to the owners of the Parent 58.8 26.3
(No.)
Weighted average number of ordinary shares 256,163,656 252,143,923
Adjustment for weighted average number of shares held in EBT (4,019,733) –
Weighted average number of ordinary shares in issue 252,143,923 252,143,923
Basic earnings per share (in pence per share) 23.3p 10.4p
(£m)
53 weeks
ended
1 January
2022
52 weeks
ended
26 December
2020
Profit attributable to the owners of the Parent 58.8 26.3
(No.)
Weighted average number of shares in issue 252,143,923 252,143,923
Diluted effect of share options on potential ordinary shares 259,182 –
Diluted weighted average number of ordinary shares in issue 252,403,105 252,143,923
Diluted earnings per share (in pence per share) 23.3p 10.4p
128 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
11 Earnings per share continued
(£m)
53 weeks
ended
1 January
2022
52 weeks
ended
26 December
2020
Profit attributable to the owners of the parent from continuing operations 58.8 26.3
Adjusting items before tax 19.6 20.6
Tax on adjusting items (3.2) (3.9)
Adjusting items – deferred tax (6.7) (2.4)
Adjusting items after tax (note 9) 9.7 14.3
Adjusted profit 68.5 40.6
Weighted average number of ordinary shares in issue 252,143,923 252,143,923
Weighted average number of dilutive ordinary shares in issue 252,403,105 252,143,923
Adjusted basic earnings per share (in pence per share) 27.2p 16.1p
Adjusted diluted earnings per share (in pence per share) 27.1p 16.1p
129Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
12 Goodwill and other intangible assets
(£m) Goodwill Software Total
Cost or valuation
At 28 December 2019 8.4 20.4 28.8
Additions – 2.9 2.9
At 26 December 2020 8.4 23.3 31.7
Additions – 6.1 6.1
Disposals – (1.0) (1.0)
At 1 January 2022 8.4 28.4 36.8
Amortisation and impairment
At 28 December 2019 – 6.5 6.5
Charged in the period – 4.5 4.5
At 26 December 2020 – 11.0 11.0
Charged in the period – 5.2 5.2
Disposals – (0.3) (0.3)
At 1 January 2022 – 15.9 15.9
Net book value
At 1 January 2022 8.4 12.5 20.9
At 26 December 2020 8.4 12.3 20.7
Goodwill arising on acquisition represents the excess of the cost of acquisition over the share of the aggregate fair value of identifiable net assets (including intangible assets) of a business or a subsidiary at the date
130 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
13 Property, plant and equipment
(£m)
Leasehold
improvements
Plant and
equipment Total
Cost
At 28 December 2019 120.7 238.5 359.2
Additions 9.3 7.9 17.2
Disposals (3.6) (5.8) (9.4)
At 26 December 2020 126.4 240.6 367.0
Additions 14.3 8.0 22.3
Disposals (4.7) (17.2) (21.9)
Impairments (0.2) – (0.2)
At 1 January 2022 135.8 231.4 367.2
Accumulated depreciation
At 28 December 2019 66.8 183.4 250.2
Charged in the period 6.4 14.9 21.3
Disposals (2.3) (5.3) (7.6)
At 26 December 2020 70.9 193.0 263.9
Charged in the period 6.5 12.6 19.1
Disposals (3.9) (16.9) (20.8)
At 1 January 2022 73.5 188.7 262.2
Net book value
At 1 January 2022 62.3 42.7 105.0
At 26 December 2020 55.5 47.6 103.1
131Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
– The profitability of the leased store/warehouse and future plans for the business
– If there are significant penalties to terminate (or not extend), the Group is typically reasonably certain to extend (or not terminate)
Net carrying value
(£m)
Land and
buildings
Plant and
equipment Total
At 28 December 2019 719.7 16.1 735.8
Additions 9.7 0.3 10.0
Terminations (2.0) (0.2) (2.2)
Depreciation (72.5) (4.8) (77.3)
Impairments (12.1) – (12.1)
At 26 December 2020 642.8 11.4 654.2
Additions 33.9 3.0 36.9
Terminations (3.6) (0.7) (4.3)
Depreciation (72.6) (5.5) (78.1)
Impairments (5.1) – (5.1)
Reversal of previous impairments 1.0 – 1.0
At 1 January 2022 596.4 8.2 604.6
132 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
continued
Lease liabilities
(£m)
As at
1 January
2022
As at
26 December
2020
Maturity analysis – contractual undiscounted cash flow
Less than one year 109.5 110.0
One to five years 390.4 404.5
More than five years 398.5 472.7
Total undiscounted lease liabilities 898.4 987.2
Lease liabilities included in the balance sheet
Current 81.4 77.2
Non-current 660.7 712.8
742.1 790.0
Amounts recognised in profit and loss
(£m)
53 weeks
ended
1 January
2022
52 weeks
ended
26 December
2020
Depreciation expense on right-of-use assets 78.1 77.3
Interest expense on lease liabilities 31.3 32.0
Gain on terminations (1.6) (1.9)
Impairment 5.1 12.1
Reversal of impairment recognised in prior financial years (1.0) –
Expenses related to short-term leases 0.9 0.8
Expenses related to low-value assets 0.3 0.5
Income from subleasing right-of-use assets (3.1) (3.8)
133Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
Sublet income
(£m)
As at
1 January
2022
As at
26 December
2020
Within one year 2.9 3.8
One to five years 7.9 11.5
After five years 4.7 7.2
15.5 22.5
15 Impairment testing
Measuring recoverable amounts
The Group’s goodwill balance, which arose in relation to the acquisition of certain stores formerly operating under the Focus brand in 2007 and 2011, is allocated and monitored for impairment testing purposes to
134 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
15 Impairment testing continued
Key assumptions
future trends and have been based on historical data from both external and internal sources
2021 2020
Pre-tax discount rate 10.5% 11.8%
Medium-term growth rate 1.5%
Long-term growth rate 1.4% 1.5%
–
–
–
Impairment of goodwill
135Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
15 Impairment testing continued
Impairment of store related fixed assets
Assumption
(£m)
Increase in
impairment
charge
Reduction in 2022 store profit by 10% 3.9
Reduction of medium term growth rates to 0% per annum 2.8
Reasonably possible changes of the other key assumptions, including a 50 basis point increase in the discount rate, would not result in a material increase to the impairment charge, either individually or in
136 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
16 Deferred tax
Capital
Allowance
payments Leases Total
At 29 December 2019 (1.3) 0.2 20.3 19.2
Credit to the profit or loss 1.6 0.3 2.9 4.8
At 26 December 2020 0.3 0.5 23.2 24.0
(Credit)/charge to the profit or loss (0.7) 0.2 (0.2) (0.7)
Charge to equity – 0.4 – 0.4
Prior period adjustment (0.1) (0.2) – (0.3)
Change in tax rates (0.2) 0.2 6.7 6.7
At 1 January 2022 (0.7) 1.1 29.7 30.1
(0.7) 1.1 29.7 30.1
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability settled, based on tax rates that have been enacted, or substantively
17 Investments
Incorporated in England and Wales and registered at Vision House, 19 Colonial Way, Watford, WD24 4JL Principal activity Class of share
Wickes Group Holdings Limited Holding company
Wickes Building Supplies Limited* Home improvement retailer
Wickes Finance Limited* Dormant
Wickes Holdings Limited* Dormant
* indirect shareholding
137Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
18 Inventories
(£m)
As at
1 January
2022
As at
26 December
2020
Inventories 188.2 138.3
19 Supplier income
(£m)
As at
1 January
2022
As at
26 December
2020
Other receivables 28.9 21.8
Trade payables 9.1 13.5
Inventories (8.8) (7.2)
20 Trade and other receivables
(£m)
As at
1 January
2022
As at
26 December
2020
Trade receivables 33.3 43.7
Allowance for expected credit losses (1.6) (0.6)
31.7 43.1
Amounts owed by Travis Perkins group undertaking – 186.1
Tax receivable 6.5 4.0
Other receivables 32.2 24.9
Prepayments and accrued income 13.6 3.5
Total current trade and other receivables 84.0 261.6
138 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
20 Trade and other receivables continued
Current
days
days
days
More than
120 days Total
Expected loss rate – – – – 64.0% 64.0%
Carrying amount of trade receivables (£m) 29.7 0.7 0.2 0.2 2.5 33.3
Loss allowance (£m) – – – – (1.6) (1.6)
Credit impaired No No No No No
Current
1-30
days
31-60
days
61-120
days
More than
120 days Total
Expected loss rate 1.7% – – – – 1.7%
Carrying amount of trade receivables (£m) 42.5 1.1 – – 0.1 43.7
Loss allowance (£m) (0.6) – – – – (0.6)
Credit impaired No No No No No
The Group assesses on a forward looking basis expected credit losses associated with the trade receivable by considering actual credit loss experience over the past three financial years and whether there has been a
139Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
20 Trade and other receivables continued
(£m)
As at
1 January
2022
As at
26 December
2020
At the beginning of the period 0.6 0.2
Provided in the financial year 1.6 0.4
Released during the financial year (0.6) –
At the end of the period 1.6 0.6
Hitachi, the Group has concluded that historical debt performance of the portfolio during the last three reporting periods provides a reasonable approximation of the future expected loss rates for each payor age
21 Cash and cash equivalent
(£m)
As at
1 January
P2022
As at
26 December
2020
Cash at Bank 28.4 6.5
Short-term deposits 95.0 –
123.4 6.5
22 Capital and reserves
10 pence ordinary shares
The Group and Company Shares £m
Authorised, issued and fully paid
At 26 December 2020 252,143,923 25.2
Allotted under share option schemes 7,494,075 0.8
At 1 January 2022 259,637,998 26.0
140 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
22 Capital and reserves continued
Share premium account
EBT share reserves
Where the Trusts purchase the Company’s equity share capital the consideration paid, including any directly attributable incremental costs, is deducted from equity attributable to the Company’s equity holders until
(number of shares)
As at
1 January
2022
As at
26 December
2020
At beginning of the period – –
Issued and allotted shares 7,494,075 -
Shares released to participants (4,561) –
At end of the period 7,489,514 –
Other reserves
Distributable reserves
The distributable reserves of the Company approximate to the accumulated profits, under Reporting Standard FRS102, after deducting equity settled share based payments and investments in own shares, resulting in
141Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
23 Borrowings
Bank borrowings
(£m)
As at
1 January
2022
As at
26 December
2020
Undrawn facilities:
3-year committed revolving credit facility (expires March 2024) 80.0 –
80.0 –
Lease liabilities
Obligations under finance leases
142 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
24 Movement in net debt
(£m)
Cash and cash
equivalents
Lease
liability Total
At 28 December 2019 (25.4) 855.0 829.6
Cashflow
134.4 – 134.4
(115.5) – (115.5)
– (107.8) (107.8)
Discount unwind on lease liability – 32.0 32.0
Lease additions – 15.0 15.0
Lease terminations – (4.2) (4.2)
At 26 December 2020 (6.5) 790.0 783.5
Cashflow
(123.5) – (123.5)
6.6 – 6.6
– (108.8) (108.8)
Discount unwind on lease liability – 31.3 31.3
Lease additions – 35.5 35.5
Lease terminations – (5.9) (5.9)
At 1 January 2022 (123.4) 742.1 618.7
Balances
(£m)
As at
1 January
2022
As at
26 December
2020
Cash and cash equivalents (123.4) (6.5)
Current lease liabilities 81.4 77.2
Non-current lease liabilities 660.7 712.8
Net debt 618.7 783.5
143Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
25 Provisions
(£m) Property Warranty Restructuring Insurance Total
At 28 December 2019 3.7 1.4 3.9 6.5 15.5
Charge to income statement 1.7 0.1 2.2 2.8 6.8
Utilisation (3.0) – (6.1) (2.5) (11.6)
At 26 December 2020 2.4 1.5 – 6.8 10.7
Charge to income statement 1.1 1.7 – – 2.8
Cash received from Travis Perkins in respect of dilapidations 1.2 1.2
Utilisation (1.0) (1.0) – (0.5) (2.5)
At 1 January 2022 3.7 2.2 – 6.3 12.2
(£m)
As at
1 January
2022
As at
26 December
2020
Current 11.0 10.4
Non-current 1.2 0.3
12.2 10.7
144 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
26 Trade and other payables
(£m)
As at
1 January
2022
As at
26 December
2020
Trade payables 112.6 150.1
Amounts owed to Travis Perkins group undertakings – 1.0
Social security and other taxes 8.9 15.0
Other payables 15.3 16.7
Deferred income 64.2 36.1
Accrued expenses 40.8 59.0
Trade and other payables 241.8 277.9
145Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
27 Dividends
(£m)
As at
1 January
2022
As at
26 December
2020
Amounts recognised in the financial statements as distributions to equity shareholders are shown below:
– final dividend for the 52 weeks ended 26 December 2020 of nil pence (2019: nil pence) – –
– 5.3 –
146 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
53 weeks ended 1 January 2022 52 weeks ended 26 December 2020
Charge (£m)
Wickes
Group Plc
Travis
Perkins Plc* Total
Wickes
Group Plc
Travis
Perkins Plc Total
Long Term Incentive Plan 0.9 0.3 1.2 – 0.7 0.7
Transition Awards 1.2 – 1.2 – – –
Save As You Earn (SAYE) 0.2 0.8 1.0 – 1.0 1.0
Free Shares 0.4 – 0.4 – – –
2.7 1.1 3.8 – 1.7 1.7
Number of options (thousands)
Wickes
Group Plc
Travis
Perkins Plc*
As at
1 January
2022
Wickes
Group Plc
Travis
Perkins Plc
As at
26 December
2020
Long Term Incentive Plan 1,795 – 1,795 – 384 384
Transition Awards 1,617 – 1,617 – – –
Save As You Earn (SAYE) 5,434 – 5,434 – 1,070 1,070
Free Shares 882 – 882 – – –
9,728 – 9,728 – 1,454 1,454
* to the date of demerger
Long Term Incentive Plan
147Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
Transition Awards
Save As You Earn
Free Shares
Fair value of options
148 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
continued
The following information is relevant to the determination of the fair value of the awards granted for the 52 weeks ended 1 January 2022 under the schemes and, in the case of Travis Perkins, the options granted in the
53 weeks ended 1 January 2022
The Group and Company: LTIP (nil cost options) Transition Awards SAYE Free Shares
Share price at grant date (pence) 221.2 221.2 232.8 249.0
Option exercise price (pence) – – 196.0 –
Option life (years) 2.8 0.8 2.8 2.5
Expected dividends as a dividend yield (%) 2.5% 2.5% 2.5% 2.5%
Risk free interest rate (%) 0.4% 0.2% 0.7% 0.2%
Volatility (%) 26.8% 26.8% 26.5% 31.9%
Travis Perkins Plc shares before Demerger
2020
Executive options SAYE Nil price options
Share price at grant date (pence) 1,149 1,204 1,096
Option exercise price (pence) 1,144 898 –
Option life (years) 2.2 3.1 2.2
Expected dividends as a dividend yield (%) 2.5% 2.5% 2.6%
Risk free interest rate (%) (0.1%) 0.0% (0.1%)
Volatility (%) 42.5% 42.4% 42.6%
149Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
Income statement charge, shares granted and outstanding at the end of the period
Grant date – scheme Expiry date
Exercise price
(pence)
Share options
(thousands)
Fair value for the Group
(£m)
28/09/2021 – Long Term Incentive Plan 28/09/2031 – 1,795 2.5
28/09/2021 – Transition Awards 28/09/2031 – 1,617 3.5
19/10/2021 – Save As You Earn plan 19/04/2025 196 5,434 2.7
28/06/2021 – Free Shares n/a – 882 1.5
53 weeks ended 1 January 2022 52 weeks ended 26 December 2020
Weighted average exercise
price (pence)
Number of options
(thousands)
Number of nil price options
(thousands)
Weighted average exercise
price (pence)
Number of options
(thousands)
Number of nil price options
(thousands)
Outstanding at the beginning of the period 932 1,108 346 791 640 105
Exercised during the period 932 (1,108) (346) 1,024 (84) (19)
Forfeited during the period – – – 1,053 (82) (3)
Granted during the period – Travis Perkins Plc – – – 907 634 263
Outstanding at end of period / before the date of the Demerger – – – 932 1,108 346
Granted during the period – Wickes Group Plc 109 5,434 4,294
Forfeited during the period – Wickes Group Plc 90 (252) –
Outstanding at the end of the period 110 5,182 4,294
Exercisable at the end of the period – – – 1,530 33 2
150 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
continued
53 weeks ended 1 January 2022 52 weeks ended 26 December 2020
LTIP Transition Awards SAYE and Free Shares Executive options SAYE Nil price options
Range of exercise price (pence) – – 743-1958 898-1616 –
Weighted average exercise price (pence) – – 169 1,241 921 –
Number of shares (thousands) 1,795 1,617 6,316 38 1,070 346
Weighted average expected remaining life (years) 2.8 0.8 2.8 1.6 2.2 0.9
Weighted average contractual remaining life (years) 9.8 9.8 3.2 9.2 2.4 9.3
29 Commitments
Consignment stock
Capital commitments
(£m)
As at
1 January
2022
As at
26 December
2020
Contracted but not provided for in the accounts 13.8 13.9
151Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
30 Financial instruments
The carrying value of categories of financial instruments
(£m) Note
As at
1 January
2022
As at
26 December
2020
Financial assets:
Cash and cash equivalent 21 123.4 6.5
Trade and other receivables at amortised cost 20 70.4 72.0
Amounts owned by Travis Perkins group at amortised cost 20 – 186.1
193.8 264.6
Financial Liabilities
Trade and other payables at amortised cost 26 127.9 166.8
Amounts owed to Travis Perkins group at amortised cost 26 – 1.0
127.9 167.8
Credit risk and impairment
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers
Trade and other receivables
This allowance is composed of specific losses that relate to individual exposures and also an Expected Credit Loss (ECL) component established using rates reflecting historical information for payor groups, and
152 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
30 Financial instruments continued
Fair value of financial instruments
–
– Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly (ie as prices) or indirectly
– Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs)
(£m)
As at
1 January
2022
As at
26 December
2020
Included in assets
Level 2
Foreign currency forward contracts at fair value through profit and loss 0.7 –
0.7 –
Current assets 0.7 –
Non-current assets – –
0.7 –
Market risk
Interest rate risk
Currency forward contracts
153Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
30 Financial instruments continued
Liquidity risk
Liquidity analysis
Maturity analysis
(£m) Note
Carrying
amount
Contractual
cash flows
Within
1 year
Between
one and five
years
More than
five years
As at 1 January 2022
Trade and other payables at amortised cost 26 127.9 127.9 127.9 – –
Amounts owed to Travis Perkins group at amortised cost 26 – – – – –
Lease liabilities 14 742.1 898.4 109.5 390.4 398.5
870.0 1,026.3 237.4 390.4 398.5
As at 26 December 2020
Trade and other payables at amortised cost 26 166.8 166.8 166.8 – –
Amounts owed to Travis Perkins group at amortised cost 26 1.0 1.0 1.0 – –
Lease liabilities 14 790.0 987.2 110.0 404.5 472.7
957.8 1,155.0 277.8 404.5 472.7
154 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
continued
31 Related party transactions
Key management personnel
Key management compensation
(£m)
53 weeks
ended
1 January
2022
52 weeks
ended
26 December
2020
Salaries and other short-term employee benefits 1.6 1.9
Post-employment benefits 0.1 0.3
Share based payments 0.9 0.2
Total 2.6 2.4
32 Events after the reporting period
155Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
(£m) Notes
As at
1 January
2022
As at
26 December
2020
Assets
Investment C6 770.8 769.0
770.8 769.0
Total assets 770.8 769.0
Equity and Liabilities
Capital and reserves
Issued share capital 22 26.0 25.2
EBT share reserves 22 (0.8) –
Retained earnings 738.5 743.8
Total equity 763.7 769.0
Current liabilities
Other payables C8 7.1 –
Total current liabilities 7.1 –
Total liabilities 7.1 –
Total equity and liabilities 770.8 769.0
David Wood Julie Wirth
CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER
Company balance sheet
156 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
(£m)
Issued share
capital
Share premium
account
EBT share
reserve
Retained
earnings
Total
equity
At 29 December 2019 – – – – –
Loss for the period and other comprehensive loss – – – (118.5) (118.5)
Allotment of shares 25.2 862.3 – – 887.5
Share capital reduction – (862.3) – 862.3 –
At 26 December 2020 25.2 – – 743.8 769.0
Profit for the period and other comprehensive income – – – 27.3 27.3
Issue of share capital 0.8 – (0.8) – –
Dividends paid – – – (35.3) (35.3)
Equity-settled share-based payments – – – 2.7 2.7
At 1 January 2022 26.0 – (0.8) 738.5 763.7
Company statement of changes in equity
157Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
C1 Basis of preparation
The financial statements have been prepared on a going concern basis as the Directors believe there are no material uncertainties that lead to significant doubt that the Company can continue as a going concern for
As the consolidated financial statements of the Group headed by the Company are prepared in accordance with International Financial Reporting Standards as adopted by the UK and include the disclosures
– Cash Flow Statement and related notes
– Key Management Personnel compensation
Share Based Payments
Basic Financial Instruments
C2 Significant accounting policies in this section
Financial Instruments
Investment in subsidiaries
The financial effect of awards by the Company of options over its equity shares to employees of subsidiary undertakings is recognised by the Company in its individual financial statements as an increase in its
158 Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
C3 Key estimates and assumptions in this section
Impairment testing of investments in subsidiaries
C4 Staff costs and Directors’ remuneration
note 31
C5 Auditor’s remuneration
Amounts receivable by the Company’s auditor and its associates in respect of services to the Company and its associates, other than the audit of the Company’s financial statements, have not been disclosed as the
C6 Investment in subsidiaries
(£m)
Subsidiary
undertakings
Cost
At 29 December 2019 –
Additions – Investment in subsidiaries 887.5
At 26 December 2020 887.5
Additions – share based payments 1.8
At 1 January 2022 889.3
Impairment
At 29 December 2019 –
Impairment (118.5)
At 26 December 2020 and 1 January 2022 (118.5)
Net book value
At 26 December 2020 769.0
At 1 January 2022 770.8
159Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
Management acknowledged two indicators of impairment at the period end, being that the net assets of the Company are higher than that of the Group’s consolidated net assets, and the investment value is higher
Assumption
Discount rate Increase by 0.8% to 11.3%
Medium and long term growth rate Reduce by 0.6% to 0.8%
2022 forecast cash flows Reduce by 6%
C7 Capital management and financial instruments
Credit risk
Liquidity risk
Market risk
C8 Related party transactions
(£m)
As at
1 January
2022
As at
26 December
2020
Amounts owed to subsidiary undertakings – Wickes Building Supplies Limited 7.1 –
7.1 –
continued
160 Wickes Group Plc Annual Report and Accounts 2021
C6 Investment in subsidiaries continued
Strategic report Governance Financial statements Shareholder information
C8 Related party transactions continued
(£m)
53 weeks ended
1 January
2022
52 weeks ended
26 December
2020
Amounts invoiced by subsidiaries (7.1) –
Dividend received from subsidiaries 35.3 –
28.2 –
Directors’ remuneration
(£m)
53 weeks ended
1 January
2022
52 weeks ended
26 December
2020
Salaries and other short-term benefits* 1.6 –
Post-employment benefits* 0.1 –
Share-based payments* 0.9 –
2.6 –
* Emoluments and share-based payment charges for the Executive Directors are borne by a subsidiary company, Wickes Building Supplies Limited, and recharged to Wickes Group Plc. Please refer to note 28 of the Group consolidation statements.
Other transactions
C9 Events after the reporting period
161Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
162 Wickes Group Plc Annual Report and Accounts 2021
Shareholder information
Shareholder information
Managing your shares
The Company’s share register is managed by our
Registrar, Link. Shareholders can manage their
shareholdings online through the Link shareholder portal
at www.signalshares.com. The benefits of managing
your shareholding online include the ability to:
View your holding
balance and get an
indicative valuation
Update your address
View movements on
your holding
Register and change
bank mandate
instructions for
dividends to be paid
View the dividend
payments you have
received
Elect to receive
shareholder
communications
electronically
Cast your proxy
Access a wide range of
shareholder information
including the ability to
download shareholder
forms
You will need your shareholder reference number to
register. This can be found on your share certificate
or dividend confirmation.
Alternatively you can contact our registrar at:
Link Group
10th Floor, Central Square
29 Wellington Street
Leeds LS1 4DL
Tel: +44 (0)371 664 0300*
Email: enquiries@linkgroup.co.uk
Shareholder communications
We encourage our shareholders to view shareholder
communications, including the Annual Report and
Accounts, electronically in order to minimise our
impact on the environment and reduce costs.
If you currently receive communications in paper
form and would like to switch to electronic
communications you can do this by visiting the
Financial calendar
The key events in our financial year will be posted
Annual General Meeting (“AGM”)
The AGM is an important event that gives us an
opportunity to engage with our shareholders. Our 2022
AGM is scheduled to be held on 26 May 2022 at
9.00am. However, given the current unpredictability
due to the pandemic this may be subject to change.
Details about the meeting and how to participate will
posted on our website at www.wickesplc.co.uk
Dividends
An interim dividend of 2.1 pence per Ordinary share
asked to approve a final dividend for the financial
year ended 1 January 2022 at the AGM. If approved
a dividend of 8.8 pence per share will be paid on
8 June 2022 to shareholders on the register on the
Paperless dividends
In line with our ambition to reduce our environmental
impact and in line with market practice, we are moving
to payment of cash dividends through direct payment
to shareholder bank accounts in 2022. This means
that you will no longer be able to receive payment of
dividends by cheque and a consolidated tax voucher
for each tax year will be available electronically.
If you currently receive your dividends by cheque
via the shareholder portal www.signalshares.com
‘Managing your shares’). Further information about
this change will be included with the final dividend
Dividend Reinvestment Plan
You can choose to have any cash dividends paid
reinvested in further Wickes shares through the
Dividend Reinvestment Plan. You can join the Dividend
Reinvestment Plan via the Link shareholder portal
www.signalshares.com or contact Link for details.
ShareGift
ShareGift is a charity share donation scheme for
shareholders who may wish to dispose of a small
quantity of shares where the market value makes
The scheme is administered by the Orr Mackintosh
Foundation and further information can be obtained
by contacting them:
Telephone: 020 7930 3737
Email: www.sharegift.org
Shareholder security
If you receive any unsolicited phone calls or
correspondence concerning investment matters you
should get the name of the person and organisation
and check that they are properly authorised by the
FCA – visit https://register.fca.org.uk/s/
If you think something is not right, report it to the
FCA by calling 0800 111 6768.
More detailed information can be found on the FCA
website www.fca.org.uk/scamsmart
* Calls are charged at the standard geographic rate and will vary by
provider. Calls outside the UK will be charged at the applicable
international rate. Lines are open between 9am-5:30pm, Monday
Strategic report Governance Financial statements Shareholder information
Glossary
Glossary
Adjusted EBITDA – Adjusted EBITDA is defined as Earnings before Interest, Tax,
Depreciation and Amortisation and before adjusting items. Adjusting items are
defined as those items of income and expenditure that are material in size or
unusual in nature or incidence, and in the current year such items relate to
separation and demerger costs and certain store impairments, as set out in more
the impact of the separation and demerger project separately from the
performance of the underlying business.
AGM – Annual General Meeting
BRC – British Retail Consortium
CAGR – Compound Annual Growth Rate
CDP – Carbon Disclosure Project
CEO – Chief Executive Officer
CFO – Chief Financial Officer
CGU – Cash generating unit
DIFM – Do-it-for-me
DIY – Do-it-yourself
DRR – Directors’ Remuneration report
DTR – Disclosure Guidance and Transparency Rules
EBT – Employee Benefit Trust
ECL – Expected credit loss
EMS – Environmental Management System
EPS – Earnings Per Share
ESG – Environmental, Social, Governance
EV – Electric vehicle
FCA – Financial Conduct Authority
FCF – Free cash flow
FPPP – Financial Position and Prospects Procedures
FRC – Financial Reporting Council
FTE – Full-time equivalent
GHG – Greenhouse Gas
H&S – Health and safety
HGV – Heavy goods vehicle
IFRS – International Financial Reporting Standards
KPI – Key performance indicator
LED – Light-emitting diode
LFL – Like-for-like
LIBOR – London Interbank Offered Rate
LR – Listing Rules
NED
PIE – Public Interest Entity
Plc – Public limited company
REACH – Registration, Evaluation, Authorisation and Restriction of Chemicals
RIDDOR – Reporting of Injuries, Diseases and Dangerous Occurrences Regulations
ROCE – Return on Capital Employed
RSB – Responsible Business Strategy
RPI – Retail Prices Index
SASB – Sustainability Accounting Standards Board
SAYE – Save As You Earn
SECR – Streamlined Energy and Carbon Reporting
SID – Senior Independent Director
SIP – Share Incentive Plan
SKU – Stock Keeping Unit
SVHC – Substance of very high concern
TCFD – Task Force for Climate-related Financial Disclosures
TSR – Total Shareholder Return
VOC – Volatile organic compound
163Wickes Group Plc Annual Report and Accounts 2021
Strategic report Governance Financial statements Shareholder information
164 Wickes Group Plc Annual Report and Accounts 2021
Stock turn
Stock turn is defined as the cost of goods sold divided by the average of year start and year end inventory.
It is a measure of how effective we are in converting our stock into sales.
Stock turn is calculated as follows:
Financial year ended 1 January 2022
Cost of goods sold 829.1 706.1 672.9 636.8
Opening stock 138.3 150.4 147.8 150.7
Closing stock 188.2 138.3 150.4 147.8
Average stock 163.3 144.4 149.1 149.3
Cost of goods sold divided by average stock 5.1 4.9 4.5 4.3
Adjusted EBITDA
53 weeks ended 1 January 2022
Adjusted EBITDA is calculated as follows:
Adjusted operating profit 116.3
Add back depreciation of property, plant and equipment 19.1
Add back depreciation of right of use assets 78.1
Add back amortisation 5.2
Adjusted EBITDA 218.7
Net debt/Adjusted EBITDA 2.8
Alternative Performance Measures
Alternative Performance Measures
Strategic report Governance Financial statements Shareholder information
Annual Report & Accounts 2021
© Wickes Group Plc
Head office:
Vision House
19 Colonial Way
Watford
United Kingdom
WD24 4JL
Company number 12189061
www.wickesplc.co.uk