Travis Perkins keeps target as revenue rises

City A.M. Reporter
Builders merchant Travis Perkins said turnover for the 11 months to the end of November rose 6.5 per cent and kept its outlook unchanged, as it prepares to complete its takeover of BSS Group.

The company also saw an improvement in sales trends in the last two months to 30 November, although it expected the poor weather in December "to have some impact on our sales trends and financial performance for the last month of the year."

It added, however, that it was keeping its outlook for the full year unchanged.

Total turnover in its merchanting division rose 8.3 per cent while like-for-like turnover per trading day was up 7.8 per cent. Turnover per trading day for the last two months to 30 November jumped 10.5 per cent.

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, said the company.

In Wickes, total turnover for the 47 week trading period to November 27 was up 2.7 per cent with like-for-like turnover per trading day up 0.6 per cent.

In the last eight weeks, however, like-for-like turnover per trading day in Wickes rose 4.2 per cent as shoppers showed evidence of buying ahead of the government's VAT increase, the company said.

Travis Perkins also expects to complete its acquisition of BSS Group. When completed, the deal will create the country's biggest plumbing and heating trade and retail distribution. Travis Perkins announced the deal for £558m in July.

The company also said its underlying net debt, before the acquisition of BSS Group, fell in the fourth quarter from the £410m reported on 30 June.