Interim Management Statement

RNS Number : 8714X

Travis Perkins PLC

14 December 2010

 



14 December 2010

TRAVIS PERKINS PLC

("Travis Perkins" or "the Company")

Trading update - continuing sales growth and market share gains across both divisions

Travis Perkins, the leading UK builders' merchant, today issues this Interim Management Statement for the period to 13 December 2010.

In total, Group turnover for the eleven months to the end of November was up 6.5% compared to the equivalent period in 2009. We continue to gain like-for-like market share in both our merchanting and retail divisions.

For the first eleven months of 2010 total turnover in our merchanting division was up 8.3% with like-for-like turnover per trading day up 7.8%. Like-for-like turnover per trading day for the last two months to 30 November increased 10.5%. Gross margins for the second half of the year to date are in line with the trend of the first six months, slightly below last year.

In our general merchanting business, total turnover for the first eleven months of 2010 was up 7.6%, with like-for-like turnover per trading day up 7.2%.  For this period our specialist merchanting business saw total turnover increase 9.4% with like-for-like turnover per trading day up by 8.7%.

In Wickes, total turnover for the 47 week trading period to 27 November was up 2.7%.  For this period like-for-like turnover per trading day was up 0.6%, with core products down by 2.1%, but kitchen and bathroom sales up 12.5 %.  For the last eight weeks the total like-for-like turnover per day was up 4.2% with some evidence of buying ahead of the VAT increase.  Gross margins for second half of the year to date are ahead of last year continuing the trend of the first six months.

Whilst the most recent two months' trading has seen a continuation of both satisfactory market growth and market share gains, the exceptionally poor weather at the begining of December is expected to have some impact on our sales trends and financial performance for the last month of the year.

With our continuing focus on cash generation, underlying net debt, before the impact of the acquisition of The BSS Group plc, has reduced in the fourth quarter from the £410m reported at 30 June 2010.  There has been no material change to the financial condition of the business.

These trends mean that our outlook for the year as a whole remains unchanged from that stated in our June interim results announcement made in July.

As announced on 10 December, our acquisition of The BSS Group plc is expected to complete later today, 14 December.

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Enquiries:
Geoff Cooper, Chief Executive
Paul Hampden Smith, Finance Director
Travis Perkins PLC	[phone]
David Bick/Mike Feltham/Mark Longson
Square1 Consulting Limited	[phone]

 

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