Travis Perkins PLC
15 October 2007
TRAVIS PERKINS PLC
15 October 2007
TRAVIS PERKINS PLC
Trading update - Continued momentum
The Group is hosting an Investor and Analyst visit in London today and provides
the following trading update:
Despite early signs of the expected reduction in market growth, our business
continues to make good progress in the second half of 2007, with further gains
in market share, an acceleration of network expansion and improved profitability
and returns.
In total, our group turnover to the end of September is up 11.3% compared to the
equivalent period in 2006. Overall, trading continues to be in line with our
expectations with both the merchanting and retailing businesses performing well.
For the first nine calendar months of 2007, total turnover in our merchanting
division is up by 12.5%, with like for like turnover per trading day up by 9.2%.
Total turnover in the general merchanting business is up by 11.7% with
like-for-like turnover per trading day up by 9.4%. For this period, our
specialist merchanting business has total turnover up by 14.1% and like-for-like
turnover per trading day up by 8.9%. These increases represent gains in
like-for-like, organic and total market share as our businesses are increasingly
recognised by customers as a better place to get building materials.
Trading at Wickes continues to progress in line with our expectations. Total
turnover for the 39-week trading period ended on September 29 was up by 8.5%.
For this period, like-for-like sales per trading day were up by 5.7% with core
products up by 8.1% and showroom sales lower by 6.4%. Our retailing business has
also grown its like-for-like and total market share in this period, with this
rate of gain increasing in the second half. As expected, gross margins are
slightly below the comparable period in 2006, mainly reflecting continued price
competition in key value lines.
In the nine months to the end of September we expanded our business and now
trade from 1065 locations. In this period we added to our network a net 40 new
merchanting branches and 3 new Wickes stores, increasing Wickes' selling space
by 5.6%. In addition, we recently entered into contracts to acquire a further 7
new retail outlets which are expected to open before the key Easter trading
period in 2008. Our pipeline of further opportunities for network expansion
remains good and we continue to examine options for entering adjacent channels
for building material distribution.
The group continues to exercise tight control over costs and operational cash
flow remains good.
In the last 2 months £39m has been spent on shares for both past and current
share schemes. This provides a hedge against market movements between option and
exercise price.
Whilst lead indicators are pointing to a slowing of market growth, in 2007 we
have increased the resilience of our business to variations in market growth
through programmes designed to continue gains in both like-for-like and total
market share and drive further gains in productivity. With these, and our
traditional strengths of cost vigilance and tight cash management, we are
confident of making further progress in 2008 and beyond.
Enquiries:
Geoff Cooper, Chief Executive
Travis Perkins PLC Tel: +44 (0)1604 683 222
Paul Hampden Smith, Finance Director
Travis Perkins PLC Tel: +44 (0)1604 683 222
David Bick/Mike Feltham/Mark Longson
Square 1 Consulting LTD Tel: +44 (0)20 7929 5599
This information is provided by RNS
The company news service from the London Stock Exchange
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