Final Results

Travis Perkins PLC
08 March 2006



8 March 2006

                               TRAVIS PERKINS PLC

            PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005

                      OPERATING PROFIT UP 23.1% AT £268.0M

                        PRE TAX PROFIT AHEAD AT £206.7M

                     DIVIDENDS UP 11.5% TO 34.0P PER SHARE

                       FREE CASH FLOW UP 50.0% TO £226.1M

   TARGET FOR COMBINED WICKES INTEGRATION SYNERGIES AND BUYING GAINS EXCEEDED

                   RECORD RATE OF EXPANSION IN BRANCH NETWORK


                                                                      2005         2004          Increase
                                                                     GBP m        GBP m                 %

Turnover                                                           2,640.8      1,828.6              44.4

Operating profit                                                     268.0        217.7              23.1

Profit before taxation                                               206.7        206.5               0.1

Profit after taxation                                                140.8        142.1             (0.9)

Free cash flow (see note 6)                                          226.1        150.7              50.0

Basic earnings per ordinary share (pence)                            116.8        124.4             (6.1)

Total dividend per ordinary share (pence)                             34.0         30.5              11.5


Geoff Cooper, Chief Executive, commented:

'Although 2005 has been more challenging than recent years, our businesses have
performed well against sector peers and the group has made good progress, both
strategically and operationally. We now enjoy sector leading operating margins
in both merchanting and DIY retailing.

Lead indicators suggest our markets are set to recover gradually from the weak
growth experienced in 2005.  The work we have done to reduce costs and capture
synergy benefits and buying gains leaves us well positioned to benefit from any
improvement in volumes.

We have strengthened our business and look forward with confidence to 2006 and
beyond.'


Enquiries:

Geoff Cooper, Chief Executive
Paul Hampden Smith, Finance Director
Travis Perkins PLC                                   [phone]

David Bick/Mike Feltham
Holborn Public Relations                             [phone]


Results

Compared to the previous long run of many years which saw steady annual market
growth, conditions in 2005 were more challenging. In response, our management
teams have focussed on maximising profits from our existing branch network,
through cost reduction and productivity improvement, as well as continuing to
grow our business through brown field developments and selected acquisitions,
including Wickes.

The Wickes acquisition is profit enhancing in 2005, reflecting excellent
progress in management integration and above target improvements in procurement
and in overhead costs.

Overall group turnover increased by 44.4%, to £2,640.8 million from £1,828.6
million in 2004 with Wickes contributing 41.6% of the increase.

Sales growth of 2.8% in the merchanting business was due to a combination of
sales from new branch openings of 4.1% offset by one less working day, 0.4% and
lower like-for-like sales per working day of 0.9% comprising 4.3% of price
inflation and a 5.2% decline in volume.

Like-for-like sales in Wickes' core products were down 6.8% whilst showroom
sales fell by 13.6%. Overall like-for-like sales in Wickes were down 7.9%.

Group operating profit rose 23.1% to £268.0 million from £217.7 million in 2004.
   Group operating margin was 10.1%, compared to 11.9% for 2004.  This reflects
the dilutive effect of our continued merchanting expansion programme, the
inclusion of Wickes - retail margins being traditionally lower than those
enjoyed by the merchanting industry due to higher overheads - and the effect of
weaker markets.  Compared to 2004, merchanting operating margins were 0.6%
lower, whilst Wickes saw a fall of 1.4% to 6.8% for the 12 month period to 31
December 2005 compared to their underlying pre-acquisition performance in the
year to 31 October 2004.  Group profit before tax was just ahead of last year at
£206.7 million, reflecting additional finance costs associated with the
acquisition of Wickes.

The group has also benefited from specific actions designed to generate cash
from the larger scale of the group's operations, and free cash flow (note 6) was
up by 50% compared to 2004.

Considerable progress has been made operationally in 2005; our business is now
some 50% larger; we have added a record number of new branches and stores;
productivity gains have been made in merchanting; the Wickes acquisition, our
largest ever, has been integrated successfully; and debt, on a proforma basis,
(note 7) has been reduced by over £70 million following completion of the
acquisition of Wickes.  We continue to enjoy sector leading operating margins in
merchanting and have improved Wickes relative performance so that it now enjoys
the highest operating margin amongst its peers.

Dividend

The group continues to be highly cash generative.  As a result of this and our
confidence in the future prospects of the group, the board is recommending a
final dividend of 23.0 pence per share. Taken together with the interim dividend
of 11.0 pence, this represents a total dividend of 34.0 pence, an increase of
11.5 per cent on the previous year.

Outlook

We have made a satisfactory start to 2006 with merchanting volumes ahead of
expectations. Although there are signs that our markets are likely to recover,
we expect the first half year to remain challenging, with any recovery coming in
the second half year.

We have recently seen gradually improving trends in lead indicators; consumer
confidence is rising, although continued inflation in non-discretionary living
costs will mean any recovery in spending by consumers, particularly for home
improvement projects, will be gradual.  The overall housing market shows some
improving trends, although these are not yet well established.

We have recently seen a slow down in the expansion of capacity in both DIY and
trade markets.  Some competitor DIY stores have closed, and the appetite of
merchants to expand their networks has waned. This should have a beneficial
effect on the performance of like-for-like stores and branches.

In acquiring Wickes, we estimated that the DIY Market would turn down, but not
by as much as the eventual out turn. With the prospect of further synergies,
attractive operational gearing and expansion potential, and prospects for a
return of normal market growth we are confident of generating attractive returns
from this investment.

The work we have done to reduce costs and capture synergy benefits and buying
gains leaves us well positioned to benefit from any improvement in volumes in
both merchanting and retailing.  Our cash flow remains strong and we expect to
continue to expand our networks and further reduce our net debt.

In 2005 we strengthened our business, both strategically and operationally. We
are approaching the important Easter trading period for both our divisions, and
it is too early to change our expectations for the year as a whole. Looking
ahead, we expect that improving market conditions will mean that our profit
performance will be stronger in the second half of 2006 than the corresponding
period in 2005.

Operational review

Our businesses have performed well in relative terms against sector peers and
significant progress has been made in the strategic development of the group.
We faced two key challenges in 2005; integrating the Wickes acquisition, which
enabled the group to enter a substantial new market for building materials, and
coping with the first decline in trade market volumes since 1990.

The integration programme for Wickes has gone well, with all key integration
milestones and combined targets for synergy and buying gains exceeded.

Previously, with strong and rising demand for building materials, the group had
been able to increase trading and operating margins whilst growing its
like-for-like turnover below market rates.  Early in 2005 we decided to adapt
our trading stance to a market with weaker demand.

Both consumer confidence and consumer spending were weak throughout 2005
reflecting pressure on consumers' disposable incomes as non-discretionary
spending increased and lower mortgage equity withdrawal as house price inflation
weakened. In addition, the housing market experienced lower transaction levels
and weaker inflation than in 2004.

These trends initially adversely affected retail sales in 2005 and then trade
sales from spring onwards, particularly on improvement projects. Turnover
related to repair and maintenance activities remained stable. Overall we
experienced stronger performance in those divisions with a higher penetration of
commercial, industrial and government work, and the weakest in those most
closely allied to the consumer.

In 2005 we focussed our efforts on tight management of cash and costs,
achievement of synergy and buying gains and more active management of profitable
sales at each of our merchanting and retailing branches.

In merchanting, we selectively made a margin investment in some branches and
brought our like-for-like sales growth up to market levels by the end of the
third quarter.  This market relative performance has been sustained, our gross
margin is stable, and we are making a net positive profit contribution from this
investment.  Despite lower like-for-like sales volumes, action on costs has
meant that productivity increased over the level achieved in 2004.

At Wickes, through sharp cost reductions and active management of gross margins,
we have improved operating margin to become the highest in the sector.  Price
competition increased in the fourth quarter in the DIY market, and our market
share gains made in the first nine months were reversed.  We have, however, held
on to our gains in gross margin and yet have maintained our pricing advantage
against our DIY competitors. This performance reflects the resilience of Wickes'
low assortment model and the loyalty it engenders amongst its core customers.

Cost reduction gains at Wickes have come primarily from better procurement of
goods for resale, headcount reductions in stores and a number of back office
functions and from lowering the cost of bought-in goods and services such as
mechanical handling equipment and waste services.

The acquisition of Wickes and our continued successful programme of expansion in
our merchanting network has meant our revenue base is now about 50% larger than
in 2004. This expansionary growth, a feature of the group's progress over many
years, adds further scale benefits through improved buying terms and operational
gearing of overheads. This increased scale meant we set an ambitious target,
comprising synergies and stretched buying gains, for lowering our cost of goods
sold and reducing overhead costs. We exceeded our overall target despite lower
than anticipated purchase volumes from weaker like-for-like sales trends.

In 2005, we took action to reduce headcount across both trade and retail
divisions. Total employees in the merchant divisions reduced on a like-for-like
basis from 9,487 to 9,029 at 31 December 2005 with total employees increasing to
9,533 when acquisitions and new brown fields are included. In Wickes there were
a total of 4,227 employees at the end of the year, a reduction of 349 from the
level at the date of the completion of the acquisition.

Overall, weaker market conditions meant that like-for-like sales and profit
performance were below our expectations.  Management actions helped offset much
of the shortfall in profit contribution, and the group's profits before tax were
just ahead of the prior year.

Development of the group

Following the gross addition of a record 241 branches (of which 171 is
represented by the Wickes acquisition) at 31 December 2005 we traded from 5
brands across 983 locations. There is significant scope for expansion across all
5 brands - 4 in merchanting and 1 in DIY retail.

In 2005 we continued the expansion of the 4 brand networks in our merchanting
division.

The Travis Perkins' branch network was expanded during the year with 18 branches
acquired and 25 opened on brown field sites. Two branches were consolidated
during the year leaving our Travis Perkins' branded network operating from 533
branches by the end of the year. In addition, major refurbishment and
enhancement programmes were completed at Wycombe, Bristol Clifton, Hemel
Hempstead, Peterborough, Brackmills Distribution Centre in Northampton,
Ashton-in-Makerfield and Vauxhall.  In the tool hire sector we now have 156
units, up from 155 last year.  We have recently appointed a senior category
director for tool hire and we intend to develop this part of our business
vigorously in future.

Within Keyline, our specialist heavy-side merchant, the focus during 2005 has
been on both deepening and widening our category focus.  In addition we have
continued to grow the network through the integration of one acquired branch at
Haddington near Edinburgh and through the opening of the first two brown field
sites for this brand at Kilmarnock, and Castle Douglas in the Borders.  Two
branches were closed during the year; in both locations the sales were
transferred to other branches, leaving this brand with 73 locations by the end
of year.

Our City Plumbing Supplies business ('CPS') had a difficult year in 2005
following the major programme of re-organisation of the Jayhard and B&G
acquisitions integrated in 2004. During 2005 we changed the management of the
division and the new team has made good progress with a recovery plan to improve
pricing, product range availability and branch administration. Towards the end
of the year we took the opportunity to consolidate a number of stores that were
in poor locations and 5 branches were closed. In addition we opened 17 new brown
field sites during the year giving a total network of 178 branches for CPS by
the end of 2005.

CCF, our dry-lining and insulation specialist business performed very well
during the year as the market continued to grow and the CCF branches continued
to increase their supply to our generalist merchanting network.  During the year
we opened two new branches at Carlisle and Plymouth and both are performing
ahead of expectations. We also re-sited our Liverpool branch to larger premises
with sales and profits improving as a result.  We ended the year with a total of
23 branches.

We made further progress on improving our merchanting operational capability in
2005, particularly in productivity, management information and relationships
with customers.

We introduced a substantially improved merchanting management information system
during 2005 that provides succinct information in a number of key result areas
('KRAs') to branch managers as well as to regional and senior management.  The
system is intranet based and can be interrogated to provide specific information
for each branch as to the underlying reasons for a particular level of
performance on each KRA.

The measures are monitored continuously and management review all performances
on an exceptions basis every month. KRA's include sales and profit performance,
labour and distribution costs, stock levels, trading customer numbers, staff
turnover and administration standards.  A range of customer service performance
parameters are also included within the new KRA system.

During 2005 we commenced a major programme of customer insight research. This
initiative will assist us in developing a stronger understanding of the precise
requirements of our wide range of customer segments and will help us to focus
our product and service offer to each segment as well as to target growth with
the most attractive segments.

Ongoing consolidation in the house building sector has presented us with some
good opportunities for volume gains through our key account relationships.

In our retail division we continued, and refined, our branch network expansion
and developed initiatives aimed at improving the sales performance and staff
productivity of like-for-like stores.

Since the acquisition we converted two stores from the Standard to the Extra
format in Aylesbury and Swansea, and opened five new Standard stores at
Salisbury, Lowestoft, Bexhill, Bicester and Wakefield.  Wickes was trading from
176 stores at the end of 2005, including a total of seven Extras.  Taking
advantage of our tool hire merchanting expertise we introduced tool hire in
three Extra stores during the year - the early indications from this new
initiative are encouraging.

We have recently introduced more than 1400 additional products into the Wickes'
range in the Extra stores through a programme of space optimisation and have
also added significantly to the range breath in the standard stores, removing a
limited number of poorer performing product categories without losing the
benefits of our low assortment model.

With the acquisition of Wickes we have taken the opportunity to review the
majority of our supply base through both the retail and merchanting channels
during this year. During the integration process we have aligned ourselves
increasingly with those companies that have the greatest potential to be major
strategic suppliers to the enlarged group for the long term. At the end of 2005
we established a full time QA office in China.

Strategy

We aim to develop and operate businesses dedicated to meeting the specific needs
of distinct customer groups seeking to source all types of building materials in
this country.  Our strategy to achieve this aim is designed to generate superior
shareholder returns through the execution of three key programmes:
     
•    Continue to drive scale benefits

•    Seek further gross margin expansion

•    Drive further productivity and returns on capital

With the acquisition of Wickes, Travis Perkins is serving two segments of a
market worth around £28 billion; builders merchants (£12 billion) and DIY (£16
billion). Our estimated market share of the trade market is 16% and of DIY is
5%.  Our overall market share is around 10%.

The Travis Perkins' group has a number one position in the supply of heavy
building materials and timber and forest products and a strong number two
position in both domestic plumbing and heating and lightside products.

The core customer of the trade business is the jobbing builder and contractor
representing an estimated 36% of group turnover between Trade and DIY, other DIY
customers represent 21% and National Housebuilders 10%.

In terms of geographic presence, both divisions have their strongest geographic
presence in London and the South East and have pursued an expansion strategy
increasing share in all other regions of Great Britain in recent years.

Overall the group has a good spread of business by product, customer type and
geographic region.

All our businesses enjoy distinct and strong competitive positioning in their
respective markets.  Our trade businesses offer superior service levels, product
quality and availability with flexibility in commercial terms to match
customers' requirements.  Our retail business, Wickes, operates a low assortment
model, where its concentrated stock range drives low operating costs and strong
gross margins from a high penetration of own label product.  This enables us to
offer the best value for money to DIY consumers.

Board of directors

Andrew Simon became a non-executive director of the company in February 2006.
Following a 23 year career successfully developing a building materials
manufacturer as its Chief Executive and then Chairman, he has developed
considerable experience as a non-executive director from a diverse portfolio of
companies.

Financial review

The accounts for 2005 are presented under International Financial Reporting
Standards ('IFRS').   As a result the 2004 comparatives have been restated.  A
commentary on profits, cash flows and net assets is provided below.

To ensure the business is focused upon achievement of targets, a series of key
financial performance indicators are monitored throughout the business:

                                          IFRS          IFRS          UK GAAP          UK GAAP          UK GAAP
                                          2005          2004             2003             2002             2001

Sales growth                             44.4%          9.0%            18.4%            10.8%             8.3%
Profit before tax growth *                0.1%         16.0%            18.9%            23.7%            24.2%
Merchanting operating profit to
sales (note 8)                           11.3%         11.9%            11.4%            11.2%            10.1%
Interest cover                            4.9x         25.9x            21.0x            18.0x            12.0x
Return on capital (note 9)               14.4%         25.0%            25.5%            24.0%            21.5%
Free cash generation                   £226.1m       £150.7m          £128.1m          £105.6m           £46.7m
Dividend cover                            3.4x          4.1x             4.5x             4.7x             4.4x

*Excludes goodwill amortisation in 2001 to 2003.


Earnings before interest, tax, depreciation and goodwill amortisation ('EBITDA')
were £322.5 million (2004: £251.1 million) (note 10), an increase of 28.4%.

Total net interest expense (before other finance costs of £3.7 million (2004:
£2.8 million)) in 2005 was £57.6 million (2004: £8.4 million).  The rise in
interest expense is attributable to the additional borrowings arising from the
acquisition of Wickes.  Interest cover is approximately 4.9 times (2004: 25.9
times) (see note 12).

Group profit before tax was just ahead of last year at £206.7 million (2004:
£206.5 million).

The tax charge was £65.9 million (31.9%) compared with £64.4 million (31.2%) in
2004.  The rate is higher than the UK corporation tax rate of 30% principally
because of the effect of non-qualifying property expenditure and other items
which are not allowable for tax.

Basic earnings per share were 116.8 pence compared with 124.4 pence in 2004
reflecting the impact of the issue of shares in connection with Wickes.

IFRS reconciliation to UK GAAP

The introduction of IFRS has had a limited impact upon the group's results and
net assets and no impact on its cash flows:
                                                                                                      £m

Profit before tax under 2005 UK GAAP*                                                              210.2
Leases - IAS 17                                                                                    (1.8)
Business Combinations - IFRS 3                                                                     (1.0)
Derivatives - IAS 39                                                                               (0.9)
Other                                                                                                0.2

Profit before tax per the accounts under IFRS                                                      206.7

* Excludes goodwill amortisation

Cash flow

Free cash flow (see note 6), calculated before expansionary capital expenditure,
special pension contributions and dividends, was £226.1 million, up 50.0% from
2004.  The free cash generated by the group was used in part to fund expansion
capital expenditure in the existing business and on new acquisitions, which,
excluding Wickes, cost £84.7 million (2004: £68.3 million).

Pensions

Improved asset returns offset by the effects of falling corporate bond rates and
£26.0 million of company contributions in excess of the income statement charge
(2004: £25.8 million) has reduced the gross pension scheme deficit for the
Travis Perkins final salary scheme at 31 December 2005 to £100.8 million (2004:
£128.3 million).  The net deficit, after allowing for deferred tax, was £70.5
million compared with £89.8 million at 31 December 2004.  The company has closed
the scheme to all new employees from 1 February 2006.   New employees are
offered a money purchase scheme.

In acquiring Wickes, the group adopted the Wickes' final salary scheme, which
was closed to new members.  After a £3.6 million special contribution in
September 2005, the gross deficit on the Wickes' scheme at 31 December 2005 was
£42.0 million, down by £3.4 million from the date of acquisition.

The actuary has recently performed a full valuation of the Travis Perkins' final
salary scheme as at 30 September 2005 and the directors are now seeking to reach
agreement with the Trustees on future contribution rates.  It is the company's
intention to apply this approach to the Wickes' scheme and consider merging the
two schemes in due course.

Equity

Total equity, after deducting the pension scheme deficit at 31 December 2005,
was £758.0 million, an increase of £107.4 million on 31 December 2004.

In July 2005 the group's employee share ownership plan purchased 500,000 shares,
of nominal value £50,000 for a total consideration of £8.1 million.  The group's
equity balances are stated net of these.  The shares were acquired through an
actively traded market and on an arms length basis to satisfy share options
under the group's incentive plans.  By 31 December 2005, 5,573 shares had been
re-issued.

The group's return on capital in 2005 was 14.4% (2004: 25.0%), which is
substantially higher than the group's weighted average cost of capital (see note
9).

Goodwill

The net book value of goodwill in the balance sheet is £1,273.8 million.
Additions to goodwill and intangible assets in the year totalled £1,131.5
million of which £1,101.7 million, including £162.5 million in respect of the
brand, related to Wickes.

Capital structure

As at 31 December 2005 the group had net debt of £982.4 million (2004: £30.7
million).  On completion of the acquisition of Wickes on 11 February 2005 a new
£1.2 billion credit facility was drawn from The Royal Bank of Scotland and
Barclays Capital and, with the exception of £25 million of overdraft facilities,
all other facilities previously advanced to the group were either repaid or
withdrawn.  The new facility was syndicated on 23 March 2005 to an additional 14
UK and overseas banks.  The facility comprised a £500 million five-year term
loan and a five-year £700 million revolving credit facility. Included within the
net debt of the group are £32.7 million of finance leases (2004: £18.6 million)
capitalised under IFRS.  These primarily relate to finance leases on properties
for trading sites.    In addition to the property leases the group had £3.6
million (2004: £nil) of finance leases associated with plant and equipment.

Borrowings also include £8.2 million (2004: £9.0 million) of unsecured loan
notes, which are redeemable at six monthly intervals ending in June 2015.
Interest on these loan notes is determined at 6 monthly intervals by reference
to LIBOR.  £0.8m of loan notes issued during 2002 were settled during the year.

During 2005, two amortising interest rate swaps of £180 million and £171.5
million respectively and one amortising interest rate floor and one amortising
interest rate cap of £171.5 million each have been entered into by the group to
manage the interest rates associated with bank borrowings. The interest rate cap
and floor arrangements act in unison to provide an interest rate 'collar' for
the borrowing element.  The two interest rate swaps fix the interest rate at
4.935% and 4.9575% respectively and the collar derivative operates between a
floor of 4.205% and a cap of 5.7%. The group's current hedging policy is to
maintain the profile of borrowings in the approximate ratio of one third to one
half at fixed interest rates, one third to one sixth within a collar of interest
rates and the remainder at variable rates.

New borrowing facilities

Following the acquisition of Wickes, which was financed from sources in the
banking market in the United Kingdom, the group embarked upon a programme to
diversify its debt sources and lengthen the maturity profile of debt repayments.
In December 2005, the group raised $400 million through a private placement of
fixed rate guaranteed unsecured notes (the 'Notes') with a broad range of US
financial institutions. As a result of strong demand for the Notes the group was
pleased to raise $150 million more than its initial target. The debt comprises
of $200 million of Notes repayable in 7 years and the remainder in 10 years
resulting in bullet repayments becoming due in 2013 and 2016.

The net proceeds, which were received on 26 January 2006, have been swapped into
Sterling at variable rates, and have been used to refinance approximately half
of the group's existing £500 million term loan reducing it to £270 million. The
term loan is now due to be repaid in four £43.2 million and two £48.6 million
tranches six monthly commencing 30 June 2007, with the final payment due on 10
February 2010. The revolving credit facility is available to the group until 10
February 2010.

As part of the process of reviewing the terms and structure of its debt, the
group has also reached agreement with its banking syndicate to bring the
financial covenants on the remaining £970 million of its UK bank facility in
line with those on the US private placement, increasing the group's flexibility.

The transaction exposes the group to interest rate and currency risks.  To
address these risks the group entered into five cross currency swaps on 2
December 2005.  These fix the amounts receivable and payable under the private
placement to a set Sterling value of £231 million and the interest rate swaps
convert the fixed interest liability to a floating interest rate based upon the
six month LIBOR rate.  The overall effective borrowing cost of the group is
slightly below 6%.

Liquidity

As at 31 December 2005 the group had bank borrowings totalling £994 million,
consisting of a term loan of £500 million and £494 million of draw down on the
revolving credit facility.  The peak level of daily borrowings on a cleared
basis in the year to 31 December 2005 was £1,117 million.  Throughout the year
the maximum month end cleared borrowings were £1,036 million.

The group's borrowings are subject to covenants set by the lenders that must be
complied with.   Covenant compliance is measured semi-annually using financial
results prepared under UK GAAP extant at 31 December 2004. During 2005 there
were no breaches of the covenant limits.  The key financial covenants are the
ratio of net debt to earnings before interest, tax, depreciation and
amortisation 'EBITDA' and the ratio of earnings before interest, tax and
amortisation 'EBITA' to net interest.   At 31 December 2005 under UK GAAP the
group achieved net debt to EBITDA of 2.9x and interest cover of 4.9x


Income statement For the year ended 31 December 2005

                                                  Non - Wickes Identified impact            2005           2004
                                                       related         of Wickes
                                                                    (Note below)              
                                                            £m                £m              £m             £m

Revenue                                                1,881.0             759.8         2,640.8        1,828.6

Operating profit                                         208.3              59.7           268.0          217.7

Finance income                                             0.4                 -             0.4            0.5

Finance costs                                           (10.8)            (50.9)          (61.7)         (11.7)

Profit before taxation                                   197.9               8.8           206.7          206.5

Income tax expense                                      (61.9)             (4.0)          (65.9)         (64.4)

Profit for the year                                      136.0               4.8           140.8          142.1


Earnings per ordinary share

Basic                                                                                     116.8p         124.4p

Diluted                                                                                   115.6p         123.0p

Total declared dividend per ordinary share                                               34.0p            30.5p


All results relate to continuing operations.

Note:  The column headed 'Identified impact of Wickes' includes the
post-acquisition result of Wickes, together with the synergies that have arisen
from specific integration projects, and the additional finance related costs
incurred by the group as a result of the acquisition.  Further details are given
in note 11.


Statement of recognised income and expense

For the year ended 31 December 2005
                                                                                            2005             2004
                                                                                              £m               £m

Actuarial gains and losses on defined benefit pension scheme                                 2.4           (32.5)
Losses on cash flow hedges                                                                 (5.0)                -
Tax on items taken directly to equity                                                       10.1              2.0

Net income recognised directly in equity                                                     7.5           (30.5)
Transferred to income statement on cash flow hedges                                          0.5                -
Tax on items transferred from equity                                                       (0.1)                -
Profit for the year                                                                        140.8            142.1

Total recognised income and expense for the year                                           148.7            111.6



Balance sheet As at 31 December 2005
                                                                                           2005            2004.
                                                                                             £m               £m
ASSETS
Non-current assets
Property, plant and equipment                                                             445.2            340.7
Goodwill                                                                                1,273.8            304.8

Other intangible assets                                                                   162.5                -
Derivative financial instruments                                                            1.3                -
Investment property                                                                         4.1              4.2
Deferred tax asset                                                                         42.9             38.5

Total non-current assets                                                                1,929.8            688.2

Current assets
Inventories                                                                               263.2            200.6
Trade and other receivables                                                               322.4            287.8
Cash and cash equivalents                                                                  56.1            116.9

Total current assets                                                                      641.7            605.3

Total assets                                                                            2,571.5          1,293.5



Balance sheet (continued)  As at 31 December 2005
                                                                                             2005          2004
                                                                                               £m            £m
EQUITY AND LIABILITIES
Capital and reserves
Issued capital                                                                               12.1          12.1
Share premium account                                                                       165.6         159.2
Revaluation reserve                                                                          26.3          26.7
Hedging reserve                                                                             (3.2)             -
Own shares                                                                                  (8.1)             -
Accumulated profits                                                                         565.3         452.6

Total equity                                                                                758.0         650.6

Non-current liabilities
Interest bearing loans and borrowings                                                     1,027.4         137.8
Retirement benefit obligation                                                               142.8         128.3
Long-term provisions                                                                         13.2             -
Amounts due to subsidiaries                                                                     -             -
Deferred tax liabilities                                                                     72.6          38.3

Total non-current liabilities                                                             1,256.0         304.4

Current liabilities
Interest bearing loans and borrowings                                                         2.9           0.8
Unsecured loan notes                                                                          8.2           9.0
Derivative financial instruments                                                              5.1             -
Trade and other payables                                                                    482.3         293.4
Tax liabilities                                                                              33.3          22.6
Short-term provisions                                                                        25.7          12.7

Total current liabilities                                                                   557.5         338.5

Total liabilities                                                                         1,813.5         642.9

Total equity and liabilities                                                              2,571.5       1,293.5



Cash flow statement For the year ended 31 December 2005
                                                                                              2005          2004
                                                                                                £m            £m

Operating profit                                                                             268.0         217.7
Adjustments for:
 Depreciation of property, plant and equipment                                                54.5          33.4
 Other non cash movements                                                                      2.4         (0.3)
 Loss / (gain) on disposal of property, plant and equipment                                    0.7         (0.4)

Operating cash flows before movements in working capital                                     325.6         250.4
 Decrease/(increase) in inventories                                                           12.4        (15.7)
 (Increase) in receivables                                                                   (1.5)        (14.3)
 Increase in payables                                                                          2.8          28.3
 Cash payments to the pension scheme in excess of the charge to                             (28.5)        (25.8)
profits

Cash generated from operations                                                               310.8         222.9
Interest paid                                                                               (38.6)         (8.5)
Income taxes paid                                                                           (47.0)        (54.2)

Net cash from operating activities                                                           225.2         160.2

Cash flows from investing activities
Interest received                                                                              0.4           0.5
Proceeds on disposal of property, plant and equipment                                          1.4           2.2
Purchases of property, plant and equipment                                                  (71.6)        (67.3)
Acquisition of businesses net of cash acquired (note 29)                                 (1,045.5)        (39.0)

Net cash used in investing activities                                                    (1,115.3)       (103.6)

Financing activities
Proceeds from the issue of share capital                                                       6.4          90.6
Purchase of own shares                                                                       (8.1)             -
Payment of finance leases liabilities                                                        (2.3)         (1.0)
Repayment of unsecured loan notes                                                            (0.8)         (3.2)
Increase/(decrease) in bank loans                                                            872.7        (30.0)
Dividends paid                                                                              (38.6)        (30.0)

Net cash from financing activities                                                           829.3          26.4

Net (decrease)/increase in cash and cash equivalents                                        (60.8)          83.0
Cash and cash equivalents at beginning of year                                               116.9          33.9

Cash and cash equivalents at end of year                                                      56.1         116.9



Notes to the preliminary announcement

     
1.   The group's principal accounting policies, as set out in its interim 
     statement of 5 September 2005, which is available on the company's website 
     www.travisperkins.co.uk, have been applied consistently.

2.   The proposed final dividend of 23.0 pence will be paid on 16 May 2006 to 
     shareholders registered as members of the company at close of business on 
     21 April 2006.

3.   The financial information above does not constitute the company's statutory 
     accounts. Statutory accounts for the years ended 31 December 2005 and 31 
     December 2004 have been reported on without qualification by the company's 
     auditors and without reference to S237 (2) or (3) of the Companies Act 
     1985. Statutory accounts for the year ended 31 December 2004 have been 
     prepared under UK GAAP and have been delivered to the Registrar of 
     Companies. Whilst the financial information included in this preliminary 
     announcement has been computed in accordance with IFRS this announcement 
     does not itself contain sufficient information to comply with IFRS.  The 
     statutory accounts for the year ended 31 December 2005, prepared under IFRS 
     will be delivered to the Registrar in due course.
     
4.   This announcement was approved by the Board of Directors on 7 March 2006.
     
5.   It is intended to post the annual report to shareholders on 21 March 2006 
     and to hold the Annual General Meeting on 24 April 2006. Copies of the 
     annual report prepared under International Financial Reporting Standards
     (IFRS) will be available from the Company Secretary, Travis Perkins plc, 
     Lodge Way House, Harlestone Road, Northampton NN5 7UG from 21 March 2006 or 
     are available through the internet on our website at 
     www.travisperkins.co.uk

6.   Free cash flow
                                                                                          2005          2004
                                                                                            £m            £m

Net debt at 1 January                                                                   (30.7)       (147.9)
Net debt at 31 December                                                                (982.4)        (30.7)

Movement in net debt                                                                   (951.7)         117.2
Wickes finance leases acquired                                                            20.0             -
Dividends                                                                                 38.6          30.0
Net cash outflow for expansion capital expenditure                                        42.2          29.3
Net cash outflow for acquisitions                                                      1,045.5          39.0
Own shares purchased                                                                       8.1             -
Shares issued                                                                            (6.4)        (90.6)
Derivative financial instruments included in borrowings                                    1.3             -
Special pension contributions                                                             28.5          25.8

Free cash flow                                                                           226.1         150.7

     
7.   Net debt
                                                                                          2005          2004
                                                                                            £m            £m

Net debt at 1 January                                                                   (30.7)       (147.9)
(Decrease) / increase in cash and cash equivalents                                      (60.8)          83.0
Cash flows from debt                                                                   (871.9)          34.2
Fair value of derivatives                                                                (1.3)             -
Finance charges netted off bank debt                                                       2.3             -
Finance leases acquired                                                                 (20.0)             -

Actual net debt 31 December                                                            (982.4)        (30.7)

Debt to acquire Wickes (see Note 29)                                                               (1,009.7)
Finance leases acquired                                                                               (20.0)
Cash acquired                                                                                            6.7

Proforma net debt at 31 December 2004                                                              (1,053.7)
Net debt at 31 December 2005                                                                         (982.4)

Net debt reduction in 2005                                                                              71.3
     

8.   Business and geographical segments

For management purposes, the group is currently organised into two operating
divisions - Builders Merchanting and DIY Retailing, both of which operate
entirely in the United Kingdom. These divisions are the basis on which the group
reports its primary segment information. Segment results, assets and liabilities
include items directly attributable to segments as well as those that can be
allocated on a reasonable basis.  Unallocated items comprise mainly interest
bearing loans, borrowings and expenses and corporate assets and expenses.  There
are no inter-segment sales or charges.
                                              Builders DIY retailing   Eliminations       Consolidated
                                           merchanting
                                                    £m            £m             £m                 £m

Revenue                                        1,881.0         759.8              -            2,640.8

Result
Segment result                                   213.3          55.9              -              269.2

Unallocated corporate expenses                                                                   (1.2)
Net finance costs                                                                               (61.3)

Profit before taxation                                                                           206.7
Taxation                                                                                        (65.9)

Profit for the year                                                                              140.8

Segment assets                                 1,186.1       1,235.2              -           2, 421.3
Unallocated corporate assets                                                                     150.2

Consolidated total assets                                                                      2,571.5

Segment liabilities                            (425.3)       (213.5)              -            (638.8)
Unallocated corporate liabilities                                                            (1,174.7)

Consolidated total liabilities                                                               (1,813.5)

Consolidated net assets                          760.8       1,021.7

Capital expenditure                               54.1          17.5                              71.6
Depreciation and impairment losses                39.4          15.1                              54.5

In 2004 the group had only one segment, builders merchanting.

     
9.   Return on capital
                                                                                     2005          2004
                                                                                       £m            £m

Operating profit                                                                    268.0         217.7

Opening net assets                                                                  650.6         478.2
Goodwill written off                                                                 92.7          92.7
Net borrowings                                                                       30.7         147.9
Pension deficit                                                                     128.3         121.6

Opening capital employed                                                            902.3         840.4

Closing net assets                                                                  758.0         650.6
Goodwill written off                                                                 92.7          92.7
Net borrowings                                                                      982.4          30.7
Pension deficit                                                                     142.8         128.3

Closing capital employed                                                          1,975.9         902.3

Average capital employed*                                                         1,855.3         871.5

Return on capital employed                                                          14.4%         25.0%


*On 10 February 2005, borrowings and therefore capital employed were
substantially increased.  Therefore, average capital employed for 2005 has been
calculated using £902.3 million for 41 days and £1,975.9 million for 324 days.
     

10.  Earnings before interest, tax and depreciation

                                                                                             2005       2004
                                                                                               £m         £m

Profit before taxation                                                                      206.7      206.5
Finance costs                                                                                61.3       11.2
Depreciation and impairments                                                                 54.5       33.4

EBITDA under IFRS                                                                           322.5      251.1

Adjustments to reverse the IFRS effect and include Wickes pre-acquisition EBITDA              4.4

EBITDA as defined in UK banking agreements                                                  326.9

Net debt under UK GAAP                                                                      950.7

Net debt to EBITDA                                                                           2.9x

     
11.  Identified impact of Wickes

In the ten and a half months to 31 December 2005, Wickes contributed operating
profit of £55.9 million and profit before tax of £52.7 million to the group's
2005 profits. In addition to the profit before tax, the Wickes acquisition
contributed £4.7 million of identifiable synergy benefits (arising from specific
integration projects) to the existing builders merchants business and increased
group finance costs by £48.6 million.  The total pre-tax identifiable impact of
Wickes was £8.8 million as disclosed in the income statement.

     
12.  Finance costs
                                                                                        2005          2004
                                                                                          £m            £m

Interest on bank loans and overdrafts                                                 (53.1)         (7.5)
Interest on unsecured loans                                                            (0.4)         (0.6)
Interest on obligations under finance leases                                           (2.0)         (0.8)
Unwinding of discounts in provisions                                                   (0.9)             -
Net loss on re-measurement of derivatives at fair value                                (0.6)             -
Amortisation of issue costs of bank loans                                              (1.0)             -

Interest payable                                                                      (58.0)         (8.9)
Other finance costs - pension schemes                                                  (3.7)         (2.8)

Finance costs                                                                         (61.7)        (11.7)
Interest on bank deposits                                                                0.4           0.5

Net finance costs                                                                     (61.3)        (11.2)

Interest cover                                                                           4.9          25.9



Interest cover is calculated by dividing operating profit of £268.0 million
(2004: £217.7 million) by the combined value of interest on bank loans,
unsecured loans, finance leases and interest on bank deposits, which total £55.1
million (2004: £8.4 million).




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