January 22, 2022

Beat Schermerhorn

Home Improvement

3 FTSE home improvement stocks to buy amid a rise in consumer spending

2021 has been another difficult year as the Covid-19 led lockdown continued to impact lives. Due to lockdown and remote working scenarios, most of the time was spent indoors this year as well. As most people spent time inside their homes, it created a desire to improve and renovate their homes.

As per new spending data by Barclaycard, homeowners spent more on home improvement and renovation after lockdown. Do-it-yourself (DIY) products and home improvement segment witnessed a 26.2% rise in spending in 2021.

Companies that supply innovative home improvement products to their customers witnessed significant growth and impressive gains throughout the year.

© 2021 Kalkine Media®

Let us take a  look at 3 FTSE listed home improvement stocks and their investment prospects:

Kingfisher Plc (LON: KGF)

FTSE100 listed company supplies home improvement products and services in the UK and other European countries. It has over 1,380 stores across eight countries and employs over 80,000 people. The company’s business delivered a solid sales performance across different categories and gained market shares across the retail and trade channels. The higher revenue was attributed to the excellent strategy execution and supportive industry trends. Backed by good performance, the company started a £300 million share buyback program.

Kingfisher Plc’s last close price was at GBX 349.30 with a market cap of £7,118 million as of 30 December 2021.

Wickes Group Plc (LON: WIX)

The company offers a range of home improvement products like paints, tools, kitchenware, and bathroom items. It has more than 230 stores in the United Kingdom. The company’s core sales grew consistently in 2021, driven by a strong order book because of consumers’ robust demand for home renovations.

Due to its operational strength and better management, the company overcame supply chain constraints and had no material impact on the sales during the period.

Wickes Group Plc’s last close price was at GBX 236 with a market cap of £612.7 million as of 30 December 2021.

Topps Tiles Plc (LON: TPT)

The company offers ceramic and porcelain tiles and other fixing and finishing products for home renovation. Topps has over 350 retail stores, and its products are sold in the residential and commercial markets. The business reported a record performance in 2021 because of robust consumer demand.

The group revenue increased by 18.3% at £228 million during the 53 weeks ended 2 October 2021. The company’s business returned to profitability, reporting a profit before tax of £14.3 million. Following a good performance during the year, the company declared a final dividend of 3.1p per share for its shareholders.

Topps Tiles Plc’s last close price was at GBX 67.60 with a market cap of £132.1 million as of 30 December 2021.