Shares round-up: Wickes, On The Beach and Marston’s

A bunch of consumer-related stocks have issued updates, with different reaction from investors. Graeme Evans runs through the winners and losers.

13th May 2025 15:15

Graeme Evans from interactive investor

Top performing Wickes Group (LSE:WIX) today continued its strong run in the FTSE All-Share as it joined Marston's (LSE:MARS) and On The Beach Group (LSE:OTB) in providing a robust update on consumer spending.

The DIY and trade chain reported “good growth momentum” so far in 2025, with an acceleration in retail sales and a recovery in orders for its project-based Design & Installation arm.

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The shares jumped another 16.3p to 213.5p, meaning the former Travis Perkins-owned business has surged by almost 50% since early January and by 20% since the end of March.

Peel Hunt, which recently likened the company to a coiled spring given that it is well placed to capitalise on better market volumes, lifted its price target to 235p following the update.

The broker left its full-year forecasts unchanged after revenues in the first 17 weeks of the financial year rose by 6.9% to £533 million for growth of 5.5% on a like-for-like basis.

Wickes boss David Wood said: “This has been a strong start to the new financial year, with the further increase in sales driven exclusively by volume growth, as more customers shop with us.”

As well as home improvement, today’s trading updates revealed that consumers also appear to have retained their appetite for eating out and for their annual summer holiday.

They have been aided by annual growth in wages, which on a real-terms basis adjusted for inflation stood at 2.6% in today’s labour market report for the January to March period.

Like-for-like sales at Marston’s accelerated to 10.5% in the five weeks since 29 March, resulting in growth of 2.9% after the first 31 weeks of the financial year.

The recent improvement reflected favourable weather and the benefits of the company’s own strategic initiatives, leading to unchanged guidance for the financial year.

Underlying profit before tax of £19 million for the first half compared with a £200,000 loss the year before as margins improved significantly ahead of higher labour costs in the second half.

Net debt declined by 24% on a year earlier to £881 million, meaning the ratio to underlying earnings is at its lowest since 2006. The company is now a pure play hospitality company, with an estate of 1,333 managed, tenanted and leased pubs.

Chief executive Justin Platt said: “With strong recent trading across our nationwide estate of great local pubs, we are excited for the summer months ahead.”

The shares rose 1.45p to 42.7p, which compares with 33.5p in mid-April and 30p last summer. Peel Hunt has reiterated a price target of 75p, believing that further forecast upgrades are likely.

On The Beach also reported strong momentum at the start of the summer after growth in holiday sales by total transaction value (TTV) accelerated to 14% for the peak season. This compares with the 10% disclosed by the company at the end of February.

The update came as the Manchester-based group posted a record first half performance as TTV growth of 13% to £640.7 million led to a 12% rise in adjusted revenues to £64.1 million for the six months to 31 March. Profits lifted 23% to £7.6 million on an adjusted basis.

Chief executive Shaun Morton said demand remained strong as customers continued to prioritise travel, adding that the company is well placed for its biggest summer to date and to deliver its medium-term ambitions for TTV of £2.5 billion and adjusted profit of £85 million.

Despite doubling since last autumn, Shore Capital said the company’s shares were still lowly rated while Peel Hunt today increased its price target from 300p to 400p.

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