Builders’ merchant Travis Perkins said it was planning to list its Wickes DIY unit on the main market on the London Stock Exchange as it resumed demerger proceedings.
The company on Wednesday said it had sent a prospectus to the UK’s the Financial Conduct Authority for approval.
“The demerger is an important step towards simplifying the Group and enabling Travis Perkins to focus on its trade customers,” said chief executive Nick Roberts.
“The separation will allow both businesses to allocate capital to drive growth and further enhance their market leading positions.’
Travis Perkins had put the demerger on hold due to the pandemic but restarted the process earlier this month. Wickes recorded 2020 revenue of £1.3bn, with 5% like-for-like growth, and an adjusted operating profit of £82m, driven by its core trade business DIY, but offset by Covid restrictions on showroom openings in the ‘do-it-for-me’ category.
Digital customers almost doubled and click-and-collect orders were up 450% for the year, while home-delivered sales jumped 120%.
Despite an uncertain economic outlook and trading environment Wickes expected to deliver sales growth ahead of its markets for the full year, Travis Perkins said, adding that growth in trade and DIY is expected to moderate against tougher comparatives while do-it-for-me sales are estimated to benefit from pent-up demand.
