TRADING UPDATE

RNS Number : 7118O

Travis Perkins PLC

02 July 2010

 



Travis Perkins plc

("Travis Perkins plc", or "the Group")

Trading Update

For the period from 1 January 2010 to 30 June 2010

Strong rebound continuing

Travis Perkins plc, one of the UK's leading builders' merchant and home improvement retailers, today issues this trading update for the six months since 31 December 2009.

In our Interim Management Statement in May, we reported a strong rebound in trading following a slow start in the first two months of the year. This trend has continued through the remainder of the first half and we now expect to report a result for the six months to 30 June 2010 ahead of management expectations. Group revenue for the six months ended 30 June 2010 was up by 4.7%, with like-for-like sales up 3.4%.

Like-for-like turnover in the last two months is 10.3% ahead in Merchanting and in the last 9 weeks is 1.6% ahead in Retail.

Merchanting

For the six months ended 30 June 2010, Merchanting Division revenue increased by 6.1% including like-for-like growth of 5.3%, compared to the same period in 2009. The increase in like-for-like sales was split 4.5% for General Merchanting and 5.8% for Specialist Merchanting.

Gross margins remained slightly lower than last year.

Retail

Revenue for our Retail Division, on a delivered basis, for the 26-week period ended 30 June 2010, increased by 2.1%, with like-for-like sales declining by 0.4% compared to the same period in 2009.

Wickes continues to gain market share and maintained gross margins over this period. As previously indicated, the rate of market share gain will begin to abate through 2010 as Wickes' new strategy in the kitchen and bathroom market begins to mature.

Dividend

Given our pleasing trading performance in the first half we now anticipate recommencing the payment of dividends although initially we will be basing this off a conservative level of cover. In the absence of unforeseen circumstances we expect to declare an interim dividend of 5 pence per share when we announce our interim results for the six months to 30 June 2010 on 29 July 2010. Our objective is to grow the dividend ahead of earnings to reduce the current level of cover over the medium term.

Geoff Cooper, Chief Executive, commented:

"We are pleased with the overall progress the Group has made in the first six months of the year. Current trading continues to be ahead of management expectations and we now have the confidence to contemplate recommencing paying dividends. We expect to give an update on our discussions with The BSS Group shortly."

- ends -

Enquiries:

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

 

END

 

 

TSTKKBDPQBKKCOK