Travis Perkins is set to move forward on Wickes demerger plans, after placing the process on hold in order to focus on managing through the Covid-19 pandemic
Having completed the vast majority of the work on the Wickes demerger on 20 March 2020 Travis Perkins announced it had placed the process on hold in order to focus on managing through the Covid-19 pandemic and to maximise liquidity across the group.
However, the board has now revealed it will recommence the Wickes demerger process on 2 March 2021.
The demerger will enable the management teams of Travis Perkins and Wickes to pursue their own independent strategies.
Each company will focus on executing a distinct business plan to deliver the best service to its primary customer base and allocating capital in the optimum way to deliver sustainable returns into the future.
The Wickes demerger process has now been submitted to the Financial Conduct Authority for approval.
‘A significant milestone’
Nick Roberts, chief executive officer of Travis Perkins Group, commented: “I am very pleased that we have reached a significant milestone in the process to demerge Wickes from the Travis Perkins group.
“It is testament to the strength of both the group and Wickes operating models that we are back on track to complete the demerger despite the pandemic.
“The demerger is an important step towards simplifying the group and enabling Travis Perkins to focus on its trade customers.
“The separation will allow both businesses to allocate capital to drive growth and further enhance their market leading positions.”
David Wood, chief executive officer of Wickes, added: “This is a key milestone on our journey to listing on the London Stock Exchange as a standalone business in what will be a transformational moment for Wickes.
“I am very proud of our performance last year amid the challenges faced by our colleagues, our supply partners and, of course, our customers. The results we delivered during this period are evidence of the strength of our unique proposition, digital capability and efficient operating model, which has enabled us to respond rapidly to the changing demands of our customers.
“The past year has prompted many of us to think differently about our how we use our homes, and as a result, we are seeing strong demand from customers who are looking to make changes to their living spaces.
“We are able to provide customers with everything they need to achieve their home improvement plans and we are well placed to capitalise on the exciting growth opportunities we see in our markets while creating long-term value for all our stakeholders.
“The current year has started well and we are confident in continuing to deliver sales growth ahead of the market for the full year.”