AGM Statement

Travis Perkins PLC 15 May 2007 Travis Perkins PLC 15 May 2007 TRAVIS PERKINS PLC AGM statement Strong underlying momentum At today's Annual General Meeting in Northampton, the Chairman, Tim Stevenson, will provide the following trading update: 'Our business has made excellent progress in the first four months of 2007 in markets that have continued the improvement seen in the latter part of 2006. 'In total, our group turnover to the end of April is up 13.9% compared to the equivalent period in 2006. Overall, trading is currently ahead of our expectations with both the merchanting and retailing businesses performing well. 'For the first four calendar months of 2007, total turnover in our merchanting division is up by 14.2%, with like-for-like turnover per trading day up by 9.7%. Total turnover in the general merchanting business is up by 14.2%, with like-for-like turnover per trading day up by 10.1%. For this period, our specialist merchanting business has total turnover up by 14.1% and like-for-like turnover per trading day up by 8.6%. 'Our merchanting division like-for-like sales performance for this period is ahead of both our expectations and estimated market growth for 2007, and also reflects the softer trading conditions in the comparable period. We are seeing the benefits of initiatives taken to improve operational performance across the estate. As a consequence, we have continued to gain market share in a market continuing to exhibit high product cost inflation but competitive selling conditions. 'Trading at Wickes continues to progress in line with our expectations. Total turnover for the seventeen week trading period ended on April 28 2007 was up 13.2%. For this period, like-for-like sales per trading day were up by 8.7%, with core products up by 11.5% and showroom sales lower by 4.0%. 'Our retailing business has also grown its market share in this period, with our like-for-like sales performance also ahead of estimated market growth. Our gross margins are slightly below expectations and the comparable period in 2006. This partly reflects a change of mix, with weaker showroom sales against a trading period affected by one off factors in early 2006, and partly reflects price competition in key value lines. 'The group continues to exercise tight control over costs and cash flow remains good, with average net debt better than our expectations. Productivity in both divisions is ahead of 2006. 'Since the end of 2006, we have added a net 23 new branches to our merchanting network and 2 new Wickes stores, so that we now trade from 1047 locations. 'As indicated in March, we expect good trading conditions to persist for the remainder of the first half of the year. Recent lead indicators, particularly from the housing market, and increasing interest rates point to a slowing rate of improvement of activity levels in our markets in the second half. In that context, whilst we are currently trading ahead of expectations we expect the second half to be in line with expectations.' - ends - Enquiries: Geoff Cooper, Chief Executive Paul Hampden Smith, Finance Director Travis Perkins PLC +44 (0) 1604 683 131 David Bick/Mike Feltham/Mark Longson Holborn Public Relations Limited +44 (0) 207 929 5599 This information is provided by RNS The company news service from the London Stock Exchange
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