Travis Perkins delivers solid Q3, will demerge Wickes by Q2, 202022 October 2019
Travis Perkins has delivered a “solid” Q3 performance, despite trading conditions becoming incrementally more challenging through the course of the summer as a result of the on-going market uncertainty.
Total Group sales grew by 3.8% in Q3, and by 3.4% on a like-for-like basis.
“Though the Group maintains a cautious outlook for the near-term, full year performance remains in line with our expectations,” said CEO Nick Roberts.
The Wickes retail and Toolstation divisions recorded total Q3 like-for-like sales growth of 8.3% and 21.3% respectively, compared to the same period a year ago. The core merchanting division saw 1.6% sales growth. In the year-to-date, the Group recorded total sales growth of 3.6%.
Travis Perkins’ merchanting chain performed particularly well in heavyside categories. Toolstation continued its impressive like-for-like and total sales growth, underpinned by the continued expansion of the UK branch network to over 370 branches, while its five-minute click & collect service is improving convenience for customers.
In the quarter, the Group acquired a controlling share of the Toolstation Europe business, enabling the Group to accelerate investments to expand the Toolstation network in Europe.
The strong performance of Wickes continued in Q3, with further market share gains in the home Improvement market through core DIY categories and in the Kitchen & Bathroom showroom.
The process to demerge Wickes from the Travis Perkins Group is on track, both in terms of the separation of the business from the Group to increase its autonomy and the regulatory process required. The Group aims for the demerger to be completed in Q2 2020.
But the group has decided to pause the sale process of its plumbing and heating business due to the current “unprecedented level of uncertainty”.
Across the Group, year-to-date sales price inflation has been lower than in previous years, at around 1.5%, primarily concentrated in the merchanting businesses.