Wickes buys stake in solar installer
19 March 2024
Much is said about the slow rate of building new homes. However, maintaining and adapting the existing housing stock represents another important market for both contractors and the hirers supplying them with equipment, and the need to make structures more eco-friendly is bringing new opportunities.
So it was interesting to hear today that builders’ merchant Wickes has bought a majority shareholding in Gas Fast Limited, the parent company of installations business Solar Fast which focuses on solar panels and, to a lesser extent, fitting gas boilers.
Wickes says the acquisition will enable it to expand into the fast-growing market for home energy solutions, initially with solar and gas boilers and, in time, air source heat pumps and other services.
The company says the UK market for domestic solar installations is highly fragmented and is expected to expand significantly from an estimated £1.1bn in 2024 to £1.5bn in 2028 as homeowners and landlords retrofit their properties in order to save energy costs and reduce their environmental impact.
In 2022 and 2023, Solar Fast installed more than 3,700 solar projects in customers' homes. In the 12 months to 30 April 2023 the business generated revenue of £33.1 million and reported profit before tax of £3.9 million.
The installer says the solar market experienced a short-term peak in demand during the energy crisis of 2022-23 and anticipates that both market demand and Solar Fast's revenue will be lower in 2024 before growing again thereafter.
Wickes says that the high cost of energy has motivated consumers to seek out ways to improve the energy efficiency of their homes. The average household energy efficiency rating for England and Wales is band D and Wickes says that the UK's 28.6 million homes are among the least energy efficient in Europe, losing heat up to three times faster than continental counterparts.
Wickes has an option to purchase the remaining 49% of the issued share capital of the business during the five years following completion.
On a separate subject, Wickes says that the February 2024 report from its proprietary Mood of the Nation survey shows that local trade professionals remain very busy, with more than 50% of tradespeople having a pipeline of work over three months and one in four having orders covering more than 12 months.
● In its full year results also announced today for the 12 months to 30 December 2023, Wickes reports steady results showing a 0.3% dip in sales to £1,554 million and 2% growth in pre-tax profit to £41.1 million, ahead of previous market expectations.
Photo: schropferoval/Pixabay
