Travis Perkins re-opens more branches

The move also gives smaller, local trade customers improved access to products.

TP also said revenue performance in its Wickes and Toolstation businesses has continued to improve with the businesses responding at pace to the changing nature of the trading environment, reconfiguring to significantly increase the capability of distribution networks to cope with the “high levels of consumer demand”.

The group has been operating a “service-light” model since the government’s announcement of restrictions related to the coronavirus pandemic on March 23.

Throughout the early weeks around a third of its total merchanting branches were operating, primarily running call and collect or direct delivery services.

In the first three weeks of April in this service-light model, Group total revenue was approximately one-third of the same period in 2019 on a comparable basis.

Overall, the combination of current trading levels and the mitigations taken to control the overhead cost base means that for the first month of lockdown the Group experienced an overhead cash outflow of around £50m.

“With more Merchanting branches beginning to open with a corresponding increase in sales volume and the continued progression of trading in the Wickes and Toolstation businesses, the Group expects this cash outflow to reduce over the coming weeks,” the company said.

Wickes and Toolstation have been operating across the vast majority of their branch networks, with branches acting as fulfilment centres for transactions completed via digital channels for either direct delivery, or with essential items being available for collection within a designated time slot.

The Group is benefitting from the business rates holiday, a saving of around £90m for the Group on an annualised basis.

The closure of branches, particularly across the merchanting businesses, has led to the furloughing of both front line branch teams and colleagues in support functions.

Altogether around half of the Group’s 30,000 staff were furloughed (on full pay) for the first three weeks of the lockdown.

“We continue to adapt our operations, applying stringent social distancing and using technology to enable contactless operations, and we are therefore able to respond to the Government’s call to ensure that the construction industry can continue to deliver on crucial programmes and projects and be an engine for future economic recovery,” said Nick Roberts, TP chief executive.

“As we move forward we will continue to adjust our operations, with our foremost priority to keep colleagues and customers safe and the industry supplied with the materials it needs.”

In recent weeks, the Group has been working closely with customers, suppliers, trade bodies and the UK Government to develop safe-working protocols which can be applied across the construction supply chain to enable more activity to be carried out safely under lockdown.