Travis Perkins is taking a cautious outlook despite sales growth

 
Courtney Goldsmith
Follow Courtney
New Home Sales Increase Despite Rising Mortgage Rates
Travis Perkins slipped out of the FTSE 100 last year (Source: Getty)

Builders' merchant Travis Perkins' trading was on track in the third quarter, but it has warned it remains "cautious" about the market outlook.

Like-for-like sales rose 4.1 per cent in the third quarter with total sales increasing 3.5 per cent, the firm said in a trading update.

Sales price inflation across the group, which owns the Wickes DIY chain, was 3.9 per cent as the company passed costs through to customers following the slump in the pound after the Brexit vote.

Shares in the company that last year slipped out of the FTSE 100 were bolstered, rising 3.33 per cent to 1,521p in morning trading.

Chief executive John Carter said Travis Perkins had delivered good performance against a challenging market backdrop as consumer spending is squeezed by inflation.

"Volumes were broadly flat with inflation driven price increases the main component of our like-for-like growth."

Carter continued: "Trading conditions in our markets continue to be mixed, with consumer discretionary spending under pressure from rising inflation and on-going uncertainty in the UK economy.

We maintain our confidence in the long-term fundamental drivers of our markets, and this underpins our plan to invest in our businesses to improve our customer propositions and extend our competitive advantage.

The company is investing in enhancing its digital capabilities and is also working to jolt its plumbing and heating business back to life, which Carter said had seen positive progress in the quarter.

Read more: Travis Perkins' share price heads south as profits plunge

Related articles