Wave reports double digit revenue growth

(by Verity Mitchell)

Business retailer Wave has reported full-year results to 31 March 2025. Group revenue was £554.9m, up 11.9% (2024: £495.5m). The portfolio gross margin — the element of charges retained by the retailer after settlement of wholesale costs — was 8.3%. Management said this is reflective of underlying performance compared to a margin of 9.4% in the previous period. Operating profit fell 16% to £10.3m (2024: £12.3m). Its operating profit margin at 1.85% compares to one of its peers, Castle Water, on 2.35%. Wave generated profit before tax of £8.6m.

Wave announced it had acquired Infersens, a developer of innovative, remote flow and temperature sensing technology that enables customers to reduce water usage while maintaining water safety in Legionella risk management activities.

Wave’s retention rate, where it remains the retailer for a customer after 12 months, increased to 98% from 96.6%, despite the increasingly competitive retail market. 

At the year end, the proportion of debt aged more than 120 days had increased to 42% of the debt book (2024: 37.0%). Wave’s loans and borrowings reduced by around £22m and it is generating enough cash to fund its operations as well as make repayments.