Travis Perkins PLC
13 December 2007
Travis Perkins PLC
13 December 2007
TRAVIS PERKINS PLC
Trading update - Increased resilience and business breadth
The Group provides the following trading update ahead of the close of its
financial year on December 31, 2007:
Our business has made excellent progress in the second half of 2007, with
continued gains in like-for-like market share, an acceleration of network
expansion, the acquisition of a seventh brand and improved profitability and
returns. In total, group turnover to the end of November was up 12.1% compared
to the equivalent period in 2006. Overall, trading continues to be in line with
our expectations with both the merchanting and retailing divisions performing
well.
For the first eleven calendar months of 2007, total turnover in our merchanting
division was up by 13.2%, with like-for-like turnover per trading day up by
9.2%. Total turnover in the general merchanting business was up by 12.2% with
like-for-like turnover per trading day up by 9.4%. For this period, our
specialist merchanting business saw total turnover up by 14.9% and like-for-like
turnover per trading day up by 8.8%. These increases represent gains in
like-for-like, organic and total market share as our businesses are increasingly
recognised by customers as the best place to get their building materials.
In our retail division, trading at Wickes continues to progress in line with our
expectations. Total turnover for the 48-week trading period ended on December 1
was up by 9.4%. For this period, like-for-like sales per trading day were up by
5.4% with core products up by 7.7% with showroom sales lower by 5.7%. 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. A strategy of
remaining competitive against discounting by some competitors meant that as
expected, retail gross margins are slightly below the comparable period in 2006.
In the eleven months to the end of November we expanded our business and now
trade from 1,119 locations. In this period we added to our network a net 97 new
outlets including 60 new merchant branches (including 18 Benchmarx), 31 Tile
Giant stores and 6 new Wickes stores, increasing Wickes' gross selling space by
6.9%. Our pipeline of further opportunities for network expansion remains
strong.
The Group continues to exercise tight control over costs and operational cash
flow remains good.
In the last 4 months £52m has been spent on shares for both past and current
share schemes. This hedging against market movements between the option and
exercise price is slightly earnings enhancing in 2008.
Going into 2008, the market outlook bears similarities to conditions seen for
the early part of 2005. However, over the last three years, both the competitive
strength of our brands and resilience of the group have been enhanced.
Improvements have been achieved in many areas, including the breadth and
positioning of the portfolio, product range and pricing, customer service
levels, procurement, supply chain and overhead structure.
We have prepared our business for more difficult markets in the early part of
next year, and are confident that our businesses will continue to outperform.
Geoff Cooper, Group Chief Executive said;
'Whilst we anticipate lower growth in the immediate period ahead we have shown
we can out-perform the competition and expect to continue to take further market
share.'
- ends -
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 683 111
David Bick/Mike Feltham
Square1 Consulting Limited Tel: +44 (0) 207 929 5599
This information is provided by RNS
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