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
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